The Directorate General of Customs Valuation Karachi has revised customs values on the import of mineral grease from China, India, Korea, UAE and Iran. According to the valuation ruling number 830 of 2016 issued here on Thursday, the customs values of mineral grease were determined under Section 25-A of the Customs Act, 1969 vide Valuation Ruling No, 331/2011 dated 02-06-2011. Since the said ruling was considerably old and needed updating to reflect current international prices, the same was taken up for fresh determination.
The new ruling has superseded Valuation Ruling No 331/2011 dated 02-06-2011. The ruling said that the valuation methods given in Section 25 of the Customs Act. 1969 were applied sequentially to address the valuation issue at hand. Transaction Value Method under Sub-Section (1) of Section 25 of the Act, 1969 was found inapplicable because required information under the law was not available. The import data of the relevant period, pertaining to instant goods of Saudi Arabian, UAE, Korean and Chinese origins was analysed to determine Customs Value under Sections 25(5) and (6) of the Customs Act, 1969. The declared/assessed prices of Mineral Grease from Saudi Arabia, UAE, Korea and China origins were analysed and much variation was observed, the data provided some references; however, it was found that the same cannot be solely relied upon due to absence of absolute demonstrable evidence of qualities, commercial levels etc and also it was observed that importers usually provide misleading descriptions while declaring their goods, as other types and verities of similar goods to avoid tile valuation ruling. Information available was hence found inappropriate and insufficient for correct determination of value. Market enquiry for application of deductive methods of valuation under section 25(7) of the Customs Act, 1969 was then carried out for verification/determination of customs values of various kind of Mineral Grease. It was found that two brands of' Chinese and Korean origin ie "Sinopee" and "Zic" are known brands and their market values are higher than other brand of same origin. However, determination of customs values of all types of Mineral Grease could not be based solely upon this method either. As regards 25(8) of the Customs Act, 1969 since detail of conversion cost of goods produced in the country of export are not available, the provision was not found applicable.
Based upon these findings, with particular emphasis upon the change in prices reflected in specific categories/grades, customs values of Mineral Grease (HS Code 2710.1992) are determined under Section 25(9) of the Customs Act 1969, it said.
Stakeholders' participation in determination of customs values: Meeting with stakeholders including importers and representatives of trade bodies was held on 05.04.2016 to discuss the current international prices of the subject goods. The viewpoint of all participants was heard thoroughly and considered to arrive at fair value.
In cases where declared/transaction values are higher than the customs values determined in this Ruling, the assessing officers shall apply those values in terms of Sub-Section (I) of Section 25 of the Customs Act, 1969. Transactional value under Section 25(1) of the Custom Act 1969 shall be applied to the imports made by the manufacturers of branded Mineral Grease of Shell, Total, Caltex, Exxon, B.P., Mobil, Fuesh and SKF brand. If Mineral Greases of aforesaid brands are imported by any one other than the manufacturer itself than assessment shall be made at par in accordance with the transactional values of manufacturer's of the respective brand. In case of consignments imported by air, the assessing officer shall take into account the differential between air freight and sea freight while applying the customs values determined in this ruling.
The values determined vide this ruling shall be the applicable customs value for assessment of subject imported goods until and unless it is rescinded or revised by the competent authority in terms of Sub-Sections (1) or (3) of Section 25-A or section 25-D of the Customs Act, 1969.
The Collectors of Customs may ensure that the values given in the ruling for the given description of goods are applied by the relevant staff without fail. Any anomaly observed may kindly be brought to the notice of this Directorate General immediately for redressal, it added.
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