The Directorate General of Customs Valuation Karachi has revised customs values on the import of tyres and tubes of cars, light trucks, motorcycles and other vehicles from Japan, India and China.
Sources told Business Recorder here on Saturday that the directorate has issued a new valuation ruling number 985 of 2016 to change customs values of tyres & tubes. The directorate has also superseded Valuation Ruling No. 812/2016 dated 28.1.2016.
The Directorate General of Customs Valuation Karachi has also revised customs values on the import of tyres and tubes from other foreign origins as well.
The directorate said that the customs values of tyres & tubes were determined vide Valuation Ruling No.812/2016 dated 28.01.2016. The trade community has been demanding revision of prices of this commodity owing to downward trend in its prices in international market and in the light of order of Sindh High Court in CP 6918 dated 13.11.2015. Therefore an exercise was undertaken to re-determine the customs value of the subject goods under Section 25A of the Customs Act, 1969.
A meeting with stakeholders was held on 04.10.2016 which was attended by commercial importers including office-bearers of Pakistan Tyre Importers and Dealers Association (PTIDA). All the participants had been requested to submit the documents including copy of GD & invoices of imports during last three months showing factual value, website names and e-mail addresses of known foreign manufacturers or the item in question through which the actual current value can be ascertained, copy of contracts made/ LCs opened during the last three months showing the values of the item in question, copy of sales tax invoices issued during last three months showing the difference in price (excluding duty and taxes) to substantiate that the benefit of difference in price is passed on to the local buyers.
No substantial evidence was submitted by the stakeholders to support their claim, the ruling said.
Similarly, in order to ascertain the correct value, local market enquiry was conducted from Karachi market as well from Lahore through Directorate of Valuation, Lahore. The Clearance Collectorates as well as importers of Indian origin tyres were asked to furnish the import documents of consignments of tyres and tubes from India along with their B/Ls showing shipping bill number and date. No relevant data has been received from the Clearance Collectorates thus far. One importer submitted a few relevant B/Ls showing shipping bill number and date. These were checked through icegate.gov.in and the worked out values was considered for determination of Indian origin tyres. An importer submitted representation for determination of customs values of tractor tyres of Belarus origin which has been given due consideration. The contentions of Pakistan Tyre Importers and Dealers Association (PTIDA) were accounted for, wherever reasonable. The values of only those types of tyers have been notified which are frequently imported as evident from the clearance database, the FBR said.
The valuation methods given in Section 25 of the Customs Act, 1969 were applied sequentially to address the valuation issue in hand. Transaction value method under Sub-Section (1) of Section 25 of the Act, 1969 was found inapplicable because required information was not available as per law. Identical/similar goods value methods provided in Sub-Sections (5) & (6) of Section 25 ibid were examined for applicability to the valuation issue in the instant case which provided some reference values of the subject goods but the same could not be relied on due to variation in the same. Market enquiry as envisaged under Section 25(7) of the Customs Act, 1969 from Karachi market as well from Lahore through Directorate of Valuation, Lahore was conducted which provided some reference values. The computed method as provided under Section 25(8) of the Customs Act 1969 could not be applied as the conversion costs from constituent material at the country of export were not available. Finally, import data available was analysed and international prices from various sources on internet were also checked. All the information so gathered was evaluated and analysed for the purpose or determination of customs values. Consequently, the customs value of tyre and tubes have been determined under Section 25(9) or the Customs Act, 1969.
Customs values of tyre & tubes hereinafter specified, shall be assessed to duty/ taxes on the customs values mentioned against them as Annex-"A" which forms integral part of the valuation ruling along with laid down conditions. If a radial tyre is imported which is not covered in this ruling and whose specifications are similar to normal tyre except for being radial, such tyres may be assessed at 25% higher than the normal tyre.
The ruling said that where only tyres are imported, other than tubeless, deduction of 5% shall be allowed on ruling value. The value of tyres with different "ply" shall be assessed by adding or subtracting from tile determined value @5% per two ply rating.
The discount of 5% is admissible for import of tyres & tubes through land route on C&F values determined by the Directorate General.
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 (1) of Section 25 of the Customs Act, 1969. In case of import of tyres of specifications not covered in this valuation ruling, the same shall be assessed by the Clearance Collectorates under Section 25 of the Customs Act 1969 or the same may be forwarded to this Directorate General through WeBOC system under provisional assessment regime of section 81 of the Customs Act, 1969. In case of consignments imported by air, the assessing officer shall take into account the air 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 (:1) of Section 25-A of the Customs Act, 1969.
The Collectors of Customs may ensure that the values given in the valuation ruling for the given description of goods are applied by the concerned staff without fail. Any anomaly observed may kindly be brought to the notice of directorate general immediately. Customs values determined the ruling are for the description and specification as mentioned in the table above of this ruling.
HS Codes are mentioned for illustrative purpose so that valuation ruling values are made accessible to the assessing officers. The assessment shall be finalised on the basis of correct classification after fulfilling requisite formalities related to importability or any other certification required thereon. In addition to this, it is further necessary to verify that there is no misdeclaration or any sort or violation of Import Policy Order or Section 15 of the Customs Act, 1969 or any other law in vogue therein, ruling added.
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