Customs values on air-conditioners import revised

The Directorate General of Customs Valuation, Custom House, Karachi, has revised customs values on the import of split type air conditioners from China, Far East countries excluding Japan for accurate assessment of customs duty.
The DG Valuation has recently issued a ruling on the import of such air conditioners to check under-invoicing.
According to the ruling, the value of Chinese made split air-conditioner 12,000 BTU would be $165; 18,000 BTU $235; 24,000 BTU $300; split air-conditioner 12,000 BTU (Far East excluding Japan) $230; 18,000 BTU $310, and 24,000 BTU would be $350.
The DG Valuation had received a reference regarding revision of value of split type air-conditioners under Section 25(A) of the Customs Act, 1969.
It was contended that prices of basic raw materials, ie cold rolled sheets, electro-galvanized plates, and copper, coil, etc had substantially increased in the international market in recent years. At the same time, there has also been a consistent rise in demand for split air-conditioners, which called for proper determination of their valuation since the values declared by the importers were being grossly under-invoiced.
Keeping in view the data of identical/similar goods, prices prevailing in the local market and prices of raw materials, a meeting of all the stakeholders, ie manufacturers and representative of trade was held on December 10, 2007. The manufactures association (Pema) requested for more time to give their technical input as well as factual prices prevailing in the local market.
Another meeting was held on February 20, 2008 wherein the manufacturers associations submitted prices of split air-conditioners of 12,000, 18,000 and 24,000 British Thermal Unit (BTU).
According to them, the importers had agreed to the proposed prices in a joint meeting held in February 2008. The association also suggested separately the values of the components, ie inner and outer unit of split air-conditioners. It was further suggested that indicative prices of air conditioners, already circulated by the DG Valuation should be revised and values may be determined through a detailed market inquiry conducted under Section 25 (7) of the Customs Act, 1969.
Resultantly, a joint market inquiry was conducted in collaboration with the representatives of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), manufacturers' association, as well as the importers.
The Deputy Director Valuation headed this exercise. Finally, a meeting was held on March 11, in which all the stakeholders and association (Pema) agreed to the revised values for split air-conditioners in completely build units (CBU) imported from different regions.