ISLAMABAD: The Directorate General of Customs Valuation Karachi has fixed new customs values on the import of six different kinds of polyester fabrics from China and other origins for assessment of duties and taxes.
In this regard, the directorate has issued a new valuation ruling (1808 of 2023) on Monday.
Under the new ruling, the revised values have been fixed on the import of unbleached polyester grey Fabric (More than 5 Sqms/Kgs); unbleached Polyester Microfiber grey Faric b (Upto 5 Sqms/Kgs); bleached Polyester Fabric (More than 5 Sqms/Kgs); bleached Polyester Microfiber Fabric (Upto 5 Sqms/Kgs) and printed Polyester Fabric (More than 5 Sqms/Kgs).
Imports from China, South Korea: Customs’ values on woven, non-woven material enhanced
The new Valuation Ruling would not apply on polyester fabrics imported by Ms. Utopia Industries (Private) Limited, under Export Facilitation Scheme, which may be cleared by the Collectorates under Section 25 of the Customs Act, 1969.
Moreover, Regulatory Collectorates/Directorates may conduct an audit and other relevant laws/rules on regular basis to ensure that there is no under-declaration/loss of revenue.
Earlier, the customs values of Different Polyester Fabrics were determined under Section 25A of the Customs Act, 1969 vide Valuation ruling No.1301/2018.
Representation was received from M/s Utopia Induatties (Private) Limited, for revision/re-determination of Customs values for the subject items. They contended that their imported goods are not meant for home consumption rather for EFS (Export Facilitation Scheme).
According to them, application of Valuation Ruling at import stage of duty free goods poses hurdle in filing Export Goods Declaration wherein they have to mention the value addition in the assessed values of the imported goods — up to 10% which is causing hardship for them through mis-match values/figures. Therefore, they requested to accept their declared values as the transaction values.
The issues pertaining to the valuation of subject goods were deliberated upon in detail in the meeting with the stakeholders.
The importer-cum-exporter M/s. Utopia Industries (Private) Limited contended that the values — declared by them, along with those provided to the Valuation Department through contracts/invoices— should be accepted. According to them, they are importing duties and taxes free raw material for value addition and subsequent export.
Due to the mandatory application of Valuation Ruling No.1301/2018 in the WeBOC system on temporarily imported goods — not meant for home consumption in Pakistan — they are facing issues in getting export GDs processed especially when ‘export value’ is lesser than the minimum criteria of value addition. They further said that their imports being temporary in nature have no revenue impact. So, they made the case that they may be exempted from mandatory application of Valuation Ruling, it added.
Copyright Business Recorder, 2023
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