Soda ash valuation revised

The Directorate General of Customs Valuation, Karachi has revised customs values on import of soda ash for accurate assessment of customs duty. Sources told Business Recorder here on Saturday that the DG Customs Valuation, Karachi has issued a valuation ruling in exercise of the powers conferred under section 25-A of Customs Act, 1969 for determination of customs values of Soda ash.
Soda ash shall be assessed to duty/taxes at the following customs values: The customs value of Soda ash (synthetic dense) would be US $265.00 per ton; soda ash (synthetic light) US $255.00 per ton and customs value of soda ash (natural dense light) US $250.00 per ton.
According to the valuation ruling, since the earlier customs values of Soda ash were determined more than three months ago through Valuation Ruling No 471, re-determination of customs values of these goods deemed necessary to reflect the current price trend of these goods in the international markets. This prompted an exercise to re-determine the customs values of these goods and lay down these values in clear terms for different categories of soda ash.
The methodology adopted to determine customs values has also been specified by the DG Customs Valuation, Karachi. The valuation methods given in section 25 of the Customs Act, 1969 were examined to ascertain which methods were applicable to the valuation issue in hand in terms of Section 25-A (1) of the Customs Act. Transactional value method provided in Section 25(1) was found inapplicable because sufficient information with respect to adjustments to be made to the transactional value in terms of section 25(2) was not available.
The record of customs values of identical and similar goods value methods provided in Section 25(5) & (6) were examined for applicability to the valuation issue in the instant case. These methods furnished unreliable values and were not found applicable. Since the manufacturer's costs of producing the goods in question in the country of exportation were not available. Computed value method as provided in section 25(8) could not be applied for valuation of aforesaid goods. Deductive Value Method was therefore the methodology adopted to determine customs values for soda ash in this case.
The customs valuation department had convened meetings with stakeholders to discuss the current international value of soda ash, wherein the representatives of importer contended that the value of soda ash is on higher side whereas local manufacturers contended that value is on the lower side. The application of Deductive Value Method was used to determine customs values for soda ash in question.
The valuation ruling said that if the price trend of soda ash change direction after 90 days from the date of the ruling, the concerned stakeholders can furnish to the valuation authority sufficient documentary evidence to seek revision of the customs values determined in the Ruling. However, values determined in the ruling shall continue to be the applicable customs values for relevant goods till the time this valuation ruling is rescinded or revised by the competent authority in terms of section 25A of the Customs Act, 1969.