Customs values of replacement auto parts revised

Directorate General Customs Valuation (DGCV) has revised the customs values of replacement auto parts sub-section (9) of section 25 of the Customs Act, 1969. According to revised valuation ruling, the customs values of replacement auto parts were determined vide valuation ruling no.661 issued in 2014 and its amendments were made in April 2014 and February 2015.
It said that number of representations were received from M/s Motors (Pvt) limited that since the valuation ruling was more than two years old and values were at lower side as compared to the values prevailing in the current international market. Therefore, an exercise was initiated for determination of custom values of replacement auto parts with a view to reflect the current prices prevailing in the international market.
For the purpose, stakeholders were requested to submit relevant documents in support of their argument while meetings were held with stakeholders, including representatives from Pakistan Automotive Auto parts Manufacturing Association (PAAPAM), Pakistan Auto Spare Parts Importers and Dealers Association (PASPIDA), Pakistan Automotive Manufacturer Association (PAMA), representatives of M/S. Indus Motor Company Ltd, M/S. Pak Suzuki (Pvt.) Ltd, local manufacturers of auto parts and importers.
During meetings, it was observed that local manufacturers and importers had conflicting views regarding valuation of replaceable auto spare parts. Moreover, the auto parts manufacturers during the meetings contended that the values of spare auto parts have significantly increased in the international market therefore, values may be determined accordingly. M/s Indus Motors expressed their concerns mainly on values of lamps, oil filter, air filter and body parts imported from Far East.
However, the importers contested the manufacturers' point of view and submitted that the replacement auto parts prices may be rationalized according to market prices since the raw material prices, manufacturing cost have decreased due to technological advances; magnitude of import and after sale demand have also affected the values of spare auto parts imported from China and other countries.
A number of opportunities were provided to the manufacturers and importers associations to send their proposals in order to arrive at fair customs value of diversified replacement auto parts. Furthermore, it said that after deliberations, the manufacturers and importers associations submitted their joint proposal on just a few items only out of more than fifty items in the aforesaid valuation ruling.
The PASP1DA also submitted their separate proposals for values of replacement auto parts without any documentary or supportive evidences. The proposals submitted by some individual importers were also considered before fresh determination of custom values of subject goods. However, no importers submitted import invoices, sales tax invoices, literature, representative samples, it added.
The DGCV after adopting all relevant methods evaluated and analyzed all gathered information for the purpose of determination of customs values. Consequently, the customs values of replacement auto parts were determined under sub-section (9) of Section 25 of the Customs Act, 1969.