ISLAMABAD: Directorate General of Customs Valuation Karachi has increased customs values on the import of mechanical and non-mechanical toys including flying toys like drones / helicopters / aircrafts from China, Europe, Canada, Japan and USA.

According to a valuation ruling issued by the directorate of the Federal Board of Revenue (FBR), the Customs values of toys have been re-determined. Therefore, the new valuation ruling has superseded Valuation Ruling No. 1643/2022.

The previous Valuation Ruling for toys was issued vide Valuation Ruling No. 1643/2022 dated 29-04-2022. The importers challenged the Valuation Ruling with the Director General of Valuation, who then set aside the impugned V.R. Accordingly, an exercise was initiated by the directorate general to determine customs values of these subject goods in terms of Section 25A of the Customs Act, 1969.

Meetings with stakeholders were convened which were attended by different stakeholders and importers. All the stakeholders / importers were requested to submit necessary documents including invoices of imports during the last three months showing factual value etc.

The office then resorted to conduct a market inquiry and, consequently. Deductive Value Method under Sub-Section (7) of Section 25 of the Custom Act, 1969, was applied to arrive at the assessable customs value of toys, being most appropriate for the purpose. All the information so gathered was evaluated and analyzed for the purpose of determination of Custom Values.

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 Validity.

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vide this Ruling shall be the applicable Customs value for assessment of subject imported goods until and unless it is rescinded or revised by the competent authority in terms of Sub-Sections (4) of Section 25A of the Customs Act, 1969, directorate’s new ruling added.

Copyright Business Recorder, 2022