The Directorate General of Customs Valuation Karachi has revised customs values ($55 to 120 per kg) on the import of ring travellers, used in textile mills to process yarn, from Switzerland, France, Japan, Germany, India, China and other origins.
According to a ruling issued by the directorate here on Monday, the customs values of ring travellers were determined under Section 25A of the Customs Act, 1969, vide Valuation Ruling No400/2011, dated 25-11-2011. The Valuation Ruling required revision in line with the prevailing prices in the international market. Therefore, the Directorate General initiated an exercise for determination of customs values of ring travellers.
The directorate has superseded the Valuation Ruling No 400/2011 dated 25-11-2011 through a new ruling.
Different meetings with stakeholders were held and a final meeting was held on 21-07-2016. Importers had been requested to furnish the documents including invoices of imports during last three months showing factual value, websites, names and E-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained, copies of contracts made/LCs opened during the last three months showing the value of item in question and copies of Sales tax Invoices issued during last four months showing the difference in price (excluding duty and taxes) to substantiate that the benefit of difference in price is passed on to the local buyers.
The ruling said that certain importers submitted documents in support of their contentions claiming that their invoices and declarations were lower than the values determined in the ruling. Some importers pleaded that the ring travellers may be determined on lower side as the goods are being used in textile industry to promote exports. Ring travellers are used in textile mills around the world to process yarn. These products have a direct effect on the quality of yarn produced as their action physically turns the raw material into finished product. The importers wanted time to produce documents in support of their contentions, but they have not submitted the requisite documents except some import invoices. Resultantly numerous surveys were conducted for determination of the customs values.
The FBR further said that the valuation methods given in Section 25 of the Customs Act, 1969 were followed to arrive at customs values of different numbers/sizes of ring travellers. Transaction value method provided in Section 25 (1) was found inapplicable owing to wide variation in the values being declared to the customs. Identical/similar goods value methods provided in Section 25 (5) & (6) were examined for applicability to the valuation issue in the instant case which provided some reference values of the subject goods but the same could not be exclusively relied on due to wide variation in declared values of subject goods. Stakeholder meetings were also scheduled but during the meetings very divergent point of regarding international market prices was presented. Thereafter, market enquiry as envisaged under section 25(7) of the Customs Act, 1969, was conducted. For the purpose different markets were surveyed repeatedly. The computed value method as provided in Section 25(8) of the Customs Act, 1969, could not be applied as the conversion costs from constituent material at the country of export were not available. Online values of subject goods were also obtained. All the information so gathered was evaluated and analysed for the purpose of determination of customs values. Consequently, the Customs values of ring travellers have been determined under Section 25(9) of the Customs Act, 1969.
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. In case of consignments imported by air, the assessing officer shall take into account the element of air freight while assessing the goods.
The values determined vide the 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 (1) or (3) of Section 25-A of the Customs Act, 1969.
The Collectors of Customs may ensure that the values given in the Valuation
Ruling for the given description of goods are applied by the concerned staff without fail. Any anomaly observed may be brought to the notice of the directorate immediately. Customs values determined in the ruling are for the description and specification as mentioned in this Valuation Ruling. HS Codes are mentioned for illustrative purposes so that valuation ruling values are made accessible to the assessing officers.
The assessment shall be finalised on the basis of correct classification after fulfilling requisite formalities related to importability or any other certification required thereon. In addition to this, it is further necessary to verify that there is no misdeclaration of any sort or violation of Import Policy Order or Section 15 of the Customs Act, 1969 or any other law in vogue therein.