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Customs issues Order-in-Revision against VR No 668 linked with USB Data Traveler

Customs issues Order-in-Revision against VR No 668 linked with USB Data Traveler

KARACHI: The Directorate General of Customs Valuation has issued Order-in-Revision against Valuation Ruling No668/2014 under Section 25-D of the Customs Act, 1969.

According to details, the Hussain Enterprises Karachi had filed a review petition against the impugned Valuation Ruling No668/2014 linked with “USB Data Traveler/USB Flash Drive”.

In the review petition, the importer Hussain Enterprises was of the view that the importers of USB Data Traveler/USB Flash Drive have been aggrieved and dissatisfied with the Valuation Ruling No 668/2014, as the said issued VR was based on unlawful and malafide manner.

The petitioner also submitted that the contents of the impugned Valuation Ruling did not establish that a local market inquiry had been carried out as suggested. It was also submitted that no visible exercise appeared from the contents of the impugned Valuation Ruling to have been taken place. There would be calculation available within the impugned VR to show that cost-profit ratio, along with the necessary adjustments, has been applied systematically to the sale/purchase transaction of retailers, dealers, whole sellers and importers and after proper application of reverse calculation method right from the point of sale at the retailers, and up to the point of purchase at the importers end.

The petitioner further stated that the impugned Valuation Ruling does not indicate which importers were invited for the alleged meetings held on 09-01-2014 and 06-02-2014, simply on account of the fact that the particulars of these referred to by the respondent as “stakeholders” are disclosed in the impugned valuation ruling.

In the petition, the importer pleaded to the Customs authorities that following elements are required to be considered in order to determine the value by work back method including 10per cent whole sellers profit, same was ignored in work back method, importers profit at 20per cent, miscellaneous expenses about 15per cent, 1per cent each landing charges, 1per cent insurance charges, shipping charges, security charges ware house charges 3per cent against 5per cent were considered.

The Director General of Customs Valuation in the order stated neither the importers were consulted or confronted with the basis of valuation nor any reason was given to increase the valuation arbitrarily without the sequential methodology of Section-25.

In the order it was further stated it has also been observed that the petition filed by the importer without any material evidence and the petitioner has also failed to furnish supporting documents as requisitioned vide letter dated June 12, 2014.

It further stated that the values covered in the impugned Valuation Ruling were contested earlier in a similar review petition, whereupon directions were given to reconsider and revise the Customs values.