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DG Valuation revises customs values of chewing gum & mints

DG Valuation revises customs values of chewing gum & mints

KARACHI: Directorate General of Customs Valuation has revised the customs values of chewing gum and mints through Valuation Ruling No: 1325/2018 under Section 25A of the Customs Act-1969.

Earlier Customs values of chewing gum were determined through Valuation Ruling No.1000/2016 dated 22.12.2016. However, various representations were received from the importers for re-determination of value of chewing gum and mint. Hence, an exercise was initiated by this Directorate General to re-determine the customs values of chewing gum and mints.

Meetings with stakeholders, including importers and representatives from field formations, were held on 07-03-2018, 05-07-2018 and 04-09-2018 to discuss the current international prices of the subject goods. Importers of different types of Wrigley’s brand stated that values already determined are correctly reflecting transaction values. Certain other brands importers requested to include their items in the ruling and presented documents in support of their contentions. The importer of Batook brand claimed that customs values already determined in the existing valuation ruling are high and contended that this brand is being brought into our country from illegal ‘t channels causing loss to the exchequer.

The stakeholders were requested to furnish all supporting documents and evidences in support of their contentions so that the same could be considered. All the record furnished to this Directorate ‘General has carefully examined to arrive at customs values of subject goods.

Valuation methods provided in Sector 25 of the Customs Act, 1969 were duly applied in their regular sequential order to address the particular valuation issue at hand. The transaction value method as provided in Sub-Section (1) of Section 25, was found inapplicable in light of the wide variety of declared values at import stage, hence requisite information required under law was not available to arrive at the correct transaction value. Identical / similar goods value method provided vide Sub-Sections (5) & (6) of Section 25 ibid was examined for applicability to determine Customs value of subject goods. This data provided some references; however, it was found that the same cannot be solely relied upon. In line with the statutory sequential order of Section 25, this office then conducted market inquiries using Deductive Value Method under Sub-Section (7) of the Section 25 of the Customs Act, 1969 and determined customs values of Chewing Gum and Mints accordingly.