Monday , July 22 2019
Breaking News
Home / Karachi / DG Valuation revises customs value of cosmetics vide VR No 1374/2019
DG Valuation revises customs value of cosmetics vide VR No 1374/2019

DG Valuation revises customs value of cosmetics vide VR No 1374/2019

KARACHI: Directorate General Customs Valuation (DGCV) has revised the customs values of cosmetics through Valuation Ruling No. 1374/2019 under section 25 (7) of the Custom Act, 1969.

Earlier, the customs values of cosmetics of high-end brands were determined through valuation rulings 535 and 536 in 2013.

The Directorate received various representations from the cosmetics of high end brands for exempting them from the values given in said valuation ruling because being multinational company, the imports are from their sister concerns and unusually at higher values than those given in valuation rulings.

Keeping in view the prevailing prices of the subject goods, the Directorate has initiated an exercise for re-determination of the customs values for cosmetics in terms of section 25-A of the Customs Act. 1969.

Several meetings with stakeholders including the importers and the representatives from the field formations were held in the Directorate to discuss the issue of the subject goods valuation. The meetings were attended by different stakeholders including representatives from FPCC1/KCC1 and All Pakistan Colour Cosmetics and Toiletries Importers Association (APCTIA).

Most of the participants contended that values were already on the higher side and if further increased, it would lead to the imports from illegal channels. They requested that the values mentioned in the ruling should be maintained.

When the Directorate asked to submit sales tax invoices and other corroboratory evidences to substantiate their claim, no one provided despite lapse of considerable time.

However, the representatives from high-end brands cosmetics stated that uniform application of customs values for different product ranges within a brand is not fair. They requested for their exemption from the valuation ruling no 535 or revision of the ruling.

Later, the Directorate had examined the available information and wide variations in declarations and found it inappropriate. Therefore, the market inquiries have been conducted under sub-section (7) of section 25 of the Customs Act, 1969. Resultantly, the customs values of cosmetics have been determined under section 25 (7) of the Custom Act, 1969 accordingly.