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DG Valuation revises customs values of AC asynchronous moving motor

DG Valuation revises customs values of AC asynchronous moving motor

KARACHI: The Directorate General of Customs Valuation revised the customs values of AC asynchronous moving motor (up to 7 watts) through Valuation Ruling No: 1314/2018 under Section 25-A of the Customs Act-1969.

According to the details, a number of representations were received in this Directorate General that AC asynchronous moving motor (up to 07 watt) are being declared and assessed at lower values.

Therefore, an exercise was initiated to determine the customs values of subject goods under Section 25-A of the Customs Act, 1969. Meetings with stakeholders were held on 21.03.2018 and 01.08.2018. All participants were requested to submit 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.

Copies of sales tax Invoices issued during last four months showing the values of supplies (excluding duty and taxes) to substantiate their contentions.

During the meetings, it was brought to the notice that AC/DC motors ranging up to 37 watt have different specifications, weight and use thereof and have different values.

Therefore, the collectorates should assess these goods under Section 25 of the Customs Act, 1969 keeping in view their specifications. Some of the stakeholders argued that value of AC asynchronous moving Motor (up to 7 watt) are being assessed at much lower values therefore, values may be determined as traded in the international market. Certain importers submitted documents in support of their contentions.

Therefore, all available information and documents were examined for determination of customs values. Method adopted to determine Customs values: Valuation methods given in Section 25 of the Customs Act, 1969 were followed sequentially.

Transaction value method provided in Section 25 (1) was found inapplicable because the requisite information was not available as per law. Identical / similar goods value methods provided in Sub-Section (5) & (6) of Section 25 of the Customs Act, 1969 provided some reference values but due to wide variations in the declarations the same could not be relied upon exclusively.

Thereafter, market inquiry as envisaged under Section 25(7) of the Customs Act, 1969, was conducted. Online prices were also obtained. Consequently, reliance was placed upon Sub-Section (7) of Section 25 of the Customs Act, 1969, and customs values of AC asynchronous moving Motor (up to 7 watt) are determined under Section 25(7) of the Customs Act, 1969.