KARACHI: The Directorate General of Customs Valuation revised the customs values of galvanized razor wire through Valuation Ruling No: 1329/2018 under Section 25A of the Customs Act-1969.
According to the details, a number of representations were received from stakeholders that values razor wire being declared to Customs are not correct transaction values, and needs remedial action by the Directorate.
Therefore, Directorate General Customs Valuation initiated an exercise for determination of customs values of galvanized razor wire under Section 25-A of the Customs Act, 1969.
Meetings with stakeholders were scheduled on 18-07-2018 and 12.09.2018. The participants were requested to submit invoice of imports made during last three months showing factual value.
Websites, names and e-mail address of known foreign suppliers / manufacturers of the item in question through which the actual current value could be ascertained. Copies of contracts made / LCs opened during the last three months showing the value of items in question.
Copies of Sales Tax paid invoices issued during last four months (excluding duty and taxes) to substantiate their contentions.
Different stakeholders Including importers attended the meetings. Certain importer contended that increasing in price would adversely affect their business. However, certain other stakeholders contended that there are fluctuations in the current market prices and it would be prudent to determine customs values keeping in view the values of two main raw materials, i.e., Wire Rod and Galvanized Coil thickness 1.00 mm.
During the discussion, participants agreed that the ratio of the two material is same, about 50% each and customs values can be easily hedged with LMB’ published prices of the two material with certain adjustments.
All the participants were heard in detail and their input was considered to arrive at customs values. 5. Method adopted to determine Customs values: Valuation methods given in Section 25 of the Customs Act, 1969 were applied sequentially to address the valuation issue at hand.
Transaction Value Method under Sub-Section (1) of Section 25 of the Act ibid was found inapplicable because there were wide differences in values in the declarations and in most cases the values had been suppressed significantly. Identical /Similar Goods valuation methods provided in Sub-Sections (5) and (6) of Section 25 of the Customs Act, 1969 were examined for applicability to the valuation issue in the instant case which provided some customs values of subject goods but the same could not be exclusively relied on due to variations in the declared values of the subject goods.