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Surriya Butt revises customs values of soap noodles thru VR No 1216/2017

Surriya Butt revises customs values of soap noodles thru VR No 1216/2017

KARACHI: The Directorate General of Customs Valuation Director General Surriya Ahmad Butt has revised the customs values of soap noodles through Valuation Ruling No 1216/2017 under Section 25-A of the Customs Act, 1969.

The Customs values of soap noodles were determined under Section 25-D of the Customs Act, 1969 vide Order in Revision No. 217/2016 dated 2-8-2016. However, it has been challenged before the Appellate Tribunal and the Sindh High Court in Karachi. The values of soap noodles were linked with ICIS prices vide this Order-in-Revision.

Moreover, it has been observed that ICIS prices are not readily available to the assessing officers which hinders the process of assessment. Moreover, several representations have also been received in this Directorate General to determine the customs values afresh in the light of existing international market prices. M/s. Nimir Industrial Chemicals Limited, Lahore also filed a complaint in Board highlighting the malpractices of under-invoicing in values of soap noodles.

Therefore an exercise to determine customs values of soap noodles afresh in terms of Section 25-A of the Customs Act, 1969 was initiated.

Stakeholders’ participation in determination of Customs values: A meeting for the determination of customs values of soap noodles with stakeholders was scheduled on 26-09-2017. The meeting was attended by a number of importers, including representatives of M/s Pakistan Soap Manufacturers Association, Karachi and M/s Nimir Industrial Chemicals Limited, Karachi.

During the course of meeting, the importers were of the view that the values of Soap Noodles were determined under Section 25-D of the Customs Act, 1969 by the Director General without any representation by the importers. While, previously no valuation ruling of the Soap Noodles was in field. During the meeting, fair chance and ample time was granted to the Importers and the local manufacturers to develop consensus for determination of customs value of soap noodles and send a mutually agreed proposal.

However, despite enough time and opportunity given to the stakeholders, they have failed to furnish the same. But both the Stakeholders submitted their respective proposals separately. In this regard, Importers submitted it sales tax invoices and the local manufacturers submitted ‘CIS Magazine showing prices of  noodles from July, 2017 to September, 2017.

No documents were submitted by other importers/manufacturers for soap noodles, waste/broken/lumps and powders in this Directorate General on or even after the said scheduled meeting. Resultantly, numerous surveys were conducted for determination of the customs values.  Customs Appraisement West, who was represented in the meeting by the officers were also consulted from time to time, while finalizing this valuation ruling.