Customs values on import of used clothes raised

The Directorate General of Customs Valuation Karachi has revised customs values on the import of second-hand clothes and other items, including leather bags, jackets, belts, shoes, toys and kitchen wares, resulting in 14 percent increase in prices of such imported items. In this regard, Director General of Customs Valuation Karachi Syed Tanvir Ahmad issued order-in-revision 267 of 2016 here on Friday.
Sources said that the prices of second-hand clothing have been increased by 14 percent by DG Valuation in the revision decision. The values of such second-hand cloths did not change during the last few years. In this connection, a revised order has been issued by the directorate.
According to the order, the revision petition was filed under section 25-D of the Customs Act, 1969 against customs value determined vide Valuation Ruling No 836/2016 dated 19.4.2016 issued under section 25-A of the Customs Act, 1969, inter alia, on the following facts and grounds:
Firstly, petition has been filed by a company representing importers of used clothing from Korea. The directorate has revised downward valuation of used clothing from all countries but Korea used clothing valuation has been singled out without any justification and it is strongly requested to review valuation of Korea used clothing at par with other countries. Firstly, all reasons mentioned in above ruling 836/2016 for revision of valuation equally apply to Korean second-hand clothing.
Secondly, the raw material prices in USA/Japan and other countries dropped by more than 50% and likewise in Korea, raw material prices are also dropped by more than 50%. Thirdly, wages in USA/Japan and other countries are much higher than in Korea and we see no reason for keeping Korean used clothing valuation higher as compared to other countries.
Fourthly, Ocean freight from USA for 40' feet container vary between US $1,500 to US $2,500 depending on its location whereas ocean freight from Korea to Karachi is US $1,600; thus again no justification for higher value of the Korean used clothing. As the point was raised during the association meeting that invoices obtained by department showing higher value of used clothing from Korea, which is again may not be correct as those are summer items which Pakistan market cannot afford to buy as we import over 90% of container consists of winter items which are available at cheap prices and we hereby enclosed two invoices of the suppliers from Korea showing exact value of the unit prices.
Under the above circumstances, it is requested to review the value of Korea used clothing at par with other all countries as valuation has been increased by 5 cents per kg which were applicable before the valuation ruling NO.762/2015 dated 18-09-2015, thus it is argued to set up new prices at US $0.50/kg (as previous valuation was US $0.45/Kg).
On the issue, the respondent department said that it is submitted that in the previous valuation ruling the determined customs values of second-hand worn clothing of Korea origin was determined at US $0.70/kg which has been revised downwards at US $0.62/kg. The claim of the petitioner is not justified as the consignments are being cleared on the determined Customs values. It is submitted that the customs values have been determined after following the valuation methods as envisaged under Section 25 read with Section 25A of the Customs Act, 1969 and consignments are being cleared on the determined customs values, hence, petition may be rejected accordingly.
Director General Syed Tanvir Ahmad stated that the Indian import data shows actual import value of second-hand clothing from Korea between $0.94 to $1.35/kg and from USA from $0.49 to $0.93/kg. Similarly same values have been ascertained from other international websites. The values on Zauba website (Indian imports data) is also taken into consideration. Keeping above in view, the values are fixed at 14% higher than the previous values fixed in the Valuation Ruling, under section 25A of the Customs Act, 1969, the DG's order added.