Customs’ values on import of 23 types of stationery items enhanced

ISLAMABAD: Directorate General of Customs Valuation Karachi has upward revised Customs values on the import of 23 types of stationery items from China, Vietnam, Europe, Japan, USA and Canada for raising duties and taxes on the stationery industry.

In this connection, the Federal Board of Revenue’s Directorate has issued a new valuation ruling (1804 of 2023), here on Wednesday.

Industry sources said that the values have been considerably enhanced on the import of stationary items. During current economic situation, the decision would further increase the burden on the education sector as well as general public, they added.

Earlier, the Customs values of stationery items were determined under Section 25A of the Customs Act, vide Valuation Ruling No. 1684/2022.

The Directorate, vide Order in Revision No. 108/2022 passed by the Director General of Customs Valuation under Section 25D of the Act, was asked to determine the Customs values of subject items afresh under Section 25A of the Act, in line with prevailing prices in the international market.

Therefore, an exercise was initiated by the Directorate Customs Valuation Karachi to re-determine the Customs values of the subject goods in terms of Section 25A of the Customs Act.

The directorate has retrieved 90 days’ clearance data and the same was scrutinized. Subsequently, market inquiry was conducted and examined in the light of this Directorate’s Office Order No.17/2014 and in terms of Section 25 of the Customs Act. The meetings were convened which were attended by the relevant stakeholders.

The issues pertaining to the valuation of subject goods were deliberated upon in detail in the afore-referred meetings. All the stakeholders stated that they don’t have any issue with the Customs values determined vide Valuation Ruling No. 1684/2022 except the Dollar Industries Pvt Ltd. They stated that they are renowned brand and their declared value is transactional value; therefore, the same may be accepted.

The ruling said that the documents submitted by the Dollar Industries have also been checked and found contrary to the assertions made by them. The Dollar Industries Pvt Ltd claimed that their values were sometimes even higher than the values determined vide Valuation Ruling No. 1684/2022.

However, this is not substantiated by the relevant records. For example, in case of black lead pencil, the sales tax invoices provided by them have been examined/ scrutinized which have revealed that they have sold goods to their buyers in the range from Rs 11.66 per piece to Rs16.08 per piece.

However, when these values are analyzed in view of the Deductive Value Method under Section 25(7) of the Act, the calculated/ computed values turn out to be higher than the declared values by Dollar Industries Pvt Ltd.

Copyright Business Recorder, 2023