ISLAMABAD: Directorate General of Customs Valuation, Karachi has raised Customs values, within the range of 30 to 50 percent, on the import of 46 types of lubricating oils from China, Turkey, Korea, Middle East, Thailand, Russia and Iran.
The values have been re-determined in a way to drastically reduce the incidence of under-invocing on the import of lubricating oils. The Customs Values (C&F) have been fixed on per liter basis and per kg basis in US dollars.
In this regard, the directorate has issued a new valuation ruling (1836 of 2023) on Monday.
Customs’ values on import of lubricating oils increased
According to the new ruling, the Customs values of lubricating oils were determined vide Valuation Ruling No 1805/2023.
The directorate decided to re-determine the Customs values of lubricating oils.
It is observed that wholesale/retail market prices of most brands, as mentioned by the petitioners, were not considered in the market survey. The process of determination of values suffered (as a result) from procedural impropriety since it fell short of complying with the market survey guidelines laid down in Office Order 17/2014, hence, requiring review of Valuation Ruling No. 1805/2023.
Therefore, an exercise has been undertaken by this Directorate to re-determine the Customs values of the subject goods.
The meeting was convened which was attended by the relevant stakeholders. The issues pertaining to the valuation of subject goods were deliberated upon in detail in the aforementioned meeting.
The stakeholders stated that the customs values determined in the Valuation Ruling No 1805/2023 are on higher side and need to be revised according to International market.
They further added that Lubricating Oils are made from Base oil. Different additives are added to base oil to produce different grades of Lubricating Oils. Therefore, the values of base oil & additives may be considered in determining the values of lubricating oils.
They further contended that the values of high-end brands should not be considered while determining the values of subject goods.
The stakeholders claimed that the market values of Lubricating Oils are just 5% higher than the values determined in the Valuation Ruling No 1140/2017 and the values, in the Valuation Ruling No 1805/2023, are far higher.
Finally, the Customs values of the subject goods have been determined inter alia considering sales tax invoices of the importers which provides that the methods of valuation, to be employed, the directorate added.
Copyright Business Recorder, 2023
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