Computer industry: High customs values causing serious concern among importers, vendors

ISLAMABAD: Directorate General of Customs Valuation, Karachi, has fixed customs values of old and used computer systems, laptops, printers, and their accessories on the much higher side, causing serious concern among the importers and vendors of the computer industry.

Directorate Valuation, Karachi, on Tuesday, issued a valuation ruling for the computer industry.

The minimum customs values for old and used computers/laptops, printers have been fixed for all origins for the purpose of assessment of duties and taxes.

Computer industry has strongly reacted to the valuation ruling of the directorate that imposition of high taxes on import of used computers would not only halt the smooth running of computer business but would also slow down both school-home education by depriving the students and buyers for official work-from-home opportunity and loss of revenue to the government.

According to the ruling number of 1519 of 2021 issued by the directorate, after conducting detailed analysis of Pakistan’s imports for year 2019-20, the directorate was tasked by the FBR to identity the items/goods where variations w.r.t. values in exporting countries vis-à-vis import values in Pakistan where observed.

Accordingly, a special team was constituted in the directorate which identified the subject items as prone to under-invoicing as vast variations in declarations were observed.

Accordingly, an exercise was initiated to determine the customs values of old ad used computer system, laptops, printers and their accessories of all origins under section 25-A of the Customs Act, 1969.

Meetings with all the stakeholders, trade bodies including representatives of clearance Collectorates were held in the directorate.

The importers/stakeholders were requested to submit their proposals with necessary documents.

The Collectors of Customs may ensure that the values given in this valuation ruling for the given description of goods are applied by the concerned staff without fail, the directorate added.

On Tuesday, an emergency meeting of the various computer traders was held to discuss the situation arising out of the high increase in valuation of the used computers by the government in the country.

The meeting attended among others by Munawar Iqbal, former senior vice chairman Islamabad Chamber of Commerce and Industry and former executive member of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), expressed its deep concern over the imposition of high valuation on the import of the used computers by 40 percent increase by the valuation department without consulting the IT importers and stakeholders leading to highest increase in prices of the used computers in the market, which is already recovering from the backlash of the Covid-19 pandemic situation in the country.

The latest action would not only burden the importers with high cost but also put the students and other general buyers for official work from home in a difficult situation to seek access to cheap computers.

The meeting also demands of the higher authorities and the prime minister of Pakistan to intervene in the matter immediately for withdrawal of the Valuation Ruling on used computers to help run both the online educational learning in an easy accessible manner and the ease of doing IT business smoothly for stakeholders.

Copyright Business Recorder, 2021