Tractors’ parts from Turkey and China: Minimum customs’ values on import revised

ISLAMABAD: Directorate General of Customs Valuation Karachi has revised minimum customs values on the import of 28 different types of tractors’ parts from Turkey and China. In this regard, the directorate has issued a new valuation ruling (1562/2021) and superseded Valuation Ruling No. 1507/2021.

According to the ruling, earlier the custom value of tractor parts was determined under section 25A of the Customs Act, 1969. Being aggrieved by this valuation ruling, revision petition was filed by various importers/ traders under section 25D of the Customs Act, 1969 before Director General of Customs Valuation. The competent authority vide Order-in-Revision No. 13/2021, upheld the valuation-ruling and revision petitions were rejected accordingly.

However, on September 4, 2021 representation was received from Lahore Chamber of Commerce & Industry on the request of importers, wherein they have submitted that the values in the previous valuation ruling were calculated on “average weight”, whereas the same should be calculated on the “actual weight” of the cylinders.

Accordingly, an exercise was initiated to re-determine the customs values of tractor parts under Section 25A of the Customs Act, 1969. The meeting was attended by importers and stakeholders and their point of view was heard in detail to arrive at custom values of subject goods. The stakeholders claimed that their declared values were true transactional values and may be accepted as such.

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The stakeholders also submitted their proposal regarding values of tractor parts but failed to substantiate said values with documentary evidences. Moreover, they also suggested to value their product on the actual weight after deducting tare weight of packaging. A market survey was recorded and weight of items and packaging is done accordingly.

The valuation methods provided in Section 25 of the Customs Act, 1969, were duly applied in their regular sequential order to arrive at customs value of these goods. The Transaction value method was found inapplicable because no substantial documents were provided by the stakeholders to prove that their declared values were true transactional values. Moreover, different values were declared by different importers for the same product according to different origins/specifications.

Identical/similar goods value methods provided in sections 25(5) & (6) ibid were examined for applicability to determine customs values of subject goods. The data provided some references; but due to wide variations in declarations; varieties and specifications, the same could not be relied upon exclusively. In line with statutory sequential order of section 25, the directorate conducted various market inquiries. Finally, customs values for tractor parts shall be assessed to duty/taxes on the minimum specified customs values, FBR added.

Copyright Business Recorder, 2021