Customs values enhanced: Stationery items to become costlier

ISLAMABAD: The Federal Board of Revenue (FBR) has considerably enhanced customs values on the import of stationery items, which will increase prices of stationery products in schools/colleges. The FBR has issued a new valuation ruling, here on Friday.

The Directorate General of Customs Valuation, Karachi has increased customs values on the import of items from Europe, Japan, USA, and Canada. According to the ruling issued by the Directorate General of Customs Valuation Karachi, earlier the Customs values of Stationery Items were determined under Section 25A of the Customs Act, 1969, vide Valuation Ruling No 1407/2019.

The Valuation Ruling was upheld vide Order-in-Revision No 09/2020 under Section 25D of the Customs Act, 1969. Several representations from importers were received for revision of this valuation ruling in line with the current market prices and freight factor. In view of the foregoing, an exercise was under taken by the Directorate General of Customs Valuation to re-determine the customs values of subject goods in terms of Section 25A of the Customs Act, 1969.

During the meeting M/s Indus Pencils were of the view that customs values should be enhanced, whereas M/s Dollar Industries and others were against the enhancement of customs values recommending keeping them static. The importers advocated downward revision.

Those in favour of enhancing the values argue that the last Valuation Ruling was issued two years ago and international prices have been increased, along with freight cost. Whereas, those in favour of keeping them static or downward revision argue that the existing values are mostly on higher side and fluctuation in raw material prices used in stationery items such as pencils, pens, markers, crayons, oil colours, writing inks etc is marginal or meager, if at all.

They further argue that most of the subject items are essential educational stationery and are consumed on a daily basis by students and poor masses; therefore, it would not be appropriate to unduly jack up their cost by burdening them for unjustified reasons, the ruling added.

Copyright Business Recorder, 2022