Customs’ values of galvanized nuts, other items revised

ISLAMABAD: Directorate General of Customs Valuation Karachi has revised customs values on the import of galvanized and non-galvanized nuts, bolts, washers, dry wall screws, self-tapping screws and self-drilling screws from China and Taiwan.

According to a valuation ruling (47 of 2024) issued by the directorate, the Customs values of Galvanized and Non-Galvanized Nuts, Bolts, Washers, Dry Walls crews, Self-Tapping Screws and Self Drilling Screws have been determined.

Background of the valuation issue revealed that earlier the customs values of High Tensile Nuts, Bolts & Washers were determined vide Valuation Ruling in 2021. Representations were received from traders/ stakeholders that there is fluctuation in the prices of this commodity and; therefore, Valuation Ruling needs revision. This Directorate initiated a fresh exercise for determination of custom values of the subject goods in terms of Section 25A of the Customs Act, 1969.

During the meeting, the importers claimed that due to various challenging factors, the gap in supply has been exploited through unlawful means of smuggling goods across the Afghan/ Iran border. Therefore, they requested that the Directorate should reconsider the valuation ruling in light of the prevailing dynamics. They further proposed that the valuation ruling must be aligned with the LME prices of Wire Rod. On behalf of local manufacturer, a company informed that during the manufacturing of Screws, the raw materials; i.e., Wire Rod, are modified to deliver the finished goods.

There are more than seven stages in the manufacturing process from beginning to end. Some processes are intermediate and make components that undergo another manufacturing process to build the finished product.

These processes are wire rod inspection, pickling/ liming, wire drawing, annealing, cleaning, thread rolling and packing which require value addition up to 100 percent from converting wire rod to the subject screws.

The customs values of screws should be determined on the basis of LME prices because some importers mis-declared the actual price. The relevant documents have also been submitted for perusal by the stakeholders, the ruling added.

Copyright Business Recorder, 2024