Customs values on import of bulbs, tube lights revised

The Directorate General of Customs Valuation Karachi has revised customs values on the import of electric clear bulbs & tube lights (low-end brands) from China. The directorate has issued a new ruling here on Wednesday by superseding Valuation Ruling No 557/2013dated 04-06-2013.
The directorate said that the customs values of Electric Clear Bulbs & Tube Lights were determined under Section 25A of the Customs Act, 1969 vide valuation ruling No 557/2013, dated 04-06-2013. The Valuation Ruling required revision in line with the prevailing prices in the international market. Therefore, Directorate General initiated an exercise for determination of customs values of electric clear bulbs & tube lights.
Different meetings with stakeholders were held whereas importers had been requested to furnish documents including invoices of imports during last three months showing factual value; websites, names and E-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained; copies of Contracts made/LCs opened during the last three months showing the value of item in question; copies of Sales Tax Invoices issued during last four months showing the difference in price (excluding duty and taxes) to substantiate that the benefit of difference in price is passed on to the local buyers.
No documents were submitted in the Directorate General on or even after the said scheduled meetings. The meetings were attended by the manufacturers, importers and representatives of Pakistan Electrical & Electric Merchants Association and the officers from field formations.
During the course of meeting, the importers were of the view that the values of electric bulbs and tube lights have considerably reduced in the international market as compared to the values determined in the existing valuation ruling, therefore, the values may not be revised.
However, importers did not submit import invoices, sales tax invoices, literature, representative samples, evidences and other relevant requisite import documents in support of their contentions. The local manufacturers, ie, M/s. Khyber Lamps and M/s Pak Lamp were of the view that the prices of the subject goods have increased specially in China. They have submitted different prices quotations obtained from Chinese supplier in support of their contentions. The importers on the other hand rejected their point of view on the ground that these values are not finally negotiated values and there are significant differences in the values.
Valuation methods given in section 25 of the Customs Act, 1969 were followed to arrive at customs values of different brands/Watts of Electric Clear Bulbs & Tube Lights. Transaction value method provided in Section 25 (1) was found inapplicable owing to wide variation in the values being declared to the customs. Identical/similar goods value methods provided in Section 25 (5) & (6) were examined for applicability to the valuation issue in the instant case which provided some reference values of the subject goods but the same could not be exclusively relied on due to wide variation in declared' values of subject goods. Stakeholders' meetings were also scheduled but during the meetings very divergent points of view regarding international market prices was presented. Thereafter, market enquiry as envisaged under section 25(7) of the Customs Act, 1969, was conducted. For the purpose different markets were surveyed repeatedly. The computed value method as provided in Section 25(8) of the Customs Act, 1969, could not be applied as the conversion costs from constituent material at the country of export were not available. Online values of subject goods were also obtained. All the information so gathered was evaluated and analysed for the purpose of determination of customs values. Consequently, the Customs values of Electric Clear Bulbs & Tube Lights have been determined under Section 25(9) of the Customs Act, 1969.
In cases where declared/transaction values are higher than the Customs values determined in the ruling, the assessing officers shall apply those values in terms of Sub-Section (I) of Section 25 of the Customs Act, 1969. In case of consignments imported by air, the assessing officer shall take into account the element of air freight while assessing the goods. The values determined vide new ruling shall be the applicable Customs value for assessment of subject imported goods until and unless it is rescinded or revised by the competent authority in terms of Sub-Sections (I) or (3) of Section 25-A of the Customs Act, 1969.