DGCV issues new valuation ruling for glass tubes

The Directorate General Customs Valuation (DGCV) has issued new valuation ruling for 'glass tubing' used for manufacturing ampoules and sealing glass containers of medication.
According to official details, the Model Customs Collectorate (MCC) Appraisement (West) had earlier issued a guideline for the assessment of glass tubes used for manufacturing ampoules.
This guideline was issued on a complaint lodged by a local manufacturer of glass tubes. Thereafter, the directorate has not only issued valuation advice in the relevant cases, but also issued valuation database values (VDV) on Nov 16, 2016 for its uniform application across the country.
However, some importers opposed the VDV and requested for formal valuation ruling for the said item. Consequently, the valuation ruling has been issued after taking all stakeholders on board. A meeting in this regard was convened with the stakeholders on Jan 10, 2017 where importers were requested to submit supportive documents.
During the course of meeting, the importers asserted that the subject product was not a consumer item and hence aspersions of mis-declaration of value were uncalled for. They also stated that there were no high fluctuations of value in the market and only few manufacturers produce this item in China and one manufacturer in Germany produce top quality glass tubing.
They further claimed that their declarations were correct and quality of Chinese glass tube was as per approved standards of USP.
However, the manufacturer claimed that glass tubing used for the manufacture of ampoules was not an ordinary glass, but a special one. Since the ampoules contained injectable medicines, it is essential that the glass shouldn't be reactive and corrosive. Besides, such glass is manufactured according to USP standards and that constituent material would contain borosilicate.
They also contended that values of ordinary glass tableware of Chinese origin had been determined at US$ 0.89 per kilogram as per valuation ruling no. 788/2016, whereas the subject glass tubing was of specific requirements catering to pharmaceutical standards. They further stated that values of glass refills for vacuum flasks of China origin had recently been suggested at US$ 1.80 kilogram.
The requisitioned documents were not submitted by the stakeholders however, an importer submitted some documents pertaining to clearance and supplies. The analyses reaffirmed the customs values determined in this ruling.
In cases where declared/transaction values are higher than the Customs values determined in this ruling, the assessing officers will apply the values in terms of Section 25 of the Customs Act, 1969. In case of consignments imported by air, the assessing officer shall take into account the air freight while applying the customs values determined in this ruling.