Custom valuation of paper, paperboard: DG issues ruling on determination

Director General Valuation has issued ruling on determination of custom valuation of paper and paperboard. The Director General initiated process of review of paper and paperboard prices keeping in view fluctuation of prices in international and local markets
Several meeting were held to verify, revise and determine the value of paper and paper board with representatives importers, local manufactures and stakeholders. All Pakistan Paper Merchant Association contended that price of paper and paperboard has substantially decreased in international market. While Pakistan Pulp Paper and Board Mills Association comprising of local manufactures contended that the prices of all kinds of paper and paperboard have gone up.
The main contention of local manufacturer was that the price of DTRE imports was showing an upward trend. They pointed out that the duplex board with grey back is being imported from Korea at 700 dollars per metric ton to 800 dollars per metric ton under DTRE scheme.
However, it was pointed out by the importers that DTRE scheme is a separate and special regime for export oriented units and no duty and taxes is paid on goods falling under the said regime and DTRE goods are not for sale in local marker and thus the evidence of valuation of such special category goods is legally not maintainable. However, this contention was not accepted.
The imports also pointed out that value for duplex board with gray back arrived at on the bases of prices obtained from joint market enquiry conducted by the department as well as those published in paper business (The market bulletin) also prove their contention as values of duplex board with grey back are lower than those contended in existing valuation ruling.
The matter has been examined, truncation value of goods, cannot be accepted under sector 25(1) of custom act 1969, being visibly lower then the price in international market. Import data of various items of paper and paper board under section 25 (5) and 25(6) of the custom act 1969, was also analysed which indicate the upward trend in value of different board, art card and art papers.
However no substantial increase was recorded in value of duplex board with grey back. In order to resolve the issue market inquiry was conducted. Values published in market bullet were also consulted for work back under sector 25(7) of the act but the same were not reflecting the clear picture.
Therefore, in the light of price fluctuation and trends for various items of paper and paper board in international market as evidence from import date, cost of material of various type of [paper and paper board, local selling price as confirmed in the market survey, recommendations of All Pakistan Paper Merchant Association and All Pakistan Paper Merchant Association custom valuation has been detrained.