ISLAMABAD: The Directorate General of Customs Valuation, Karachi has increased custom values on the import of 50 different types of alloy wheel rims of vehicles from China and other countries.
According to a valuation ruling recently issued by the directorate, the values of Wheel Rim (Alloy/other than Alloy) of vehicles was issued under Section 25A of the Customs Act, 1969, vide Valuation Ruling No. 1528/2021 dated 02-04-2021. Being aggrieved by this Valuation Ruling, revision petitions were filed by some importers/traders under Section 25D of the Customs Act, 1969 before the Director-General of Customs Valuation, Karachi.
The competent authority vide Order-in-Revision No.36/2021 set aside the valuation ruling and the Director (Customs Valuation), Karachi is ordered to undertake a fresh exercise to determine the values of Wheel Rim (Alloy/Other than Alloy) through the issuance of new Valuation Ruling under Section 25 of the Customs Act, 1969 on merits and in accordance with law after giving a fair opportunity of hearing to the petitioners(s)/stakeholders, therefore, an exercise was initiated in this Directorate-General for the determination of customs values.
It said that the importers during the meeting were of the view that the prices of the subject commodity have not increased in the international market. However, importers did not submit import invoices/sales tax invoices, representative samples, evidence, and other relevant allowed some time to furnish evidence and other documents in support of their contentions but later abstained from submitting any such documents.
However, M/s. Baluchistan Wheels Limited submitted relevant documents in respect Non-Alloy wheel rims which were examined in light of the prevailing trends in the local market. They also stated that the steel rim is made of HRC and its LME price has been increased from the last VR date, hence the value of nonalloy wheel rims should be increased on the basis of LME.
The representative from Indus Motors stated that they are importing alloy rims for three sizes, ie, 15, 16, 17 from China which is a higher customs value than the determined customs values of the previous valuation ruling and also shared import values. As regards, other than alloy rims, they purchase the same from local industry. They also mentioned that the prices have been increased in the international market of the subject commodity.
Karachi DGCV fixes value on import of wheel rims
Therefore, the valuation method vides Section 25 (8) was examined which yielded some useful information regarding export prices of some origins, but the same showed variation.
The relevant LME prices of the raw materials used like aluminum, aluminum alloys, iron, steel, etc were also checked as provided in Section 25A of the Customs Act, 1969. Finally, information so gathered was utilized and analyzed for determination of customs values of the subject goods under Sec (9) of Section 25 of the Customs Act, 1969, the ruling added.
Copyright Business Recorder, 2022