ISLAMABAD: Directorate General of Customs Valuation Karachi for the first-time fixed customs values on the import of old and used LCD/LED computer monitor panels for assessment of duties and taxes.
In this connection, the directorate has issued a new customs valuation ruling (1849 of 2024) on Wednesday. There was zero customs value on the import of old and used LCD/LED computer monitor panels. The new value has been fixed at $0.70/- per inch on the import of old and used LCD/LED computer monitor panels.
The Directorate of Customs Valuation, Karachi, received Federal Tax Ombudsman (FTO’s) recommendation whereby the FTO directed the Directorate of Customs Valuation, Karachi to determine Customs values of old and used LCD/LED Computer Monitor in terms section 25A of the Customs Act, 1969.
Computer, multimedia, trolley speakers: Customs’ values on import of low-end brands fixed
Therefore, an exercise has been undertaken by the Directorate to determine the same. In this regard, meetings were held in the Directorate of Customs Valuation, Karachi. Ninety (90) days’ clearance data has been retrieved and the same has been scrutinized. Chunk of data of identical goods shows declared and assessed values @ $12 per piece. Further analysis indicates that some importers started declaring lesser values for the same goods and even got assessment thereon.
This practice reflects the phenomenon of group under-invoicing by certain importers. Further, the importers were requested to provide following documents to corroborate their declared values but they failed to do so.
The ruling stated that market enquiry was also conducted but could not yield results as subject goods were not available in market being intermediary in nature. In line with statutory sequential order of section 25, Computed value method was examined, but the same also could not be applied as the conversion cost from the constituent materials and allied expenses, in the country of export, were not available for manufacturing of Old And Used LCD/LED Computer Monitor Panels.
Finally, the Customs values of the subject goods have been determined under Section 25(9), read with Section 25(5), and Customs Rule 121(2) of Customs Rules, 2001 which provides that the methods of valuation, but a reasonable flexibility in the application of such methods would be in conformity with the aims and provisions of sub-section (9) of that section, the ruling added.
Copyright Business Recorder, 2024