China and India: Customs values on import of metallic yarn revised

The Directorate General of Customs Valuation Karachi has revised customs values on the import of metallic yarn (synthetic yarn) of all colours from China and India.
According to a valuation ruling issued here on Monday, a number of representations were received from different importers of metallic yarn against valuation ruling in field vide its NO.796/2016 dated 18-01-2016, stating that the international prices have come down and the existing values in said ruling are at much higher side. Therefore, an exercise was undertaken by the Directorate General to revise the same in accordance with the trends prevailing in the current international market.
A meeting was scheduled where different stakeholders including importers, representatives of Clearance Collectorate, and trade bodies were invited to participate but no one attended the meeting. Another meeting was scheduled for 30-08-2016 and again different stakeholders, including importers/complainant M/S Lorex Industries Karachi and members of FPCC, KCCI, Clearance Collectorate and trade bodies were requested to attend the meeting but no one appeared before the meeting.
Lastly, a final notice was served on all stakeholders including complainant M/S Lorex Industries to attend the meeting for their input in the chamber of director valuation. Both the importers as well as the local manufactures participated in the meeting and put forth their viewpoint regarding types, origins, values, cost of manufacturing and other factors which influence values and trade. All the participants were requested to submit the samples.
M/s Lorex Industries (complainant) forwarded copy of invoice and copy of letter of credit, while the main thrust of the complainant was that goods are being under invoiced due to mis-declaration of different types of metallic yarn whose values vary, once the all types are mentioned in the valuation ruling, the matter will be resolved. On the other hand, the importers did not agree and stated that it will create confusion at the time of examination of the goods. Moreover, they also agitated on the proposed values by the local manufacturer.
The valuation methods given in Section 25 of the Customs Act, 1969 were followed. Transaction value method provided in Section 25(1) was found inapplicable because the requisite information was not available. 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. Thereafter, market enquiry as envisaged under section 25(7) of the Customs Act, 1969 was conducted. The prices of different types of metallic yarn in the market varied significantly, and were heavily dependent on quality of the metallic yarn and the location of the selling point or shop in the city. Online values were also checked. 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. All the information so gathered was evaluated and analysed for the purpose of determination of Customs Values. Consequently, the Customs values of metallic yarn 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 differential between air freight and sea freight while applying the Customs Values determined in this ruling.
The values determined vide the 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.