Directorate General Customs Valuation (DGCV) has revised the customs value of medicines under section 25-A of Customs Act 1969. According to details, the customs values of medicines ie Lincomycin Injection, Metronidazole Injection, Gentamycin Injection 80mg 2ml, Oxy Tetracycline Capsule Blister packing, Diclofenac Sodium 75mg, Ampicillin Injection 500mg, Doxycycline Capsules, Indomethacin Capsules Tin/Blister packing, Procaine Penicillin injection 4000000 I.U, Sipicon Injection for veterinary, Dexamethasone Injection, Benzyl Penicillin Injections were earlier determined vide valuation ruling 1094 in 2017.
Subsequently, several representations were received from commercial importers to determine the applicable customs values afresh in accordance with the trend of values in the international market and to include some more medicines being regularly imported as Diclofenac Sodium 75mg, Ampicillin Injection 500mg, Doxycycline Capsules, methacin Capsules Tin, Indomethacin Capsules Blister, Procaine Penicillin injection 4000000 I.U, Sipicon Injection for veterinary, Dexamethasone Injection, Benzyl Penicillin Injection.
Keeping the prevailing prices of the subject items in view, the Directorate has initiated an exercise for determination of the customs values of the subject items under section 25-A of the Customs Act, 1969.
For the purpose, meetings with all the stakeholders including importers and representatives from clearance Collectorates was held on December 7, 2017 to discuss the current international prices of the subject items.
The commercial importer namely Mehran Traders argued that besides items covered under the existing valuation ruling, there are medicines namely Diclofenac Sodium 75 mg, Ampicillin Injection 500 mg, Doxycycline Capsules, Indomethacin Capsules Tin, Indomethacin Capsules Blister, Procaine Penicillin injection 4000000 I.U, Sipicon Injection for veterinary, Dexamethasone Injection, Benzyl Penicillin Injection which were required to be brought under the regime of valuation ruling to curb the menace of under invoicing.
He supported his submission with documentary evidences. The viewpoint of all participants was heard in detail and considered to arrive at customs values of medicines and injections of aforementioned types.
The valuation methods provided in section 25 of the Customs Act, 1969 were duly applied in their regular sequential order to arrive at customs values of subject goods.
The transaction value method provided in sub-section (1) of section 25 was found inapplicable because there were wide differences in the declarations. Identical 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 due to wide variation in declared values of subject goods. Thereafter, market enquiries as envisaged under section 25(7) of the Customs Act, 1969, were conducted. Later, all gathered information was evaluated and analyzed. Consequently, the customs values of medicines of given types including weight of retail packing were determined.