KARACHI: The Customs Appellate Tribunal has set aside the order-in-revision No.35 passed by Directorate General of Customs Valuation and ordered to modify the Valuation Ruling No.1301/2018 adding the transaction value for import of printed polyester microfiber fabric up to 5.0 sq.m/kg will be accepted as Customs values.

There was a uniform policy of almost all the collectorates to assess the Chinese origin printed polyester microfiber fabric at the rate of $2.80/kg, irrespective of truly declared transactional values of the said item.

The importers always accepted the assessment keeping in view the minor difference between genuine transactional values and assessed values, however, such assessed values were not acceptable to some importers. As a matter of fact, actual transactional values of the imported goods were ranging from $2.5/kg to $2.68/kg.

Director Customs Valuation Iqbal Muneeb issued Valuation Ruling No.1301/2018, whereby value of polyester fabrics of various types were increased by the concerned assessing fabrics of various types were increased. The values of Chinese origin printed polyester microfiber fabric was increased to $3.5/kg vide Valuation Ruling No.1301/2018.

Revision petition was filed by the importers before the Director General Customs Valuation, but the same was rejected. Dissatisfied the importers approached Customs Appellate Tribunal.

After due process and hearing both sides, the Tribunal observed that instead of depending upon factual transaction values, the Director General issued the Valuation Ruling No.1301/2018 based on hypothetical data. The Tribunal declared the Valuation Ruling and order-in-original as void and illegal and ordered to modify the Valuation Ruling No.1301/2018 adding the transactional value for import of printed polyester microfiber fabric up to 5.0 sq.m/kg will be accepted as Customs values.

The appellant importers included M/s Diamond Fabrics, M/s Diamond Export Industries, M/s Radium Silk Factory, M/s J.K Traders and M/s SKF Collection.