Plea rejected to downward valuation of Red Bull energy drink

KARACHI: The Directorate General of Customs Valuation has rejected the plea of Aula Private Limited Karachi – the importer of Red Bull energy drink – seeking downward review against the determined customs value of $0.52 per 250ml.
The applicant was argued that by Valuation Ruling No.556/2013, the valuation was almost doubled over their transactional value of $0.355 per 250ml. This increase is unrealistic and not substantiate by any evidence on import of Red Bull at such a high price, the applicant said.
The applicant of the case, Zeeshan said in his statement: “the similar energy drinks imported in Pakistan by different importers at much lower value than their declared value and they are calling it one-sided exercise.”
In fact their import value, being highest among all importers, should have been adopted as the basis for enhancing other importer values but instead their values has also been unlawfully discarded while issuing the aforesaid valuation ruling.
The customs asked the applicant to submit the documents in which they submitted the information of three imported consignments, L/C, B/L, Performa and copies of few sales tax however, there are lots of sales tax invoices are missing.
According to the Directorate of Customs Valuation, they are forwarding original copies in-respect of six consignments of import Red Bull energy drink into Pakistan duly verified by Consulate General, Sulzburg, Austria dated July 28, 2013.
Another letter from Red Bull GmbI-I, Austria dated July 16, 2013 is also enclosed which certifies that the invoice from fully owned subsidiary Red Bull Asia FZE, is correct and within the global Red Bull pricing guideline and that all invoices issued by Red Bull Asia FZE, are in line with the provisions laid down in the WTO agreement on implementation of Article VII of the GATT 1994 and the invoiced price is transaction value in line with the provisions mentioned above.
After scrutiny of records reveals legal infirmities and discrepancies including copy of bank certified letter of credit is not being submitted to the appellant.
It is also proved that Aula Pvt. Ltd not only an importer but also an authorized distributor of Red Bull which carries certain restrictions and conditions making value doubtful in terms of Section 25(1) (b) ibid.
The applicant did not provide document related to distribution agreement, memo of articles and memorandum and financial report to offset impression of related party transaction.
The imports have been made through their subsidiary Asia FZE Dubai not directly from manufacturer in Austria and it is confirmed by the manufacturers attached documents but there are no invoices available for specific details to verify the truth of the document.
As per Rule 109 of the Valuation Rules issued under SRO 450(I)/2001 dated 18th June, 2001, in the absence of valid import documents thus he failed to substantiate cause of his grievance with conclusive evidence therefore, is accordingly rejected.

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