DG Customs Valuation directs fresh determination of skimmed milk powder from Iran

KARACHI: The Directorate General of Customs Valuation has asked the Director, Customs Valuation for a fresh determination of Customs value of Iran origin skimmed milk powder after affording due opportunity of hearing from the importers.
The revision petition was filed by one M/s Ghani Corporation pertaining to the Customs values of skimmed milk powder vide Valuation Ruling No.599/2013.
According to the petition, the valuations determined in the impugned Notification have been distributed into four categories of origin. The valuation determined for origin at Sr. No.3 & 4 are same, whereas the custom valuation for the fourth category of origin should be much lesser than the alleged valuation determined for the same i.e. $ 2.85 per Kg (C&F). In the other origin those countries are included whose product is of normal quality in comparison to the Advance/Premium Quality of other countries and therefore, their prices are much lesser than the prices of the product of advance quality.
M/s Ghani Corporationfirst time imported a consignment of the Skimmed Milk Powder (Normal Quality) from Iran, having protein 28-30 percent in comparison to the advance/Premium Quality of the same product having protein 34-36% and therefore, its price is $ 2.20 per Kg. (CFR), and therefore, the said valuation determine in the impugned Notification will put heavy burden upon the shoulder of the petitioner unnecessarily without any legal or rational justification.
M/s ghani Corporation prayed to set aside Valuation Ruling no.599/2013, and to issue / revise the Custom Valuations of the Skimmed Milk Powder after calling meeting of the Stakeholders’ Associations for proper assistance to bring true facts before the department to enable the department to determine the Custom Valuations of the said item in fair, honest and reasonable manner.
The Directorate General observed that the valuation of Skimmed Milk Powder was factually decided by the department on the basis of case reference against under-invoicing and mis-declaration in its importation. With this background, value of goods imported from specific origin/sources was determined mainly and in order to cover other unspecified regions, the category under heading ‘other origin’ was included to block any unscrupulous transaction. Neither import data was indicative of any import from Iran nor was this source actually meant to be targeted upon.
However, without having any intention to evaluate the import of these goods from the origin of Iran, the impugned ruling had adversely affected the petitioner’s transaction. The petitioner was thus seemingly unaware of the existence of valuation decision held by the Department until landing of their shipment for customs clearance.
The petitioner’s claim for acceptance of declared value appears to be convincingly acceptable. It is viewed that such a value determination under the provisions of section 25A provides for lawful protection against, misdeclaration and under-invoicing. Therefore, these circumstances do not inspire to disturb the valuation concept covered under the impugned Valuation Ruling, which is maintainable in the aforesaid scenario. However, keeping in view of the arguments put forward by the petitioner, the valuation of Skimmed Milk Powder from Iran needs to be separately evaluated for a fair value determination under section 25A of the Customs Act, 1969.

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