Customs Values for motorcycle parts of Chinese origin fixed up to $25/kg

KARACHI: Pakistan Customs on Tuesday determined the valuation for motorcycle parts of Chinese origin up to $25 per kilogram for the collection of duty and taxes.
The Directorate General of Customs Valuation said that the exercise to determine the customs values of the good was initiated after vide order issued by the Customs Appellate Tribunal Karachi on March 8, 2013.
According to Valuation Ruling No. 664/2014, findings of market enquiry under deductive value method in terms of Sub-Section (7) of Section 25 of the Customs Act, 1969 with fall back method were adopted for determining the customs values of motorcycle parts.
Prior to Customs Valuation, meetings were held with stakeholders including representatives of Karachi Chambers of Commerce and Industry (KCCI), All Pakistan Motorcycle Spare Parts Importers and Dealers Association (MSPIDA), Pakistan Automotive Manufacturers Association (PAMA), Association of Pakistan Motorcycle Assembler (APMA) and Local Motorcycle Assemblers (LMA) on March 14, 2014 and March 24, 2014.
The representative of PAMA said in a meeting that many motorcycle parts were being assessed at values below raw material cost and that determination of customs value for commercial importers on the lower side, which was diverting the Chinese brand OEMs towards commercial importers.
The representative of APMA said that the huge difference was being witnessed in previous valuation ruling between OEM and commercial importers and requested to fixed single values for both OEM and commercial importers.
MSPIDA representative said, “The replacement/non genuine motorcycle parts were of lower quality/price than OEM parts and therefore; their customs values may be determined separately in the light of market values. He added that the customs values for commercial importers determined vide valuation ruling No.458/2012 may be reviewed.”


If declared values are higher than the customs values determined in this ruling, the assessing officer shall apply those values in terms of Sub-Section (1) of Section 25 of the Customs Act, 1969.
It said that in case of consignment imported by the air, the assessing officer shall take into account the differential between air freight while applying the customs values determined in this ruling.
The ruling shall be applicable customs value for assessment of subject goods until and unless it is revised by the competent authority in terms of Sub-Section (1) or (3) of Section 25-A of the Customs Act, 1969.
The notification said, “The collectors of customs may kindly ensure that the values given in the ruling for the given description of goods are applied by the concerned staff without fail.” It further added that any anomaly observed with respect to PCT may kindly be brought to the notice of Directorate General immediately.