Petition to review Valuation Ruling No. 639/2014 rejected

KARACHI: The Director General Customs Valuation has rejected the review petition file by M/s A.R Associates declare Valuation Ruling No. 639/2014 illegal and unlawful and issue directions to allow assessment of imported goods in accordance with the provisions of Section 25 of the Customs Act, 1969.

The petitioner submitted that they were a regular importer of consumer goods including Canned Food Items from around the world since last over a decade and clearance is obtained against fair declaration with a respectable reputation and record of law abiding and tax compliant company.

The importer, M/s A.R Associates imported Canned Mushrooms consignment in the year 2013 and in 2014 at value of $0.41/kg which was assessed by the Customs Authority at the rate of $0.42/kg. But, on 21.02.2014 the learned Director Customs Valuation has issued impugned valuation ruling for the Mushrooms for all origins at an arbitrarily adjudged presumptive value i.e. $ 0.75/kg, totally ignoring the standard of transaction values, hypothetically, in violation of section 25 of the Customs Act 1969 and Customs Rules 2001 made there under.

The price shown in the commercial invoice also included the freight charges and accordingly it is mentioned at the respective bill of lading. The Canned Mushrooms being food item do have certain shelf life and often expiry claims arise which petitioner being a responsible company and regular supplier of goods have to entertain claims.

The importer submitted that in order to meet the business requirements and to establish the market, the importer had to incur major part of his gains to develop his brand as well as distribution and keep the market share.

It was also brought to the notice of the authority that the questioned items as well as about every item is being already smuggled and this unbearable increase in the value shall further encourage the smuggling.

It was categorically contended that the act of the enhancing the value shall cause irreparable loss, whereas the lawful import at less price is continuously contributing a countable share to the national exchequer, which was not considered by the Director Customs Valuation while issuing the impugned ruling.

However, none from the side of M/s A.R Associates appeared at the hearing, which was fixed on 20-05-2014. Moreover, the importer failed to submit relevant documents as to enable verification of truth and accuracy of transaction value as claimed by the importer. Hence, the Director General dismissed the review petition.

 

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