Customs values of Ovaltine revised downwards

KARACHI: The Directorate General of Customs Valuation has revised down the customs values of ‘Ovaltine’ keeping in view the price variation between the different modes of packing.
According to revised values, Ovaltine in glass bottle would assessed for duty and taxes at a value of $1.87 per KG; drinking powder Ovaltine in plastic bottles to be assessed at $1.68 per KG; Ovaltine in plastic bags at $1.6 per KG and in paper bags at $1.52 per KG.
Prior to the revision in the valuation, the earlier values of the subject product vide Valuation Ruling No.640/2014 had been challenged by M/s M. Junaid M. Shafee on the grounds that the goods are imported in various packing materials i.e. Glass bottles, Plastic Jars, Plastic Bags, Paper Boxes and Soft Sachet. But uniform prices are fixed for all sort of packing and disregarding the element of packing difference and ignoring the aspect of their shelf life limitation.
The value of imported goods namely Ovaltine of all origins can never be one and the same while the declared/assessed import value has been enhanced without any valid evidence of higher value.
The Directorate General observed that other class of similar category goods namely Milo, Nesquick, Bournvita and Complan determined at the same level for their equivalent assessment. However, as per the market report these similar products are offered at substantially higher market values, which do not justify the bracketing of Ovaltine with other branded products.
Furthermore, the aspect that the goods are available in the market in different modes of packing, reflecting their maximum shelf life, also supports the contention that value difference on this account has not been fully taken into account at the time of market survey. As such, it seems that the valuation of subject goods namely Ovaltine has been valued slightly higher than other similar branded products.
“With these observations and keeping in view the market realities, a relief to the maximum of 15 percent is allowed in the valuation of Ovaltine to overcome the agitated differences. Therefore, Valuation Ruling No.640/2014 is reduced and revised,” noted the Directorate General of Customs Valuation

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