Valuation fixed for iron or non-alloy steel, wire rod low/high carbon (draw quality)

KARACHI: Pakistan Customs has fixed customs values for iron or non-alloy steel, wire rod low/high carbon (draw quality) to reflect the current prices as prevailing in the international market.
On Friday, Directorate General of Customs Valuation said in fresh valuation ruling No. 693/2014 that All Pakistan High Carbon Steel Wires Manufacturers Association, manufacturers and importers have filed representation in which they stated that stakeholders are facing hardships as prices of wire rod declining in the international market however; customs values are not accordance with international market due to the reason it should be revised.
As per circular, it transpired from the case record that the valuation of goods was based upon the prices of metals quoted in LME.
However; representations were considered during three meetings from March to September 2014 with importers/manufacturers and other stakeholders for resolving the issue.
All stakeholders are of the view that assessable values should be based on LMB prices with addition of freight.
The following assessable values are included:
Iron or non-alloy steel wire rod low carbon (draw quality) will be assessed at LMB prices + 5 percent (on account of draw quality, size, etc) + $45/MT (minimum, on account of fright);
Iron or non-alloy steel wire rod high carbon (draw quality) will be assessed at LMB prices + 5 percent (on account of draw quality, size, etc) + $66/MT
The following views tendered by importers/stakeholders were examined, and observed that:
-The subject goods are items, whose spot prices are periodically and regularly reflected in the London Metal Bulletin and it is indicative of prevailing market price structure of these goods and is regarded to be an appropriate tool for the verification and price confirmation;
-All prime quality iron and steel products are assessed on the basis of prices reflected in the London Metal Bulletin;
-The case history shows that the value of this item is volatile, as there has been price variation in the international market;
-The transaction/declared values are easily verifiable on the basis of LMB of a specific period and this method of valuation is generally acceptable
A notification said that in case of consignments imported by air, the assessing officer shall take into account the differential between air freight and sea freight while applying the customs values determined in this ruling.
A review petition may be filed against this ruling within 30 days from the date of issue before the Director General, Directorate General of Customs Valuation.
It said that the Collectorate of Customs should ensure that the values given in the ruling for the given description of goods are applied by the concerned staff without fail and any anomaly observed may kindly be brought to the notice of Directorate General immediately.

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