KARACHI: The Directorate General of Customs Valuation has dismissed the petition seeking suspension of Valuation Ruling No.664/2014 and fixing of Customs values of motorcycle parts separately as the revision petition lacked merit.
M/s Al-Badar Engg Co. Pvt. Ltd had approached the DG Valuation praying that the Valuation Ruling No.664/2014 may be declared null and void; the Customs values of motorcycle parts and components may be fixed after applying all the methods separately along with some other revisions.
The petitioner submitted that the Valuation Ruling No.664/2014 had been passed without following the procedure given in the Customs Act and provisions of Section 25 had been violated as such the impugned ruling suffered from irregularity.
Moreover, no proper reasoning and plausible explanation in the impugned ruling had been given that why all the methods were not adopted for evaluating the prices while opinions of the relevant importers and suppliers were not invited as the ruling was passed in hastily manner.
The department submitted that Valuation Ruling No.664/2014 was issued under Section 25A of the Customs Act, 1969 determining the Customs values of imported Motorcycle Parts of OEM Brand (Genuine Parts) and Commercial Brands (Non-Genuine parts) after adopting all methods as per law. It further submitted that the transactional value method was found inapplicable because requisite information was not available. Identical / similar goods valuation methods could not be followed because of considerable variation in declared values among various import values of subject goods. Market enquiry under Deductive Value Method was conducted to arrive at correct transaction value. Moreover, input of all types of stakeholders was obtained before issuance Valuation Ruling.
The meetings were attended by representatives of KCCI, All Pakistan Motorcycle Spare Parts Importers and Dealers Association (MSPIDA), Pakistan Automotive Manufacturers Association (PAMA), Association of Pakistan Motorcycle Assemblers (APMA) and Local Motorcycle Assemblers.
The representative of PAMA stated 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 was diverting the Chinese brand OEMs towards commercial imports. The representative of APMA pointed out towards the huge difference kept in previous Valuation Ruling between OEM and commercial imports and requested to determined single value for all Chinese origin motorcycle parts. MSPIDA representatives were of the view that 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.
After considering all aspects of the case, the Director General Customs Valuation dismissed the review petition filed by M/s Al-Badar Engg as it lacked merit.