KARACHI: The Directorate General of Customs Valuation has revised the Customs values of iron & steel HRC, CRC and GP vide Valuation Ruling 717/2015.
The Customs values of iron and steel HRC, CRC and GP, secondary quality, were determined under Section 25A of the Customs Act, 1969; vide Valuation Ruling No.560. Since these values were determined more than a year ago, and that importer of subject items have pleaded to align values according to international prices, therefore, the issue was taken up for redetermination of customs values of secondary quality HRC, CRC and GP coils.
Importers have represented before the Department that values in international market have significantly reduced and valuation may accordingly be re-determined. Local manufacturers on the other hand have been taking a quite different and divergent stand.
Importers’ main contention is that secondary quality HRC, CRC and GP coils are comparatively much cheaper than the prime quality coils and values of secondary coils vary from 20 percent to over 30 percent less than prime quality coils. They also contended that in the present tariff regime, the incidence of duty is twice as much on the secondary quality as compared to prime quality. On the other hand, local manufacturers have contended that difference between primary and secondary quality HRC, CRC and GP is not very significant and difference varies from 5 percent-8 percrent. The case record indicates that prices quoted in the LMB have previously been considered while determining prices of secondary quality coils.
For detailed deliberations on the issue, stakeholders’ meetings were held where local manufacturers, importers and representatives of trade bodies, FPCCI and KCCI also participated. After the scrutiny ofavailable data, and input from stakeholders, it was observed that the prices of HRC, CRC and GP coils of prime quality are given in the London Metal Bulletin. It is indicative of prevailing market prices and are regarded as appropriate by all types of stakeholders. Prime quality iron and steel products are assessed on the basis of prices reflected in the London Metal Bulletin. he case history shows that the values of this item have remained volatile, as there has been price variation in the international-market. The prices as quoted in LBM, taken as a bench mark are much better than any other criteria for the determination of customs values and this bench-marking has wide acceptability in the trade and industry circles.
Flat rolled iron and steel products namely HRC (PCT 7208), CRC (PCT 7209) and GP (PCT 7210) of secondary quality imported from different origins will be assessed to duty and taxes at Customs values calculated as per the following formula : LMB prices of prime quality of which 15 percent on account of secondary quality will be deducted while $40/MT would be added on account of freight charges.