KARACHI: The DG of Customs Valuation Samaira Nazir Khan has remanded back the Valuation Ruling No. 648/2014 to Director Customs Valuation to reexamine the case for issuance of fresh ruling and determination of Customs value of silk fabrics.

The Directorate of Post Clearance Audit had filed a review petition against Valuation Ruling No. 648/2014. The Directorate submitted that the Ruling gives the values of silk fabrics of different type from $11.50/kg to $15.40/kg. The Directorate General of Customs Valuation Karachi has already issued a valuation ruling No. 25-A-107 dated 16.06.2008 under which Customs value of silk yarn have been determined $30 per kg. It is not possible that the value of finished goods is less than the value of its raw material. Valuation Ruling regarding silk fabric is inconsistent with the earlier valuation ruling on silk yarn in the field.

Moreover, much higher transactional values of $90 per kg, at which silk fabrics were cleared from Model Custom Collectorates of Preventive and Appraisement Karachi and Lahore have been ignored and disregarded. Directorate has found that value of silk fabric is declared in meters which is often $2 to $5/meter. If this meter value is converted to PCT/unit of measure i.e. Kg, it comes to above $90 per Kg.

Model Custom Collectorate (Preventive) Lahore, after scrutinizing the cases and obtaining laboratory test reports of the impugned goods, finalized the assessment of silk fabric at $92.40 per kg.

Director Valuation submitted that whenever a Valuation Ruling is issued, detailed enquiry regarding the goods i.e. Raw Material used in the goods, its origin, trade practices, international prices, options of trade bodies, Valuable opinions of Chambers, importers’ contention, manufacturers’ opinions etc. are considered and thereafter the Customs values are determined in such a manner that it should be under the ambit of law i.e. as per methods described in terms of Section 25 of the Customs Act, 1969.

In these both Valuation Rulings i.e. one for “Silk Yarn” and other for “Silk Fabric”, output from the importers / manufacturers / trade bodies and enquiries through local market i.e. specific to selling price in local market was considered and accordingly the values were determined.

The DG Valuation concluded that there seems to be some technical ambiguity in the valuation of subject goods, lacking sound footings. It is also apparently on lower side when evaluated with comparable evidences as cited in the submission. The aspect whether these evidences are reliable or not, needs a thorough analysis of material evidences in the light of relevant data with a view to include items of other various categories of identical or similar goods. `

“The case is therefore, remanded back to the Director Customs Valuation to reexamine the case for issuance of fresh valuation ruling and determination of custom value of silk fabrics in accordance with law. While examining the issue, the petitioner’s as well as Customs Collectorates may also be associated to consider their technical expertise/input and concerned stakeholders may also be associated in the proceedings before drawing out a revised evaluation of subject goods under section 25Aof the Customs Act, 1969,” the order added.