KARACHI: The Director General Customs Valuation Sameera Nazir Khan has rejected the review applications filed by several importers, who had challenged customs values of polyester yarn determined vide Valuation Ruling No.709/2015.
The importers including M/s A.B International Agency, M/s IFH Enterprises, M/s J.K Traders and M/s Furqan Enterprises pointed out that the way adopted for the determination of this valuation ruling formula is against the section 25 of the custom act 1969. The Valuation Ruling No.709/2015 need to be reviewed, as the price reflects in the ruling is still 25 percent above the actual prices.
The current shipments of P-FDY Denier 150/48 at $1.08 & $1.10 while valuation ruling of this item is $1.36/Kg which are 25% higher. The department submitted that Customs values of Polyester Chain Items were determined as per agreed formula after taking price of raw material i.e. MEG & PTA. Meeting in this regard were attended by all the stakeholders including representatives of KCCI, Pakistan Yam Merchants Association and importers who agreed on the existing practice of formula based values.
Importers noted that almost once a year the prices are being revised, while the prices of polyester yarn are frequently changing in the international market adding that valuation ruling should be issued ultimately once in a month, must link with the International trade prices.
Sameera Nazir Khan observed that the Department has mainly focused on the point that the difference in the determined customs values and the current import price, as contested by the petitioners, was in the range of 3.40% to 21.78%. This was though on downward side but according to the Department’s version, it was nominal and ignorable in the wake of current variation in petroleum prices in the international market. Further regarding the petitioners’ contention that the valuation may be revised on monthly basis, it was viewed that in the varying situation, it was not appropriate to undergo revision exercise, until some stability in prices is recorded. It has also been observed that the goods under reference were being valued under the adopted methodology with the active participation and consent of traders body in broader sense and it has prevailed since a considerably much longer period without having any recourse to dispute or litigation.
In the present scenario, it appears that a particular group of importers have sought revision of values to seek facilitation in the outcome of reduction in prices due to sudden variation. Otherwise, the decision held by the department is considered to be very transparent in nature, reflecting a price worked out on the analysis of basic raw material prices namely MEG & PTA (Mono Ethylene Glycol and Poly Tri Acetylene). This mutually agreed formula was since adopted with the importers’ consent and it has been applied to relevant imports, it is considered to represent quite a fair determination. The DG Customs Valuation rejected the review applications.