KARACHI: Director Customs Valuation Manzoor Memon has taken a positive step as the customs values of curtain and sofa cloth are being brought at par with the velvet.
Officials said that this revision in the customs values of furnishing fabrics would discourage mis-declaration of velvet, which was being imported on a large scale in the garb of furnishing cloth i.e. curtains and sofa cloth.
It may be recalled that as per the relevant valuation ruling velvet is assessed for duty and taxes at $4.40 per KG while furnishing cloth was assessed at $3.20 per KG.
On complaints received from Intelligence & Investigation and MCC Appraisement West that velvet was being mis-declared and revenue was lost, Manzoor Memon formed a committee comprising Additional Director Dr. Nadeem Memon, Deputy Director Dr. Shahzad, Principal Appraiser Shamim Iqbal and Appraising Officer Hafiz Mohammad Jokhio to conduct market surveys and research.
Sources said that the valuation ruling No. 765/2015 has been finalized and accordingly the customs values of furnishing cloth has been revised to $4.5 per KG.
It may be mentioned here that the rate of duty on velvet was 25 percent, which was reduced to 20 percent in the last budget. It also attracted FTA concession of 3.0 percent. Furnishing cloth however attracts customs duty of 15 percent.