KARACHI: The Directorate General Customs Valuation has revised the Customs values of glycerine vide Valuation Ruling No. 798/2016 on January 21, 2016.
Background of the valuation issue is that Customs values of glycerine was determined vide Valuation Ruling 416/2012 January 20, 2012.The trade community was demanding revision in the price of glycerine, claiming downward trend in their prices in international market. Accordingly to ascertain the current prices prevailing in the international market Directorate General considered the Custom values of the commodity.
Following the meeting with the stakeholders including representatives of Federation of Pakistan Chambers of Commerce and Industry, Pakistan Chemical Dyes Merchants Association (PCDMA), local manufacturers and members of chemical industry, the Customs under took the revision process.
The Customs department asked the stakeholders to provide documents like copies of contracts made/Letter of Credit, Sales Tax invoices etc to substantiate their contention of decrease in market prices.
During next meeting the stakeholders submitted invoices of imports made during last three months showing factual values, websites, names and email addresses of known foreign manufacturers of the items in question through which the actual value could be ascertained.
Copies of contracts made/Letter of Credit opened during the last three months showing the value of item in question and copies of Sales Tax invoices issued during last four months showing the difference in prices to substantiate that the benefit of difference in prices was passed on to the local buyers.
The local importers submitted their import invoices and internet websites for checking the prices in international market. The importers were asked to submit Sales Tax invoices alongwith monthly Sales Tax returns to ascertain the whether they were passing on the difference in prices fallen (if any) in the international market to consumer/buyer or pocketing the whole difference in prices themselves.
Customs department said Sales Tax invoices and monthly returns was mandatory under Sales Tax law on each taxpayer, therefore they should not to be hesitant to submit them to the Customs department as the Customs has the authority in terms of sub-Section (II) of Section 25 of Customs Act 1969 to call any document to satisfy about the truthfulness of accuracy of any information or declaration made to Customs for valuation purpose.
Since the importers were not forthcoming to furnish the complete Sales Tax documents and the matter was lingering on, it was decided to proceed on merit in the light of available import record.
Valuation methods in Section 25 of the Customs Act, 1969 were applied sequentially to address the valuation issue in hand. Identical/similar goods value methods provided in Sub-Section (5) and (6) of Section 25 ibid were adopted for determination of Customs value of glycerine. The import data obtained from PRAL was analyzed. And the glycerine value was determined.The glycerine valuation was determined under PCT heading 2905.4500, proposed PCT for WeBOC 2905.4500.1000 of all origins as $0.70 (C&F) per kilogramme.
It is also mentioned that in case where declared/transaction values are higher than the Customs values determined in this ruling, the assessing officers shall apply those values in terms of Sub-Section (I) of Section 25 of Customs Act 1969. In case of consignments imported by air or by land route, the assessing officer shall take into account the differential between air freight or land route, transportation charges and sea freight while applying Customs values determined in this ruling.The values determined vide this ruling shall be applicable Customs value for assessment of subject imported goods until and unless it is rescinded or revised by the competent authority in terms of sub-Sections (I) or (3) of Section 25-A of the Customs Act 1969.
It is said that a revision petition may be filed against this ruling as provided under Section 25-D of the Customs Act 1969, within 30 days from the date of issue before Director General Directorate General of Customs Valuation, Customs House Karachi.