Order-in-Revision; customs values of toilet soaps determined

KARACHI: The Director General Customs Valuation through an order-in-revision has re-fixed the customs values of soaps.

Importers of toilet soaps had contended Valuation Ruling 863/2016 that the ruling was not determined as per Section 25 of the Customs Act, 1969. Moreover, the ruling was issued on the basis of international prices gathered from internet sources.

The Director General observed Director Customs Valuation Karachi fixed the customs values of toilet soap according to their brands and has very conveniently ignored the most crucial fact that the variance in country of origin makes a market difference in the actual cost of an item i.e. toilet soaps. Therefore the impugned valuation ruling is invalid and vague.

The DG observed Valuation Ruling No.863/2016 adopted/retained the same format/structure that was part of earlier Valuation Rulings 737/15, and 702/14 i.e. brands of different origin have been clubbed together and added both the Valuation Rulings lacked the warrant of law and failed to adhere to the statutory requirements.

The manufacturer’s contention is that Soap Noodles (intermediary raw material of soap) prices in international market are around $800/MT (80/20 quality). They added that minimum prices of any low brand Toilet Soap are at Rs.30-35/piece in the local market. No category of Toilet Soap is less than the value of $1000/MT, therefore, the values of last two categories of valuation ruling which is fixed at $660/MT and $750/MT are disputed categories and may be merged in one category and may be valued above $1100/MT.

In view of the above facts, market inquiry was conducted and it was known that high end brands were very expensive in the market. The prices of raw material in the market also ranges between $600-$800/MT.

In view of the prices of raw material and market inquiry the values of soap are fixed as under.


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