KARACHI: Director General Customs Valuation Syed Tanveer Ahmed through order-in-origin has updated the values of baby diapers and sanitary napkins.
Manufacturers of baby diapers and sanitary napkins including M/s Z&J Hygienic Products Pvt Ltd contended the values of above mentioned goods determined vide Valuation Ruling No.870/2016.
Manufacturers submitted the relevant information including costing of the locally manufactured products which clearly exhibited that values of locally manufactured goods are much higher than the values at which the subject goods are being imported proving that the customs values determined by the Director Valuation, did not reflect true transactional values. On the other hand, the commercial importers failed to provide the documents including sales tax invoices issued by them during the last four months as was required by the learned Director.
Director Customs Valuation determined the value of high valued brands of baby diapers (E.Q. Canbebe, Huggies at $3.0 per kg whose products are far superior than those manufactured by the applicant.
The manufacturing cost of the applicant company is $3.84 per kg excluding sales tax whereas the custom values of far superior brands have been determined at $3.0 per kg which is not only unfair but tantamount to subjecting the closure of local industry leading to have a negative impact on national tax revenue but also would create unemployment and unrest in the country. The customs values of higher value brands of top tier should be determined not less than $4.0 per kg.
The values of low brand baby diapers of second tier of all origins are required to be revised upwards between $2.75 to $3.10 per kg. The value of sanitary towels/pads is also required to be revised upwards from $1.90 per kg to $2.30 per kg.
The applicant has sufficient evidence in hand that the true transaction value of baby diapers of these origins is between $2.70 to $3.50 per kg whereas the true transaction value of sanitary towel/pads of Chinese origin is not less than $2.50 per kg.
Directorate General after detailed deliberations has updated the values of goods as under:
