Director Customs Valuation advised to re-determine values of zippers

KARACHI: Director General Customs Valuation Syed Tanveer Ahmed has temporarily fixed the customs values of cut-to-size Aluminum zipper (finished form) at $5.5/kg and advised Directorate of Customs Valuation Karachi to re-determine the customs values of Aluminum zipper (cut-to-size) and nylon/polyester zipper in rolls.

M/s Amir Industries and others had approached Director General against the Valuation Ruling No.887/2016.

Importers submitted that the impugned valuation ruling has enhanced the values of Zippers (low end brands) unilaterally and illegally. It is pertinent to mention here that as per the superseded valuation ruling 479/2012, the value of the Zippers (low end brands) imported by the applicant was determined after giving hearing to all the stakeholders and the same was accepted to all ‘stakeholders including the local manufacturers.

However, the impugned valuation ruling No. 887/2016 has been issued in violation of section 25A of the 1969 Act and it was issued unilaterally and without hearing the stakeholders.

Directorate submitted the values of the subject goods were determined keeping in view the valuation methods given in the Act.

Director General Syed Tanveer Ahmed deliberated on the case record as well as verbal and written arguments put forth.

The arguments of the petitioners regarding conversion cost have been considered. Plain reading of the customs values determined vide impugned Ruling Valuation reflects that in case of Brass Aluminum Zipper the consumer cost from roll to cut to size is only above 8% only whereas for Nylon/Polyester Zipper it is workout at the rate of 102%.

Moreover the custom value of Nylon/Polyester in rolls is $2.15/kg and Aluminum Zipper at as $3.35/kg, meaning these by the Aluminum Zipper is costlier than Nylon/Polyester Zipper. Whereas in case of cut to size category the polyester / nylon Zipper is at $4.34/kg and Aluminum Zipper at $3.65/kg showing that Aluminum Zipper is cheaper than Nylon / polyester Zipper significantly.

Reasons for this conclusion have not been recorded in this impugned Valuation Ruling.

Syed TAnveer Ahmed observed that due care was not taken while determining the customs values of Aluminum Zipper in cut to size and Nylon / Polyester zipper in Rolls. Therefore the Director Customs Valuation is directed to re-determine the customs values by considering all aspects, within 30 days.

In the meantime the value of cut to size Aluminum Zipper (finished form) is enhanced to $5.50/kg.

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