KARACHI: Directorate of Customs Valuation has revised the customs values of replaceable auto parts vide Valuation Ruling No.1193/2017.
The Customs values of replacement auto parts were determined vide Valuation Ruling No.661/2014 and its subsequent amendments. A number of representations were received from M/s. Motors (Pvt.) limited that since the Valuation Ruling is more than two years old and values are at lower side as compared to the values prevailing in the current international market. Thus, an exercise was initiated for determination of Custom values of replacement auto parts with a view to reflect the current prices prevailing in the international market.
Since, it is was a very important ruling, Director Wasif Memon took personal interest in the determination. Additional Collector Imran Bukhari headed the valuation team while Deputy Director Abdul Qudoos supervised the market inquiry.
Director Valuation Wasif Memon, Additional Director Imran Bukhari and Deputy Director Abdul Qudoos held meetings with stakeholders including representatives from Pakistan Automotive Auto parts Manufacturing Association (PAAPAM), Pakistan Auto Spare Parts Importers and Dealers Association (PASPIDA), Pakistan Automotive Manufacturer Association (PAMA), representatives of M/S. Indus Motor Company Ltd, M/S. Pak Suzuki (Pvt.) Ltd., local manufacturers of auto Parts and importers.
The importers / stakeholders were requested to submit the following documents so that correct customs values could be determined: –
During the meetings it was observed that local manufacturers and importers were of conflicting views regarding valuation of replaceable auto spare parts. The auto parts manufacturers contended that the values of spare auto parts have significantly increased in the international market therefore, values may be determined accordingly.
M/s. Indus Motor expressed their concerns mainly on values of lamps, oil filter, air filter and body parts imported from Far East. However, the importers contested the manufacturers’ point of view and submitted that the replacement auto parts prices may be rationalized according to market prices since the raw material prices, manufacturing cost have decreased due to technological advances; magnitude of import and after sale demand have also affected the values of spare auto parts imported from China and other countries.
A number of opportunities were provided to the manufacturer and importers associations to provide their proposals in order to arrive at fair Customs value of diversified replacement auto parts. After deliberations of the subject issue and concerns of local manufacturers the manufacturer and importers associations submitted their joint proposal on just a few items only out of more than fifty items in the aforesaid Valuation Ruling.
Further, PASPIDA also submitted their separate proposals for values of replacement auto parts without any documentary or supportive evidences. The proposals submitted by some individual importers were also considered before fresh determination of Custom Values of subject goods. However, no any of the importers submitted import invoices, sales tax invoices, literature, representative samples.
