Director Customs Valuation withdraws Valuation Ruling No.1125/2017
KARACHI: Director Customs Valuation Karachi Iqbal Muneeb has withdrawn Valuation Ruling No. 1125/2017 of 2-Ethyl Hexanol /Octanol (PCT 2905.1600) and Phthalic Anhydride (PCT 2917.3500). Earlier Customs values of 2-Ethy Hexanol/Octanol and Phthalic Anhydride of all origins were determined vide Valuation Ruling No 1125/2017. However, several representations from the importers and industrial consumers were received, wherein they contended that the customs values determined in the existing valuation ruling are not reflective of prices in the international market prices. Keeping in view the prevailing prices of the subject goods, the Directorate General initiated an exercise for re-determination of the customs values of the subject item. Meetings with stakeholders, including importers, representatives from Pakistan Chemicals Dyes & Merchants Association (PCDMA) and field formations were held to discuss the current international prices of the subject goods. During the proceedings, the stakeholders pointed out that the subject items, 2-Ethy Hexanol/Octanol falling under PCT 2905.1600 is subject to zero percent customs duty under Pak-China FTA and Phthalic Anhydride falling under PCT 2917.3500 is subject to 11 percent customs duty. [the_ad id="31605"] The importers also informed that the prices of 2-Ethy Hexanol/Octanol and Phthalic Anhydride are traded well within the prices reported by ICIS for South East Asia and other regions. They asserted that very marginal differences shipments are delayed at the ports. Stakeholders informed that ICIS does not publish Pakistan region's specific values and during the time of clearance, customs clearance formations apply values which are not relevant and reviews are frequently filed; which delays clearance of shipments. Stakeholders and Pakistan Chemicals & Dyes Merchants Association suggested that valuation ruling on these items should be withdrawn and prices shall be allowed to fluctuate with the international prices. Moreover, their duty structure is also very low and there is hardly any incentive to indulge in non-compliance. In view of above, the Valuation Ruling No. 1125/2017 dated 13-04-2017 is withdrawn. The Collectorates are advised to assess the goods under Section 25 of the Customs Act, 1969. The Collectorates are, however, required to monitor the price trends of these commodities closely and remain vigilant during assessment so as to prevent any revenue leakage. If at any time, the clearance Collectorates observe distortions regarding valuation, they may send a reference to customs valuation for issuance of fresh valuation ruling under section 25-A of the Customs Act, 1969.