The Directorate General of Customs Valuation, Custom House Karachi, Government of Pakistan, has issued its latest determination of customs value of motorcycle parts and components of Chinese origin, Under Section 25A of the customs act. 1969.
The Ruling U/S 25-A No. 333 No.Reg./Misc/31/2007- VIIA/1587 dated 07-06-2011 issued by Director, Muhammad Tahir states that the customs value determined under this Valuation Ruling shall be applicable customs value for assessment of the relevant goods until and unless revised or rescinded by the competent authority.
It is applicable by all the Collectors of Customs, Model Customs Collectorates (Appraisement/ PACCS/ Port Muhammad Bin Qasim/ Preventive), Karachi/ Lahore/ Sambrial (Sialkot)/ Faisalabad/ Multan/ Islamabad/ Hyderabad/ Quetta/ and Peshawar.
Revision petition/ Review application against this valuation ruling may be filed before the Director-General of Valuation under Section 25D of the Customs Act, 1969, within thirty (30) days from the date of issuance of this ruling.
As explained by Director, Muhammad Tahir; consequent upon issuance of Valuation Ruling No. 307, dated 26-03-2011, M/s Ahmad Automobiles Co; and Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) made representations, for revision of the ruling, on the grounds that it was discriminatory and included parts and components of OEMs brand only, and that parts and components imported by the commercial importers were not covered under the ruling.
Accordingly, in order to include the unbranded parts and components in the ruling, the stakeholders were invited for meeting to take their input, on 07-05-2011, which was attended by representatives of OEMs, commercial importers, members of Pakistan Automotive Manufacturers Association (PAMA) and the complainants who furnished documents in support of their viewpoints. Representative of KCCI also participated in the meeting. Resultantly, an exercise was undertaken to determine the values of Motor Cycle parts and components of China Origin.
Physical import data of Motor Cycle parts of Chinese origin was also examined under Section 25(5) & (6) of the Customs Act, 1969, and observed that it could not be relied upon due to various distortions in the declared unit of measurement (UOM). Hence, the weight of each parts of motorcycle item was taken as benchmark for determination of value in Kilogram (KG), as UOM in the Pakistan Customs Tariff is in KG.
This mechanism was also adopted during market survey i.e. values were obtained in pieces and converted into KG to arrive at fair value.
Moreover, by following the valuation methods in sequence, it was felt that deductive value method under sub-section (7) of Section 25 of the Customs Act, 1969, could not be relied upon as the goods available in the market reflected the under invoiced values at import stage. Computed value method, as envisaged under sub-section (8) of Section 25 of the Act, also could not be applied, as the cost of raw materials and fabrication charges under clause (a) and amount of profit and general expenses under clause (b) of Section 25 (8) of the Act, in the country of export, could not be ascertained.
Meanwhile, representations were received from M/s Ahmad Automobiles Co; and Pakistan Automotive Manufacturers Association (PAMA), for correction of some typographical mistakes in the weight of certain Motor Cycle parts/ components, as adopted in the earlier Valuation Ruling No. 307, dated 26-03-2011, relating to OEMs brand parts/ components.
Their contention was examined and found correct. Accordingly, errors and commission were removed and values of Motor Cycle parts/ components of China Origin were determined under fall back method as envisaged under Section 25 (9) of the Customs Act, 1969 and the values so determined, for OEMs brands and commercial brands were duly indicated in column (5) and (6) respectively, in the Table below.
The instant Valuation Ruling supersedes the earlier Valuation Ruling No. 307, dated 26-03-2011 whereby customs values of OEMs brands of various Motor Cycle parts were determined.
-Published on page#-11 in June-2011 issue of MOBILE WORLD Magazine.
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