There is a debate going on in automotive sectors with reference to comparison of the values assessed by Customs authorities for Motorcycle parts, Tractor parts and Luxury vehicles. The experts were raising queries whether Motorcycle Parts imported from China were made of gold or platinum? And the Luxury vehicles' and Tractor parts were manufactured by clay or sand? Why there was a vast difference of valuation? Imposition of custom duty and other levies on Luxury vehicles parts was very nominal while on Motorcycle parts it was exorbitant?
With reference to the valuation frauds committed by Customs Authorities and the report published by MOBILE WORLD in July 2011 (Page-11) there were further misappropriations unearthed by reliable sources.
With reference to the valuation frauds committed by Customs Authorities and the report published by MOBILE WORLD in July 2011 (Page-11) there were further misappropriations unearthed by reliable sources.
The sources disclosed that in comparison to the fifty-one (51) items long list of Motorcycle parts mentioned as Ruling U/S 25-A No.333, the Directorate General of Customs Valuation had issued only seventeen (17) items list of Tractor parts and components under Section 25-A of Customs Act, Ruling No.345, which was quite amazing. The weight of each item shown by customs authorities in Ruling No.333 was also exaggerated.
On the other hand the same Directorate General Customs issued its Ruling No.329 dated 30-05-2011 under Section 25-A for determination of customs value of "Replacement Auto Parts" for Cars and Luxury Vehicles, imported from China and other countries. This list covers more than 113 vital auto parts of such vehicles but those were displayed under seven (7) different heads only, which was a sign of corruption and maladministration.
Similarly, when we go through the valuation of parts for Cars and Luxury Vehicles fixed by Directorate General of Customs, it was fixed for most of the parts imported from China at the rate of US$ 2.07 per kg except four items which were slightly higher. For example 'Ring Synchronizer' is valued at $4.14 per kg, Spark Plug $4.96 per kg, Fuel Injection Pump Parts $6.90 per kg and Ring Set's value was fixed at $10.35 per kg, which is the highest valued item among all 113 parts list issued by Customs authorities in this regard.
On the other hand the highest valued item in Tractor parts list imported from China was also 'Ring Set' that is fixed at the rate of US$ 3.00 per kg only and the other item was Piston Set which is valued at more than two dollar and its value is fixed at $2.50 per kg while all the remaining fifteen items were valued between $1.50 to 1.70 per kg only.
According to informed sources, all the other Tractor parts not shown in Ruling No.345 are being cleared at the rate of $1.10 per kg with connivance of smugglers and the Customs authorities.
Contrary to this soft corner for Tractors, Cars and other Luxury Vehicles that were pricing in millions of rupees and selling their spare parts in thousands of rupees, the Customs attitude towards Motorcycle was quite pathetic. In the Ruling No.333 dated 07-06-2011 issued for Motorcycle Parts out of total 51 items about a dozen parts were valued in double digit and this value was varying from US$ 10.00 to a maximum of US$ 33.66, which was highest in all categories.
For example Motorcycle Carburetor was valued at the rate of US$ 13.00, CDI Unit $13.54, Rectifier Regulator $10.20, Insulator Carburetor $13.60, Ring Piston Top 2nd Oil $10.00, Spring Clutch Lever $11.00, Valve Inlet $16.42, Oil Through $25.00, Cover Cylinder Head L Side $28.67, Cover Cylinder Head R Side $29.74, and Cover Cylinder Head Top at the rate of US$ 33.66, which were the highest values assessed by customs authorities in all segments of the auto parts importable form China.
Given this detail and by comparison of the values assessed by Customs authorities for Motorcycle parts which is a poor man's ride, Tractor parts a Landlords' tool and Luxury Vehicles the pride of Privileged Class, one could raise a query whether Motorcycle Parts were made of gold or platinum? While the Luxury vehicles' parts were manufactured by clay or sand? Why there was such a vast difference of valuation, imposition of custom duty and other levies on Tractors and Luxury vehicles very nominal and on Motorcycle parts it was exorbitant?
-Nasir Mahmood
Published on page#-8 in August-2011 issue of MOBILE WORLD Magazine.
Published on page#-8 in August-2011 issue of MOBILE WORLD Magazine.
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