Valuation Rulings a daunting task for Directorate General of Customs Valuation
Lahore: Decisions on determination and redetermination of Valuation Rulings of various imported goods have become a daunting task for the Directorate General of Customs Valuation as decision on the disputed rulings are being delayed unnecessarily against the stipulated time of 90 days, Daily The Business has learnt reliably.
Sources on the condition of not to be named told this reporter that the decisions on determination and redetermination of the valuation rulings are being lingered on by the Directorate General of Customs Valuation even for years for the reasons not know.
As per the law when value of an imported item get disputed between the government and importers of something specific, the Customs Valuation decides the value of that very thing. Importers usually declare less value of their consignments for evading duty and taxes.
However, the Customs Valuation determine the correct value in consultation with the importers and on the basis of data available with the department from home and abroad. However, the things have been reported other way around in violation of the Customs laws.
The sources said that as per the law under section (25A) a ruling passed after 90 day, must have to be redetermined within the time however there is a number of rulings that have been pending with directorate for redetermination for the last four years.
Quoting an example of wire rods, they said that the valuation of per tonne of wire rod is fixed London Metal Exchange (LME) $952 to $1050+ 5%, but interestingly, on the other hand, second stage wire produced from the wire rod and then on the third stage produced wiremesh from wire.
The wiremesh of Chinese origin is being assessed at $650 to $750 per metric tonne which should be assessed at $1250 per metric tonne or more.
The source said that many local manufacturers of wiremesh have submitted their complainants to the DG Valuations, Karachi through letters but received no response.
They said that the same practice is visible for other products that are used by pharma industry for packing injectable medicines.
Source said that valuation ruling number 1328/2018 for pharmaceutical packing materials including glass tubing and glass ampoules under HS CODES: 7002.3910 and 7010.1000 are totally unjustified.
They said that various pharmaceutical manufacturers objecting the valuation have been applying for the redetermination of the rulings for the last four years but it fell on deaf ears.
They said that due to the uncalled for delays various local manufacturers have been suffering huge losses besides running shortages of capital. The companies dealing in the products in the international markets are the second worst-hit stakeholders, they stated.
When contacted Valuation Director Fawad Ali Shah could not be reach for his comments despite repeated attempts for his version on his cell phone.