Customs announce new values of Motorcycle Helmets without stakeholders’ consultation

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The Customs valuation department has announced the new value of Motorcycle Helmets without the participation of importers and other stakeholders. It has fixed the value of the Helmet imported from China at the rate of $3.97 for half-face, $5.30 for full face, and $10.60 for cross-shaped. For the other origin helmets, the value is fixed at the rate of $4.72 for half-face, $6.41 for full face, and $12.61 for cross-shaped.

The determination of Customs Values of Motorcycle Helmet has been fixed under Section 25-A of the Customs Act, 1969 through Valuation Ruling Dated: 22-10-2020 issued by Directorate General of Customs Valuation, Custom House Karachi to Collectors of Customs all over the country.

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Informed sources disclosed that Custom Values of Motorcycle Helmet was earlier determined to vide Valuation Ruling No. 914/2016 dated 25-08-2016. The Valuation Ruling was over four years old. Therefore, an exercise was undertaken by the Directorate General to revise the same according to trends prevailing in the current international market.

According to authorities to make possible the stakeholders’ participation in the determination of Customs Values meetings were held with stakeholders on 30-09-2020 and 12-10-2020 to discuss the current international prices of subject items. All the stakeholders were requested to submit the following documents before or during the course of stakeholder’s meetings:

i. Invoices of imports during the last three months showing factual value.
ii. Websites, names, and E-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained.
iii. Copies of Contracts made/ LCs opened during the last three months showing the value of the item in question.
iv. Copies of Sales Tax Invoices issued during the last four months showing the values of supplies (excluding duty and taxes) to substantiate their views.

However, no one attended the hearing or submitted any documents as requested above despite being given a reasonable opportunity of hearing, the valuation ruling said.

It further stated that valuation methods given in Section 25 of the Customs Act, 1969, were applied sequentially to address the valuation issue at hand. Transaction Value Method under sub-section (1) of section 25 of the Act was found inapplicable because the requisite information under the law was not provided by the importers. Identical and Similar Goods valuation methods provided in Sub-Sections (5) and (6) of Section 25 of the Customs Act, 1969, provided some reference values but due to wide variations in the declarations, the same could not be relied upon exclusively. In the sequential order, this office conducted market inquiries in terms of Sub-Section (7) of Section 25 of the Customs Act. 1969. All the information so gathered was analyzed and evaluated. Keeping all the above in view.