New valuation for Wheel Rim issued

The Directorate General of Customs Valuation, Karachi has determined the Customs Valuation of Wheel Rim (Alloy/ Other than Alloy) through valuation ruling No.1528 dated 02 April 2021 under Section 25-A of the Customs Act, 1969. This ruling supersedes Valuation Ruling No. 1441/2020 dated 02-03-2020. 

According to details Model Customs Collectorate (A&F) East, Karachi referred matter of wheel rims of higher diameters which were not included in earlier rulings with the request to determine the value of such wheel rims also. Therefore, an exercise was initiated in this Directorate General for the determination of customs values under Section 25A f the Customs Act, 1969. 

Meetings were scheduled and held on 14-01-2021 and 09-02-2021 which were attended by different stakeholders. The participants were requested to submit the following documents before or during the course of the meeting so that customs values could be determined: - 

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 difference in price (excluding duty and taxes) to substantiate that the benefit of the difference in price is passed on to the local buyers. 

The importers during the meeting were of the view that the prices of the subject commodity have not increased in the international market and the values are maintained as per the existing Valuation Ruling. However, they did not submit any documents like import invoices/ sales tax invoices, evidence, or other relevant documents in support of their contentions. M/s. Baluchistan Wheels Limited submitted documents in respect of Non-Alloy wheel rims along with samples which were examined and compared with prevailing trends in the local market for the determination of values thereof. 

According to authorities, valuation methods provided in Section 25 of the Customs Act, 1969, were duly applied in their regular sequential order to arrive at Customs values of subject goods. The transaction value method as provided in sub-Section (1) of Section 25 of the Customs Act, 1969, was found inapplicable due to the wide variation of values displayed in the import data. Moreover, no one attended the meeting nor submitted any document in this regard. Hence, the requisite information required under the law was not available to arrive at the correct transaction value. 

Therefore, identical/ similar goods value methods as provided in sub-Sections (5) & (6) of Section 25 ibid were examined for applicability to the valuation issue in the instant case but due to wide variations in declarations, these methods could not be relied on upon exclusively. In line with the statutory sequential order of Section 25, this office conducted a number of inquiries from various markets to arrive at Customs values under sub-Section (7) of Section 25 of the Customs Act, 1969. 

Finally, reliance had to be made on sub-Section (7) of Section 25 of the Customs Act, 1969 to determine the Customs values of the Wheel Rim (Alloy/other than Alloy) of vehicles. 

Wheel Rim (Alloy/ other than Alloy) of Vehicles hereinafter specified shall be assessed to duty/ taxes at the minimum Customs values shown in the table.

In cases where declared/ transaction values are higher than the Customs values determined in this Ruling, the assessing officers shall apply those values in terms of sub-Section (1) of Section 25 of the Customs Act, 1969 and the same may be communicated to this Directorate General forthwith. In case of consignments imported by air, the assessing officer shall take into account the differential between air freight and sea freight while applying the Customs values determined in this Ruling. 

The values determined to vide this Ruling shall be the applicable Customs value for assessment of subject imported goods until and unless it is rescinded or revised by the competent authority in terms of sub-Sections (1) or (3) of Section 25-A of the Customs Act, 1969. 

This Valuation Ruling is appealable under the law and a revision petition may be filed against this Ruling, under Section 25-D of the Customs Act, 1969, within 30 days from the date of issue of this ruling before the Director General, Directorate General of Customs Valuation, 7th Floor, Customs House, Karachi. 

The Collectors of Customs may ensure that the values given in the Ruling for the given description of goods are applied by the concerned staff without fail. Any anomaly observed may be brought to the notice of the Directorate General immediately. The Customs values determined in the Valuation Ruling are for the descriptions and specifications as mentioned herein, HS Codes are mentioned for illustrative purposes so that Valuation Ruling values are made accessible to the assessing officers. The assessment shall be finalized in the correct classifications after fulfilling requisite formalities relating to import ability or other certifications required thereon. In addition to this, it is further necessary to verify that there is no misdeclaration of any sort or violation of the Import Policy Order or Section of the Customs Act, 1969, or any other law in vogue therein.  

-Published on Pages#-22, 23 in April 2021 edition of MOBILE WORLD Magazine