FBR Revises Customs Values of Branded Dates During Ramazan

Directorate General of Customs Valuation, Karachi has revised customs values, ranging between US$ 0.18 per kg and US$ 3.52 per kg, on the import of branded fresh dates from Iraq, Iran, and Saudi Arabia during the month of Ramazan.

According to a valuation ruling issued by the directorate here on Thursday, the customs values have been mostly revised downwards on the import of fresh dates having brand names of Zahidi; Muzafati; Rabbi/Piarom; Ajwa, Amber, and other varieties/types.

For example, the minimum customs values of date brand Ajwa, Amber imported from Saudi Arabia have been reduced from US$6per kg and US$3.52 per kg.

The minimum customs value on the import of Muzafati from Iran has been reduced from US$0.35per kg to US$0.34 per kg. The minimum customs value on the import of Zahidi brand from Iraq has been reduced from US$0.19per kg to US$0.18 per kg.

The minimum customs value on the import of Rabbi/Piarom from Iran has been reduced from US$0.36 per kg to US$ 0.35 per kg. The value-added products of fresh dates such as those filled with almonds, honey, chocolates, etc., will be assessed under section 25 of Customs Act 1969, by Clearance Collectorates. A reduction of 8 percent shall be admissible on a total of the above value on account of freight charges if goods are imported through the land route.

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 Section 25 of the Customs Act, 1969. In case of consignments imported by air, the assessing officer shall take into account the air freight while applying the Customs values determined in this Ruling.

Background of the valuation issue revealed that the customs value of Fresh Dates was determined under Section 25A of the Customs Act, 1969 vide Valuation Ruling No.1133/2017. The Valuation Ruling was approximately five (05) years old. Quetta Chamber of Commerce and Industry (QCCI) and Sarhad Chamber of Commerce and Industry filed representations before the FBR.

A meeting was held in FBR headquarters which was chaired by the Chairman FBR and attended by Member (Customs-Policy), Director General Customs Valuation, and other participants including the representatives of both the chambers. Keeping in view the difference between freight from land and sea routes,- the quality of goods, and other socio-economic factors, the Board forwarded a record note dated Feb 28, 2022.

Accordingly, an exercise was undertaken by the Directorate General of Customs Valuation to determine afresh the Customs Values of subject goods in terms of Section 25A of Customs Act, 1969. The directorate stated that the 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 because requisite information was not available as per law. The wide variation of values displayed in the import data as available on record also strengthened the aforementioned fact. Hence requisite information under the law was not available to arrive at the transaction value.

Finally, clearance data, market information, and international prices through the internet were examined thoroughly and the information so gathered was utilized and analyzed for the determination of customs values of the subject goods under Section 25 (9) of the Customs Act, 1969, directorate’s ruling added.