FBR Revises Customs Values on Import of Stationery Goods

Directorate General of Customs Valuation Karachi has downward revised customs values on the import of stationery goods from Europe, Japan, the US, Canada, China, and Vietnam.

In this connection, the Federal Board of Revenue’s (FBR) directorate has issued a new valuation ruling.

The Directorate has made an attempt to bring the values of the stationery items close to the actual market values in the international market. Earlier the values were artificially very high which have now been brought close to the actual market values. Now the actual transactional values are expected to be applicable to the import of stationery items from different countries.

According to the new customs ruling, the Customs values of Stationery Items were determined under Section 25A of the Customs Act, 1969, vide Valuation Ruling No. 1598/2022. The Valuation Ruling was set aside vide Order in Revision No. 47/2022 under Section 25D of the Act, with the directions to re-determine the customs values of subject items under Section 25A of the Act, especially in line with the prevalent international prices. In view of the foregoing, an exercise was undertaken by the Directorate General of Customs Valuation to re-determine the customs values of subject goods in terms of Section 25A of the Customs Act.

A meeting was held which was attended by various stakeholders including the representatives of trade bodies, importers as well as representatives of Clearance Collectorates. All the participants were requested to submit necessary documents so that correct customs values could be determined.

During the meeting, M/s Dollar Industries and others were against the enhancement of customs values recommending keeping them static. The importers advocated downward revision. Those in favor of keeping them static or downward revision argue that the existing values are mostly on the higher side and fluctuation in raw material prices used in stationery items such as pencils, pens, markers, crayons, oil colors, writing inks, etc. is marginal or meager, if at all. They further argue that most of the subject items are essential educational stationery and are consumed on daily basis by students and poor masses, therefore, it would not be appropriate to unduly increase their cost.

The data provided some references; however, it was found that the same could not be solely relied upon. The information available was, hence, found inappropriate. In line with the statutory sequential order of section 25, the directorate conducted market inquiries for using deductive value methods under sub-section (7) of Section 25 of the Customs Act. Finally, reliance had to be made on sub Section (7) of Section 25 of the Customs Act, to determine customs values of the subject goods, the ruling added.

This Valuation Ruling does not apply to the high-end brands, the FBR added.