Directorate General of Customs Valuation Karachi has enhanced custom values on the polyester chain items including Polyester Filament Yarn. This yarn is excessively used in textile sector.
A new valuation ruling (1694 of 2022) issued by the directorate here on Tuesday revealed that in the exercise of the powers conferred under Section 25A of the Customs Act, 1969, the Customs Values of Polyester Filament Yarns are determined.
Earlier, the Customs values of Polyester Filament Yarns were determined under Section 25A of the Customs Act, 1969 vide Valuation Ruling No.1655/2022 dated 30-05-2022. Representations were received from Manufacturers and various Importers and Associations, including PYMA and FYMA, for the re-revision of Customs values for the subject items. As the values of subject goods had shown varying trends in the international market, the Customs values so determined were not reflective of prevailing prices in the international market, therefore, an exercise has been undertaken by this Directorate to determine the same.
Stakeholders’ participation in the determination of Customs values: Meetings were convened which were attended by all the relevant stakeholders. The issues pertaining to the valuation of subject goods were deliberated upon in detail in the afore-referred meetings. Analysis / Exercise done to determine Customs Values.
The members of PYMA contended that the values — declared by them, along with those provided to the Valuation Department through contracts/invoices finalized by them with their suppliers — should be accepted. In this regard, data of the clearances for the relevant/recent period was scrutinized which; however, reflected that in most cases the importers have been declaring the values as per the Valuation Ruling No. 1655/2022 dated 30.05,2022.
This gives evidence that the importers accepted the assessable/customs values contained in the afore-referred Ruling. Therefore. the values given in their contracts/invoices are not the actual values and cannot be accepted as the transaction values under Section 25 (1) of the Customs Act, 1969. The next method (s) considered for the determination of the subject goods are 25(5) & (6) which are also not found applicable.
As a result, the Computed Value Method under Section 25(8) of the Customs Act was considered and found to be relevant/applicable on the grounds, inter-alia, that (in all the previous Valuation Rulings) the same methodology has been followed. Method(s) adopted to determine Customs values: As per the methodology referred to above, the values of Polyester Filament Yarns are computed by this Directorate after taking into consideration inter-al in the import clearance data of two major constituent raw materials of subject goods I.e. PTA and MEG.
On the basis of available data/information collected and exercises conducted the values of Polyester Filament Yarn have been determined under sub-Section (8), read with Section 25 (9). of Section 25 of the Customs Act. 1969. Customs values of Polyester Filament Yarns: Polyester Filament Yarns. hereinafter specified, shall be assessed to duty/taxes at the Customs values as per attached values.
In cases, where declared/transaction values are higher than the Customs values determined in this Ruling or higher evidential data is available over the stipulated period of 90 days. the assessing officers shall apply those values in terms of sub-section (I) of Section 25 of the Customs Act, 1969. In the 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 in this Ruling.
This Ruling, containing the Customs Values for assessment of subject imported goods, shall be applicable until and unless the same is rescinded or revised by the competent authority in terms of sub-section (4) of Section 25A of the Customs Act, 1969. Revision of the values determined to vide this Valuation Ruling: If aggrieved, a revision petition may be filed against this ruling as provided under Section 25D of the Customs Act, 1969, within 30 days from the date of its issuance, before the Director General, Directorate General of Customs Valuation, 7thFloor, Custom House, Karachi.
The Collectors of Customs may kindly ensure that the values given in the Valuation Ruling, for the given description of goods, are applied by the concerning assessing officers/officials without fail. Any anomaly observed may kindly be brought to the notice of this Directorate immediately. The Customs values determined in the ruling are for the descriptions and specifications as mentioned in the attached table of Annexure-A of this Ruling. HS Codes are mentioned for illustrative purposes so that Valuation Ruling values are made accessible to the assessing officers.
The assessments shall be finalized on the basis of correct classifications after fulfilling all formalities related to importability or other certifications required thereon. 10. This ruling supersedes Valuation Ruling No.I655/2021 dated 30 05-2022.
