Directorate General of Customs Valuation, Karachi has revised customs values on the import of a wide range of lubricating oils from Iran, China, Turkey, Korea, the Middle East, Thailand, and Russia.
The directorate issued a new valuation ruling (1836 of 2023) on Monday for an accurate assessment of duties and taxes on the import of dozens of lubricating oils.
The new values would be applicable to the import of Gasoline Engine Oil; Diesel Engine Oil; Motorcycle Engine Oil; Gear Oil; Gear Engine Oil; Marine Engine Oil; ATF (Automatic Transmission Fluid); Heat Transfer Oil and Compressor Oil.
The revised ruling revealed that the customs values of lubricating oils were determined vide Valuation Ruling No.1805/2023. The directorate decided to re-determine the Customs values of lubricating oils.
It is observed that wholesale/retail market prices of most brands, as mentioned by the petitioners, were not considered in the market survey. The process of determination of values suffered (as a result) from procedural impropriety since it fell short of complying with the market survey guidelines laid down in Office Order 17/2014, hence, requiring a review of Valuation Ruling No. 1805/2023.
Therefore, an exercise has been undertaken by this Directorate to re-determine the customs values of the subject goods.
The meeting was convened which was attended by the relevant stakeholders. The issues about the valuation of subject goods were deliberated upon in detail in the aforementioned meeting. The stakeholders stated that the customs values determined in the Valuation Ruling No. 1805/2023 are on the higher side and need to be revised according to the International market. They further added that Lubricating Oils are made from Base oil.
Different additives are added to the base oil to produce different grades of Lubricating Oils. Therefore, the values of base oil & additives may be considered in determining the values of lubricating oils. They further contended that the values of high-end brands should not be considered while determining the values of subject goods.
The customs values of the subject goods have been determined inter alia considering sales tax invoices of the importers which provides that the methods of valuation, are to be employed. This new Valuation Ruling has superseded the Valuation Ruling No.1805/2023.
