The importers would now have to pay revised rates of duties and taxes on the import of Glassware/ Porcelainware from China, Iran, Malaysia, Thailand, Egypt, Korea, Indonesia, Turkey, Saudi Arabia, Europe, US and Canada.
In this regard, the Directorate General of Customs Valuation Karachi has fixed new customs values on the import of Glassware/ Porcelainware from the abovementioned countries.
The new re-determined customs values would not apply to Wedgewood, Waterford, Royal Albert, Royal Doultan, Royal Crown, Derby, Corelle, Royal Copenhagen, Limoges, Noritake, and other equivalent brands. This Valuation Ruling does not apply to Crystal Ware.
According to valuation ruling number 43 of 2024 issued on Friday, the Customs values of Glass Ware/Porcelain Ware were determined vide Valuation Ruling No. 17741.2023. Subsequently, the importers (being aggrieved with the VR) filed review petitions under Section 25D of the Act, however, the subject VR was upheld by the Director General vide Order-in-Revision No. 43/2023, negating the stance of the complainants. Thereafter, the importers filed an appeal against the subject Order-in-Revision before the Customs Appellate Tribunal that set aside the impugned Valuation Ruling and the Order-in-Revision by the Director General of Customs Valuation.
As there was no Valuation Ruling in field after Tribunal’s order, this Directorate initiated an exercise for re-determination of Customs values of subject goods under Section 254 of the Customs Act, 1969 based on an analysis of import data and changes in international market trends. Fresh Customs values for Glassware/Porcelain Ware were determined vide Valuation Ruling No. 1823/2023. Subsequently, importers (being aggrieved with VR) filed review petitions under Section 25D of the Customs Act, 1969, however, the subject VR was upheld by the Director General vide Order-in-Revision No. 0l/2024.
As the importers kept on sending requests for re-determination of Customs Values of the subject goods in view of changing trends in the international market and the authentic price databases, the process for re-determination of customs values was initiated. Meetings were convened which were attended by the relevant stakeholders.
The importers argued that the Customs values of subject goods determined vide aforementioned VR subject goods were exorbitantly high which were not acceptable by the importers. They opined that their declared values are actual/transaction values, therefore, should be considered for re-determination of Customs values. Some of the importers submitted their export GDs, invoices and BLs to corroborate their stance. The view-point of the manufacturer was also taken during the meeting.
They submitted their break-up of production cost and highlighted the main ingredients used in the manufacturing of their item. Most of the materials being used to produce their items are imported. The importers pointed out that manufacturers are setting very high prices in the local market due to high cost and high profit margins. The viewpoints of stakeholders were heard in detail and were evaluated to arrive at Customs values of the subject goods.
The viewpoints of importers/manufacturer were analyzed in detail. The scrutiny of clearance data was carried out as well as analysis of the documents submitted by the manufacturers was also conducted. For further (comparative) analysis, Industry Research Reports on Glassware (2024) were also consulted. This database contains over 2 million industry reports containing inter alia price of the large varieties of the products and relies / consults 300 other databases. This large database duly provides the supplier-wise values / information of the different varieties of tableware and glassware being imported to Pakistan. Moreover, this database has provided authentic ratios of different raw materials – which belied the claims made by both importers / manufacturer – used for production of the subject goods.
