Custom Valuation of Bearing revised vide valuation ruling no 953/2016
KARACHI: The Directorate General of Customs Valuation has revised the customs value of bearings vide Valuation Ruling No 953/2016 under Section 25-A of the Customs Act, 1969.
Earlier, the value of the said items was determined vide Valuation Ruling No 312/2011 dated May 10, 2011.
As per details, the valuation ruling required revision in line with the prevailing prices in the international market. Therefore, the directorate initiated an exercise to re-determine the value of bearings. Different meetings were held with stakeholders to ascertain the value and the last meeting was held on May 26, 2016 to revise the value.
Importers had been requested to furnish the following documents before or during the course of meeting:
- Invoices of imports during last three months showing factual value.
- Websites, names and E-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained.
- Copies of Contracts made / LCs opened during the last three months showing the
value of item in question.
- Copies of Sales Tax Invoices issued during last four months showing the difference in price (excluding duty and taxes) to substantiate that the benefit of difference in price is passed on to the local buyers.
Certain importers submitted documents in support of their contentions indicating that their invoices and declarations are much higher than the values determined in the ruling. A number of other importers present during the meetings strongly contested their claims and contended that bearings’ prices have decreased internationally due to slump in oil and metal prices. They also asserted that the values of bearings used for industrial applications, produced in smaller quantity, with high quality, are costlier, whereas major business is for automotive and general application bearings which are imported in 3, 4 & 5 digit quantity. These are mostly used for cars, trucks, motorcycles, three wheelers, tractors, trolleys, agriculture implements, electric motor, and water pumps etc. They also claimed that Values of Chinese origin bearings have been reduced considerably but the benefit of such reduction in pries have not yet reached to the importers due to higher valuation on Chinese bearings. They claimed that higher values would result in more smuggling.
The value determined vide this ruling shall be applicable customs value for assessment of subject imported goods until and unless it is revised by the competent authority in terms of Sub-Section (1) or (3) of Section 25-A of the Customs Act, 1969.