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DG Valuation revises customs value of potato frozen French fries

KARACHI: Directorate-General Customs Valuation Surriya Ahmad Butt has revised customs values of French fries through Valuation Ruling No. 1308/2018.

Earlier Customs values of potato frozen French fries were determined through Valuation Ruling No.1308/2018 dated 03-07-2018. However, various representations were received from the importers for re-determination of value of potato frozen French fries. Hence, an exercise was initiated by this Directorate General to re-determine the customs values of potato frozen French fries.

Meetings with stakeholders, including importers and representatives from field formations, were held on 13-11-2018 and 6-12-2018. The importers contended that the customs values determined vide the exiting valuation ruling are high and therefore require fair revision in line with the prevailing prices in the international market.

M/s. Venus Pakistan (Pvt) Ltd stated that the food prices of USA are considered to be the cheapest in the world as the US companies produce high quality products on large economies of scale thus reducing their costs.

They also requested for the inclusion of their new brands namely Stealth fries, lamb seasoned, sweet things, lamb supreme, Pennat, Northwest Grown and Crusader Potatoes in the valuation ruling. M/s. Eximpo Cool Chains (Pvt) Limited, Karachi also requested for the inclusion of frozen Belgium Potato Fries of brand Mydible. During the meeting, all the stakeholders agreed that there is no significant difference amongst most of the brands and requested that a ruling shall be issued keeping this factor in view.

Valuation methods provided in Section 25 of the Customs Act, 1969 were duly applied in their regular sequential order to address the particular valuation issue at hand. The transaction value method as provided in Sub-Section (1) of Section 25, was found inapplicable in light of the wide variations in declared values at import stage, requisite information required under law was not available to arrive at the correct transaction value. Identical / similar goods value method provided vide Sub-Sections (5) & (6) of Section 25 ibid were examined for applicability to determine Customs value of subject goods.

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