KARACHI: Business community has rejected the revision of assessment of valuation of imported goods and demanded the government to relapse it to previous levels.
Earlier, the customs authorities had changed import values of 96 items including motorcycle spare parts, cloth, coconut, coconut oil, industrial raw material, powder milk and fax paper.
All Pakistan Motorcycle Spare Parts Imports and Dealers Association (APMSPIDA) Senior Vice Chairman Khurram Riaz, in a letter to Federal Finance Minister Ishaq Dar, has expressed fear if the present assessment criteria is enhanced, most of the items will shift to illegal channels. He said that this will not be good for economy resulting in a heavy loss to national exchequer.
He further pointed out that due to the sudden increase in assessment without the consent of the stakeholders; importers are facing heavy loss in demurrage, detention and sale, adding, major imports have stopped their shipments.
He said that the motorcycle parts fall under the heading 8714.1020. The tax regime on HS code 8714.1020 has been worked out as 100 per cent of the Customs value (ie, CD including add, duty plus 50 per cent, sales tax 17 per cent, additional sales tax three per cent, income tax 5.5 per cent, plus 8 to 9 per cent overhead expenses).
Khurram Riaz stated that at present, around 80 per cent of motorcycle spare parts are routed on legal way through Federal Board of Revenue (FBR), through which the government is earning about Rs2 billion revenue per annum. The rest of 20 per cent trade, which contains carburetors, CDI unit, crank case and break hubs, etc, which are being assessed at $4.50, $3, $3.73 and $2.33 per kg (as per the valuation ruling) and are not on the legal import channels due to their higher valuation rates, which are almost double of the automobile (4wheel parts).
He said some items which are very heavy in weigh such as spokes, chains and chain sprokets and are being assessed below the criteria should be maintained as per prevailing date available, as they are most attractive items for illegal channel because of their heavy weight and low CBM.
Meanwhile Pakistan Chemical and Dyers Merchant Association Chairman Shokat Riaz has also rejected the new customs clearance guidelines of imported goods and demanded valuation on imported goods on price certification. He said that the importers are reluctant to clear their imported consignments from ports due to fixing valuation and at exorbitant higher rate.
He said that the guide includes majority of items which are used as industrial raw materials and if these valuations are implemented the cost of manufacturing will go up tremendously. He said that manufacturers will defiantly pass this increase to consumers’ ends, which are already in heavy financial crisis.
Shokat Riaz called on the Chief Collector Customs and apprised him about the concern of the Association’s members and said Customs authorities clearing goods at fixed value under the guide which is extremely higher. The chief collector assured him of all possible support.