Thursday , August 13 2020
Breaking News
Home / Karachi / Valuation ruling of bicycle parts issued
Valuation ruling of bicycle parts issued

Valuation ruling of bicycle parts issued

KARACHI: The Directorate General of Customs Valuation has determined the Customs values of China-origin bicycle parts, vide Valuation Ruling No.690/2014 No.Misc/16/2008-VIIIA-P-II dated September 23, 2014.

The Customs value of the said goods were earlier determined under Section 25A of the Customs Act 1969, vide Valuation Ruling No. 319/2011 dated May 18, 2011 and its amendment dated July 23, 2011. However, the directorate initiated the exercise to re-determine the value after it received representations from M/s Bicycle & Bicycle Parts Association, Lahore as well as others who called for revision.

The valuation methods provided in Section 25 of the Customs Act 1969 were applied to address this valuation issue. The Transaction value method under Sub-section (1) of Section 25 of the Customs Act 1969 was found inapplicable because required information under the law was not available. Identical/similar goods valuation methods provided in Sub-Section (5) and (6) of Section 25 could not be applied due to variable and unreliable values. Market enquiry was envisaged under Sub-Section (7) of Section 25 of the Customs Act 1969, was also conducted but the same could not be applied due to substantial variation in market prices. Since the manufacturers’ costs of producing goods in question in the country of exportation were not available, Computed Value Method could not be applied for valuation. Ultimately, the fall back method was adopted to determine the value of bicycle parts.

Meetings with relevant stakeholders including representatives of importers, local manufacturer and FPCC&I were held on 23.4.2014, 4.6.2014, 28.6.2014, 24.7.2014 and 19.8.2014.

According to details, the Customs value (C&F) of bicycle components and parts of metal having PCT Heading 7315.1120, 8714.9100, 8714.9200, 8714.9310, 8714.9400 and 8714.9900 and Proposed PCT for WeBOC 7315.1120.1000, 8714.9100,1000, 8714.9200.1000, 8714.9310.1000, 8714.9900.1000 and 8714.9900.1000 is fixed at $1.15 per kg.

Similarly the customs value (C&F) of China origin Bicycle Components and Parts of Rubber having PCT Heading 8714.9500 & 8714.9900 and Proposed PCT for WeBOC 8714.9500.1000 & 8714.9900.1100 is fixed at $0.85 per kg.

“In cases where the declared/transaction values are higher than the Customs values determined in this Ruling, the assessing officers shall apply those values in terms of Sub-Section (1) of Section 25 of the Customs Act, 1969. And in cases of consignments imported by air, the assessing officer shall take into account the differential between air freight and sea freight while applying the Customs values determined in this Ruling.”