Directorate General of Customs Valuation Karachi has revised customs values on the import of over 100 different types of tyres and tubes of passenger cars from Japan and China.

In this regard, the directorate has issued a valuation ruling 1820 of 2023 here on Friday.

After analysis of the directorate, it has transpired that the total import value of Tyres and tubes imported into Pakistan decreased from Rs. 11 billion to Rs. 3 billion from 2020-21 to 2022-23. On the other hand, the total import value of tyres and tubes under transit trade from Afghanistan increased from Rs. 2 billion to Rs. 18 billion during the same period.

Earlier, the Customs values of tyres and tubes of different types and sizes including those of Passenger Cars were determined under Section 25A of the Customs Act, 1969 vide Valuation Ruling No. 1700/2022. However, different stakeholders requested to re-determine Customs values afresh in line with values prevalent in the international market. Therefore, an exercise has been undertaken by this Directorate to determine the same.

The meeting was convened which was attended by all the relevant stakeholders including M/s Pakistan Tyre Importers and Dealers Association (PTIDA). They submitted their proposals for consideration and the same were considered pertaining to the valuation of subject goods. Analysis/Exercise done to determine Customs Values: M/s Pakistan Tyre Importers and Dealers Association (PTIDA) informed that the international market has shown a downward trend of prices over the period of time and submitted their proposed prices accordingly.

In this regard, ninety (90) days’ data has also been retrieved and the same has been scrutinized. Moreover, import data of tyres and tubes for past three financial years was compared with data of Afghan Transit Trade for the same period.

Further, a representation was received regarding the inclusion of Vietnam Origin in the VR. The applicant also presented Customs Appellate Tribunal Bench-H, Karachi Orders, in Customs Appeal Nos. 781 and 783/2023 both dated 22.08.2023, whereby the Valuation Ruling Nos. 1700/2022 and 1701/2022 both dated 07.12.2022 were set aside to the extent of appellants.

The matter was examined at length in the light of clearances made by the applicant during the last three years and other importers of Tyres and tubes of Vietnam origin. The following results of different sizes of tyres and tubes imported by the applicant have surfaced as the outcome of the exercise.

It is clear that the applicant has lowered his declared values of tyres, especially after setting aside Valuation Rulings by the Customs Appellate Tribunal Karachi Order. His values are also far lower when compared with the declared values of other importers from the same origin i.e. Vietnam. In view of the above data/analysis, it is evident that the applicant’s request (in case of Vietnam origin) does not merit consideration, ruling added.

The ruling stated that various Wholesale and Retail Markets were visited to observe the actual prices of Tyres and Tubes. On the basis of available data/information collected and exercise conducted the values of Tyres and Tubes have been determined.

Customs values of Tyres and Tubes-I (Passenger Cars) – hereinafter specified, shall be assessed to duty/taxes at the Customs values as per the attached list (Annexure-A) which forms an integral part of this Valuation Ruling along with the following conditions:

If a radial tyre is imported which is not covered in this Ruling and whose specifications are similar to normal tyres except for being radial, such tyres may be assessed at a 12 percent higher value than that of the normal tyre.

The values of the tyres with different “ply” shall be assessed by adding or subtracting from the determined value @ 3 percent per two-ply rating. The discount of 5 percent is admissible for the import of tyres and tubes through land route on CandF value determined by this Directorate.

If tyres and tubes having specifications other than those mentioned in the valuation ruling are imported, the Collectorates may assess the goods under Section 25A of the Customs Act, 1969 or may refer the case to this Directorate General for suitable advice, directorate added.

Source: Pro Pakistani