FBR Issues New Customs Values on Import of Glassware

The Directorate General of Customs Valuation, Karachi has issued new customs values on the import of glassware/porcelain ware from China, Iran, UAE, Thailand, Egypt, Korea, and Indonesia for accurate assessment of duties and taxes.

In this regard, the directorate has issued a valuation ruling 1823 of 2023, here on Tuesday.

Earlier, the Customs values of glassware/Porcelain Ware were determined to vide valuation ruling 1774 of 2023. The importers filed review petitions, but the said valuation ruling was upheld by the directorate, negating the stance of the complainants. Thereafter, the importers filed an appeal against the subject Order-in-Revision before the Customs Appellate Tribunal that set aside the impugned Valuation Ruling and the Order-in Revision by the Director General of Customs Valuation.

As there was no Valuation Ruling in the field after the Tribunal’s order, this directorate initiated an exercise for re[1]determination of Customs values of subject goods under Section 25A of the Customs Act, 1959 based on an analysis of import data and changes in international market trends.

The issues pertaining to the valuation of subject goods were deliberated upon in detail in the relevant meeting. The importers argued that the customs values of subject goods determined vide the aforementioned valuation ruling subject goods were exorbitantly high which were not acceptable to the importers.

They opined that their declared values are actual transactional values and, therefore, should be considered for re-determination of Customs values. Some of the importers submitted their export GDs, invoices, and BLs to corroborate their stance.

Importers also claimed that the local manufacturer had announced a 40% discount on their products when the aforementioned VR was set aside which points towards the lower value of instant goods. The importers were asked to provide evidence of this discount but they failed to do the same. They also submitted that the aspect of reduced freight rates from China should also be considered at the time ‘of re-determination of Customs values of subject goods.

The participants engaged in the import of subject goods from Turkey recorded their grievances over the inordinately high increase in the customs value of subject goods of Turkish origin in the aforementioned VR and requested rationalizing the same. The viewpoints of importers were heard in detail and were evaluated to arrive at the Customs values of the subject goods.

The viewpoints of importers were analyzed in detail. The scrutiny of clearance data has revealed that after the issuance of the last valuation ruling, the importers have cleared the subject goods as per the said valuation ruling in more than five hundred (500) Goods Declarations (GDs). Resultantly, 90-day data contained significant evidence of clearances as per the last Valuation Ruling. As pointed out by the importers, freight rates have shown a downward trend since the issuance of the previous VR.

For further (comparative) analysis, an international publication on China’s Ceramic Tableware Export, (2023-2022), issued by China Research and Intelligence Co. Ltd, was accessed which reflected that the average export price of China’s Porcelain Tableware has increased from US$ 2.7/kg (2018) to U$3.9/kg (2022). In this publication, export values of porcelain Tableware (from China to a number of other countries) are given.

Customs values., for Glass, Ware Porcelain ‘Ware-hereinafter specified shall be assessed to duty/taxes on the Customs values mentioned against them in the Table below: (no table shared)

Source: Pro Pakistani