=p GOVERNMENT OF PAKI DIRECTORATE GENERAL OF CUSTOMS VALUATION ote CUSTOM HOUSE KARACHI The Collectors of Customs, Mode! Customs Collectorates, Appraisement (East/West Port Qasinn/Preventive, Karachi/Lahore (Appraisement / Preventivey’Sambrial (Sialkot)/Faisalabad Maltan/Islamabad/Hyderabad/ Quetta/Peshawar/Gawadar/Gilgit-Baltistan ctermination of Customs Values of Home and Office Furniture thereof Under Section 25-A of the Customs Act, 1969 (VALUATION RULING NOISS 2016) No, Mise/14/2009-VIIIBYIX 4 & 0 Dated: October 25,2016 In exercise of the powers conferred under Sectifin.25-A of the Customs Act, 1969, Customs values of Home and Office Furniture and ParlStheteof are determined as follows : = 2. Background of the valuation issue: Customs values of Home and Office Furniture and Parts thereof were earlier determined through Valuation Ruling No.835/2016, dated 19-05- 2016.The Review Petition was filed under Seation 28DJof the Customs Act, 1969, belore, the Director Karac ‘General of Customs Valuation, Karachi by Pakistan Furniture Importers Association (RE wand ‘Others, which were disposed of vide Ordct-inRevision No.201/2016 (DG(V)Val. Rev./540/201608607, Gated 20-06-2016), Meanwhile, the) tepr@semations received from Pakistan Furniture Importers Association (REG), Karachi and Pakistad Children Hardware, Lahore with request that the impugned Valuation Ruling was issued without\mestioning the material and regarding correction of unit of ‘measurement and H.S covlts The said Valuation Ruling may be revised inthe fight of material, local market inguiry snd international prevailing prices. Therefore, this Directorate General initiated an ‘exercise for determination oF eustais values of Home and Office Furniture and Parts thereof, h cholcer®wvaS" held On 29-08-2016. The Association and importers were also requested to Stakeholders*) participation in determination of Customs values: Mecting. ish the following Wocuments before or during the stakeholders meeting’ ‘A. Invoices of imports during last three months showing factual value. B. Websites: names and E-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. C. Copies of Contracts made / LCs opened during the last three months showing the value of item in question D. Copies of Sales Tax Invoices issued during last four months showing the difference it price (excluding duty and taxes) to substantiate that the benefit of difference in price is passed on to the local buyers4. A number of stakeholders attended the meeting. Pakistan Furniture Importers Association (REG), Karachi also participated and stated that they are representing a huge number of importers of lfferot types of furniture. The stakeholders present during the meeting insisted that to provide a level playing field the Valuation Ruling should be issued under Seetign 25/(7) and basis should be ret market priceS and may be categorized on the constituent materials and insisted that there is significant price difference in solid wood furniture from furnituresmade of wholly or partly MDF board, Steel, Glass, plastic ete. They, claimed much higher profit margins on the grounds: that most of the furniture items are slow moving, therefore, retailets margins are higher as ‘compared to the one considered by the Department. They weréasked fo stibmit Sales Invoices in order t0 substantiate their contentions, which they failed torSibmit. However, a number of importers submitted the catalogues and imporv/export invoides. Moreover, the Assoc ‘own conducted market survey and submitted its findingS'to the department, which were duly ‘considered, jon on its 5. Method adopted to determine Customs valuey: Valuation methods given in Section 25 ofthe Customs Act, 1969 were followed to ative afar value of Home and Office Furniture and Pants thereof. ‘Transaction value method provided! in Section 25 (1) was found inapplicable ‘owing to wide variation in the values being deeared tothe customs and incomplete descriptions, k sical and Similar Goods valuation methows provided in Sub-Sections (5) and (6) of Section 25 of the Customs Act, 1969, provided Some reference values but could not be relied upon due to wide variation in the items and different prices were being declared for similar and identical items. Therefore, customs valles could not be determined under section 25(5) & (6) ibid. In view ofthe foregoing position) wa decided to conduct local market survey in terms of Sub-Section (7) of Section 25 of the Custéims Act, 1969 and customs values were determined accordingly 6. Customs values for Home and Office Furniture and Parts thereof: tome and Office Furniture and Parts thereof, hereinafter specified, shall be assessed to duty/taxes at the (atoms VPluedMentioited against them as per Annexure-A_ (Office Furniture) and Annexure-B (Upme Furniture), Impcases where declared/transaetion 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, In case of consignments imported by air, the assessing officer shall take 10 aceount the element of aie freight while assessing the goods.8. applicable Customs value for assessment of subject imported goods until and unless it is rescinded of revised by the competent authority in terms of Sub-Sections (1) or (3) of Section 25-A of the Customs Act, 1969. he values determined vide this Ruling shall be the 9. Revision of the value determined vide this Valuation Ruling: A revision petition may be filed against this Ruling, as provided under Section 25-D of the Customis Aet, 1969, within 30 days from the date of issue of this ruling, before the Director General, Directorate General of Customs Valuation, 7" Floor, Custom House, Karachi 10, ‘The Collectors of Customs may kindly ensure that the Vall@®igiven in this Valuation Ruling for the given description of goods are applied by the concerned staff without fail. Any anomaly observed may kindly be brought to the notice of this Ditectorate General immediately. Customs values determined in the ruling are for the description and specification as mentioned in the Annexure to this Valuation Ruling. HS Codes are mentioned for illustrative purposes so that valuation ruling values are made accessible to the assessing officers. The assessment shall be finalized on the basis of correct classification)atter fulfilling requisite formalities related to importability or any other certification required thereon. In addition to this, itis further necessary that there is no mis-declaratiogof any sort or violation of Import Policy Order or Section 15 of the Customs Act, 1969 oriny other law in vogue therein Ll. This Valuation Ruting supersedes Valuation Ruling No.855/2016, daged 19-5-2016. we. tn Director Copy for informition £45 Member (Customs), F.B.R., Islamabad. Director General, Customs Valuation, Custom House, Karachi Chief Collector of Customs, South (Appraisement), Custom House, Karachi Chief Collector 6f Customs, South (Enforcement), Custom House, Karachi Chief Collector of Customs (Cental), Lahore. Chief Collector of Customs (Nort), Islamabad. Director General, Intelligence and Investigation-FBR, Islamabacl 8. Director General, Audit (Customs & Petroleum), 1" Floor, PT&T Aust Building, Mauj-e-Darya Road, Lahore (9, Director General, Past Clearance Audit (PCA), Islamabad.10. Director General, Internal Audit (Customs), Karachi 11. Directors, Intelligence & Investigation, Karachi / Lahore Istamabad/ Quetta Peshawar/ Faisalabad. 12. Director, Directorate of Customs Valuation (Camp Office), Lahore. 13. Deputy Director (HQ), Directorate General of Customs Valuation, Kardehtefor uploading in WeBOC database system and deleting Vatuation Ruling No. 855/2016, dated 19-05-2016. 14, Chairman (Valuation Committee), FPCC&L in House, Clifton, Karachi. 15. Chambers of Commerce & Industry, Karachi, Lahore, Islamabad, Hyderabad, Quetta, Gujranwala Faisalabad, Sialkot, Rawalpindi & Peshawar. 16. Law Section, Customs Valuation, 7" Floor, Custom House, Karachi 17. Review Section, Customs Valuation, 7° Floor, Custom House, Karachi, 18. Karachi Customs Agents Group, Bohri Road, Karachi 19. CHO, Customs Valuation, Custom House, Karachi. 20. Notice Board, Customs Valuation 7° Floor, Custom Huse, Appraisement (East/West). Custom House, Karachi 21, Webmaster, Federal Board of Revenue, Constitution AVenue. Islamabad, for upto. FBR website and deleting Valuation Ruling No.855/2016, dated 19-05-2016. 22. 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