a. CovERNMENT OF PAKISTAN FFERR ~ pnecroe st rte of cusrows vaLvarion = CUSTOM HOUSE KARACHI ‘The Collectors of Customs, Model Customs Collctorates, Appraisement (East/West)! Port Qasim / Preventive, Karachi Lahore ( Appraisement / Preventive) /Sambral (Sialkot) Faisalabad Multan Islamabad Hyderabad! Queta/ Peshawar’ Gawadar Gilgit Baltistan ues of Bearings Under Section 25-A of Determi ion of Customs (VALUATION RULING nol! (2017) No ic 0120.00 (ra) 1,207 In cece ofthe povers conned uns Secon 2-4 of Cass Act 199 cist acs oberg ae ao tobe 2. Background ofthe valuaion lve: Csians ates of Bas were detrmined tink Section 254 of ths Cans Act ve Van Ring NOGSYSD16 eed 1 inane, the Vakaion Ruling was challenged y tient pers os Revision pth etre the Direct ConoalCasomt Valauon lect Gaon posed ot th pts vide Orrin No, 2912016 die O-2017ebcving a= The tating of moay sped bands was lo ent mare igual Teves hat tesla have en fed covet bythe Direc Caroms Valu The afield Vataron Rul and OnevgmReVSOR vere longed befor te Hovorable Apel Tbr aro vide Cams Appeal Nes 39/2017 and 30 hs One ofthe inns, Wa” Aspor Enric edt Conlin ttre he Honus Felcal Tax Oman Kah ie Crp No, COOOTEDOI7 The Berg Tae Grup ale aprile Cimon ele ar of Reve nba tuple or Paksan Aromobie Spr Pars Inpoe Des Asocaton dated 5492017 Meanwhile on expiry of 98th inary sprsced i ofc wie que Aemine Conon Valen Saimin gg Walter demoed vie Valuer Rung ¥N05/206 dt 4102016 Bene tev ih anole Sindh igh Cours Indgenens The Honunble Cs Apelte Titra, arash remanded the ce Dies Valution wi conaifiper es fh elerfonon of Costs Vat, ar hs opportinty of ti! al Scholars in one month, Honour fica! Tax Gmaonan cit fh unaecaking by te Ditsare Cap Cues Valuation ose sh algo ating wie tne i syed bye Homer Apna Tbr There Brett Gel nada xe for ermion oF ear vles of Beas 3 Stabler portipton i determination of Casoms vale: Dien mnstings wth ubchole were held on €732017 an 1205-2017, pores ha bem Tied ofa bing Goes ie o drag ie cour of netng A. _Imoiges of imports during last three months show ing factual valu, B. Websites, es and E-mail addeesses of known foreign manufacturers of the item imquestion through which the actual current value can be ascertained, © 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 in price (excluding duty and taxes) to substantiate that the benefit of difference in paige is passed on to the local buyers 4. During the course ofthe meeting, Bearing Trade Group and the importers wete of the view that the values of bearings in the existing valuation ruling were much higher than the prevailing LME prices of raw material in international markets, They stated that industri bearings, which were produced in smaller quantity, with high quality, were relatively Z>expensive but all other bearings were much cheaper. They agitated that such bearings import {AE which is insignificant, eannot be made basis for determination of Customs Values, They Slated that major imported bearings were for automotive & general application, mostly usedfor cars, trucks, motoreycles, three wheelers, tractors, trolleys, agriculture implements electric motor, and water purnps. They also claimed that higher values would mean shifting of legal import business to smuggling. A number of other importers present during the ‘meetings voiced similar concerns. The Bearing Trade Group also submitted their proposal in respect of categorization vis-i-vis origins, brands on the basi of local market selling prices. Tey also proposed values, but it was agreed during the meeting on 12.08.2017 that their proposils would be considered, however, the values would be finalized by the department in light of its own working. Resultantly numerous market surveys Were. conducted for detemnination ofthe customs valves. 5. _ Method adopted to determine Customs values: Valuation mths given in Section 25 ofthe Customs Act, 1969 were followed to ave at customs vales of different Iypes of Bearings. Transaction yalue method provided in Section 25 (1 was found inapplicable coving to wide variation in the values being declared wo the customs. Identical similar goods ‘alue methods provided in Section 25 (3) & (6) were examined for applicability to the “aluaton ise inthe instant case which provided some reference vals ofthe subject goods but the same sould not be exclusively relied on duc to wide vation in declared vals of subject goods, Stakeholder's meetings were also schedled but during the meetings very soon t200 | lan eri Spherical | Figasooo | 84828000. 1200. | Eves {Stine | 825000 | See S00 10 aia Bags | 52600 | $6550 29 | HE “nin co 882 7000 | Seer 00 GR, Sasa. 1200 | the, ros 8482.3000. 1300" 8482,4000.1300 '8482.5000.1300 ° $482-50001300 | aan | | 99 80,700 300 °B482.8000.1300 | 8482.3000.1400 2.100.130 4s2.300.1400 | omer | 10 $4s2.00001300 | Onis | 2 | 69 s-700 1300 549.800.1300 ‘Category NSK SKF /NTN/NACHIROVO / 1KO/ZWZ | Geary ax Osis aaTeC NBW NIN” LY Zina Biak Fox NSW |ScitoR irs BVZV) Sopemin Coopoee Di Maca see Veer Fara & Le |S eel oO I ee | Sunder Section 25 of the Customs Act 1969. Alternatively they may provisionally assess || Gos ender Seton 81 and refer the ense to this Directorate General for vice Replys where desaredtnmacton valves ae higher than he 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 into account the element of air Freight while assessing the goods, 8. Validity of this Valuation Ruling: The values determined vide this Ruling shall be the applicable Customs value for assessment of subject imported goods until and unless i is4 rescinded or revised by the competent authority in terms of Sub-Seetions (1) or (3) ‘of Section 25-A of the Customs Act, 1968. 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 Customs Act, 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 thatthe values given is this Valuation Ruling forthe given description of goods are applied by the concerned staff without fail. Any anomaly observed may Kindly be brought to the notice of this Directorate General immediately. Customs values determined in the ruling are for the desetiption and specification as mentioned in this Valuation Ruling. HS Codes are mentioned for illistrative purposes so that valuation ruling values are made accessible to the assessing officers. The assessment shall be finalized on the basis of correct classification after fulfilling requisite oemalities related to importability or any other certification required thereon. In addition to this, itis further necessary to verify that there is no mis-declaration of any sort or violation of | Import Policy Order or Section 15 of the Customs Act, 1969 oF ay other law in vogue ‘herein, 10. This ruling supersedes Valuation Ruling No.983/2016 dated 14-19-2016. onli Director Copy for information to: 1 Member (Customs), F.B.R,, Islamabad 2. Director General, Customs Valuation, Custom House, Karachi. 3. Chiet Collector of Customs, Southy(Appraisement), Custom House, Karachi 4. Chief Collector of Customs, South (Enforcement), Custom House, Karachi 6 1 8 Chief Collector of Customs (Central), Lahore. Chief Collector of Customs (North) Islamabad. Director General, Intelligence and Investigation-FBR, Islamabad. Director General, Audit (Customs & Petroleum), !* Floor, PT&T Audit Building, Mau)-e-Darya Road, Lore. (09, Director General, Post Clearance Audit (PCA), Islamabad. 0, Director General, intemal Audit (Customs), Karachi. 1. Directors, Intelligence & Investigation, Karachi / Lahore / Islamabad? Quetta, hawar/ Faisalabad, 12, Director, Directorate of Customs Valuation (Camp Office), Lahore. 13. Deputy, Direstor (HQ), Directorate General of Customs Valuation, Karachi, for uploading ‘WeBOC database system and deleting Valuation Ruling No.953/2016 dated 14-10-2016. 14. Ctairman (Valuation Commitee), FPCC&I, Federation House, Clifton, Karachi, 15, Chambers of Commerce & Industry, Karachi, Lahore, Islamabad, Hyderabad, Quetta, Gujranyal, Faisalabad, Sialkot, Rawalpindi & Peshawar. 16, Law Section, Customs Valuation, 7” Floor, Custom House, Karac 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 House, Karachi / MCC, Appraisement (East West), Custom House, Karachi 21, Webmaster, Federal Board of Revenue, Constitution Avenue, Islamabad, for uploading at FBR website and deleting Valuation Ruling No.9$3/2016 dated 14-10-2016. 22. Gua File