RECORDER REPORT

ISLAMABAD: Directorate General of Customs Valuation Karachi has revised customs values on the import of copper clad laminated sheets.

According to a valuation ruling issued here on Monday, the customs value of copper clad laminated sheets was determined and notified vide Valuation Ruling No.821/2016, dated 18-03-2016. A number of representations were received from stakeholders for revision of the valuation ruling as the prices of raw material have decreased internationally. Therefore, the Directorate General initiated an exercise for determination of the customs values of the copper clad laminated sheets under Section 25A in order to reflect the prevailing international prices.

Stakeholders’ participation in determination of Customs values: A meeting for the determination of customs values of copper clad laminated sheets with stakeholders was scheduled on 24-11-2016. Different stakeholders, including importers, representatives of FPCC&I & KCC&I, besides Clearance Collectorate were requested to attend the meeting. It was attended by a few commercial importers.

A few documents were submitted by the importers but all requisite documents were not furnished. The importers were of the view that due to fall in the prices of petrochemical, copper and materials used for laminates have reduced significantly in the international market which has resulted in decrease in the prices of copper clad laminated sheets. During the meeting they also presented their LCs and invoices indicating values much lower than the existing values in the ruling. It was also clarified during the meeting that almost all import of the subject goods is from China. They also contended that there are different types of copper clad laminated sheets, but the import in Pakistan is mostly of low quality sheets where base material is paper phenolic resin which is cheaper than glass epoxy resin base laminates, ruling said.

It said that the valuation methods given in Section 25 of the Customs Act, 1969 were applied sequentially to address the valuation issue at hand. Transaction Value Method under Sub-Section (1) of Section 25 of the Act ibid was found inapplicable because required information under the law was not available. Identical and Similar Goods valuation methods provided in Sub-Sections (5) and (6) of Section 25 of the Customs Act, 1969 provided some reference values but due to wide variations in the declarations the same could not be relied upon exclusively. In the sequential order, the directorate also conducted market inquiries in terms of Sub-Section (7) of Section 25 of the Customs Act, 1969. Input and feed back by the participants during the stakeholders’ meetings were also considered. Online available information was also checked. All the available information was analyzed and evaluated. Keeping this in view, Customs values of copper clad laminated sheets are determined under Sub section (9) of Section 25 of the Customs Act, 1969.