Air conditioners’ customs value revised
The Directorate General Customs Valuation (DGCV) has revised the customs values of air conditioners under section 25(9) of the Customs Act, 1969. According to the revised ruling, the customs values of portable/window type air conditioners were earlier determined under section 25A of the Customs Act 1969 vide valuation ruling 1053/2017.
However, several importers filed revision petitions under section 25-D of the Customs Act, 1969 before the DGCV. Therefore, the Director General directed that Customs values for window type and tropical multi system/ductless air conditioners should be re-determined and notified within three weeks of the issuance of the revision order.
For the purpose, the Directorate General has initiated an exercise for determination of customs values of said goods besides stakeholders were asked to submit all relevant documents in support of the revision petitions before the meeting held on June 6, 2017.
During the revision proceedings, the stakeholders agitated that values determined vide the valuation ruling 1053/2017 were higher than the transaction values. They submitted some import invoices sales vouchers in support of their contentions. They also presented clearance data wherein goods were being clearing at much lower values before issuance of valuation ruling 1053/2017. Later, the stakeholders were requested to submit more elaborate data including import invoices, sales tax invoices, literature, evidences and other relevant requisite import documents in support of their contentions as few invoices as market reality was different.
However, they could not provide documents to substantiate their contentions. Resultantly valuation ruling was processed as per investigations conducted by the department. Consequently, the customs values of portable/window type air conditioners have been determined under Section 25(9) of the Customs Act, 1969. The customs values of window type air conditioner 1 ton from China at US$146 per piece, Far East at US$165 per piece, Japan/Europe/USA at US$215 per piece and other origins at US$170 per piece.
While, the customs values of window type air conditioner 2 ton (18000BTU) from China at US$175 per piece, Far East at US$210 per piece, Japan/Europe/USA at US$250 per piece & other origins at US$220 per piece. Similarly, the window type air conditioner 2 ton (24000BTU) from China is now assessed at US$220 per piece, Far East at US$250 per piece, Japan/Europe/USA at US$290 per piece and other origins at US$270 per piece. The customs values of portable air conditioner (12000BTU) from China is now determined at US$170 per piece, Far East at US$195 per piece, Japan/Europe/USA at US$225 per piece and other origin at US$205 per piece.