Taxation

Customs value of stainless steel revised

The Directorate General of Customs Valuation (DGCV) has revised the customs value of stainless steel sheets/coils/circles of secondary quality under sub-section (9) of section 25 of the Customs Act, 1969. According to details, the customs values of stainless steel sheets/coils/circles of secondary quality were earlier determined through valuation ruling no 773/2015.

The valuation ruling is more than one year old and international prices of stainless steel have shown an upward trend. Therefore, the Directorate has initiated an exercise to determine the customs values of stainless steel sheets/coils/circles of secondary quality under section 25A of the Customs Act 1969 to bring them in line with current price trend in the international market.

For the purpose, serious of meetings were held in the months of March, April and July with representatives from All Pakistan Stainless Steel Importers and Traders Association and other importers. During meeting, the stakeholders had insisted that 15 per cent discount of secondary quality was low.

They further informed that in valuation ruling no. 291/2011, the department had allowed 40 per cent discount on account of secondary quality in stainless steel sheets/coils/circles from prime quality stainless steel sheets/circles/coils.

Their stance for increase in discount on account of secondary quality from 15 percent to 40 percent was not acceptable being inconsistent with other iron and steel related items/products of secondary quality and the importers could not provide any tangible grounds in favor of their contention.

After deliberation it was agreed with consensus that the fresh valuation ruling of stainless steel sheets/coils/circles of secondary quality (300 series and 200 series) should be based on current international prices with previous practice/formula as enumerated in the previous valuation ruling no. 773/2015, which included 10 percent loading on account of thinner size, 37 percent discount upon value of 300 series stainless steel for determining value of 200 series stainless steel, a loading of 15 percent for Japan origin, 5 percent and 10 percent discounts for India and China origins respectively; with 15 percent discount for secondary quality. The values for 400 series stainless steel shall be determined from Chinese Domestic LMB 430 Series value by deducting local taxes. Later, all the available information was analyzed and evaluated and then the customs values of stainless steel sheets/coils/circles of secondary quality are determined under sub-section (9) of section 25 of the Customs Act, 1969.

Author


Avatar