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Review petition on value of shoe-polish by M/s Osaka Electrical allowed

Review petition on value of shoe-polish by M/s Osaka Electrical allowed

KARACHI: The Directorate General of Customs Valuation through Order in Revision No.64/2014 has allowed the review petition filed by M/s Osaka Electrical Corporation on revision of Customs values of shoe-polish in tin, against Valuation Ruling No 663/2014.

According to details, the authorities concerned of Pakistan Customs-FBR after hearing the petitioner (M/s Osaka Electrical Co) and going through the complete record of the case convinced that the subject ruling 663/2014 has been issued in haste and without applying any valid logic behind the fixation of values.

Moreover, while fixing the values, the international prices of ingredients, mode of packing and type and origin of shoe-polishes imported have been totally ignored.

During the proceedings, the petitioners also produced samples of shoe-polishes to support their contention that the types of polishes are also different such as wax or liquid based, etc.

The Order further stated that, it is therefore imperative that while doing the survey to determine the values, a representative of Karachi Chamber of Commerce and Industry (KCCI) and petitioner shall be associated and it will be appreciated that the exercise is completed within next 15 days.

In view of the aforesaid arguments the case is remanded to Director Valuation for de novo consideration.

In the meanwhile, the Collectorates may be advised to assess the subject commodity under Section 81 of the Customs Act, 1969 @US$1.10 per kg as per impugned valuation ruling, which includes the cost of packing as well. In case there is any downward revision, the petitioners will be entitled to refund for excess of duty paid.

It is pertinent to mention here that the petitioner M/s Osaka Electrical Corporation had adopted a view point that Valuation Ruling No 663/2014 on shoe-polish in tin under PCT 3405.1010 was high under the prevailing uncertain condition of economy and created lot of problems as burden of taxes, higher cost of price, fluctuated dollar rate and raising inflation which caused increase cost of clearance due to which the importers are unable to provide superior services to serve the nation on reasonable price.

In response, the respondent was of the view that the importers have submitted analysis of tin shoe-polish cost per kilogram from their supplier namely M/s Anhui Technology Imp & Exp Co Ltd, China @ US$0.65per Kg, but they have failed to furnish the same time of issuance of Valuation Ruling.

The respondent further prayed that the value of shoe-polish in tin/liquid based survey may be maintained.