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GOVERNMENT OF PAKISTAI\

,
.A FB R
PAKISTAN
DIRECTORATE GEI\ERAL OF CUSTOMS VALUATION
7TIJ FLOOR, CUSTOMHOUSE KARACHI

The Collectors of Customs, Collectorate of Customs (Appraisement -West / Appraisement -

SAPT / Appraisement -East / Appraisement - Port Muhammad Bin Qasim / Enforcement /
JIAP), Karachi /Hyderabad / (Appraisement / Enforcement),Quetta / Gawadar / (Appraisenre nt
i Enforcement / AIIA), Lahore / Appraisement,-Faisalabad / Appraisement, Sambrial (Sialkot)
/ Enforcement, Multan / Islamabad / Gilgit-Baltistan / (Appraisernent / Enforccrncnt), l)e shar,r'ar
/ Enforcement, Dera Ismail Khan / Exports (Port Qasim / Custom House Karachi) /'l'ransit
Trade, Karachi.

DETERMINATION OF CUSTOMS VALUES OF ABRASIVE PRODUCTS I.]NDBR

SECTION 25A OF TIIE CUSTOMS ACT. 1969

ryALUATION RULING NO.1R}2 /2024)

c. No. Misctre/20t0-v/3!L Dated: O\-o+-zoz+

In exercise of the powers conferred under Sectio n 25 A of the Customs Act, I 969, the
Customs value of Abrasive Products are determined as follows:

2. Background of the valuation issue: Earlier, the Customs values of Abrasivc l)rotlrrcts
were determined vide Valuation Ruling No. 1658/2022 dalecl l6-06-2022. As thc priccs ol'thc
said goods have considerably changed in the international market, this Directorate initiated an
exercise for fresh determination of Customs Value of subject goods under Section 25A of the
Customs Act, 1969.

3. Stakeholders' participationin determination of Customsvalue:Meetingswere

convened on 13.09.2023 and29.02.2024 which were attended by relevant stake holders. '['he
issues pertaining to the valuation of subject goods were deliberated upon in detail in the afore-
referred meetings.

4. Analysis / Exercise done to determine Customs Values: The importers informed that
the customs values in the existing Valuation Ruling are on the higher side, which rnay' bc
rationalized considering the worldwide recession and existing freights which have decreased
substantially. In this regard, they were requested to submit the requisite documcttts to sr.rpport
their contention and some ofthe importers submitted the recluisite documcnts. N4rircovcl". rcccnt
import datahas been scrutinized and market inquiry has been conductcd ol'the sulijrct {(x)tls
in the light of this Directorate's Office Order No.1712014 dated l9-03-2014 and in terrns ol'
Section 25 (7) read with Section 25(9) of the Customs Act,7969.

5. Methods Adopted to Determine Customs Value: Valuation methods, provided in

Section 25 of the Customs Act, 1969, were duly applied in regular sequential order to arrive at
customs value of subject goods. The transaction value method as provided in sub-section (l)
of Section 25 of the Customs Act, 1969, was found inapplicable because no substantial
documents were provided by the stakeholders to prove that their declared values were true
transactional values. Moreover, different values were declared by different importers for same
product according to diflbrent origins. Identical/similar goods value methods provided rn
Sections 25 (5) & (6) ibid were examined for applicability to determine customs values of
subject goods. The data provided some re{'brences; however, it was found that thc sarne coul<i
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/{ not be solely relied upon due to absence of absolute demonstrable evidence of qualities and
quantities of commercial level etc. Information available was, hence, found inappropriate.
Market enquiry as envisaged under Sub-Section (7) of Section 25 of the Customs Act, 1969
was also conducted, various wholesale markets were visited to observe the actual prices of
Abrasive Products of different origin and brand. The exercise provided some applicable
reference values. Valuation method vide Section 25(8) of the Customs Act, 1969, was
examined for valuation, but the same also could not be applied due to non-availability of
conversion and processing cost of exporting country. Finally, the Customs values of the subject
goods have been determined under Section 25(9), read with Section25(7) of the Customs Act,
1969. and Customs Rule 121(2) of Customs Rules,200l which provides that the methods of
valuation, to be employed under sub-section (9) of section 25 of the Custorns Act I969 rnay be
inclusive of those laid down in sub-sections (l), (5), (6), (7) and (8) of the said section. bu1 a
reasonable flexibility in the application of such methods would be in conformity rvitlr thc airns
and provisions of sub-section (9) ofthat section.

6. Customs values for Abrasive Products - hereinafter specified shall be assessed to

duty/ taxes on the Custom values given against them in the Table below: -

Customs
Sr. PCT PCT Codes for Values
Description of Goods Origin
No. Codes WeBOC (c&F)
US$/Ke
(1) (2') (3) (41 (s) (6)
6805.2000. 1000
China 4.2s
6805.3000. 1 000
6805.2000 6805.2000. r r 00
I Abrasive Fib er I Paper Disc Korea 4.85
6805.3000 6805.3000. 1 1 00
680s.2000 .1200
Er"rrope 5.3 0
6805.3000 .1200
6805.2000. I 300
Chirra 3.(i5
680s.3000. r 300
6905.2000 6805.2000. 1400
2 Abrasive Fib er I Paper Roll Korea 4. r0
6805.3000 6805.3000. 1400
6805.2000. l 500
Europe 4.60
6805.3000. I 500
a
J Abrasive Cloth Sheet 6805. I 000 680s.1000.1000 China 2.t0
6805.1000. I 100 China 3.60
4 Abrasive Cloth Roll 680s. I 000 6805. l 000. 1200 Korea 4.80
6805.1000.r300 Europe 1 .15
6805.2000. 1600 China 2.3s
5 Abrasive Kraft Paper Sheet / Roll 6805.2000 6805.2000. r 700 Korea 2.65
6805.2000. 1 800 Thailand 2.50
6 Abrasive Latex Paper Sheet / Roll 6805.2000 6805.2000. r 900 China 3.20

7. In cases, where declared values are higher than the Customs values determined in this
Ruling, the assessing officers shall apply those values in terms o1'sub-section ( l) of Scctit,n 25
of the Customs Act, 1969. In case of consignments imported by air, the assessing olficcrs shall
take into account the difference between air freight and sea freight while applying the Customs
values in this Ruling.

8. Validity of this Valuation Ruling: This Ruling, containing the Customs Values for
assessment of subject imported goods, shall be applicable until and unless the same is rescinded

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or revised by the competent authority in terms of sub-section (4) of Section 25A, of the Customs
- Act,1969.

9. Revision of the values determined vide this Valuation Ruling: If aggrievcd, a

revision petition may be filed against this ruling as provided under Section 25D ol'the Customs
Act,1969, within 30 days from the date of its issuance, before the Director General, l)ilcctoratc
General of Customs Valuation, 7th Floor, Custom House, Karachi.

10. The Collectors of Customs may kindly ensure that the values given in the Valuation
Ruling, for the given description of goods, are applied by the concerning assessing officers /
officials without fail. Any anomaly observed may kindly be brought to the notice of this
Directorate immediately. The Customs values determined in the ruling are for the descriptions
and specifications as mentioned in the aforementioned table in this Ruling. HS Codes are
mentioned for illustrative purposes so that Valuation Ruling values are made accessible to the
assessing officers. The assessments shall be finalized on the basis of correct classifications after
fulfilling all formalities related to importability or other certifications required thereon.

11. This Ruling supersedes Valuation Ruling No.1658 /2022 dated 16-06-2022.

Rasool Maken)
Director

Copy for infbrmation to

l. The Member Custorns (Operations), Federal Board of Revenue, lslamabad.

2. The Director General, Customs Valuation, Custom House, Karachi.
3. The Chief Collector of Customs, Appraisement (South), Custom House, Karachi.
4. The Chief Collector of Customs, Enforcement (South), Custom House, Karachi.
5. The Chief Collector of Customs, Appraisement (Central), Custom House, Lahore.
6. The Chief Collector of Customs, Enforcement (Central), Custom House. Lahore
7. The Chief Collector of Customs (North), Custom House, Islamabad.
8. The Chief Collector of Customs, Baluchistan, Custom House, Quetta.
9. The Chief Collector of Customs, Khyber Pakhtunkhwa" Custom I-louse, Pcslrarvar.
10. The Director General, Intelligence and Investigation (Custorns) [rBR, Islamaharl.
il. The Director General, PCA & InternalAudit, Karachi.
12. 'fhe Director General, IOCO, Karachi.
13. The Directors, Intelligence & Investigation, Karachi / Lahore / Islamabad/ Quetta/
Feshawar/ Faisalabad.
14. The Director, Transit Trade, Custom House, Karachi.
15. The Director, Directorate of Customs Valuation, Lahore/Quetta,/Peshawar.
16. The Deputy Director (HQ), Directorate General of Customs Valuation, Karachi, fbr uploading in
One Customs & WeBOC database system.
17. The Chairman (Valuation Committee), FPCC&I, Federation House, Clifton, Karachi.
18. The Chambers of Cornmerce & Industry, Karachi, Lahore. lslamabad, Hyderabad,
Quetta & Peshawar.
19 The Karachi Customs Agents Association, Bohri Road, Karachi.
20 The Webmaster, Federal Board of Revenue, Islamabad.
2i Guard File.

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