Customs introduces fixed values for import of rice color sorting machines
Published on: December 17, 2023.
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Customs Values on Rice Colour Sorting Machines Imported from China Revised by Directorate General of Customs Valuation
The Directorate General of Customs Valuation in Karachi has recently revised the customs values on the import of rice colour sorting machines from China. In order to inform importers, the directorate has issued a new valuation ruling on Saturday.
Importers have been notified by the directorate that compressor plants and reconditioned compressor plants are not considered part of the subject machines. Therefore, they will be assessed separately by clearance Collectorates, even if imported alongside the rice colour sorting machines, under section 25 of the Customs Act, 1969.
An Exercise to Determine Customs Values
The Directorate General of Customs Valuation, Karachi has undertaken an exercise to determine the Customs value for rice colour sorting machines. This action was initiated after receiving a Board’s Letter regarding the determination of Customs value in this regard.
Addressing Under Invoicing and Loss of Revenue
The participants involved in the process informed the directorate about the significant under invoicing in the import of subject goods. This under invoicing occurs due to the assessment and clearance by Collectorates on a weight basis, while the value of the subject goods depends on the number of chutes. For imports from China, the import value should be assessed at approximately US$3000 per chute.
Another practice that contributes to the loss of revenue at the import stage is the clearance of compressor plants and reconditioned compressor plants as part of the subject machines. However, these compressor plants have separate PCT Heading with a different duty/structure and are not considered a part or accessory of the subject machine.
To address this issue, the Valuation Ruling needs clarification that compressor plants and reconditioned compressor plants should not be cleared as part of the subject machines. Instead, they should be considered under their respective headings.
Determination of Customs Values
The directorate has established different customs values for the import of Rice Colour Sorting Machine/Computerized Colour Sorter Machine/Optical Sorter/CCD Colour Sorter Machine/Multi-Purpose Seed/Pulses Colour Sorter Machine. These values apply to machines with up to 5 chutes, up to 10 chutes, or more than 10 chutes, and include all standard accessories and parts.
By taking these recent actions, the Directorate General of Customs Valuation aims to ensure fair customs values and prevent revenue loss in the import of rice colour sorting machines.
