Local Valuation Committee Rules under section 25A of the Customs Act, 1969

GOVERNMENT OF PAKISTAN

(REVENUE DIVISION)

FEDERAL BOARD OF REVENUE

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Islamabad, the 14th October, 2021.

NOTIFICATION

(CUSTOMS)

S.R.0.1.35X)/2021.- The following draft of certain further amendments in the Customs

Rules, 2001, which the Federal Board of Revenue proposes to make in exercise of the powers

conferred by section 219 of the Customs Act, 1969 (IV of 1969), is hereby published for

information of all persons likely to be affected thereby and, as required under sub-section (3A) of

section 219 of the Customs Act, 1969 (IV of 1969), notice is hereby given that objections or

suggestions thereon, if any, may for consideration of the Board be sent within fifteen days of

publication of the draft amendments in the official Gazette. Any objections or suggestions which

may be received from any person, before the expiry of the aforesaid period, shall be taken into

consideration by the Federal Board of Revenue, namely:-

DRAFT AMENDMENTS

In the aforesaid Rules, in Chapter IX, after Sub-Chapter V, the following new Sub-

Chapter VI shall be inserted, namely:-

"Sub-Chapter VI"

Local Valuation Committee Rules under Section 25 A of the Customs Act, 1969

125A. Scope.- (1) The provision's of this sub-chapter shall be applicable for the

determination of value of goods of Afghan and Iran origin in order to regulate the Pak-

Afghan bilateral trade by discouraging the incidences of under invoicing and smuggling.

The provisions of this sub-chapter shall be applicable on the Afghan and

Iran origin goods, imported from Afghanistan and Iran through land routes.

In case, if an item is being imported through sea route in significant

quantities from Iran, then, the value of such items shall be determined in consultation

with Directorate of Valuation, Karachi.

125B. Local Valuation Committee.- (1) Without prejudice to the provisions

contained in Section 25 of the Customs Act 1969 (IV of 1969), the respective Collector

of Customs (Appraisement), on his own motion, in his area of jurisdiction may determine

the customs values of any goods or category of goods imported in or exported out of

Pakistan from or to Afghanistan and Iran through land customs stations through the

following valuation committee constituted for the said purpose, members whereof shall

be nominated by Collector concerned, namely:-

one Additional Collector of the Collectorate (Chairman of the committee);

two Deputy or Assistant Collectors of the Collectorate (Members of the

committee);

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Superintendents or Principal appraisers or Appraisers or Inspectors as

required;

representative of respective Chamber of Commerce and Industry;

representative of Customs' Clearing Agent Association;

all Pakistan Dry Fruits Importer and Exporter Association;

all Pakistan Fresh Fruits Importer and Exporter Association; and

any other co-opted member as deemed appropriate by the Collector.

(2) The values so determined by the collector on recommendations of the

committee shall be valid for six months.

125C. Procedure of the committee.- Once the committee is constituted for

determination of values of any goods or category of goods, the following procedure shall

be adopted by the committee, namely:-

the chairman of the committee shall convene a meeting of the

committee and prepare the working plan to ascertain the value of the

imported or exported goods;

local market surveys shall be conducted regarding prices of the

imported and exported goods, keeping in view the fluctuation of prices

as well;

past import and export data for the last three months and previously

determined customs values (if any) shall also be taken into

consideration;

the chairman can obtain information from the customs attaches in

exporting countries regarding sale prices of the imported goods; and

once the recommendations are firmed up, the committee shall submit

them to the Collector for determination of customs values.

Time frame of the committee.- The committee shall submit its

recommendations to the respective Collector of Customs within thirty days from the date of

its constitution.

Notification of values.- The collector of Customs (Appraisement) shall

notify the customs values of such goods as recommended by the Committee. In case, the

Collector considers, that any item requires further deliberations, he shall refer the matter back

to the committee.

(2) The Customs values determined under sub-section (1) of section 125D of

the Customs Act, 1969 (IV of 1969) shall be applicable customs values for the assessment

of goods imported or exported via land customs stations of the collectorate.

Provided that where the values declared in a goods declaration filed under section

79 or section 131 of the Customs Act, 1969 (IV of 1969) or mentioned in the invoice

retrieved from the consignment as the case may be, is higher than the value so determined

under sub-rule (1), such higher value shall be the customs value:

Provided further that these values shall be applicable to the goods which are

imported through land route from Iran and Afghanistan.

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The customs value determined under sub-clause (1) shall be applicable

until and unless revised or rescinded by the Collector.

In case of goods imported from the same origin country through different

customs stations falling in the jurisdiction of separate Collectorates, the concerned

Collectors of Customs shall coordinate for a unanimous valuation of goods or category of

goods imported or exported before issuance of the notification.

The values so notified shall be sent to the Directorate General of Reforms

and Automation, Karachi for uploading the same on the WeBOC system at 00.00 hours

from the date of implementation.

A copy of the value shall also be forwarded to Directorate General

Valuation, Karachi in terms of section 25D of Customs Act, 1969.

125F. Saving Clause.- Notwithstanding anything contained in the rules under

sub-chapter VI and Chapter IX, the Collector may adopt any other method as provided

under section 25 of the Customs Act, 1969 (IV of 1969) for determination of the customs

values of goods imported or exported via land customs stations. Also if any valuation ruling

is being issued for the goods imported from Afghanistan or Iran via land border stations by

the Directorate General Customs Valuation, Karachi, the same shall be applicable forthwith

disregarding the local valuation.".

[C No. 1(1)L&P/2021(P01

(Muha d Rizwan)

Secretary (La & Procedure)

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