The Karachi Directorate General of Customs Valuation has increased the tax on imported candies, toffees, and other sweet confectionaries. Directorate has issued a new valuation ruling, reported Business Recorder.
The increase was seen in sugar and confectionery items being imported from Thailand, Taiwan, Indonesia, Vietnam, Saudi Arabia, UAE, Oman, Turkey, Europe and the USA.
The new valuation ruling was issued on Friday by the directorate. Before this valuation, customs had determined the value of the item in 2022 under section 25A of the Customs Act, 1969 with valuation ruling No.1600/2022.
A meeting was conducted between customs officials and stakeholders. The issues about the valuation of goods were discussed among the attendees.
Stakeholders requested to determine the customs values by the trend of values in the international market.
Ninety days’ Customs clearance data of Candies, Toffees, and Confectionery items has been retrieved and was compared with data of Afghan Transit Trade for the same period after scrutinizing it.
Following analysis, it was discovered that, while Afghanistan’s total import value under transit trade significantly increased from US$1.96 million to US$5.09 million (160% increase) during the same period, Pakistan’s total import value of candy, toffees, and confectionery items decreased from US$3.84 million to US$2.02 million (90% decrease) between 2021–22 and 2022–23.
Although market research as allowed by the Customs Act 969 was also carried out, variations in market prices may have limited the results obtained.
The computed value method was examined by statutory sequential order, but it was also unable to be applied because the exporting country did not have the conversion cost from the constituent materials and related expenses available for the manufacturing of toffees, candies, and sugar confectionery items.
The freight value at the time of the preceding VR No. 1600/2022 and prevailing freight values have been assessed and reduced after a full examination of the available facts and information was conducted. The ruling further stated that the concerned commodities’ Customs values had been established.
