The Directorate General of Customs Valuation, Karachi has declared that the compressor plants and reconditioned plants are not part of rice color sorting machines imported from China for assessment of duties and taxes.

In this connection, the Directorate General of Customs Valuation, Karachi has revised customs values on the import of rice color sorting machines from China.

A new ruling of the directorate revealed that the compressor plants and re-conditioned compressor plants are not part of the subject machines, therefore, they shall be assessed by clearance Collectorates, even if imported with the subject machines, under section 25 of the Customs Act,1969.

The Directorate General of Customs Valuation, Karachi has received the Board’s Letter for the determination of the Customs value for the rice color sorting machine. Therefore, an exercise has been undertaken by the Directorate to determine the same.

The participants informed the directorate that there is massive under-invoicing in subject goods at the time of import owing to assessment/clearance by Collectorates on a weight basis, whereas the value of subject goods depends on chutes and, for import from China, import value should be assessed at US$ 3000/Chute approximately.

Another practice contributing to the loss of revenue at the import stage is that compressor plants and reconditioned compressor plants are being cleared as part of subject machines; although compressor plants and re-conditioned compressor plants are an item of a separate PCT Heading with a different duty/structure and are not a part/accessory of the subject machine. Therefore, there is a need to clarify in the Valuation Ruling that compressor plants and reconditioned compressor plants may not be cleared as part of subject machines, but rather in the respective headings.

The directorate has revised customs values on the import of Rice Color Sorting Machines/Computerized Color Sorter Machines/Optical Sorters/CCD Color Sorter Machines/Multi-Purpose Seed/Pulses Color Sorter Machines up to 5 chutes ( or up to 10 chutes or more than 10 chutes) with all standard accessories and parts, FBR added.

Published Date: December 18, 2023