FBR Revises Customs Value on Import of Toy Cars and Bikes From China

Directorate General of Customs Valuation Karachi has revised customs values on the import of Ride-on Toy cars/bikes from China. According to a ruling issued by the directorate on Wednesday, the customs values of Ride-on Toy Car bikes were determined under Section 25A of the Customs Act, 1969 vide Valuation Ruling No.1703/2022. However, different stakeholders requested to redetermine Customs values afresh in line with values prevalent in the international market. Therefore, an exercise has been undertaken by this Directorate to determine the same. The issues about the valuation of the subject goods were deliberated upon in detail in the afore-referred meeting. The stakeholders submitted their proposals and the same were considered pertaining to the valuation of subject goods. The importers contended that the customs values of Ride-on Toy cars/bikes were determined vide Valuation Ruling No. 1703/2022 dated 07-12-2022 are higher and the same needs to be revised according to prevailing international prices. The aspect of freight cost from China was checked through websites as well as freight invoices issued for impugned goods imported from China. The analysis showed that AN increase in freight cost occurred during the last 2 to 3 years. Moreover, the quantity of toys imported has declined by 3 percent after the issuance of the ruling of 2022. Import data analysis shows that the increase in import volume & duty /taxes is negligible. Subsequently, the market inquiry was conducted and examined, which supported the stance of the stakeholders that the value of Ride-on Toys has reduced considerably. Finally, the Customs values of the subject goods have been determined under Section 25(9), read with Section 25(7), and Customs Rule 121(2) of Customs Rules, 2001 which provided the methods of valuation.