Law: Customs Act, 1969

Section: 25,25A,25A(4)

Law: Customs Rules, 2001

Section: 107,107(a)

CUSTOMS ACT, 1969 (IV OF 1969) Section 25 Concept of 'transaction value' --- The concept of 'transaction value' envisaged under the current section 25 was adopted as a primary method for valuation during 1999 as part of Pakistan's commitment with the international polity of nations under the General Agreements on Tariffs and Trade (GATT); The old system devised under section 25 of the Customs Act, 1969 stipulated mechanism prone to maintaining a uniform, fixed notional value for calculation of duties and taxes all over Pakistan. Subsequent to adoption of "transaction value" method under article 'vii' of GATT the mechanism of valuation devised under section 25 of the Customs Act, 1969 was revamped/redrafted which pivoted on the notion of determination of value of imported goods for customs purposes based on the actual value of the imported merchandise: put simply, the price actually paid or payable for the imported goods. The system intended to provide a fair, uniform and neutral basis for the valuation of imported goods, as a part thereof, the customs department is bound to accept the value stated by the importer through the invoice unless the department has additional information to substantiate under invoicing. Most of the importers while taking advantage of this legal situation, either undervalued their imports with fake invoices or effectuated fraudulent re-invoicing in third countries or double invoicing was done with the connivance of the foreign suppliers or at some instances on basis of fake invoices with assistance of black sheep amongst the relevant customs staff. This rampant fraudulent activity not only caused huge revenue losses to the state exchequer but also made related local industry unviable; Such an anomalous situation prompted "raison d'etre" for creation of a mechanism of oversight over the evidential data streams created under section 25 of the Act and consequently during 2007 section 25 A was included in the Customs Act, 1969. Sections 25 & 25A The operational period of 90 days determined in Rule 107(a) Customs Valuation Rules stands inapplicable to a value determined under Section 25A due to the overriding effect over section 25 and…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492