Law: Customs Act, 1969

Section: 25,81

Customs Act (IV of 1969)--Ss. 25 & 81---Valuation---Import of tiles---ITP value---Database value---Provisional assessment--- Release of goods at declared value under S.81 of the Customs Act, 1969---Bank guarantee---Valuation Department did not finalize the assessment in the prescribed time frame and the Bank Guarantee Cell encashed the pay orders without getting any response from the Valuation or Appraisement Department or giving opportunity of hearing to the complainant--- Validity---Customs Authorities admitted that reliance was placed on the valuation Database in provisional assessment under S.81 of the Customs Act, 1969--­Customs Authorities did not finalize the assessment in accordance with the provisions of S.8---Bank guarantees furnished were arbitrarily encashed without observing mandatory provisions of S.81 of the Customs Act, 1969---Higher value adopted for finalization of assessment did not seem to represent the customs value---Origin of goods, a significant factor in determining customs value, was also not taken into account--­Alarm of impending completion of six months aroused the concerned group to finalize the assessment but it was done in an arbitrary manner without hearing the importers---Principles of GATT based Code of Valuation, legislated in S.25 of the Customs Act, 1969, providing various methods for determination of customs value were not followed--­Federal Tax Ombudsman recommended to re-examine the valuation of Ceramic Tiles of the country of origin in consultation with the Controller of Customs Valuation; to afford opportunity to the complainant/importer to represent their views about the valuation aspect and to issue formal assessment order within six weeks. FINDINDS/DECISION The complaint relates to the finalization of assessment of Tiles imported from Turkey at enhanced value without waiting for advice from the Valuation Department and without affording opportunity to the importers for hearing of their view-point. The complainants stated that they imported Turkish Origin Tiles for the first time at a low price as Turkish manufacturers were new in the field and they offered competitive price. While the ITP system was in vogue,…

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