20000118

FPCCI doesn't

like new

valuation

system

RECORDER REPORT

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry has taken strong exception to the new system of valuation of imported goods.

A largely attended meeting of the representatives of trade bodies held at the Federation House here on Monday under the chairmanship of Mahmood Ahmed, acting president, FPCCI said that it was against the GATT code of valutaion.

The Customs Order No. 57/99 of December 30, 1999 was contrary to the concept of transaction value, while the valution data based has not been prepared in consultation with trade bodies.

The meeting expressed concern that the valuation data base has been prepared on the highest assessed value which is against the basic principles of GATT Code and is, therefore, not valid and said that new data base be prepared on the correct prevailing prices in consultation with the respective associations of trade and industry under the umbrella of FPCCI. The meeting called upon the associations of trade and industry to provide correct prevailing prices of their concerned import items on an urgent basis to the valuation department so that these may be incorporated in the valuation data base, with a copy to FPCCI.

The participants at the meeting included: Tariq Sayeed, former president, FPCCI, Sheikh Maqbool Ahmed, chairman, FPCCI standing committee on customs and dry ports, Ebrahim Panwala, senior vice-chairman, standing committee on valuation, Shakil Ahmed Dhingra, senior vice-chairman, FPCCI standing committee on import trade, Sheikh Aftab Ahmed, senior vice-chairman, FPCCI standing committee on customs and dry ports, members, managing committee and life members of FPCCI.

The meeting felt that under the GATT code of valuation the imported goods should generally be accepted on the transaction value with reference to the revised data base and if the custom authorities have any objection the prices should be verified from the concerned association.

Several participants of the meeting feared that the procedure laid down for the valuation of goods will only result in increase in corrupt practices. It was felt that till the data base is revised to reflect the prevalent prices the meetings of the valuation committee be held frequently.