Member Customs to make orders in valuation rulings

Member Customs to make orders in valuation rulings

The Tax Laws (Third Amendment) Ordinance, 2021 has granted enhanced powers to the Member Customs, allowing them to annul or modify orders previously passed by the Director-General of Customs Valuation.

The amendment introduces a new proviso to Section 25D of the Customs Act, 1969, focusing on the review of determined values in customs processes.

Section 25D of the Customs Act, 1969, addresses the review of determined values and previously empowered the Director-General Valuation to rescind or determine the value afresh either on his own motion or in response to a review petition made within thirty days from the date of determination by any concerned party or a customs officer.

The text of the section reads: “Notwithstanding the provision contained in section 25A, the Director-General Valuation may on his own motion or in pursuance to a review petition made to him within thirty days from the date of determination by any person or an officer of Customs may rescind or determine the value afresh: Provided that the proceedings so initiated shall be completed within sixty days of the filing of the review petition or initiation of proceedings as the case may be.”

The recent amendment introduces a crucial addition to Section 25D, enhancing the review process. The new proviso states: “Provided further that a person aggrieved of the value determined by the Director-General Valuation may within thirty days of communication of such order, prefer an appeal to the Member Customs (Policy) who may pass an order annulling, modifying, or confirming the order passed by the Director-General.”

This addition empowers individuals or entities dissatisfied with the determined value to appeal to the Member Customs (Policy) within thirty days of receiving the order. The Member Customs (Policy) is granted the authority to pass an order that can annul, modify, or confirm the decision made by the Director-General Valuation. This provision introduces an additional layer of oversight and ensures a fair and transparent process for reviewing customs valuations.

The move is expected to enhance accountability and provide a mechanism for parties involved in customs processes to address disputes regarding the valuation of goods. The Member Customs (Policy) now plays a crucial role in the appeal process, contributing to the overall efficiency and fairness of the customs valuation system.

It is imperative for businesses and individuals involved in customs procedures to be aware of these amendments and understand the revised appeal mechanisms to effectively navigate any disputes related to customs valuation. This legislative change aligns with the government’s ongoing efforts to streamline and improve the customs and taxation processes for the benefit of both businesses and the economy at large.