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Prices of Chocolate Spreads Like Nutella Are Increasing

The prices of children’s favorite branded chocolate spread like Nutella would rise following an increase in duties and taxes at the import stage from April 6, 2022.

Directorate General of Customs Valuation Karachi has substantially raised customs values up to US$15.23 per kg on the import of branded chocolate spread for assessment of duties and taxes. In this connection, the FBR’s directorate has issued a new valuation ruling 1627 of 2022 issued on Thursday. According to the ruling, the values have been raised from US$2.50 per kg-US$3.15 up to US$15.23 per kg.

The directorate has upward revised the customs values on the import of Chocolate Spread (All Flavours) of Keto Dark Chocolate, Twix, M&M’s; Bounty, Disano, Maltesers, Moven Pick, Hershey’s; Cadbury, Galaxy; Nocilla, Stute; Nutella, American Cuisine, Choco hazelnut, Choctella, Tesco and Cebe Nussa, Crunchy.

The FBR has also superseded the old valuation ruling of 2019. Background of the valuation issue revealed that the customs value of Chocolate Spread was determined under Section 25A of the Customs Act, 1969 vide Valuation Ruling No.1361/2019. Since the valuation ruling was more than three (03) years old, an exercise was carried out by this Directorate General to determine afresh the customs value of subject goods under Section 25A of the Customs Act, 1969.

The stakeholders of imported chocolate spread requested to issue a Valuation Ruling in the light of prevailing international and local market prices for uniformity of assessment. Some of the importers submitted that their declared values are fair and may be considered at the time of fresh determination of value. However, they did not produce relevant documents in support of their contentions.

The viewpoint of all participants was heard in detail and considered to arrive at the Customs Value of the subject goods. Valuation methods provided in Section 25 of the Customs Act, 1969 were duly applied in their regular sequential order to address the valuation issue at hand.

The transaction value method was found inapplicable due to the wide variation of values displayed in the import data & requisite information was not available to arrive at the correct transaction value. Identical/similar goods value methods provided were examined for applicability to determine the customs value of subject goods.

This data provided some references, however, it was found that the same cannot be solely relied upon due to wide variations in declarations. The information available was hence, found inappropriate. In line with the statutory sequential order of Section 25, this office then conducted market inquiries under Sub-Section (7) of Section 25 of the Customs Act, 1969 and determined customs values of Chocolate Spread under section 25(7) of the Customs Act, 1969 accordingly, FBR added.

Source: Pro Pakistan

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