Cosmetics’ importers protest against duty valuation

LAHORE – As many as 1,000 containers of cosmetics and toiletry items have been stuck up at different dry ports in the country due to inflated valuation by Customs authorities. This was revealed by the All Pakistan Cosmetics and Toiletry Importers Association (APCTIA) President Sheikh Wajid Ali, while addressing a press conference at Lahore Press Club.
APCTIA president claimed that Customs Valuation Department (CVD) had dramatically ramped up the valuation on cosmetic and toiletry products by up to 2,350 percent. He said importers were unable to clear the goods from Customs due to unjustified valuation, which caused huge losses not only to importers but also to the Federal Board of Revenue (FBR).
He said the CVD had suddenly increased the valuation of imported cosmetics products, which had multiplied the customs duty. “It seems that Customs authorities want to encourage smuggling of cosmetic products rather than import through proper channels”, he added. He said that in 2007 the worth of cosmetic products was raised by 10 percent after three years in April 2010; the 10 to 15 percent raise was approved after consultation with traders and importers bodies as per rules.
However, he said in September 2010, the CVD again raised the value of imported cosmetics by up to 2,350 percent in a period of five months and this step was taken without consultation of all stakeholders. According to documents provided by them in the press conference the Customs Valuation Department has increased the value of imported perfumes and Eau De Toilet of 100 ml by 300 percent, body lotion of 100 ml by 815 percent, face cream of 200 gm by 360 percent, shampoo of 200 ml by 125 percent, conditioner of 200 ml by 95 percent, hair spray by 50 percent, hair gel 40 percent, aftershave by 285 percent, shaving foam by 200 percent and deodorant by 2,350 percent. He said importers usually pay up to Rs 4.0 million custom duty on one container but after this huge increase in value they have to pay up to Rs 25 million which is an extra six percent on average. And in some cases this duty would amount to Rs 80 million on one container of goods, he added.