GOVERNMENT OF PAKISTAN

COLLECTORATE OF CUSTOMS (APPRAISEMENT)

CUSTOM HOUSE, KARACHI.

No.SI/MISC/70/89-VI.                                                          Dated: 17-07-1989.

PUBLIC NOTICE NO. 17/1989-(APPRAISEMENT) 

SUB:          CLASSIFICATION OF VALVES AS WATER FITTINGS.

A dispute regarding classification of valves used in water fittings has arisen due to change in tariff structure from CCCN system to Harmonized system. PCT heading 8481.8010 covers valves used in water fittings which are leviable to Customs duty @ 100% while valves imported for other purposes are classification in other sub­headings and subject to Customs duty @ 20% ad-val.

2.         One view is that all valves used in water fittings irrespective of size, type and field of application are assessable under PCT heading 8481.8010 @ 100% Customs duty, whereas the other view is that levy of 100% Customs duty was only to protect the local industry and not on the imports for industrial uses. Accordingly valves meant for industrial use should be chargeable to lower rate of duty of 20% under PCT heading 8481.8090.

3.         The historical background of this issue is that under CCCN, PCT heading 84.61 A02 and 84.61C covered valves, cocks and other water/sanitary fittings which stood banned besides being subject to higher rate of duty The importers, therefore always claimed that these goods were than water/sanitary fittings in order to circumvent ITC regulations and to pay the duty at lower rates. In the new PCT, be on the Harmonized system, the duty on all valves/cocks and other water fittings falling under PCT 8481.8010 has been kept @ 100% ad-val. And the import has been made free from all sources except the chromium plated sanitary fittings. Thus the imposition of duty at the same old rate makes it abundantly clear that PCT heading 8481.8010 covers items used as domestic water fittings for which adequate local manufacturing capacity already exists. Thus the imposition of duty at the same old rate makes it abundantly clear that PCT heading 8418.8010 covers items used as domestic water fittings for which adequate local manufacturing capacity already exists. Thus the main question is to ascertain as to what is meant by domestic water fitting.

4.         The perusal of old record of this Custom House, reveals that valves upto 125 PSI and temperature upto100 centigrade have been treated as domestic water fittings The investigations in this behalf have also provided that valves made for specific industrial use are costly and of more than 125 PSI and temperature over 100 centigrade.

5.         Considering above facts, it is notified for information of all concerned that henceforth all valves will be assessed according to their normal working pressure and temperature. Valves having normal working pressure rating upto 125 PSI or less and temperature upto 100^o centigrade will fall under PCT heading 8481.8010 and other valves will be assessed under PCT heading 8481.8090 or under their respective headings as the case may be. In all such cases, where the importers claim assessment under PCT heading 8481.8090, they will have to support their claim through printed literature.

6.         This public notice supersedes Public Notice No. 15(A)/89, dated 15th June, 1989.

Signed by

(MUHAMMAD SULAIMAN)

COLLECTOR

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