PESHAWAR, Nov 8: The customs collectorate, Peshawar, is in disagreement with the controller-general of valuation, Karachi , over the question of determining customs duty on crockery and glass wares on the basis of their weight, and it has been ignoring the latter's instructions in this regard, according to business and official circles here.

In a letter dated April 26, the controller-general valuation had instructed the authorities of the customs dry port, Peshawar, to clear glass wares and crockery by determining duty on the basis of their weight - instead of their value.

The rate of duty, in this respect, had been fixed at $1.81 per kilogramme while glass wares of all types, other than 'China Opal', were to be cleared after determining the duty on the basis of weight.

The instructions, officials said, were issued to pre-empt the illegal practice of under-invoicing on the part of unscrupulous elements from among importers in connivance with official circles.

However, the move remains to be implemented as the authorities of the Peshawar dry port and senior officers of the customs collectorate have disputed the matter for, what the official sources described, as being against the customs act and 'ill-logical'.

"There is no precedent of evaluating the customs duty on weight basis instead of taking value of the imported goods under consideration," said an official.

This point was also supported by a leading importer of glassware contacted separately by Dawn .

The intended move has also attracted reaction from the NWFP-based importers of crockery and glass wares, who have made a joint presentation before the customs authorities here in which they have opposed it.

"Why should we pay duty on the basis of weight when we don't pay the price of imported goods by weighing them?" asked Hakeem Shinwari, a leading importer of crockery and glass wares.

His view was supported by another importer, Ahmed Nadeem Khan, who, when contacted separately, said, "It does not make any sense to pay customs duty by weighing the imported goods."

The move on the part of controller-general of valuation has also triggered some reaction from local customs authorities.

"We have sent our reservations to the controller-general in this respect," said an official of the collectorate of customs.

In total disregard to the instructions, the authorities of the Peshawar dry port, said one of its officials, were clearing glass wares temporarily by determining the customs duty of imported items in accordance with the procedure laid down under Section 25 of the Customs Act.

An official of the dry port here said that the move was being resisted because neither it was covered under the Customs Act nor a proper notification had been issued to make it mandatory.

As a result, he added, glass wares were being cleared on provisional basis by applying the rates of customs duty on the importers goods in the light of the section 25 of the Act.

"We don't agree with their decision and have taken up the matter with the Central Board of Revenue (CBR)," said an official, adding that "tariff regime does not allow the dry port to clear glass wares on the basis of weight".

The move to bring about changes in the tariff regime for glass wares, sources said, was made by the controller-general of valuation in the backdrop of a failed raid by the Directorate of Customs Intelligence, Peshawar, last year.

Sources said that the directorate suspecting under-invoicing by an importer had intercepted a consignment of glass wares last year. However, the consignment was found to be in accordance with its clearance documents.

"Though the charge proved to be unfounded, it led to introducing a new mechanism which apparently does not have acceptance even among official circles," said a source.

In response to the controller-general of valuation's instructions, said the sources, the Customs Collectorate in Peshawar requested it to abandon its move for what it described as being harmful to the economic and business interest of the NWFP importers.

"If this is implemented then Peshawar's importers would be paying customs duty 300 per cent more than what is being paid at other dry ports," said an official document.

The Peshawar collectorate's rejoinder sent in July, an official said, contained that the value of glass ware on weight basis could not be applied because the superior quality of glass wares attracting higher value in the market always carried less weight.