KARACHI: Consumers will have to pay more for petrol generators as the Directorate of Customs Valuation has increased customs value by at least 40 per cent on June 10, 2016.

High customs valuation has been fixed on the import of portable gasoline (petrol) electric generating sets falling under HS-CODE: 8502.2000 and also for other generators of different categories under different PCT headings vide through impugned valuation ruling no 869/2016 by the Directorate of Customs Valuation.

President Pakistan Machinery Merchant Group (PMMG), Khurram Saigal said the prices of 2-6 KVA generators would go up by Rs3,000-10,000.

The impugned valuation ruling has been issued without the consultation of stakeholders or providing opportunity of hearing them, he said.

The Customs Valuation Department held a meeting in March 2016 with some companies but they did not agree to the enhanced custom value of gasoline generators, he alleged.

He said high customs value has been imposed despite downward price trend in generators in the world markets.

The department has confirmed vide clause 2 of the aforesaid valuation ruling that an exercise to determine custom value of generators was initiated considering the value in the international market has considerable gone down.

The previous valuation ruling did not reflect the correct international market price, therefore, an exercise was initiated to determine the custom value of generator a fresh in term of section 25-D of the Customs Act, 1969.

Mr Saigal said the value of gasoline generators urgently needs to be revised keeping in view of the huge decline in prices in international market. High valuation ruling would encourage smuggling, he added.

The Valuation Ruling may be revised on the basis of 90 days data available with customs and it should have been KVA wise as was mentioned in previous Valuation Ruling no 569/2013 dated July 12, 2013.

Various consignments of generators lying on port under demurrage may be released provisionally on the security of differential amount as per impugned valuation ruling dated June 10, 2016 with the ratio of transactional value so that genuine importers may not suffer per day charges of demurrage, containers detention, port and other charges.

The impact of high valuation would hit small businesses, cottage industry and the middle class who depend on generators in case of loadshedding, he said.

Overall, imports of power generating machines swelled to $1.66 billion in July-May 2015-2016 from $1.2bn in same period last fiscal, up by 38pc.

Published in Dawn, June 23rd, 2016