Customs' values on import of a wide range of tiles fixed
According to a valuating ruling (2011 of 2025) issued by the directorate, customs values have been revised on the import of 14 types of porcelain tiles polished; 14 types of porcelain tiles; nine types of matt/glazed and porcelain tiles - glazed polished and borders/motif/moulding/skirting/trimming whether plain or embossed, decorated with gold/silver/luster.
The ruling revealed that the Customs values of ceramic and porcelain tiles were determined under Section 25-A of the Customs Acct 1969 videvaluation ruling No 1972/2025.
The ruling was challenged before the director general under Section 25D of the Customs Act, 1969 and was remanded back to the Directorate vide order in revision No 34/2025 with the instruction to undertake fresh exercise under Section 25A of the Customs Act, 1969 and to conduct fresh exercise keeping in view the objections mentioned in the Order in Revision till then the valuation ruling shall hold field.
The Order-in-Revision specifically highlighted the issue of grouping UAE, Turkey and Iran origin tiles into the 'other' category, with lower values from China. Turkey and UAE origin tiles, and the values of tiles of bigger sizes.
Analysis to determine Customs values: In line with the directives of the director general, the directorate held multiple meetings to re-evaluate the Custom values. The stakeholders submitted certain documents in support of their respective positions. Aiming to issue a valuation ruling that duly considered both the stakeholders' perspectives and supporting documentation, the Directorate scheduled meetings on 0-5.05.2025 and 16.06.2025.
During these sessions, importers contended that international tile prices had declined significantly due to technological advancements.
They also emphasised the need to prevent the mis-declaration of porcelain tiles. On the other hand, local manufacturers highlighted their substantial investments in domestic tile production, including the development of larger-sized tiles. They argued that imported tile prices in the local market remained high and recommended conducting a market inquiry to validate their claims.
Instead of submitting comprehensive documentation, stakeholders provided proposed valuation figures for various, tile sizes. A key point of contention in VR 1972/2025 relates to the categorisation of tile, origins under a single 'others' classification. Importers argued that this approach undervalues hon-Chinese tiles and lacks adequate stakeholder consultation. Theyfurther asserted that tile prices do not proportionately increase with size.
Conversely, manufacturers maintained that prices do scale with size and advocated for higher valuations for larger tiles, suggesting that only the 'other origin' valuations require revision, as per the Order-in-Revision. The department acknowledged the participation of manufacturers.
Additionally, importers /representatives of RAK Ceramics, UAE were instructed to submit sales tax returns along with Annexure-C.
However, they failed to provide the necessary documents to substantiate their position.
Copyright Business Recorder, 2025
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