The Directorate General of Customs Valuation has issued a revised valuation ruling for importing meat and bone meal (feed grade) from Brazil, reflecting adjustments based on market trends and international pricing.Â
The updated valuation ruling (No. 1924 of 2024) was issued after deliberations on pricing discrepancies and input from importers.
Previously, the customs valuation reference only covered imports from Paraguay, Oman, and Kuwait. However, substantial imports from Brazil prompted the Collectorate of Customs Appraisement (SAPT) to request the inclusion of Brazilian-origin products. Following an analysis of import data, market trends, and price fluctuations, the Directorate initiated a review under Sections 25 and 25A of the Customs Act, 1969.
Importers contended during the valuation exercise that the existing customs values were higher than international market prices. They argued that meat and bone meal, being a globally traded commodity, experiences price fluctuations based on supply, demand, and production levels. Importers also pointed out that declared values align with international trends and are supported by export records, letters of credit (LCs), and bank contracts.
They further explained that Brazilian-origin products benefit from large-scale production and competitive pricing. Importers emphasized that their transactions are transparent and adhere to prevailing market rates, as confirmed by relevant export documents.
The Directorate retrieved and scrutinized clearance data spanning 90 days and conducted a market inquiry to validate the pricing structure. The findings informed the issuance of the new valuation ruling, which incorporates Brazilian-origin products while aligning with global market dynamics.
The revised customs values aim to ensure fair trade practices and accurate pricing for meat and bone meal imports used primarily in the animal feed industry.
