MG HS ; Dedicated Discussion, Owner/ Fan Club Thread

[alphab]

https://www.brecorder.com/news/40089411/assessable-customs-value-of-mg-vehicles-raised-by-145pc

The Federal Board of Revenue (FBR) has reportedly increased assessable customs value of MG vehicles by 14.5 percent from $ 11,632 per unit to $ 13,314 per unit

[alphab]

According to the Directorate, the company had to pay Rs 3.283 billion as total duties and taxes against 747 vehicles but it paid Rs 2.024 billion which implies total duty and taxes recoverable are Rs 1.240 billion.

[fazalwahab11375]

Bhai, I was shouting 3 months ago about underinvoicing.. now its seems we were right..

[alphab]

Bravo,you were right all the way,

[fazalwahab11375]

I don't take any credit BUT I hope you guys agree that I was the first one bringing up this issue ..

[Undeadking0001]

Furthermore, valuation method provided vide Section 25 (8) of Customs Act 1969, could not be relied upon as well as the conversion cost from constituent materials and allied expenses, at country of export were not available.

A report submitted to National Assembly Standing Committee on Finance also notes that finally, import data under section 25 (5) & (6), prevailing market prices of the vehicles, information and international prices from the official websites (table below) of MG Middle East/Gulf, MG Nepal, MG UK and MG Australia have been examined thoroughly. All the information so gathered was analyzed for determination of Customs Value of the vehicles. Consequently, the Fall Back Method as provided under section 25(9) of the Customs Act, 1969 was considered the most appropriate method to arrive at assessable customs values of imported MG vehicles.

Does this literally mean that FBR has no info from SAIC and is literally guessing based on how much the car is priced internationally

[fazalwahab11375]

BUT MG was sent three notices from FBR to clarify but they never responded to it. OR SAIC is also involved by dumping the product???

" The sources said section 79 of the Customs Act, 1969 requires the importer to file Home Consumption Goods Declaration duly supported with commercial invoice/packing list, etc, however, during audit process, it surfaced out that no commercial invoice packing list was found accompanied by the vehicles inside the container"

[fazalwahab11375]

Now how these duties will be recovered is a good question. Maybe FBR might ask the existing owners of MG HS to pay the duty they are short ???. The other vehicles which are not yet delivered might go up in price ??? OR hopefully MG honor the price and don't let this happen. Or maybe MG do a public service and pay these recoverable duties from their own pocket. In any case the consumer who already got their vehicles MUST not be penalized.

Many things are not clear. Vehicle stuck due to any issues related to this matter obviously will leave port but after paying the actual duty as accessed by FBR. That's why I always said, there is NO clarity in MG local operations and we just witnessed it . Such events create mistrust & shatter consumer confidence. No matter how good the MG product is, such things and issues will not help them.

[fazalwahab11375]

I mention about the possible increased declared value on March 26.

[fazalwahab11375]

@capsat. @engineerjibran @AABBDDuullaahh @wasiqshahab94

Any thoughts on this new development?

[bmuqtadir]

last para of the article
"Informed sources told this scribe that the company is now paying difference of about $ 2000 from declared value of $ 11,632 and provisional value of $ 13,314 per unit under section 81 of the Customs Act."

The company will pay this amount and any other penatlies. The cars already sold are sold. customs is not going to recover any money from them.
Its not like the company wont have cash from all the advance bookings they have on which they havent delivered.

[bmuqtadir]

more surprisingly
"M/s JW SEZ (Pvt) Limited has been awarded Greenfield status whereas investment agreement that includes approved business plan has yet to be signed."

Kia amateur hour chal raha hai

[fazalwahab11375]

Thanks for clarifying this.

I think all those people with partial payment will get hit with the increased sticker price and I think that the premium will go up as well and the vehicles on sale at used generic car dealers might go up in price also which are already listed above 6.2 Million on average

[valkyr]

Accurate predictions sir @fazalwahab11375

[wasiqshahab94]

Waiting for javed afridi to play victim again. Let's see how FBR follows up with this.

[eemmads514352]

Last time he said he was bringing cheap cars.......i dont know how he came up with that theory when MG HS was more or less in the same price bracket as Sportage and Tucson.....

[engineerjibran]

This will directly increase price of vehicle upto 6 lacs at least. @fazalwahab11375 was right all along.

[engineerjibran]

and how will it affect the price of MG Zs and the possibility of bringing MG3 to pakistan. I dont think MG3 will be a viable option now.

[engineerjibran]

wow a lot of people are going to make a lot of money

[waqar747]

I think you shared their landed cost a while ago. Can you please share keeping in view the new value. Pls keep in mind only the duty will change technically, not their cost from SAIC.
It would be interesting to see how much it costs them now.