Views:0 Author:Site Editor Publish Time: 2018-01-24 Origin:Site
Demand for imported teak logs remains steady but not firm enough for wholesalers to achieve a price increase. Difficulties with the minimum prices set by Customs continue and efforts are on-going with the Ministry of Finance to have this resolved.
Analysts write that since the GST was introduced Customs have been charging the GST based on their own minimum price for logs bu, says the trade,t this is not always appropriate.
For example, when an importer purchases low grade material such as thinnings or logs with a thick bark or wide sapwood the price will be lower than average but Customs is rejecting the price quoted on the import documents.
Cases have arisen where the purchase price for low grade logs was around US$290 per cubic metre but Customs applied a price of US$490 per cubic metre, their minimum price, and used this to determine the GST to be paid.
Efforts are on to resolve this problem but Customs officers are not expert on quality specifications and are reluctant to take the initiative to change. The trade has therefore to seek redress from Ministry of Finance.