Karachi, January 2, 2024 – Officers of the Federal Board of Revenue (FBR) have been granted enhanced authority to determine the customs value on the import or export of goods.
The FBR, in its pursuit of streamlined processes and increased efficiency, issued an updated Customs Act, 1969 for the tax year 2024, empowering officers under Section 25A to ascertain the customs value of goods.
Section 25A – Power to Determine the Customs Value:
The revised Section 25A outlines the expanded authority granted to the Director of Customs Valuation, allowing for the determination of customs values for goods imported into or exported out of Pakistan. The determination process is initiated either at the discretion of the Director or in response to a reference made by any person or an officer of Customs. This significant step is aimed at ensuring a fair and accurate valuation of goods crossing borders.
The key provisions of Section 25A are as follows:
1. Methods for Determination:
• The Director of Customs Valuation, in determining customs values, is required to follow the methods laid down in Section 25 of the Customs Act, 1969.
2. Consultation of International Prices:
• The Director, while determining customs values, has the authority to consult internationally acclaimed publications, periodicals, bulletins, or official websites of manufacturers or indenters of the relevant goods. This provision allows for a broader perspective on the valuation process.
3. Applicability of Determined Customs Value:
• The customs value determined by the Director under sub-section (1) becomes the applicable customs value for the assessment of the relevant imported or exported goods. If the value declared in a goods declaration or mentioned in the invoice is higher than the determined value, the higher value shall be considered the customs value.
4. Conflict Resolution:
• In case of any conflict in the customs value determined under sub-section (1), the Director General of Valuation is empowered to determine the applicable customs value, providing a mechanism for conflict resolution.
5. Stability and Revision:
• The customs value determined under sub-section (1) or sub-section (2A) remains applicable until and unless revised or rescinded by the competent authority.
This empowerment of FBR officers with the authority to determine customs values aligns with global best practices in customs valuation. It is designed to enhance the accuracy and fairness of the valuation process, contributing to a more efficient and transparent customs framework in Pakistan.
The revised Customs Act reflects the FBR’s commitment to continuous improvement in customs procedures and adherence to international standards. The streamlined determination process is expected to foster confidence among importers, exporters, and other stakeholders, ensuring a robust and predictable customs valuation system in the country. As the FBR continues to modernize its operations, these amendments mark a positive step towards a more responsive and effective customs regime in Pakistan.
