Director General Syed Hamid Ali of the Directorate of Valuation of Pakistan Customs has assured the business community that valuation processes will be conducted with fairness and transparency to ensure accurate and justifiable assessments.
To enhance facilitation for local traders, the capacity of the Lahore office will be expanded, reducing reliance on Karachi for valuation matters.
During a meeting with Lahore Chamber of Commerce and Industry (LCCI) President Mian Abuzar Shad and other senior representatives, the DG acknowledged traders’ concerns regarding customs valuation. He supported the proposal to address valuation issues within Lahore, eliminating the need for frequent travel to Karachi, which has long been an inconvenience for upcountry traders.
LCCI President Mian Abuzar Shad highlighted that an active and efficient role of the Directorate of Customs Valuation could significantly ease business operations, benefiting industries and the overall economy. He proposed that if at least ten valuation requests originate from Lahore, customs authorities should conduct the meetings in the city to save both time and financial resources for local businesses. Similarly, valuation review meetings should also take place in Lahore to facilitate traders from upcountry regions.
A major concern raised during the discussion was the basis of customs valuation for imported goods. Shad noted that in some cases, valuation is determined at retail prices rather than wholesale rates, leading to inflated assessments. He explained that importers sell to wholesalers at minimal margins, whereas wholesalers and retailers apply their own markups. Since retail pricing varies across different markets, using market rates as a valuation benchmark is an unjust approach.
He further elaborated that customs authorities often rely on market surveys and import data to determine valuations through the Work Back Method. However, bulk shipments booked in containers naturally have lower per-unit costs, which should be reflected in customs assessments. To improve transparency, he suggested that the criteria for market-based inquiries be formally notified, allowing importers to calculate expected valuations in advance. Additionally, he urged customs authorities to provide at least ten days’ prior notice if importer input is required.
LCCI Senior Vice President Engineer Khalid Usman voiced concerns over the immediate enforcement of new valuation rulings, which often results in financial losses for importers. He recommended a one-month grace period before implementing revised customs valuation rules to allow traders to adjust.
Concluding the discussion, Shad emphasized the importance of continued engagement between customs authorities and the business community. Regular consultations and open communication channels, he noted, are essential for ensuring a favorable trade environment and addressing valuation-related concerns effectively.
