Karachi, February 28, 2025 – Pakistan Customs has issued a new valuation for China-origin suitcases to determine applicable duties and taxes.
The Directorate General of Customs Valuation has released Valuation Ruling No. 1974 of 2025, which sets customs values for imported suitcases, both soft and hard types, particularly low-end brands and unbranded varieties.
Background of the Valuation Review
The revision in customs valuation was prompted by an in-depth analysis of import data, fluctuations in market trends, and discrepancies between prevailing market prices and declared customs values. This initiative was undertaken under Sections 25 and 25A of the Customs Act, 1969, to ensure a fair and accurate valuation process.
Analysis of Customs Values
Importers contended that the previous valuation ruling was established at a time when freight charges were abnormally high due to COVID-19 and a shortage of shipping containers. They argued that the valuation ruling, being more than two years old, required reassessment in light of current freight costs and prevailing market prices. Responding to stakeholders’ concerns, Pakistan Customs retrieved and scrutinized import data from the last 90 days, supplemented by market inquiries conducted in line with Directorate Office Order No. 171/2024 dated March 19, 2024.
Methodology for Determining Customs Valuation
The customs valuation was determined by sequentially applying the methods outlined in Section 25 of the Customs Act, 1969. The transaction value method, as per subsection (1), was deemed inapplicable due to inconsistencies between declared values and prevailing market prices. Similarly, valuation based on identical and similar goods under subsections (5) and (6) was inconclusive due to the absence of concrete evidence regarding quality and commercial quantities. Consequently, a market survey was conducted under subsection (7) to establish a reliable valuation benchmark.
New Customs Values and Implementation
Based on the survey findings, the customs valuation of China-origin suitcases was determined and will be used as the benchmark for duty and tax assessment. In cases where declared or invoice values exceed the customs valuation, assessments will be made using the higher declared values as per Section 25(1) of the Customs Act, 1969.
Additionally, for consignments imported by air, the customs valuation will be adjusted to account for differences between air freight and sea freight charges. The revised valuation ruling will apply to the specific descriptions and specifications of goods mentioned in the official table, with HS Codes provided for reference.
The Collectorates of Customs have been directed to ensure strict implementation of the new valuation ruling. Any anomalies identified during the application process must be reported to the Directorate General of Customs Valuation immediately for necessary rectification.
This latest development highlights Pakistan Customs’ commitment to maintaining transparency in valuation processes and ensuring that duty assessments align with market realities. The revised customs valuation is expected to provide clarity for importers and prevent potential revenue losses due to undervaluation of imported goods.