Karachi, February 21, 2025 – Pakistan Customs has announced revised valuation for imported multimedia projectors to ensure fair assessment of duties and taxes.
The decision, formalized through Valuation Ruling No. 1971, was issued under Section 25A of the Customs Act, 1969 and aims to curb misdeclaration while aligning customs values with current market trends.
According to Pakistan Customs, the revision follows an in-depth analysis of import data, fluctuating market prices, and concerns raised by importers regarding outdated valuation standards. The existing valuation ruling, in place for over eight years, had become obsolete due to rapid advancements in technology, leading to significantly lower market prices for multimedia projectors. Importers contended that the higher customs values had discouraged legal imports, resulting in an increase in under-invoicing and misdeclaration. They further argued that a fair revision would incentivize legitimate imports, ultimately boosting government revenue.
Methodology for Determining Customs Values
In line with Section 25 of the Customs Act, 1969, Pakistan Customs adopted a sequential approach to determine the revised customs values. The transaction value method, outlined in Section 25(1), was found unsuitable, as declared import prices did not match actual market rates. Similarly, the identical and similar goods valuation methods under Sections 25(5) and 25(6) were deemed insufficient due to a lack of verifiable commercial data.
To ensure accuracy, Pakistan Customs conducted a market survey as per Section 25(7), engaging with wholesalers and retailers to obtain real-time pricing information. Adjustments for profit margins and logistics costs were made, leading to a revised Cost and Freight (C&F) value for various models and sizes of multimedia projectors.
Implementation and Impact
The new valuation ruling applies to all imported multimedia projectors, ensuring a more transparent and equitable taxation system. Pakistan Customs clarified that if the declared invoice values exceed the newly established customs values, assessments will be conducted based on the higher values, as per Section 25(1) of the Customs Act, 1969.
The revised valuation is expected to improve compliance, reduce revenue losses from under-invoicing, and encourage legitimate trade in multimedia projectors. Pakistan Customs continues to monitor import trends and remains committed to updating valuation rulings in line with technological advancements and market realities.