Karachi, January 1, 2024 – Pakistan Customs has officially released the customs value of exported goods for the tax year 2024, as outlined in the updated Customs Act of 1990.
The Federal Board of Revenue (FBR) has provided detailed explanations and provisions regarding the determination of customs value for exported goods.
According to the Customs Act for the tax year 2024, the customs value of any exported goods is defined as the value at the prescribed time, based on a sale in the open market for exportation to the country of destination. The determination takes into account several key provisions:
(a) Delivery on Board Conveyance:
• The goods are treated as having been delivered to the buyer on board the conveyance in which they are to be exported.
(b) Seller’s Responsibilities:
• The seller bears all packing, commission, transport, loading, and other costs, charges, and expenses incidental to the sale and the delivery of the goods on board the conveyance for export.
(c) Patented Inventions and Protected Designs:
• In the case of goods manufactured according to any patented invention or those with a protected design, the customs value considers the value of the right to use the design in respect of the goods.
(d) Trademarks and Trade Marks:
• For goods exported under a Pakistan trademark, the customs value is determined by taking into consideration the value of the right to use the patent, design, or trademark in respect of the goods.
The explanations provided in the Customs Act further clarify the conditions under which a sale in the open market is deemed independent. It presupposes that the customs value is the sole consideration, unaffected by any commercial, financial, or other relationships between the buyer and seller. The Act emphasizes that no part of the proceeds from any subsequent resale, disposal, or use of the goods should directly or indirectly accrue to the seller or any person associated in business with them.
Moreover, the term “prescribed time” is defined as the time when the goods declaration is delivered under section 131 or when the export of the goods is allowed without a goods declaration. In anticipation of the delivery of a goods declaration, the time when the export of the goods commences is considered the “prescribed time.”
This comprehensive framework aims to ensure transparency and fairness in determining the customs value of exported goods, aligning with international trade standards and practices. It provides clarity for businesses, exporters, and stakeholders involved in cross-border trade, allowing for a systematic and equitable valuation process.
As Pakistan continues to engage in global trade, the adherence to clear and standardized customs valuation procedures is essential for fostering trust and efficiency in international commerce. The updated Customs Act for the tax year 2024 reflects the commitment to maintaining a robust and fair customs valuation system in the country.
