The Directorate General of Customs Valuation in Karachi has revised the customs values for imported gas and electric water heaters from China and the Middle East, as reported in ProPakistani.
The Directorate General issued a valuation ruling through an Order-in-Revision dated April 24, 2025. The ruling aims to address concerns raised by importers and ensures a fair evaluation process. The DG instructed officials to review all relevant documents, including contracts and other supporting evidence, during reassessment.
Following these instructions, customs authorities held multiple meetings with stakeholders and their legal representatives. During the sessions, importers were asked to submit supply contracts and other relevant documentation to support the valuation process.
Although a contract was provided, it lacked a detailed cost breakdown, limiting its usefulness. Officials then followed the valuation methods outlined in Section 25 of the Customs Act, 1969. However, the declared transaction values under subsection (1) of Section 25 were found inapplicable. Importers failed to submit credible evidence proving that the declared prices reflected actual transaction values.
Customs also reviewed the prices of similar or identical goods. However, due to wide differences in product types, compositions, and inconsistent declarations, the data could not be relied upon. There were also concerns about under-invoicing and misdeclaration at the commercial level.
As a result, the available import data was considered insufficient for valuation. The department conducted local market surveys and referred to international pricing sources online. Based on this analysis, customs values were determined under Section 25(7) of the Customs Act, 1969.
