ISLAMABAD: Directorate General of Customs Valuation Karachi has fixed new customs values on the import of 189 types of old and used auto parts including engines, gear boxes, AC compressors/dash boards and wide range of other auto parts.
In this regard, the directorate has issued a valuation ruling number (1994 of 2025) here on Friday with Pakistan Customs Tariff (PCT) heading of each old and used auto part for assessment of duties and taxes.
The new customs values would be applicable on the import of old and used auto parts from all origins.
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The directorate has further clarified that the items shall be assessed as per the determined value; however, the total value of the consignment of old and used auto parts shall not be assessed below US$ 600 per metric ton.
According to the ruling, representations were received in this Directorate regarding the redetermination of customs values for Old and Used Auto Parts. Therefore, keeping in view the import data, current market trends, difference in market price and customs values, an exercise was initiated for determination of customs values of old and used auto parts under section 25A of the Customs Act 1969.
Meeting for the determination of customs values were held that were attended by the relevant stakeholders i.e. the importers, the local manufacturers along with the representatives of Old & Used Auto Parts Importers Association, Sindh Auto Parts Scrap Importers & Dealers Association (SAPSIDA).
The stakeholders argued that the prices of old and used auto parts depend upon wear and tear.
The prices of the used goods of the same make and age vary in local market due to their efficiency of being used again.
Moreover, they stressed that used auto parts are bought on scrap values in international market. As such, any increase in the customs values thereof shall curtail legal trade and the volume of government revenue there from.
For this purpose, 90 days’ data of import was also retrieved and the same was scrutinized. Some references of the declared values were available. Subsequently, market inquiry was conducted and examined in the light of this Directorate’s Office Order and in terms of Section 25(7) read with Section25(9) of the Customs Act, 1969.
The valuation methods specified in Section 25 of the Customs Act, 1969, were duly applied in sequential order to arrive at the Customs values of subject goods.
The transaction value method as provided in sub-section (1) of section 25 of the Customs Act, 1969, was found inapplicable due to absence of information as required under sub section (2) of Section 25 of the Customs Act 1969. Therefore, identical/similar goods value methods provided in Sections 25(5) was examined for applicability to determine customs values of subject goods.
However, it was found that the same could not be solely relied upon due to absence of absolute demonstrable evidence of quantities and qualities, variation in declaration and specifications. Information available was, hence, found incomplete.
Subsequently, similar goods value method provided in Section 25(6) was also examined for applicability to determine Customs values of subject goods and was not considered (for application) due to afore stated reasons. Moreover, Declared Values (DV) of similar goods showed consistent variations.
Hence, this method was also found inapplicable. Market enquiry as envisaged under Sub section (7) of Section 25 of the Customs Act, 1969 was conducted. Finally, the Customs values of the subject goods have been determined under section 25(7) of the Customs Act 1969, the ruling added.
Copyright Business Recorder, 2025
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