ISLAMABAD: The importers of weapons’ ammunition would now have to pay more duties and taxes at the import stage covering ammunition of various categories including cartridges from China and other countries from 2025.
According to a valuation ruling (1995 of 2025) issued on Saturday, the Directorate General of Customs Valuation Karachi has fixed new customs values on the import of ammunition from the said countries.
The minimum customs values of Ammunition of various categories and origins have been specified to assess duties and taxes at the import stage.
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The customs values have been fixed within the range of US$0.170 per piece and US$0.370 per piece of ammunition imported from China and all other origins. The new values would be applicable on the import of cartridges caliber 30 bore; cartridges caliber 9mm, and cartridges caliber .223 Rem.
Representations were received by the Stakeholders regarding the determination of customs values of subject goods with a contention that the values in the existing Valuation Ruling are on a higher side. In view of the aforesaid this Directorate initiated an exercise for the determination of customs values of Ammunition under Section25A of the Customs Act, 1969.
The meeting for the determination of customs values was held that was attended by the relevant stakeholders. Their view points were heard in detail in view for determination of customs values of subject goods under section 25A of the Customs Act, 1969. The stakeholders were requested to submit relevant import documents to substantiate their contentions.
Determination customs values of subject goods, ninety (90) days’ data was retrieved and the same was thoroughly scrutinized. Some references of declared values were available.
Subsequently, market inquiry was conducted and examined in the light of Directorate’s Office Order No.l712014 dated 19-03-2014 and in terms of Section 25 (7) read with section 25(9) of the Customs Act, 1969.
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 (l) 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 Customs Act, 1969. Therefore, identical goods value method provided in Section 25(5) was examined for applicability to determine Customs values of subject goods. The data provided some reference; however, it was found that the same could not be solely relied upon due to absence of absolute demonstrable evidences of quantities and qualities. Information available was, hence, found incomplete.
Subsequently, similar goods value method provided in Section 25(6) was examined for applicability to determine Customs value of subject goods. However, declared values of similar goods had shown 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 also conducted but could only yield results to some extent because of variations in market prices. In line with statutory sequential order of section 25, Computed value method, as provided in Section 25(8) of the Customs Act, 1969 was examined, but the same also could not be applied as the conversion cost from the constituent materials and allied expenses, in the country of export, were not available for manufacturing of Ammunition.
Finally, the Customs values of the subject goods have been determined under section 25(9), read with Section 25(7), of the Customs Act, 1969.
Copyright Business Recorder, 2025
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