The Federal Board of Revenue (FBR) will take up the issue of discriminatory customs valuation of European cars vis-à-vis cars of Asian origin, resulting in different assessments of customs duties on imported vehicles form these origins. Sources told Business Recorder here on Wednesday that the Directorate General of Customs Valuation Karachi has the mandate to issue customs valuation rulings for accurate assessment of taxes on imported goods. The issue of discriminatory customs valuation of European cars vis-à-vis cars of Asian origin has been brought to the notice of the FBR.
According to sources, the customs valuation issue is being faced in the case of European car producers which do not have a sale representative company in Pakistan, eg Porsche and the valuation of imported cars is being done on the basis of car price quoted by the manufacturer ex-factory. This resulted in different rates of customs duties on the import of cars from Europe and Asia.
A meeting is expected to be held among FBR, Ministry of Commerce and the European side to allay any reservations of discriminatory customs valuation of European cars in coming days, sources added. Directorate General of Customs Valuation Karachi determines the custom values of the imported vehicles under section 25A of the Custom Act 1969, taking into account prices prevailing in the international market.