ISLAMABAD: The Directorate General of Customs Valuation, Karachi has revised customs values on the import of 22 different types of power tools from all origins.
The Directorate has issued a valuation ruling (2021 of 2025) on Wednesday.
The Directorate had issued Valuation Ruling No 1908/2024 dated 03.10.2024 for power tools which was subsequently challenged by the stakeholders before the Director General, Valuation, Karachi under Section 25-D of the Customs Act, 1969.
The Director General, Valuation vide Order-in-Revision 6412024 dated 03.12.2024 rescinded valuation ruling under Section 25-D of the Customs Act, 1969. The Director, Customs Valuation, Karachi, was directed to undertake a fresh exercise under Section 25A, ensuring proper stakeholder consultation and application of valuation methodologies in sequence.
Accordingly, in pursuance of analysis of import data, current market trends, the difference in market prices and customs values, an exercise for the re-determination of customs values of subject goods was initiated under Section 25 and 25A of the Customs Act, 1969.
During the meeting, M/s MA Tools proposed that, as per CGO 05/2022, the unit of measurement be “piece” and voltage/wattage be included as a classification criterion. Other importers recommended removing branding and categorisation of power tools except for “A” category Japanese brands. They noted that the previous VR was based on Category B (C: B x 0.6, A: B “ 3) and raised concerns over the non-disclosure of QY Research, stressing that if it is used, lower values from the same source should also be accepted. They added that over 600 items fall under this category and highlighted the possibility of concealment if assessed on a per-unit basis.
To determine the transaction values of the subject goods, the valuation methods prescribed under Section 25 of the Customs Act, 1969 were applied sequentially. The Transaction Value Method, as provided under subsection (l) of Section 25 was found inapplicable since the declared values did not align with prevailing market prices. Similarly, the methods based on the values of identical and similar goods under sub-sections (5) and (6) could not be exclusively relied upon due to the lack of evidence regarding the commercial level, quality, and quantity of the goods.
Consequently, the Deductive Value Method, as outlined in sub-section (7) of Section 25, was employed to determine the customs values. In accordance with the procedure specified in Office Order No 1712014 dated 19.03.2014, a market inquiry was conducted. However, it 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.
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 and rule l2l of Customs Rules, 2001.
In light of above, the customs values of power tools are determined and hereinafter specified shall be the customs value for assessment of duty/taxes given against therein, the FBR added.
Copyright Business Recorder, 2025
