Karachi’s Directorate General of Customs Valuation has revised the customs values applied to medical equipment and supplies imported from China, ending an eight-year stretch without changes. The updated rates were formally issued on Thursday through Valuation Ruling 2020 of 2025.
Why the Revision Matters
The last such ruling, issued back in 2017 (Ruling No. 1202), had become outdated as market dynamics shifted significantly over time. Importers often flagged discrepancies between declared customs values and real market prices, creating room for disputes and uncertainty in the sector.
Recognizing this gap, the directorate launched a re-evaluation exercise. The process involved analyzing import data, tracking current price trends, and comparing existing customs values with actual market rates.
Stakeholder Input in the Process
Officials held multiple meetings with importers and industry representatives, during which stakeholders submitted pricing evidence, sample products, and suggested values. These inputs were documented and reviewed before the final determination.
Legal Basis for the Update
The revised customs values have been set under Section 25(9) of the Customs Act, 1969, alongside the relevant Customs Rules of 2001. These provisions allow authorities to use flexible valuation methods to better reflect market realities while ensuring compliance with the law.
Broader Implications
For importers, the update is expected to reduce pricing disputes and streamline the clearance of medical items at ports. For the government, it provides a way to align customs collections with actual trade values, potentially boosting revenue while curbing under-invoicing practices.
This revision, though administrative in nature, signals a broader effort by the Federal Board of Revenue (FBR) to modernize outdated valuation frameworks that directly impact Pakistan’s trade sectors.
