ISLAMABAD: The Directorate General of Customs Valuation Karachi has revised customs values on import of ammunition of various categories for accurate assessment of duties and taxes from China and Turkey.
According to the valuation ruling issued by the directorate on Monday, the ammunition of various categories and origins hereinafter specified shall be assessed to duty / taxes at the minimum Customs values specified.
A representation was received from M/s Mehran Arms Company regarding the issuance of customs values for ammunition cartridges of caliber 5.56. Accordingly, this Directorate initiated an exercise for the determination of customs values of ammunition under Section 25A of the Customs Act, 1969.
A meeting for the determination of customs values was attended by M/s Mehran Arms Company and other relevant stakeholders. Their viewpoints were heard in detail for determination of customs values of the subject goods under section 25A of the Customs Act, 1969.
The stakeholders were requested to submit relevant import documents to substantiate their contentions. For the determination of customs values of subject goods, data for a period of ninety (90) days was retrieved and thoroughly scrutinized. Some references of declared values were available.
Subsequently, a market inquiry was conducted and examined in light of the directorate’s Office Order and in terms of Section 25(7) read with Section 25(9) of the Customs Act, 1969. 4. Method (s) adopted to determine Customs values: 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, the ruling added.
Copyright Business Recorder, 2026
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