ISLAMABAD: Directorate General of Customs Valuation Karachi has revised customs values on the import of motorcycle parts including Roller Chain, Chain Kit, Sprocket Set and Chain Parts from China.
The directorate has issued a valuation ruling 2034 of 2026 here on Tuesday.
The directorate has determined customs values for Motorcycle - Roller Chain, Chain Kit (Chain with Sprocket Set) and Chain Parts for accurate assessment of duties and taxes.
According to the ruling, the Customs values of Motorcycle Parts - Roller Chain, Chain Kit (Chain with Sprocket Set) and Chain Parts were determined under Section 25A of the Customs Act, 1969 vide Valuation Ruling No. 1938/2024 and 1940/2024. Various stakeholders filed revision petitions before Director General under Section 25D of the Customs Act, 1969. The Director General vide Order-in-Revision and 20 of 2025 remanded back the matter of to the Director for fresh determination of customs values on the basis of constituent material. Accordingly, the Directorate initiated exercise for redetermination of values in accordance with law and rules.
The hearing notices to relevant stakeholders were issued and extensive discussion consultation was carried with stakeholders.
The ruling revealed that a meeting was conducted to deliberate in detail upon the issues relating to the valuation of the subject goods. During the meeting, the importers contended that the existing valuation ruling reflects values on the higher side when examined in the light of prevailing international prices. They asserted that their declared transaction values are genuine, competitive, and based on actual commercial invoices, and further submitted that the current market conditions do not support the continuation of the existing determined values.
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On the other hand, the representative of the local manufacturer, namely Service Industries, maintained that the customs values should be determined on the basis of a cost-based methodology. It was requested that the department may take into account the prices of constituent materials, manufacturing costs, labour charges, utilities, overhead expenses, and reasonable value addition for the determination of customs values of subject goods.
The valuation methods prescribed under Section 25 of the Customs Act, 1969 were applied in sequential manner in accordance with the law. Initially, the transaction value method under sub-section (1) was examined; however, it was found inapplicable due to significant variations in the declared values, which were not in conformity with prices reflected in relevant international publications. Moreover, the documentary evidence required under sub-section (2) was either incomplete or inconsistent, thereby rendering the declared transaction values unreliable. Subsequently, the valuation methods based on identical and similar goods, as provided under sub-sections (5) and (6), were considered. Although certain import data of finished goods was available, it could not be solely relied upon owing to variation in declared values and concerns of group under invoicing.
There after a market enquiry, as envisaged under sub-section (7) of Section 25 of the Customs Act, 1969, was conducted. However, the enquiry revealed price fluctuations attributable to variations in specifications and other related factors. Thereafter, the computed value method under sub-section (8) was also examined, including value addition as pointed out by the participants. In addition, international publication prices of constituent materials were gathered, analyzed, and taken into account. However, the manufacturing cost data of the exporting country was neither provided by the importers nor available from verifiable on line sources, restricting the application of this method. Finally, on the basis of a comprehensive evaluation of import data, market enquiry, findings and international price trends, the customs values of items mentioned have been determined. This methodology ensures that the valuation determination is fair, transparent, and fully compliant with statutory provisions, while accurately reflecting prevailing international market trends and established valuation principles.
Copyright Business Recorder, 2026
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