ISLAMABAD: The Directorate General of Customs Valuation, Karachi, has fixed new customs values for a large number of auto replacement parts and engine parts, including piston/ring sets from Japan, Europe, China, USA, Malaysia/Thailand, Indonesia, Korea, Taiwan, and other origins.
In this regard, the directorate has issued a new ruling here on Monday.
According to the ruling, representations were received from stakeholders for the determination of customs values of the subject goods in view of prevailing market conditions.
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Furthermore, Valuation Ruling No.144612020 dated 12.05.2020, being more than five years old, warranted review. Accordingly, the Directorate initiated an exercise for the determination of customs values of the items covered therein under section 25A of the Customs Act, 1969.
A meeting with relevant stakeholders was held at the Directorate for the determination of customs values of the subject goods. Representatives of Pakistan Automobile Spare Parts Importers & Dealers Association (PASPIDA), along with other stakeholders, participated in the proceedings and shared their views regarding prevailing market conditions and valuation structure. The representative of Indus Motor Company (lMC), being an OEM assembler/manufacturer, also attended the meeting and presented views regarding engine capacity-based segmentation.
The submissions and documents provided during the meeting were duly considered in the valuation exercise.
The matter for the determination of customs values of Auto Replacement Parts - Engine Parts has been examined. Engine parts differ in value depending upon engine capacity, vehicle category, origin, quality, and applicability across a wide range of vehicle models, including older models in active use; therefore, valid comparison is possible among goods of similar specifications and commercial level. The subject goods are mainly used in the replacement market, which covers a wide range of vehicles in Pakistan.
It was observed that a significant portion of the vehicle fleet comprises older models, which continue to operate extensively and require more frequent replacement of engine components, thereby influencing demand patterns and pricing of the subject goods.
It was also noted during the discussion that certain items, such as piston sets, ring sets, and similar components, are sold in the market in sets with reference to specific engine or vehicle configurations rather than individual cylinder units, which was taken into consideration while structuring the values. Analysis of import data of the subject goods was also carried out, which indicated variation in declared values across different consignments, origins, and specifications, and did not provide a sufficient and reliable basis for consistent determination of customs values under the identical or similar goods methods. The earlier valuation structure included broad engine capacity groupings that covered goods with different price levels.
It was observed that such grouping encompassed a wide range of engine capacities, resulting in variation within the same category. To address this, engine capacity segmentation has been refined to better align with prevailing market price ranges.
Market surveys were also conducted and considered, which reflect prevailing prices of the subject goods in the local market and indicate variation in price levels across different engine capacity segments. Accordingly, customs values have been structured based on prevailing market conditions, import data analysis, and refined engine capacity segmentation to ensure fair, consistent, and uniform assessment, the directorate added.
Copyright Business Recorder, 2026
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