KARACHI: Directorate General of Customs Valuation, Government of Pakistan, has issued a new Valuation Ruling No. 1986/2025, revising the customs values for manicure and pedicure sets under Section 25A of the Customs Act, 1969.
This move comes after an extensive analysis of international and local market trends, replacing the previously enforced Valuation Ruling No. 896/2016, which had been in place for over seven years.
Background and Rationale
The decision to revise the customs valuation was prompted by the significant time lapse since the last revision, rendering the old valuation outdated in the face of changing global and domestic economic conditions. In line with the standard procedural requirements, the Directorate scheduled meetings with relevant stakeholders on February 18, 2025 to discuss the potential adjustments. However, no stakeholders attended these consultations, leading the authorities to conduct independent research into the current market dynamics.
Evaluation Process
To establish the revised customs values, officials systematically applied various valuation methods outlined in Section 25 of the Customs Act, 1969. The transaction value method under sub-section (1) was deemed inapplicable as declared values failed to align with market realities. Similarly, reliance on identical and similar goods under sub-sections (5) and (6) was limited due to insufficient demonstrable evidence.
A comprehensive market inquiry was subsequently conducted under sub-section (7) of Section 25, as per Office Order No. 17/2014 dated March 19, 2014. This involved visits to multiple wholesale and retail markets to gather price data, ensuring that the new customs values reflect actual trade conditions.
Revised Customs Valuation
The newly established customs values for manicure and pedicure sets are as follows:
Description PCT Code Origin Customs Value (C&F)
Manicure/Pedicure Set 8214.2000.1000 China USD 11.40/kg
Manicure/Pedicure Set 8214.2000.1100 Other Origin USD 14.25/kg
These values are to be treated as minimum benchmark values for assessment. However, if the declared or invoice-retrieved values are higher than the customs values determined in this ruling, assessments will be conducted at the higher declared values under sub-section (1) of Section 25.
Implementation and Compliance
Customs authorities across various Collectorates in Karachi, Lahore, Islamabad, Quetta, and Peshawar, among others, have been instructed to enforce the revised valuation ruling. Additionally, any anomalies or discrepancies arising in its implementation are to be reported to the Directorate immediately.
For consignments imported via air transport, the authorities will factor in the difference between air and sea freight charges when assessing the value of imported goods.
Conclusion
This updated valuation ruling is expected to enhance transparency and uniformity in the importation of manicure and pedicure sets. The move aligns customs valuations with current market trends, ensuring fair trade practices while preventing under-invoicing and revenue losses. Importers and traders dealing in these products are advised to adhere to the revised valuation structure to avoid any customs-related complications
