KARACHI: The Federal Board of Revenue (FBR) has revised the customs values of imported tyres and tubes for passenger vehicles, a move expected to affect import duties and overall pricing in Pakistan’s automotive sector.
The revision has been issued through Valuation Ruling No. 2086/2026 by the Directorate General of Customs Valuation in Karachi, replacing the earlier Valuation Ruling No. 1958/2025. The updated framework introduces revised customs values for a wide range of tyre sizes and origins, including imports from Japan, China, Vietnam, Thailand, ASEAN countries, and other global suppliers.
Revision Follows Regulatory Review Process
According to the FBR, the previous valuation was challenged before the Director General Customs Valuation, prompting a remand for fresh determination under Section 25A of the Customs Act, 1969.
The authority was directed to reassess pricing based on tyre origin, international market trends, and recent import data. The review also included consultations with importers, dealers, and local manufacturers to establish a balanced valuation framework aligned with market realities.
Stakeholders Present Diverging Positions
During consultations, the Pakistan Tyre Importers and Dealers Association argued that the previous customs values were above prevailing global market rates. The association called for downward revisions, particularly for tyres imported from Thailand and Vietnam, citing declining international prices.
In contrast, local manufacturer Service Long March Tyres (Pvt.) Ltd. opposed any reduction in customs values, stating that existing benchmarks were necessary to protect domestic industry and maintain fair competition with imported products.
Market Data and International Benchmarking
As part of the valuation exercise, authorities analysed import data from the past 90 days, assessed transaction values, and conducted market surveys across wholesale and retail channels. International price comparisons and feedback from global manufacturers were also incorporated into the review.
Officials said the process was conducted under relevant provisions of the Customs Act to ensure transparency, consistency, and alignment with international pricing trends.
Over 110 Tyre Categories Revised
Under the new ruling, customs values have been assigned to more than 110 tyre sizes used in passenger cars. The valuation differs by country of origin, with Japanese tyres generally assigned higher customs values, while Chinese-origin tyres are assessed at comparatively lower benchmarks.
The FBR has instructed customs authorities across Pakistan to immediately implement the revised values for the assessment of duties and taxes on imported passenger car tyres and tubes.
Impact on Market Expected
The revision is expected to influence import costs, retail pricing, and overall market dynamics within Pakistan’s tyre industry, which relies heavily on imported raw materials and finished products.
Market participants say the updated valuation could lead to short-term price adjustments as importers adapt to the revised duty structure, while longer-term effects will depend on global tyre price trends and domestic demand conditions.
