KARACHI: The Directorate General of Customs Valuation has issued a new Valuation Ruling No. 59/2025, revising the customs values of Ferro Manganese, Ferro Silicon, and Silico Manganese under Section 25A of the Customs Act, 1969.
The revision comes as an update to the previous Valuation Ruling No. 715/2015, which was outdated due to fluctuating international market trends and freight charges.
The Customs Department initiated this review to ensure that the valuation of these imported goods aligns with prevailing global prices. However, despite scheduling a stakeholder meeting on February 13, 2025, no industry representatives participated or submitted relevant documents. As a result, the Customs authorities conducted independent market research, consulting internationally recognized sources to determine fair valuation.
Methodology for Customs Valuation
In accordance with the Customs Act, the department sequentially applied various valuation methods. The transaction value method, based on declared values, was found inapplicable due to discrepancies with market rates. Similarly, the comparable goods method under Sections 25(5) & (6) lacked sufficient evidence regarding quality and quantity. Ultimately, the Customs authorities employed a calculated approach under Section 25(8), factoring in London Metal Bulletin (LMB) prices for core materials like wire rods, along with conversion costs and freight expenses.
The new customs values are set as minimum benchmarks, meaning that if the declared or invoice values exceed these figures, assessments will be based on the higher values, as per Section 25(1) of the Customs Act.
Implementation of New Customs Values
Customs Collectorates across Pakistan have been directed to enforce these updated valuations, ensuring compliance at all ports and entry points. Furthermore, in cases of air-freighted consignments, an additional charge reflecting the difference between air and sea freight will be applied to assessments.
The Customs authorities have urged importers and trade bodies to adhere to the revised valuations and report any discrepancies to the Directorate. This move aims to enhance transparency and curb undervaluation practices in Pakistan’s import sector.
