Islamabad, Feb 4: The Directorate General of Customs Valuation in Karachi has issued new customs values for the import of Lithium Ion Batteries, following concerns over significant under-invoicing by certain importers. The new customs values, which came into effect on Tuesday, will be applicable to Lithium Ion Batteries in categories IP-20, IP-21, and IP-65, for the assessment of duty and taxes. However, these revised values do not apply to batteries intended for mobile phones, laptops, tablets, and similar devices.
The revision follows multiple complaints from stakeholders about the under-invoicing of Lithium-ion batteries, prompting an investigation by the directorate. In response to these concerns, the Directorate launched a comprehensive review of import data, market trends, and discrepancies between market prices and customs values. The review, conducted under Sections 25 and 25A of the Customs Act, 1969, involved several meetings with relevant stakeholders who presented evidence of the undervaluation of these goods.
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The customs valuation exercise, which included the collection and analysis of 90 days of import data, revealed substantial differences between the declared values by importers and the actual market prices. During consultations, stakeholders provided documentation to substantiate their claims, reinforcing the need for a reassessment of customs values.
According to the Directorate, the decision to revise the customs values was made to align more closely with international market trends and ensure that importers are paying appropriate duties and taxes. The revised values are expected to curb the practice of under-invoicing and create a fairer environment for importers and the national economy.
This move is part of the ongoing efforts by the Directorate General of Customs Valuation to streamline customs processes and prevent evasion of duties through undervaluation, enhancing transparency and improving revenue collection for the government.
