Islamabad, July 20, 2025: The Directorate General of Customs Valuation Karachi has revised the customs values for imported gas and electric water heaters from China and the Middle East to ensure fair assessment of duties and taxes.
This development follows complaints from importers who argued that the previous valuation was based on lower capacity water heaters, whereas they were importing higher capacity models with different specifications. In response, the Director General of Customs Valuation, through an Order-in-Revision dated April 24, 2025, instructed a comprehensive review of the valuation process.
As part of the review, multiple stakeholder meetings were held where importers were invited along with their legal representatives. The importers submitted supply contracts but failed to provide detailed cost breakdowns or solid evidence supporting their declared prices. Consequently, their submitted values were not accepted as true transactional values under Section 25(1) of the Customs Act, 1969.
Due to discrepancies in pricing, capacity, and models, traditional methods—like comparing values of identical or similar goods—were also ruled out. The Customs Department raised concerns over group under-invoicing and inconsistencies in the commercial data, making it unreliable for accurate valuation.
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To ensure transparency and alignment with market trends, the department carried out market inquiries and referred to international price references available online. Based on this data, new customs values were established under Section 25(7) of the Customs Act, 1969.
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The updated ruling aims to standardize valuation and prevent misuse of import pricing mechanisms. Stakeholders have been advised to comply with the revised customs values to avoid any delays or penalties during the clearance process.
