Islamabad, April 05: The Directorate General of Customs Valuation Karachi has issued new customs values for the import of 189 categories of old and used auto parts, including items such as engines, gearboxes, AC compressors, dashboards, and various other components.
The updated valuation was released through Valuation Ruling No. 1994 of 2025, issued on Friday.
Each item has been assigned a specific Pakistan Customs Tariff (PCT) heading for the purpose of assessing applicable duties and taxes.
These revised customs values will apply to imports originating from all countries.
Additionally, the directorate has specified that the overall value of any consignment of old and used auto parts cannot be assessed below a minimum threshold of USD 600 per metric ton.
According to the ruling, the Directorate had received multiple representations requesting a reassessment of customs values for used auto parts.
In response, a comprehensive review was undertaken, factoring in recent import data, current market prices, disparities in pricing, and overall valuation trends. This valuation exercise was conducted under Section 25A of the Customs Act, 1969.
Meetings were held with key stakeholders, including importers, domestic manufacturers, and representatives from the Old & Used Auto Parts Importers Association and the Sindh Auto Parts Scrap Importers & Dealers Association (SAPSIDA).
Stakeholders highlighted that the pricing of old and used parts largely depends on their condition, wear and tear, and their usability in the local market.
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They also pointed out that these goods are generally purchased as scrap in the international market, and an increase in customs values could discourage legal imports and potentially reduce government revenue.
To support the valuation process, the Directorate reviewed 90 days of import data and cross-checked it with available declared values.
Market inquiries were then conducted and examined in line with relevant office orders and the provisions of Sections 25(7) and 25(9) of the Customs Act, 1969.
While the valuation process initially attempted to use the transaction value method under Section 25(1), this approach was deemed inapplicable due to lack of necessary supporting information.
Other methods, including the identical and similar goods value methods under Sections 25(5) and 25(6), were also evaluated but could not be fully relied upon due to inconsistent declarations, lack of complete specifications, and variations in quality and quantity.
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Ultimately, the Directorate proceeded with the market inquiry approach as outlined in Section 25(7), based on which the new customs values were determined.
The ruling formalizes these values and ensures a standardized assessment mechanism moving forward.
