The Directorate General of Customs Valuation Karachi has issued new customs values for the import of 189 types of old and used auto parts, including engines, gearboxes, AC compressors, dashboards, and various other parts.
The new valuation, outlined in a ruling issued on Friday, will be applicable to imports of these auto parts from all origins.
According to the ruling, the customs values for these auto parts will be assessed as per the determined value, with a minimum valuation of $600 per metric ton for the entire consignment.
This adjustment follows representations from stakeholders in the auto parts sector, who raised concerns regarding the redetermination of customs values for these items.
To arrive at the new values, the Directorate conducted an in-depth review, considering 90 days of import data, market trends, and input from key stakeholders such as importers, local manufacturers, and representatives from the Old & Used Auto Parts Importers Association and Sindh Auto Parts Scrap Importers & Dealers Association (SAPSIDA). The stakeholders emphasized that the prices of used auto parts fluctuate based on wear and tear, and the international market values them as scrap.
The Directorate conducted market inquiries and applied valuation methods specified under Section 25 of the Customs Act, 1969. While the transaction value method was deemed inapplicable due to insufficient information, the final valuation was determined through market inquiry under Section 25(7) of the Customs Act.
The new ruling aims to establish fair and consistent customs values for used auto parts, addressing the discrepancies in market prices and ensuring proper tax enforcement on these imports.