The Federal Board of Revenue (FBR) has introduced a new customs valuation system for imported auto parts, replacing the long-standing weight-based assessment method with a model that values components according to a vehicle’s engine capacity and model.
The revised framework has been implemented through Customs Valuation Ruling No. 2092 of 2026, issued by the Directorate General of Customs Valuation, Karachi. It covers a broad range of imported automotive components, including water pumps, oil pumps, fuel pumps, in-tank fuel pumps, oil filters, fuel filters, and air filters.
The latest ruling replaces the previous valuation mechanism introduced in 2019, which had remained in effect for more than six years.
According to customs authorities, the revision was undertaken after industry stakeholders argued that imported auto parts are purchased, sold, and identified primarily based on a vehicle’s engine displacement rather than the weight of individual components. They maintained that the previous valuation method no longer reflected current market practices.
Before finalizing the updated system, the Directorate General of Customs Valuation consulted the Pakistan Automobile Spare Parts Importers and Dealers Association (PASPIDA), Indus Motor Company, and other importers. Authorities also analyzed import data, conducted market surveys, and reviewed prevailing international prices to establish the new customs values.
Under the revised framework, customs authorities have also created a separate valuation category for in-tank fuel pumps, citing their unique applications and pricing trends in the automotive market.
The FBR said the updated valuation mechanism is intended to promote fair, transparent, and uniform customs assessments while bringing customs values in line with prevailing market practices. The new system is also expected to reduce valuation disputes and improve consistency in the customs clearance process for imported auto parts.
