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The Federal Board of Revenue (FBR) has fixed new customs values on the import of motorcycle parts from China, aiming to bring duty assessment in line with prevailing international prices. The revised values cover roller chains, chain kits, sprocket sets, and related components, following concerns raised by both importers and local manufacturers.
The Directorate General of Customs Valuation Karachi issued Valuation Ruling No. 2034 of 2026, replacing earlier rulings from 2024 that stakeholders argued were no longer aligned with global market realities. Importers had challenged the previous values under Section 25D of the Customs Act, 1969, citing higher than market benchmarks and inconsistent price comparisons.
Acting on Orders in Revision issued in 2025, the Director General Customs directed a fresh valuation exercise based on constituent material analysis rather than flat benchmarks. This move reflects FBR’s broader effort to improve transparency, curb under-invoicing, and reduce disputes at ports.
During stakeholder consultations, importers maintained that their declared transaction values were backed by genuine commercial invoices and reflected competitive international pricing. In contrast, local manufacturers, including Service Industries, pushed for a cost-based valuation model, factoring in raw materials, production costs, labour, utilities, and reasonable profit margins.
Customs authorities sequentially applied valuation methods under Section 25 of the Customs Act. The transaction value, identical goods, similar goods, market enquiry, and computed value methods were all reviewed. However, inconsistent data, price variations, and lack of verified foreign manufacturing cost details limited their application.
After reviewing import trends, international material prices, and market conditions, the Directorate finalized revised customs values designed to balance revenue protection with fair trade practices.
The new valuation ruling is expected to directly impact motorcycle prices, spare parts availability, and import costs, particularly for assemblers and after-market suppliers reliant on Chinese components. Industry observers say clearer and more realistic customs values could reduce clearance delays and litigation while supporting smoother supply chains.
