The Directorate General of Customs Valuation Karachi has officially fixed new customs values for the import of 70 different types of mobile phone accessories. Consequently, the Directorate issued Valuation Ruling No. 2105 of 2026 on Tuesday, July 28.
Previously, authorities determined the customs values of these accessories under Section 25A of the Customs Act, 1969. They relied on Valuation Ruling No. 1887-1-2024 for this purpose. However, that ruling was over two years old. Furthermore, international market prices for these subject items have changed significantly. Therefore, the Directorate initiated a comprehensive exercise. They aimed to re-determine the customs values for the affected goods.
A Stakeholder-Driven Evaluation for New Customs Values
To ensure a transparent process, the Directorate held a meeting on the aforementioned date. Relevant stakeholders attended this session. Officials heard the participants’ viewpoints in detail. Additionally, they requested the stakeholders to submit documentary evidence. This evidence would substantiate their contentions.
For an accurate determination, authorities retrieved 90 days of import data. They thoroughly scrutinized this data in light of the stakeholder information. Subsequently, the Directorate conducted market inquiries. They carried these out under sub-section (7) of Section 25 of the Customs Act, 1969. Furthermore, officials examined the findings in accordance with Office Order No. 1712014, dated March 19, 2014.
Why Standard Valuation Methods Failed
During the assessment, the Directorate sequentially applied specific valuation methods from Section 25 of the Customs Act, 1969. However, several standard methods proved inapplicable.
First, officials tested the transaction value method under sub-section (1). They found it inapplicable due to the absence of required information under sub-section (2).
Accordingly, the Directorate considered the identical and similar valuation methods under Sections 25(5) and 25(6). Yet, authorities could not rely on these approaches. They lacked demonstrable evidence regarding quantities and qualities. Moreover, the Declared Values (DV) of similar goods showed consistent variations.
Next, officials conducted market inquiries under sub-section (7). However, they could not solely apply the deductive value method. The goods available in the local market comprised widely varying types and qualities.
Finally, authorities attempted the computed method under Section 25(8). They also found this method inapplicable because manufacturer prices were completely unavailable.
The Final Determination Framework
Consequently, the Directorate determined the new customs values under sub-section (9) of Section 25 of the Customs Act, 1969. They read this provision alongside sub-section (7) and Rule 121(2) of the Customs Rules, 2001. Ultimately, officials applied reasonable flexibility to the deductive value method. This pragmatic approach conforms perfectly with the aims and provisions of Section 25 of the Customs Act, 1969.
