The Directorate General of Customs Valuation Karachi has revised customs values for the import of over 100 different types of tires and tubes for passenger cars from Japan and China. The new valuation ruling, 1820 of 2023, comes after an analysis that revealed a decrease in the total import value of tires and tubes in Pakistan from Rs. 11 billion to Rs. 3 billion between 2020-21 and 2022-23. In contrast, the total import value of tires and tubes under transit trade from Afghanistan increased from Rs. 2 billion to Rs. 18 billion during the same period.
Previously, the customs values for various types and sizes of tires and tubes, including those for passenger cars, were determined under Section 25A of the Customs Act, 1969, through Valuation Ruling No. 1700/2022. However, stakeholders requested a fresh determination of customs values in line with international market values.
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An extensive exercise was undertaken, which included consultation with stakeholders, including the Pakistan Tyre Importers and Dealers Association (PTIDA). PTIDA submitted their proposed prices based on the downward trend of prices in the international market. Data from the past three financial years and import data for Afghan Transit Trade was analyzed. The inclusion of Vietnam origin in the valuation ruling was also considered.
As a result of the exercise, new customs values for various sizes of tires and tubes were determined. These values are now to be assessed for duty and taxes based on the attached list (Annexure-A) that forms an integral part of the Valuation Ruling. The ruling also includes conditions for assessing values for radial tires, tires with different ply ratings, and discounts for tires and tubes imported through land routes. For tires and tubes with specifications not covered in the valuation ruling, the Collectorates have the discretion to assess them under Section 25A of the Customs Act, 1969, or refer the case to the Directorate General for further guidance.
