The Directorate General of Customs Valuation Karachi has fixed new customs values for the import of motorcycle parts from China, including roller chains, chain kits, sprocket sets and chain parts.
In this regard, the directorate issued Valuation Ruling No. 2034 of 2026 on Tuesday. The ruling determines customs values for motorcycle roller chains, chain kits (chain with sprocket set) and chain parts for the assessment of duties and taxes.
According to the ruling, customs values for these items were earlier determined under Valuation Ruling Nos. 1938/2024 and 1940/2024 under Section 25A of the Customs Act, 1969. However, various stakeholders filed revision petitions under Section 25D of the Act.
Following this, the Director General, through Orders-in-Revision No. 19 and 20 of 2025, remanded the matter back to the Directorate for fresh determination of values based on constituent materials.
As a result, the Directorate initiated a fresh valuation exercise in accordance with the law. Hearing notices were issued to relevant stakeholders, and extensive consultations were held.
During the meetings, importers argued that the existing customs values were higher than prevailing international prices. They maintained that their declared transaction values were genuine, competitive and supported by actual commercial invoices, adding that current market conditions did not justify continuation of earlier values.
On the other hand, representatives of local manufacturers, including Service Industries, argued that customs values should be determined using a cost-based methodology. They requested that constituent material prices, manufacturing costs, labour charges, utilities, overheads and reasonable value addition be considered while fixing values.
The valuation methods prescribed under Section 25 of the Customs Act, 1969 were applied sequentially. The transaction value method under Section 25(1) was first examined but was found inapplicable due to wide variations in declared values and inconsistencies with international price references. In addition, required documentary evidence was incomplete or inconsistent.
The methods for identical and similar goods under Sections 25(5) and 25(6) were also reviewed. However, available import data could not be fully relied upon due to variations in declared values and concerns of possible under-invoicing.
A market enquiry under Section 25(7) was then conducted, but price fluctuations due to differences in specifications limited its application.
The computed value method under Section 25(8) was also examined, including value addition, and international prices of constituent materials were analysed. However, verified manufacturing cost data from the exporting country was not available.
Based on a comprehensive review of import data, market enquiries, stakeholder input and international price trends, the Directorate has finalized the new customs values. The ruling aims to ensure a fair, transparent and legally compliant valuation that reflects prevailing international market conditions.
