Customs Sets New Valuation Rules for 189 Types of Used Auto Parts Across Pakistan

The Directorate General of Customs Valuation in Karachi has released fresh customs valuation rules for 189 different types of old and used auto parts, including high-demand items like engines, gearboxes, AC compressors, dashboards, and many others. These updated values apply to imports from all countries, regardless of origin.

According to the ruling issued on Friday, the minimum customs valuation is now set at $600 per metric ton for the full consignment of these parts. This step comes after the auto parts industry raised concerns over outdated valuation methods and called for more accurate assessments.

To determine the new values, the Directorate carried out a deep review. They looked into three months of import data, checked current market prices, and gathered feedback from key stakeholders — including importers, local manufacturers, and associations like the Old & Used Auto Parts Importers Association and SAPSIDA (Sindh Auto Parts Scrap Importers & Dealers Association). One of the key points raised was that prices of used parts vary a lot depending on wear and tear, and globally, they're usually treated like scrap material.

Since the transaction value method (based on invoice/declared value) didn’t work due to lack of reliable info, the Directorate used market inquiry under Section 25(7) of the Customs Act, 1969 to finalize the valuations.

The goal of this new pricing is to make customs duty more transparent, fair, and enforceable, especially in a sector where price differences have caused confusion and tax mismatches for years.