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Directorate General of Customs Valuation Karachi Cracks Down on Under-Invoicing of Submersible Motors Imports

In a bid to curb under-invoicing practices, the Directorate General of Customs Valuation Karachi has implemented stringent measures targeting the import of “Submersible Motors” from China, Europe, and other regions. This initiative comes alongside the issuance of a new valuation ruling, numbered 1869 of 2024, aimed at establishing accurate customs values for various types of “Submersible Motors” made of Stainless Steel and Cast Iron.

Directorate General of Customs Valuation Karachi Cracks Down on Under-Invoicing of Submersible Motors Imports

The decision to issue the new valuation ruling stems from concerns raised regarding under-invoicing practices prevalent in the importation of “Submersible Motors.” Notably, the previous valuation ruling dated back to 2016, prompting calls for a comprehensive reassessment due to the evolving market dynamics and instances of under-invoicing.

A pivotal aspect of the new ruling involves incorporating a per Kg criterion to mitigate under-invoicing loopholes exploited by importers. This move follows a recent incident where an importer attempted to evade duties and taxes by misdeclaring specifications and applying forged labels to imported goods, as highlighted in a submitted copy of the FIR by the representative of the Collectorate of Customs (Appraisement) Karachi.

The valuation process, guided by the provisions outlined in Section 25 of the Customs Act, involved a meticulous examination of various methods to determine the customs values of the subject goods. While the transaction value method proved inapplicable, attempts to apply the identical goods value method and the similar goods value method were hindered by incomplete data and inconsistent declared values.

Despite challenges encountered during the market inquiry, the Directorate remains steadfast in its commitment to ensure fair and accurate valuation practices. This latest initiative underscores the Directorate’s proactive stance in safeguarding against under-invoicing tactics, thereby bolstering transparency and integrity within the importation process.

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The implementation of the new valuation ruling signifies a significant step forward in fortifying customs valuation procedures and upholding compliance standards in the importation of “Submersible Motors.” Moving forward, stakeholders are encouraged to adhere to the revised customs values to foster a level playing field and uphold the principles of fiscal responsibility and transparency.

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