LAHORE:
Pakistan Customs’ Directorate of Valuation Director General Syed Hamid Ali has assured businessmen that valuation processes would be conducted fairly and transparently to ensure that goods are valued at appropriate and justifiable rates. In this regard, the capacity of Lahore office will be expanded to better facilitate local traders.
He expressed these views in a meeting with Lahore Chamber of Commerce and Industry (LCCI) President Mian Abuzar Shad and other senior leaders at the chamber. While acknowledging concerns of the business community, the DG agreed with the proposal to address valuation matters within Lahore to eliminate the need for traders to travel to Karachi.
Sharing his views, the LCCI president stressed that an active and efficient role of the Directorate of Valuation could help in resolving numerous challenges, ultimately benefiting industries, businesses and the economy at large.
He pointed out that valuation-related meetings were traditionally held in Karachi, which caused inconvenience to traders from Lahore and other upcountry regions. If at least 10 valuation requests originated from Lahore, relevant meetings should be held in the city to save time and financial resources for the business community, he proposed.
Similarly, valuation review meetings should also be conducted in Lahore to provide relief to the traders belonging to upcountry regions.
He said at times the valuation of imported goods was set at retail prices, which was inherently higher than wholesale prices. An importer typically sells goods to wholesalers at minimal profit margins, while wholesalers then supply these products to retailers at higher profit margins. The retailers, in turn, determine their own pricing for the market.
Given that retail prices vary across different markets, according to Shad, using market prices as the basis for valuation is not a justified approach.
He elaborated that customs authorities often relied on market inquiries and import data to determine valuations using the Work Back Method. However, they must consider that bulk consignments are booked in containers, which naturally results in lower unit prices recorded in import documents.
Additionally, he proposed that the fundamental criteria for market inquiries should be formally notified so that importers could calculate the expected valuation in advance. “If input from importers is required, they should be notified at least 10 days in advance to ensure proper compliance.”
Speaking at the meeting, LCCI Senior Vice President Engineer Khalid Usman expressed concern that importers often faced immediate implementation of new valuation rulings, which could lead to significant financial losses. He recommended that there should be a one-month grace period before the enforcement of new valuation rulings, so that importers could adjust accordingly. Concluding the discussion, the LCCI president stressed the importance of continuous dialogue and constructive engagement between the business community and customs authorities. He underscored that regular meetings and open communication channels were vital for fostering a favourable trade environment and addressing valuation-related concerns effectively.
