Customs rejects under-invoicing claims

FBR moves to address valuation discrepancy due to data gap

ISLAMABAD:

Discrepancies in mirror trade data cannot, in isolation, be treated as conclusive evidence of under-invoicing and require proper reconciliation and verification, Pakistan Customs said on Tuesday, responding to media reports on alleged import fraud and under-invoicing of goods from China.

It said discrepancies in bilateral trade data reported by Pakistan and China to the International Trade Centre (ITC) had been extensively examined. Such comparisons involve data reported by China as exports to Pakistan and by Pakistan as imports from China, and have inherent limitations due to differences in data retrieval, compilation and reporting practices across institutions and countries. A reported discrepancy of 32% in 2023 was reduced to just 0.54% following reconciliation.

The Federal Board of Revenue (FBR) has also taken corrective measures to improve data reporting, in place since July 2026.

Pakistan Customs said the Directorate General of Customs Valuation accords priority to concerns of local manufacturing industries, including textiles, steel, chemicals, tyres, stationery, dyes, plastics, glass, light engineering goods and automotive vendors. Issuance and revision of valuation rulings is an ongoing process, with efforts to ensure dynamic, realistic and sustainable customs values.

The directorate in Karachi has determined fair customs values and issued valuation rulings under Section 25A of the Customs Act, 1969, covering various yarns and fabrics in consultation with industry associations and stakeholders. These are based on internationally recognised price publications, prevailing global market trends and other parameters. The major ruling on polyester filament yarn has been revised in line with international market trends.

Fresh valuation exercises are underway for existing rulings and additional textile products, including mink yarn, raw white core spun blended yarn, cotton yarn and billiard cloth, to be completed within the specified timeframe.