FBR Revises Customs Value on Import of Gas/Electric Water Heaters

Directorate General Customs Valuation Karachi has fixed new customs values on the import of gas/electric water heater for assessment of duty and taxes from China and the Middle East.

According to a valuation ruling issued by the directorate on Friday, some stakeholders challenged the old Valuation Ruling on the grounds that they import Electric Water Heaters of higher capacities, whereas the existing assessed values appear to reflect the pricing of lower capacity models.

The  General of Customs Valuation, through its Order-in-Revision dated 24.04.2025, issued the Valuation Ruling with directions to duly address the concerns of the petitioners. The  General instructed that all relevant documents, including copies of contracts and other documentary evidence, be taken into consideration for a fair re-evaluation of the determined values.

In accordance with the directives issued by the  Director General, meetings were convened to re-evaluate the customs values of the subject goods. The meetings were attended by the relevant stakeholders along with their legal counsel.

During the proceedings, the stakeholders were specifically asked to submit their supply contract and provide all relevant documentary evidence to assist in the determination of values for the goods concerned, as outlined in the Order-in-Revision.

The stakeholders submitted a supply contract; however, the contract does not provide a detailed breakdown of the contract sum.

The valuation methods specified in section 25 of the Customs Act, 1969, were duly considered in sequential order to arrive at the customs values of the subject goods. The declared/transaction values, as laid down under sub-section (1) of Section 2,5 ibid, were found inapplicable, as the importers did not furnish any documentary evidence to establish that the declared values represented true transactional values.

Further, as mentioned, products with varying composition and, hence, with varying international and domestic prices are being cleared at more or less the same values. The methods based on the values of identical or similar goods were also examined for applicability. However, the import/clearance data reviewed could not be relied upon due to variations in declared values and the presence of multiple types, qualities, and quantities being imported and sold at a commercial level, compounded by concerns of group under-invoicing.

Consequently, the available information was deemed inappropriate for determining customs values.

Market enquiries were conducted, along with some references to international prices of the goods in question available online. Accordingly, the customs values of the subject goods have been determined under section 25(7) of the Customs Act, 1969, the directorate added.