ISLAMABAD: Recent media reports regarding alleged import fraud and under-invoicing of goods imported from China have prompted Pakistan Customs to clarify its efforts in addressing valuation-related concerns to ensure fair and transparent customs valuation.

According to Press Information Department, the Directorate General of Customs Valuation is prioritizing the concerns of local manufacturing industries, including textiles, steel, chemicals, and other sectors. This includes the ongoing issuance and revision of Valuation Rulings to maintain dynamic and sustainable customs values.

Discrepancies in trade data between Pakistan and China have been analyzed, revealing inherent limitations due to differences in data retrieval and reporting practices. For instance, a reported trade discrepancy of 32 percent in 2023 was reconciled to 0.54 percent. These discrepancies, known as mirror trade analysis, require proper reconciliation and verification, and cannot be solely used as evidence of under-invoicing. The Federal Board of Revenue has implemented corrective measures to enhance data reporting since July 2026.

The Directorate General of Customs Valuation in Karachi has issued Valuation Rulings under Section 25A of the Customs Act, 1969, after consulting with industry associations. These valuations consider international price publications and market trends. Efforts are ongoing to revise major Valuation Rulings, such as those concerning Polyester Filament Yarn, and to conduct new valuation exercises for other textile products.

To enhance transparency in bilateral trade, FBR is engaging with Chinese counterparts to extend the Electronic Data Exchange mechanism to the transaction level. Pakistan Customs remains dedicated to supporting local industries, ensuring accurate customs valuation, and facilitating legitimate trade through transparent procedures.