KARACHI: A series of valuation rulings issued by the Directorate of Customs Valuation has led to a marked increase in government revenue, curbing under-invoicing across key import categories. However, the momentum appears to be waning following the transfer of Director Valuation Tahir Qureshi and the absence of a regular incumbent in the post.
The impact of the rulings is evident in multiple sectors. Prior to the issuance of formal valuation guidance, assessment officers were processing lithium-ion battery imports with a standard 10% loading. This practice left significant room for undervaluation. Once a proper ruling was enforced, revenue collection surged, highlighting the scale of previous under-invoicing and the effectiveness of the Directorate’s intervention.
Data compiled from various valuation rulings (VRs) up to June 2025 paints a compelling picture. In one instance, the basic duty revenue on galvanized and non-galvanized high tensile iron mesh jumped from Rs. 30 to Rs. 262 per unit, yielding an additional Rs. 232 in revenue. Similarly, motorcycle parts such as roller chains and cam kits saw duty revenue rise from Rs. 45 to Rs. 201, adding Rs. 156 to the exchequer. Used ladies’ garments, caster wheels, and refrigeration gases also contributed significantly to the uplift in collections.
Further analysis of per-unit revenue adjustments reveals substantial gains. For example, cashew nuts previously valued at Rs. 591 per unit were reassessed at Rs. 368 after deductions, generating Rs. 552 million in revenue from 1.5 million units. Hexane imports, recalibrated from Rs. 561 to Rs. 158 per unit, yielded Rs. 553 million from 3.5 million units. Fresh dates and peanut butter also saw recalculated rates that translated into hundreds of millions in additional revenue.
The Directorate’s efforts extended to granular categories as well. Networking equipment, float glass, ceramic items, and spices were all subjected to revised valuations, with networking gear alone contributing Rs. 1,729.4 in additional revenue per unit. Even food items like canned goods and dry coconut were reassessed, resulting in more accurate duty collection.
In contrast, some valuation rulings addressed areas where values had decreased. A notable example is the repeated listing of gram seeds (Desi) under VR 2021/14-02-2023, where the value was consistently reduced by Rs. 283 across dozens of entries. While this reflects a downward adjustment, it also underscores the Directorate’s commitment to aligning valuations with market realities—whether upward or downward.
The credit for this sweeping reform is widely attributed to then Director Valuation Tahir Qureshi and Additional Director Ghulam Nabi Kamboh, whose team spearheaded the crackdown on under-invoicing. Their work not only plugged revenue leaks but also restored credibility to the customs valuation process.
However, since Qureshi’s transfer, the Directorate has been left without a regular head, raising concerns about continuity and oversight. Sources within the Federal Board of Revenue (FBR) suggest that the campaign against under-invoicing has lost steam, with fewer rulings being issued and enforcement efforts slowing down. Critics argue that the FBR’s apparent lack of urgency in appointing a new Director Valuation signals a broader disengagement from revenue optimization.