KARACHI – The Collectorate of Customs (Appeals) in Karachi has ruled in favor of M/s Hoora Pharma (Pvt) Ltd, directing the reassessment of a consignment of surgical goods under a duty-free tariff heading, in a significant order issued on January 1, 2026.
The appeal, heard by Collector of Customs (Appeals) Asdaq Afzal Sensera, centered on the proper classification of imported endoscopic surgical instruments, including bladeless trocars, circular staplers, and linear cutters. The appellant, Hoora Pharma, argued that these disposable, single-use items should be classified under Pakistan Customs Tariff (PCT) Heading 9938, which grants exemption from customs duty, sales tax, and income tax for certain non-locally manufactured surgical disposables.
The dispute arose after the Collectorate of Customs at Jinnah International Airport (JIAP) declined to clear the goods under the beneficial PCT 9938 in an assessment note dated October 11, 2025. The appellant contended that this was a departure from past practice, as similar imports had consistently been cleared under the same heading for years.
In its defense, the respondent authority argued that PCT 9938’s benefit for disposables was exclusive to specific listed surgical fields—such as Cardiology, Endosurgery, and Oncology—and questioned whether the imported goods were genuinely for one-time use and exclusively for those procedures.
After reviewing evidence presented over three hearings, Collector Sensera found that the manufacturer’s literature clearly specified the goods as “for single use only” and listed medical procedures like esophagostomy, colectomy, and gastric bypass—interventions related to oncology and endosurgery. The Collector concluded that the goods were both disposable and intended for use in the medical fields listed under PCT 9938.
“The impugned goods are disposable and indicated for possible use in the listed medical surgeries within the intent of PCT 9938,” stated the order, directing the reassessment of the goods under the beneficial heading.
The Collector also noted that no show-cause notice was issued prior to the disputed assessment note, a point highlighted by the appellant.
The ruling orders the release of the goods under GD No. KPAF-HC-9276, dated August 11, 2025, under PCT 9938, and grants a delayed detention certificate from the date of filing until clearance.
This decision is seen as a significant clarification on the scope of PCT 9938, reinforcing the eligibility of specialized disposable surgical instruments for tax exemption when used in specified medical fields. Copies of the order have been sent to the Federal Board of Revenue and the JIAP Customs Collectorate for compliance.