Customs Revises Ammunition Import Values from China & Turkey

The Directorate General of Customs Valuation, Karachi, has issued a revised determination of customs values for various categories of ammunition imported from China and Turkey, with the objective of ensuring uniform, accurate, and transparent assessment of applicable customs duties and taxes.

The revision was prompted by a formal request from M/s Mehran Arms Company seeking re-determination of customs values specifically for 5.56 caliber ammunition cartridges. In response, the Directorate initiated a comprehensive review under Section 25A of the Customs Act, 1969, to establish appropriate assessable values for the imported goods.

A consultative meeting was convened with relevant stakeholders, including M/s Mehran Arms Company, during which participants were directed to furnish supporting import documentation, invoices, and related records. Following examination of import data covering the preceding 90 days and a detailed market inquiry, the Directorate evaluated the applicability of sequential valuation methods prescribed under the Customs Act.

The transaction value method (Section 25(1)), identical goods method (Section 25(5)), and similar goods method (Section 25(6)) were considered; however, due to material gaps in verifiable information, inconsistencies in reported market prices, and insufficient comparable data, none of these methods could be reliably applied.

Consequently, the final customs values have been determined under the fallback method provided in Section 25(9) of the Customs Act, 1969, relying on the best available market intelligence, reasonable adjustments, and principles of equity and consistency. The ruling underscores the statutory imperative of maintaining accurate and uniform customs valuation practices to safeguard revenue collection, prevent under-valuation or over-valuation, and ensure fair treatment of importers while upholding compliance with international trade valuation standards.