Customs' value fixed on solar panels import
According to a valuation ruling (2012 of 2025) issued by the directorate on Monday, several representations were received by the Directorate of Customs Valuation, Karachi, emphasising the need for re-determination of customs values for the aforementioned goods, citing that their prices have changed and decreased in the international market.
Accordingly, the directorate undertook an exercise to re-determine the customs values of the said goods in line with prevailing international market trends.
Tax on imported solar panels: what does it mean for Pakistan's renewable energy future?
Analysis to determine Customs Values: An initial meeting was convened on 19.02.2025 following the receipt of a representation from the Pakistan Solar Association (PSA) dated 21.01.2025, wherein, a revision of the existing valuation ruling No 189412024 dated 04-07-2024 was requested. The representation cited a significant decline in international prices of solar panels, noting that the values prescribed in the prevailing valuation ruling were comparatively on the higher side.
It was also highlighted that several importers were facing difficulties with banks, as the declared transaction values were lower than the existing customs values, resulting in delays in clearance of goods due to banking compliance issues.
During the initial meeting, the majority of stakeholders/importers expressed unanimous support for the continuation of the tier-based categorisation of solar panels as prescribed in the previous valuation ruling.
Furthermore, they collectively emphasised that global market prices of solar panels had declined since the issuance of the last ruling in July, 2024. The stakeholders also requested that market verification be conducted from local distributors and ongoing solar exhibitions in Pakistan to corroborate prevailing prices.
It is pertinent to mention that several key importers could not participate in the initial meeting due to their attendance at an ongoing international annual exhibition in China, which spans approximately two months.
In the subsequent meeting, a majority of the attending stakeholders reiterated their stance on the downward trend of market prices, requesting a downward revision in customs values. In support of their position, relevant commercial invoices, Goods Declarations (GDs), and other documentary evidence reflecting the current transaction values of various Tier-based solar panels were submitted.
Additionally, clearance data for the preceding 90 days was retrieved and thoroughly scrutinised to facilitate an informed and fair re-determination of customs values.
Method(s) adopted to determine Customs values: Valuation methods specified in Section 25 of the Customs Act, 1969, were duly considered in sequential order to arrive at the customs values of subject goods.
The transaction value method as provided in sub-section (l) of Section 25 of the Customs Act, 1969, was found inapplicable due to absence of information as required under sub-section (2) of Section 25 of Customs Act, 1969.
The identical goods value method as provided in Section 2-5(5) was examined, some applicable values were found but that the same could not be solely relied upon due to absence of absolute demonstrable evidence of quantities and qualities.
Copyright Business Recorder, 2025
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