The importation of old and used LCD/LED computer monitors is set to become more expensive following a recent decision by the Directorate General of Customs Valuation in Karachi. This move aims to ensure a more accurate calculation of duties and taxes on these items.
A recent directive, identified as ruling number 1849 of 2024, was issued this Wednesday, establishing that previously, there was no customs value on the import of old and used LCD/LED computer monitor panels. Now, a rate of US$ 0.70 per inch has been introduced for these imports, marking a significant change in valuation.
This development came after the Federal Tax Ombudsman (FTO) recommended that the Directorate of Customs Valuation, Karachi, determine the customs values for old and used LCD/LED Computer Monitors under section 25A of the Customs Act, 1969. Following this directive, the Directorate embarked on a detailed examination, which included reviewing 90 days of clearance data and holding meetings to scrutinize the data.
Analysis revealed discrepancies in the declared and assessed values of identical goods, with some importers declaring lower values and obtaining assessments for these. This under-invoicing by certain groups of importers prompted a more thorough investigation, though attempts to verify declared values through requested documentation from importers were unsuccessful.
Despite efforts to determine market value through inquiries and considering the computed value method, challenges such as the unavailability of these goods in the market and lack of data on manufacturing costs abroad hindered these approaches.
The final decision to set customs values under Section 25(9) and Customs Rule 121(2) of the Customs Rules, 2001, reflects an attempt to balance the valuation methods with the need for flexibility in their application. This change signifies a move towards more stringent measures in assessing the import value of old and used LCD/LED computer monitors, inevitably leading to higher costs for these items. Importers and consumers alike will need to adjust to this new pricing landscape as it unfolds.