Computer Monitors to Become More Expensive With New Customs Values

The Directorate General of Customs Valuation in Karachi has implemented new customs values for the import of old and used LCD/LED computer monitor panels to ensure accurate assessment of duties and taxes. A recent customs valuation ruling (1849 of 2024) disclosed that there is now a fixed customs value of US$ 0.70 per inch on these imported panels, marking a significant change from the previous zero customs value.

This development comes after recommendation from the Federal Tax Ombudsman (FTO), directing the Directorate of Customs Valuation, Karachi, to determine customs values for old and used LCD/LED Computer Monitors under section 25A of the Customs Act, 1969. The Directorate conducted a thorough exercise, involving meetings and scrutiny of 90 days’ clearance data. The analysis revealed a pattern of certain importers declaring values at US$12 per piece, with subsequent instances of under-invoicing.

Importers were requested to provide supporting documents for their declared values, but they failed to do so. Market inquiries were inconclusive as the subject goods were not readily available in the market due to their intermediary nature. The computed value method was explored but proved unfeasible due to the absence of conversion costs from constituent materials and associated expenses in the country of export.

Ultimately, the Customs values for the subject goods were determined under Section 25(9), read with Section 25(5), and Customs Rule 121(2) of Customs Rules, 2001. This ruling emphasizes the need for reasonable flexibility in applying valuation methods to align with the objectives and provisions of Section 25(9).

In essence, these changes seek to address discrepancies in the valuation of old and used LCD/LED computer monitor panels, aiming for a fair and accurate assessment of customs values for the purpose of duties and taxes.