Certain media reports regarding alleged import fraud and under-invoicing of goods imported from China have raised concerns about discrepancies in bilateral trade data and the valuation of imported goods. In this regard, it is clarified that Pakistan Customs is actively addressing valuation-related concerns and taking measures to ensure fair and transparent customs valuation.
The Directorate General of Customs Valuation accords priority to the concerns of local manufacturing industries, including textiles, steel, chemicals, tyres, stationery, dyes, plastics, glass, light engineering goods and automotive vendors. The issuance and revision of Valuation Rulings is an ongoing process, with consistent efforts being made to ensure dynamic, realistic and sustainable customs values.
Discrepancies in bilateral trade data reported by Pakistan and China to the International Trade Centre (ITC) have been extensively examined. Such comparisons, commonly referred to as mirror trade analysis, involve data reported by China as exports to Pakistan and by Pakistan as imports from China. These figures have inherent limitations due to differences in data retrieval, compilation and reporting practices across institutions and countries. For instance, the reported trade discrepancy of 32 percent in 2023 was reduced to just 0.54 percent following reconciliation.
Accordingly, discrepancies in mirror trade data cannot, in isolation, be treated as conclusive evidence of under-invoicing. Such differences require proper reconciliation and verification of the relevant datasets. The Federal Board of Revenue (FBR) has also taken corrective measures to improve data reporting, which have been in place since July 2026.
The Directorate General of Customs Valuation, Karachi, has already determined fair customs values and issued Valuation Rulings under Section 25A of the Customs Act, 1969, covering various yarns and fabrics in consultation with relevant industry associations and stakeholders. These valuations are based on internationally recognized price publications, prevailing global market trends and other relevant parameters. The major Valuation Ruling concerning Polyester Filament Yarn has also been revised in line with international market trends.
Furthermore, fresh valuation exercises are underway for existing rulings and additional textile products, including Mink Yarn, Raw White (Dyed and Undyed) Core Spun Blended Yarn, Cotton Yarn, Billiard Cloth and other relevant items. These exercises will be completed within the specified timeframe to ensure fair, realistic and uniform customs valuation and to address concerns regarding under-invoicing.
To further strengthen transparency and verification in bilateral trade, FBR has also taken up the matter with the Chinese side to enhance the Electronic Data Exchange mechanism by extending it to the transaction level, which is not currently available.
Pakistan Customs remains committed to protecting the interests of local industry, ensuring accurate customs valuation, strengthening data verification and facilitating legitimate trade through transparent and evidence-based procedures.
