By Our Correspondent
LAHORE – An active and efficient role of Directorate of Valuation can help in resolving numerous challenges, ultimately benefiting industries, businesses and the economy at large.
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These views were expressed by the President of Lahore Chamber of Commerce and Industry Mian Abuzar Shad during a meeting with the Director General of the Directorate of Valuation, Pakistan Customs Syed Hamid Ali at the Lahore Chamber. LCCI Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry and former Senior Vice President Ali Hussam Asghar also spoke on the occasion while Executive Committee Members Aamir Saeed Mian, Ahad Amin Malik, Aamir Ali, Ahsan Shahid, Asif Malik and Hafiz Muhammad Sajjad, were also present.
Director General Syed Hamid Ali acknowledged the concerns of the business community and agreed with LCCI President’s proposal to address valuation matters within Lahore itself, thereby eliminating the need for traders to travel to Karachi. He assured that valuation processes would be conducted fairly and transparently to ensure that goods are valued at their appropriate and justifiable rates. Furthermore, he stated that the Lahore office’s capacity would be expanded to better facilitate local traders.
LCCI President Mian Abuzar Shad said that valuation-related meetings are traditionally held in Karachi, causing inconvenience to traders from Lahore and other up-country regions.
He proposed that if at least ten valuation requests originate from Lahore, the relevant meetings should be held in the city to save time and financial resources for the business community. Similarly, he suggested that valuation review meetings should also be conducted in Lahore to provide relief to traders from the up-country regions.
He said that, at times, the valuation of imported goods is set at retail prices, which are inherently higher than wholesale prices. He explained that an importer typically sells goods to wholesalers at minimal profit margins, while wholesalers then supply these products to retailers at higher profit margins. The retailers, in turn, determine their own pricing for the market. Given that retail prices vary across different markets, he argued that using market prices as the basis for valuation is not a justified approach.
Mian Abuzar Shad also pointed out that customs authorities often rely on market inquiries and import data to determine valuations using the Work Back Method. However, he stressed that they must consider that bulk consignments are booked in containers, which naturally results in lower unit prices recorded in import documents.
Additionally, he proposed that the fundamental criteria for market inquiries should be formally notified so that importers can calculate their expected valuation in advance. He also suggested that if input from importers is required, they should be notified at least ten days prior to ensure proper compliance.
LCCI Senior Vice President Engineer Khalid Usman expressed concerns that importers often face immediate implementation of new valuation rulings, which can lead to significant financial losses. He recommended that there should be a one-month grace period before the enforcement of new valuation rulings so that importers can adjust accordingly.
Vice President Shahid Nazir Chaudhry suggested that whenever a market inquiry is conducted for the valuation of specific goods, representatives from the local chamber or relevant trade associations should be included in the process alongside customs officials. In certain cases, he proposed that officials should also consult local manufacturers to ensure fair and accurate valuation determinations. He emphasized that this approach would provide a long-term and sustainable solution to valuation challenges.
Concluding the discussion, LCCI President Mian Abuzar Shad stressed the importance of continuous dialogue and constructive engagement between the business community and customs authorities. He underscored that regular meetings and open communication channels are vital for fostering a conducive trade environment and resolving valuation-related concerns effectively.
