- Pakistanis celebrated a decrease in the Dollar rate, but news of increased prices for imported cosmetics dampened the mood.
- The Directorate General of Customs Valuation in Karachi has introduced new customs values for high-end colour cosmetics due to rising customs duties, superseding the previous Valuation Ruling No.1404/2019.
- Stakeholders called for a reevaluation of customs values to align with international market prices, prompting a thorough assessment and market inquiry, ultimately determining new customs values for colour cosmetics.
While Pakistanis rejoiced over the Dollar rate coming back down, the news of imported cosmetics becoming more expensive broke out.
The cost of imported beauty products is set to rise due to an increase in customs duties on branded colour cosmetics imports. In light of this development, the Directorate General of Customs Valuation in Karachi has established new customs values for high-end brands of colour cosmetics from all sources.
Valuation Ruling 1809 of 2023 has outlined that the customs values for colour cosmetics were previously determined under Section 25A of the Customs Act, 1969, as per Valuation Ruling No.1404/2019.
However, various stakeholders requested a fresh assessment of customs values in line with prevailing international market prices. Consequently, the directorate has undertaken this task, and the new Valuation Ruling supersedes Valuation Ruling No.1404/2019.
Discussions regarding the valuation of these goods were held in extensive meetings, during which stakeholders submitted proposals for consideration. Some importers argued that certain brands’ values in the existing valuation ruling are higher than international market prices.
Therefore, they proposed revising the Valuation Ruling to align with prevailing international market rates. Ninety days’ clearance data was gathered and scrutinized, followed by a market inquiry conducted in line with the Directorate’s Office Order No.17/2014.
Subsequently, the Directorate conducted a market survey under Section 25 of the Customs Act, 1969, subsection (7), visiting various wholesale and retail markets to observe the actual prices of colour cosmetics from different origins.
The valuation method under Section 25(8) of the Customs Act, 1969, was also examined, but due to the unavailability of conversion costs from the exporting country, this method could not be applied. Ultimately, based on the collected data and conducted analysis, the customs values for colour cosmetics have been determined under subsection (7), as per Section 25(9) of the Customs Act, 1969.
Customs values will be assessed based on the standard packaging weight or piece specified in the ruling. Items with weights differing from the standard may be assessed on a pro-rata basis.
These new values do not apply to imports made directly by multinational companies (e.g., Unilever, L’Oreal, Johnson & Johnson, etc.) from their subsidiary companies of the same name. Such shipments will be assessed in accordance with the provisions of Section 25 of the Customs Act, 1969, and closely monitored for any discrepancies, which should be reported to the Directorate General.
In the case of imported products packaged as gift sets, each item will be assessed according to its relevant Product Code (PCT), as specified in the ruling.
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