Customs Directorate Revises Valuation of Cashew Nuts Imports

The Directorate General of Customs Valuation in Karachi has revised customs values about the import of Cashew Nuts, originating from Vietnam.

Customs Directorate Revises Valuation of Cashew Nuts Imports

The Directorate General of Customs Valuation in Karachi has revised customs values about the import of Cashew Nuts, also known as Kaju, originating from Vietnam. The newly issued valuation ruling, designated as 1836 of 2023, aims to ensure a more accurate assessment of duties and taxes associated with the import of Cashew Nuts into Pakistan.

The earlier determination of Customs values for Cashew Nuts was governed by Section 25A of the Customs Act, 1969, as per Valuation Ruling No.1766/2023. However, various importers raised concerns, asserting that the Customs values established in the existing ruling did not align with the current dynamics of the international market. Importers advocated for a fresh determination of Customs values in accordance with the prevalent trends in the global market.

In response to these representations, the Directorate General of Customs Valuation initiated an extensive exercise to reassess the Customs values of Cashew Nuts. Stakeholders actively participated in this process, with a meeting held on October 31, 2023, attended by relevant industry representatives.

During the meeting, discussions delved into the intricacies of valuing the subject goods, considering the representations made by importers. The Directorate’s analysis and exercise involved the retrieval and scrutiny of ninety (90) days’ clearance data. Additionally, import data related to Cashew Nuts over the past three financial years was compared with the data on Afghan Transit Trade for the same period.

The thorough analysis revealed significant insights. Specifically, it was observed that the total import value of Cashew Nuts into Pakistan experienced a notable decrease, declining from Rs. 840 million to Rs. 110 million during the fiscal years 2020-21 to 2022-23. In contrast, Afghanistan witnessed a substantial increase in the total import value under Transit trade, soaring from Rs. 280 million to Rs. 2,980 million over the same period.

The revised valuation ruling aims to align the Customs values more closely with the evolving dynamics of the international market, ensuring a fair and accurate assessment of duties and taxes on Cashew Nuts imports. Importers and industry stakeholders are now awaiting further guidance and implementation details following this latest development from the Directorate General of Customs Valuation in Karachi.