Customs Announces New Valuation List for 14 Types of Solar Inverters Imported from China

The Directorate General of Customs Valuation, Karachi, has established new customs values for the import of 14 different types of solar inverters from China. According to a valuation ruling issued on Thursday, the customs values of solar inverters were previously determined under Section 25-A of the Customs Act, 1969, via Valuation Ruling No. 1913/2024, dated 05.11.2024. This ruling was subsequently challenged under Section 25-D of the Act before the Director General of Customs Valuation, Karachi. In response, the Director General issued Order-in-Revision No. 08/2025, dated 04.02.2025, directing a re-evaluation of the determined values and recommending further subdivision of the categories (capacities) outlined in the impugned ruling. Following this, the Directorate of Customs Valuation initiated a re-determination exercise in line with the provisions of Section 25-A of the Customs Act, 1969. The importers argued that the customs values assigned to solar inverters under the disputed Valuation Ruling were excessively high and required revision. They also proposed refining the categorization of inverters by introducing subdivisions based on their respective capacities to better reflect market dynamics. In response, the Director of Valuation instructed stakeholders to provide relevant documentary evidence, including export Goods Declarations (GDs), Letters of Credit (LCs), and other banking instruments, to substantiate their claims. Additionally, concerns were raised regarding definitional ambiguities related to “off-grid inverters.” These issues were deliberated upon in detail, leading to a clarification of the distinctions between Hybrid, On-Grid, and Off-Grid solar inverter types: Hybrid Inverters: A hybrid solar inverter integrates solar PV power, battery storage, and electrical grid connectivity. This allows solar energy to be used directly, stored for later use, or fed back into the grid (if in excess). Generally, hybrid inverters contain a separate terminal for feeding excess power into the grid. On-Grid Inverters: An on-grid solar inverter converts solar power for direct use in the public electricity grid without battery storage (no battery connection ports). This type of inverter operates only when connected to the grid and will enter standby mode if a grid failure is detected. Off-Grid Inverters: An off-grid inverter functions using solar energy (PV modules), battery storage, and AC/Grid/Genset connectivity through its input ports. These units can use solar PV power, battery storage, and AC input power. They are particularly suited for areas where grid power is unstable or where there is no need to feed surplus solar PV power to the grid (no net metering function). Off-grid inverters automatically switch (bypass the household load) to AC or generator power when solar/battery storage is unavailable. The presence of an AC input does not make it a hybrid inverter.