Customs Revises Import Values for Aroma Chemicals Used in Perfumes

The Directorate General of Customs Valuation Karachi has issued new customs values for the import of 11 types of aroma and aromatic chemicals from China, used widely in perfumes and cosmetic products. According to Valuation Ruling 2029 of 2025, the revised values will apply to imports of Citronellol, Coumarin, Dihydro Myrcenol, Eugenol, Geraniol, Linalool, Musk Ambrette, Sandela, Eucalyptus Oil, Peppermint Oil, and Vanillin. Customs officials have instructed all Clearance Collectorates to ensure accurate declaration of CAS numbers, chemical identity, and product specifications to prevent misclassification or incorrect assessment under the updated ruling. The ruling was issued after multiple representations from importer M/s Franscent (Pvt.) Ltd., which complained that these chemicals were being under-invoiced and requested valuation under Section 25A of the Customs Act, 1969. Scrutiny of import data showed major discrepancies between declared and assessed values, prompting the initiation of formal valuation proceedings. Stakeholder meetings were held, during which importers were asked to provide supporting documents. Customs retrieved and examined 90 days of import data, though references were limited. Officials noted that valuation methods were applied sequentially as required under Section 25 of the Customs Act. The transaction value method could not be applied due to missing information. Identical and similar goods valuation methods were also unsuitable because of limited imports and varying nomenclature used by importers. A market inquiry under Section 25(7) was also ruled out because these chemicals are intermediary inputs and are not sold in the local market. The computed value method under Section 25(8) was similarly not feasible due to lack of data on manufacturing costs in the exporting country. As a result, Customs determined the new import values under Section 25(9), read with Sections 25(5) and 25(6) of the Customs Act, 1969.