FBR Fixes New Values on Import of Tiles from China 

Directorate General of Customs Valuation Karachi has revised customs values on the import of a wide range of ceramic and porcelain tiles from China and US/Europe.  In this regard, the directorate has issued a valuation ruling number 1972 of 2025 on Thursday. The valuation ruling has fixed new customs values of tiles in US dollars per Square Meter. Further discount of 10 percent (values determined) would be available to the Iranian origin tiles if they are imported through land routes.  Background of the valuation issue revealed that customs values of Ceramic and Porcelain Tiles were determined under Section 25-A of the Customs Act, 1969, vide Valuation Ruling No. l787/2023 that was challenged before the Director General under section 25D of the Customs Act, 1969 and was remanded by to the Directorate vide Order in Revision No. 45/2023 dated 04.08.2023 with the instruction that the “undertake fresh exercise under Section 25A of the Customs Act, 1969 to determine the values of Ceramic and Porcelain Tiles through issuance of new Valuation Ruling”.  Since the Director General of Customs Valuation set aside the subject Valuation Ruling, the previous Valuation Ruling 874/2016, dated 22.06.2016, became relevant.  The Directorate convened several meetings to re-determine the Valuation Ruling. However, the stakeholders failed to provide essential documentation, including Letters of Credit, Bank Contracts, EIF Forms, and Export GDs.  As the directorate aimed to issue a Valuation Ruling considering the stance and documentation of stakeholders before determining customs values, and given the repeated requests from stakeholders to delay the meetings, the Directorate scheduled final meetings.  Despite these efforts, the stakeholders once again requested postponements. Consequently, a final meeting was held during which the stakeholders requested an extension until February 10, 2025, to submit all required import documents, including Export GDs. This request was granted, and the stakeholders were given final opportunity till February 10, 2025, to provide the necessary documentation.  During the discussions, the importers argued that international tile prices had significantly decreased due to advancements in technology. They further stated that to prevent the misdeclaration of porcelain tiles, the existing categories of the existing Valuation Ruling may be merged.   Conversely, local manufacturers contended that they had made substantial investments in tile production and were beginning to manufacture larger-sized tiles. They further argued that the prices of imported tiles in the local market remained high and suggested that a market inquiry could verify the validity of their claims. Instead of providing documents, the stakeholders presented their proposed values of various sizes.  Finally, Customs Values of Ceramic and Porcelain Tiles have been determined under Section 25(7) of the Customs Act 1969, the ruling added.