FBR changes customs valuation method for auto parts

ISLAMABAD – The Federal Board of Revenue (FBR) has introduced a new method for determining the customs value of imported auto parts. It has replaced the existing weight-based system with a model based on vehicle type and engine capacity. The revised mechanism has been introduced through Valuation Ruling No. 2092 of 2026 issued by the Directorate General of Customs Valuation, Karachi. The new ruling replaces the valuation framework introduced in 2019, which had remained in force for more than six years. Under the updated valuation system, customs values have been notified for a range of imported auto parts, including water pumps, oil pumps, fuel pumps, in-tank fuel pumps, oil filters, fuel filters and air filters. According to customs authorities, the revision was initiated following requests from industry stakeholders, who argued that imported auto parts are identified and traded primarily according to vehicle models and engine specifications rather than their weight. The new valuation mechanism was finalised after consultations with the Pakistan Automobile Spare Parts Importers and Dealers Association (PASPIDA), Indus Motor Company and other importers. Customs officials also reviewed import data, market surveys and prevailing prices before issuing the revised ruling. The Directorate has also introduced a separate valuation category for in-tank fuel pumps, citing their specialised application and distinct market characteristics. Officials said the revised system is aimed at ensuring a fair, transparent and uniform customs valuation process while aligning import values with current market practices.