FBR Updates Import Values for Motorcycle Parts
The Federal Board of Revenue (FBR) has issued Valuation Ruling No. 2034 of 2026, revising customs values for imported motorcycle components such as roller chains, chain kits (chain with sprocket sets), and chain parts.
The update, framed under Section 25A of the Customs Act, 1969, replaces the outdated figures set in VR 1938/2024 and VR 1940/2024, which had become misaligned with fluctuating global prices.
The revision followed petitions from importers and local industry players under Section 25D, prompting the Directorate General of Customs Valuation Karachi to reassess market realities.
Key Implications
- The ruling establishes assessable values used to calculate duties and taxes that better reflect current international price trends and raw material costs, particularly for parts sourced from China.
- Roller chains are now valued at US$2.12/kg for genuine parts and US$1.45/kg for non‑genuine parts, with corresponding adjustments for chain kits and related components.
- Duties will still be applied on the higher of the declared invoice value or the notified customs value, ensuring compliance and deterring under-invoicing.
Process and Transparency
FBR emphasized that the valuation followed a systematic review, including:
- Market inquiries
- Analysis of recent import data
- International price benchmarking
Officials have directed all customs collectorates to implement VR‑2034/2026 uniformly, reducing discrepancies and potential clearance disputes.
Industry Perspective
Local stakeholders have welcomed the update, citing improved predictability in import costs and smoother logistics operations. However, importers remain cautious about how the revised values may impact total duty liabilities.
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