Karachi: The Directorate General of Customs Valuation, Karachi, has issued a new Valuation Ruling to re-determine the customs values of imported solar panels, bringing them in line with declining international market rates. The new customs values are now set at USD 0.09 per Watt for Tier-I manufacturers and USD 0.08 per Watt for non-Tier-I manufacturers, effective immediately.
This revised ruling comes in response to several representations submitted by stakeholders, particularly the Pakistan Solar Association (PSA), which emphasized that the previous customs values—set under Valuation Ruling No. 1894/2024 dated July 4, 2024—were significantly higher than current international prices. Stakeholders had expressed concern that the inflated values were causing clearance delays and complications with banks, as declared invoice values were lower than the fixed customs values.
An initial meeting to discuss the issue was held on February 19, 2025, following PSA’s request dated January 21, 2025, urging downward revision. Participants in the meeting supported maintaining the Tier-based valuation framework from the earlier ruling while requesting updated pricing in line with global trends. Importers also requested validation of current pricing through surveys of local distributors and solar exhibitions.
However, the process experienced delays due to the transfer of the then Director Valuation. A follow-up meeting was eventually held on July 1, 2025, where stakeholders again submitted relevant invoices, Goods Declarations (GDs), and recent clearance data to support their claim of reduced global prices.
The Customs Valuation Directorate examined all valuation methodologies under Section 25 of the Customs Act, 1969. While the transaction value method was found inapplicable due to lack of required documentation, the final valuation relied on the method for similar goods under Section 25(6). This approach was supported by the last 90 days of import clearance data.
According to the ruling:
- Tier-I solar panels (as listed by Bloomberg NEF’s Global PV Market Outlook Q2 2024) will be valued at USD 0.09/Watt.
- Other manufacturers not listed as Tier-I will be valued at USD 0.08/Watt.
The list of Tier-I manufacturers includes leading global brands such as Longi, JA Solar, Trina, Canadian Solar, Jinko, Risen Energy, and First Solar, among many others. However, the Directorate has allowed flexibility: if an importer provides credible evidence proving Tier-I status of their supplier—even if not on the Bloomberg list—their valuation may be adjusted accordingly.
The ruling clarifies that higher declared values in invoices or documentation shall prevail over the fixed customs values where applicable. Additionally, air-freighted consignments will be subject to freight adjustment compared to sea freight for customs valuation purposes.
This ruling remains in force until amended or rescinded and can be appealed under Section 25D of the Customs Act within 30 days to the Director General, Customs Valuation.
