FBR Announces New Tax on Imported Guns

Pakistan's Directorate General of Customs Valuation Karachi has set new customs values for three types of imported firearms, including 9mm pistols and rifles, under Valuation Ruling No.

Key points

• Issued under Section 25A of the Customs Act, 1969, the ruling supersedes the relevant values established under Valuation Ruling No.
• Consequently, the customs values were determined through market inquiry under Section 25(7) of the Customs Act, 1969.
• The customs value of a Norinco CQ A5 rifle, caliber.223 Rem, has been set at $205 per piece.
• According to the ruling, the valuation methods prescribed under Section 25 of the Customs Act, 1969, were considered in sequence.
• The directorate additionally examined the identical goods method under Section 25(5) and the similar goods method under Section 25(6).

While another CF98 pistol, caliber 9mm, has been valued at $134 per piece, under the ruling, the customs value of a Norinco CF98 pistol, caliber 9mm, has been fixed at $140 per piece.

Notably, the customs value of a Norinco CQ A5 rifle, caliber.223 Rem, has been set at $205 per piece. The revised values apply to imports from all origins. New Ruling Replaces Previous Valuation.

Issued under Section 25A of the Customs Act, 1969, the ruling supersedes the relevant values established under Valuation Ruling No. Do, dated May 17, 2023, and its addendum dated September 23, 2024, for the items covered by the latest determination.

Notably, the directorate initiated the reassessment after receiving requests from stakeholders to review customs values for certain items covered by the previous ruling. Proceedings under Section 25D of the Customs Act, 1969, were additionally initiated to amend the earlier valuation.

For context, the process followed Order in Revision No. 14/2026, dated May 25, 2026. It directed the directorate to conduct a fresh valuation exercise for arms and ammunition.

In practice, the directorate subsequently held a session with relevant stakeholders. This person presented their views on the existing customs values. Representatives were given an opportunity to submit supporting documents for their claims. Pakistan Reopens Iran Border After Special Session. Market Research Applied to Determine Values.

Notably, the directorate reviewed stakeholder submissions, available import data, previous valuation records, market information and other relevant material. It additionally conducted market inquiries to determine prevailing costs before finalizing the revised customs values.

According to the ruling, the valuation methods prescribed under Section 25 of the Customs Act, 1969, were considered in sequence. Nevertheless, the transaction value method under Section 25(1) could not be applied as the information required under Section 25(2) was unavailable.

For context, the directorate additionally examined the identical goods method under Section 25(5) and the similar goods method under Section 25(6). Both methods were discovered unsuitable as of differences in brands, models, specifications, declared values and other transaction related factors.

Consequently, the customs values were determined through market inquiry under Section 25(7) of the Customs Act, 1969. Stay Connected with ProPakistani.

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