Customs Updates Import Values for Truck and Bus Tyres

Customs Updates Import Values for Truck and Bus Tyres

BySobia Sultan

The Pakistan Customs authorities have revised the import valuation framework for tyres and tubes used in light trucks, trucks, and buses. This adjustment in valuation aims to better reflect current market realities and factors associated with tyre imports, without altering the existing customs duty rates directly.

Details of the Revised Valuation Ruling

The Directorate General of Customs Valuation in Karachi released Valuation Ruling No. 2112 of 2026, following an extensive review of import data, tariff structures, and inputs from local tyre manufacturers as well as importers. The ruling maintains many of the earlier benchmark values but modifies and consolidates certain categories to make valuation more efficient and fair.

The ruling considers various tyre characteristics such as size, rim size, ply rating, radial versus conventional construction, brand classification, commercial categorization, and country of origin.

Importantly, the revised valuation allows imported radial tyres that are not specifically listed to be valued at up to 12% higher than comparable conventional tyres. This does not mean an additional customs duty rate but rather an increase in the assessed customs value, which serves as the basis for calculating duties and taxes.

Additional Provisions and Adjustments

The customs valuation ruling includes further provisions to guide import assessment. For example, a 6% depreciation can be applied to tyre-only imports excluding tubeless types. Separate imports of tubes not covered by existing valuation rulings may be assessed at 6% of the tyre’s value.

Customs may adjust values based on ply rating differences by adding or subtracting 1% for every two-ply variance from the norm specified. Also, a 5% discount on cost and freight (C&F) value applies to imports arriving via land routes.

Context and Implications for the Pakistani Market

This revaluation comes after local manufacturers petitioned for higher customs valuations due to rising global raw material costs and freight expenses, while importers advocated for a simplified valuation system. The increased valuation for certain tyres follows the government’s recent measures to protect indigenous automotive parts production, including imposing an 11% additional customs duty on some heavy commercial vehicle tyres.

Since duties and taxes are calculated based on customs values, an upward revision in valuation could lead to higher import costs, which may eventually affect retail prices. However, the impact will vary depending on specific tyre types, sizes, and import duty classifications. Vehicle fleet operators and transport companies should monitor these changes closely as they may influence operating costs.

“Customs has rationalized the valuation system to balance the interests of local manufacturers and importers while accommodating market shifts,” commented the Directorate General of Customs Valuation.

For Pakistani consumers and businesses reliant on commercial vehicles, understanding these changes is crucial as tyre costs are a significant part of maintenance expenses. These revisions form part of broader efforts to stabilize and protect Pakistan’s automotive industry while factoring in international market dynamics.

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