In a significant move to address concerns of under-invoicing and ensure fair taxation, Pakistan Customs has recently implemented a new valuation ruling for lithium-ion batteries. This decision, made in early February 2025, comes as a response to complaints from industry stakeholders and aims to create a more level playing field in the rapidly growing battery market.
The Need for New Valuation
The decision to revise the customs valuation was prompted by multiple representations from stakeholders highlighting massive under-invoicing of lithium-ion batteries by certain importers[1]. This practice not only led to unfair competition but also resulted in significant revenue losses for the government.
Comprehensive Analysis and Consultation
Before finalizing the new valuation, Pakistan Customs conducted a thorough analysis of import data and global market trends[2]. The process involved:
- Scrutiny of 90 days’ worth of import data
- Multiple consultative meetings with relevant stakeholders
- Examination of current market trends and international prices
New Valuation Structure
The new customs values have been determined for different categories of lithium-ion batteries:
| Battery Type | Customs Value (C&F) in USD |
| IP-20 | 70/KW |
| IP-21 | 80/KW |
| IP-65 | 90/KW |
It’s important to note that these values do not apply to lithium-ion batteries meant for mobile phones, laptops, tablets, and similar devices[3].
Impact on the Market
This new valuation is expected to have a significant impact on Pakistan’s growing lithium-ion battery market. With the country’s focus on renewable energy and the increasing adoption of electric vehicles, demand for these batteries is projected to rise sharply in the coming years[4].
Looking Ahead
As Pakistan continues to develop its domestic battery manufacturing capabilities and expand its use of renewable energy, fair taxation and valuation of imported lithium-ion batteries will play a crucial role in shaping the market. This move by Pakistan Customs represents an important step towards creating a more transparent and competitive environment for all stakeholders in the battery industry.
By addressing the issue of under-invoicing, this new valuation ruling not only ensures fair taxation but also supports the growth of domestic manufacturing and encourages innovation in the rapidly evolving lithium-ion battery sector.
