Pakistan Customs has clarified its position on reported discrepancies in bilateral trade data with China, stating that differences in reported figures cannot, on their own, establish under-invoicing or import fraud. The clarification comes amid media reports raising concerns about the valuation of goods imported from China and inconsistencies in trade statistics.
In a statement issued in Islamabad on October 13, 2026, Pakistan Customs said it was actively addressing valuation-related concerns and taking steps to ensure fair, transparent and evidence-based customs valuation.
Pakistan Customs Reviews Import Valuation Concerns
The Directorate General of Customs Valuation has prioritised concerns raised by local manufacturing industries, including textiles, steel, chemicals, tyres, stationery, dyes, plastics, glass, light engineering goods and automotive vendors.
According to the statement, the issuance and revision of Valuation Rulings remain ongoing processes. The objective is to establish realistic, sustainable and uniform customs values that reflect prevailing market conditions while addressing concerns raised by domestic manufacturers.
Pakistan Customs said these measures were intended to protect local industry while facilitating legitimate imports through transparent valuation procedures.
Trade Data Discrepancy Reduced From 32% to 0.54%
Pakistan Customs said discrepancies between trade figures reported by Pakistan and China to the International Trade Centre (ITC) had been examined through mirror trade analysis.
This process compares China’s reported exports to Pakistan with Pakistan’s reported imports from China. However, the two sets of figures may differ because of variations in data collection, compilation, retrieval and reporting practices across countries and institutions.
The statement cited the 2023 trade discrepancy, which reportedly stood at 32% before reconciliation and was subsequently reduced to just 0.54%.
Pakistan Customs emphasised that such differences should not automatically be interpreted as evidence of under-invoicing. Instead, the relevant datasets must be reconciled and verified before conclusions can be drawn.
The Federal Board of Revenue (FBR) has also introduced corrective measures to improve trade data reporting, which have been in place since July 2026.
Customs Valuation Rules Revised for Textile Imports
The Directorate General of Customs Valuation in Karachi has issued Valuation Rulings under Section 25A of the Customs Act, 1969, covering various yarns and fabrics. The rulings were prepared in consultation with relevant industry associations and stakeholders.
The valuation process takes into account internationally recognised price publications, prevailing global market trends and other relevant parameters to determine appropriate customs values.
The major Valuation Ruling covering Polyester Filament Yarn has also been revised in line with international market trends.
Meanwhile, fresh valuation exercises are underway for existing rulings and additional textile products. These include Mink Yarn, Raw White Dyed and Undyed Core Spun Blended Yarn, Cotton Yarn, Billiard Cloth and other relevant items.
Pakistan Customs said these exercises would be completed within the specified timeframe to support fair and consistent valuation and address industry concerns regarding possible under-invoicing.
FBR Seeks Transaction-Level Data Exchange With China
To improve transparency and strengthen verification of bilateral trade, the FBR has taken up the matter with Chinese authorities to enhance the existing Electronic Data Exchange mechanism.
The proposed improvement involves extending the mechanism to the transaction level, which is not currently available under the existing arrangement.
Transaction-level data exchange could provide customs authorities with more detailed information to compare individual trade records and improve the verification of import declarations against corresponding export data.
Pakistan Customs Reaffirms Commitment to Transparent Trade
Pakistan Customs said it remained committed to protecting domestic industry, ensuring accurate customs valuation and strengthening the verification of bilateral trade data.
The department also reiterated its commitment to facilitating legitimate trade through transparent and evidence-based procedures.
The measures outlined by Pakistan Customs focus on reconciling trade statistics, updating valuation rules and improving information exchange with China. These steps are intended to address concerns about import valuations while ensuring that discrepancies in reported trade figures are assessed through verification rather than treated as conclusive evidence of fraud.