Islamabad, October 14, 2026: Pakistan Customs has rejected claims that differences in trade statistics between Pakistan and China automatically indicate import fraud or under-invoicing, explaining that variations in reporting methods can produce misleading figures.
In an official clarification issued on Tuesday, October 13, Customs said that trade data discrepancies must be properly examined and reconciled before they can be used as evidence of wrongdoing.
The Federal Board of Revenue (FBR) has also introduced measures to improve data accuracy and strengthen customs valuation procedures.
Pakistan-China Trade Discrepancy Reduced From 32% to 0.54%
Pakistan Customs highlighted a significant improvement in the reconciliation of bilateral trade statistics.
According to the department, a reported 32% difference between Pakistan’s and China’s trade figures for 2023 was reduced to just 0.54% after the relevant datasets were reconciled.
Officials explained that the original difference did not necessarily represent undeclared imports or deliberate under-invoicing.
Instead, variations in how countries collect, classify and report trade information can create differences between export and import records.
The department stressed that such discrepancies require verification rather than being treated as proof of customs fraud.
What Is Under-Invoicing in Imports?
Under-invoicing occurs when imported goods are declared at a value lower than their actual transaction value, potentially reducing the customs duties and taxes payable.
The practice can cause revenue losses and create unfair competition for businesses that comply with import regulations.
However, Pakistan Customs explained that differences between two countries’ trade statistics are not sufficient on their own to establish under-invoicing.
A proper investigation must consider the underlying transactions, documentation and reporting practices.
FBR Introduces Measures to Improve Trade Data Accuracy
The Federal Board of Revenue has taken corrective steps to improve the accuracy and reliability of trade statistics.
According to Pakistan Customs, these improvements have been in place since July 2026.
The measures are intended to address inconsistencies in customs reporting and improve the comparison of import and export records.
FBR has also approached Chinese authorities to strengthen electronic data sharing between the two countries.
The proposed improvements include expanding the Electronic Data Exchange mechanism to provide transaction-level information, which is not currently available through the existing arrangement.
Customs Valuation Reforms Focus on Local Industries
Pakistan Customs said the Directorate General of Customs Valuation is addressing concerns raised by domestic manufacturers about the declared values of imported goods.
The department identified several industries receiving attention, including textiles, steel, chemicals, tyres, stationery, plastics, glass, dyes, light engineering and automotive components.
Officials said customs valuation rulings are regularly reviewed to reflect changing international prices and market conditions.
These efforts are intended to ensure fair import valuations while protecting legitimate trade and the interests of local manufacturers.
Karachi Customs Directorate Revises Textile Import Values
The Directorate General of Customs Valuation in Karachi has issued and revised valuation rulings for several textile products under Section 25A of the Customs Act, 1969.
The department said the rulings were developed in consultation with industry associations and other stakeholders.
Customs officials considered internationally recognised pricing publications, prevailing market trends and other relevant factors when determining import values.
A major valuation ruling covering polyester filament yarn has already been revised to reflect changes in international market conditions.
New Valuation Reviews Underway for Textile Products
Pakistan Customs has initiated additional valuation exercises for several textile-related products.
The items under review include mink yarn, raw white core spun blended yarn, cotton yarn and billiard cloth.
The department aims to complete these assessments within the prescribed timeframe.
Updated rulings are expected to support more consistent customs assessments and help address concerns about unfair import pricing.
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Pakistan Customs Emphasises Transparent Import Procedures
Pakistan Customs reaffirmed its commitment to protecting domestic industries while facilitating lawful international trade.
The department said customs valuations should be based on verified information, realistic market prices and transparent procedures.
It also emphasised the importance of reliable trade data in addressing allegations of import fraud.
The clarification comes amid concerns about differences in Pakistan-China trade statistics and their potential implications for government revenue and local manufacturers.
Officials maintain that improved data reconciliation, revised valuation rulings and stronger cooperation with China will help strengthen transparency in Pakistan’s import system.
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