The Federal Board of Revenue (FBR) has reported a significant reduction in discrepancies between Pakistan and China’s trade data. The authority said the gap recorded in 2023 declined from 32% to 0.54% after reconciliation.
The FBR explained that differences in trade figures can result from varying data collection, compilation, and reporting methods. Such discrepancies do not automatically indicate under-invoicing or trade fraud.
The tax authority has contacted Chinese officials to expand the electronic data exchange system. It wants the system to include transaction-level information, which is currently unavailable.
The FBR has also introduced corrective measures to improve trade data reporting. These changes took effect in July 2026.
FBR Addresses Pakistan-China Trade Data Differences
Trade data reported by two countries may differ because of their reporting systems and statistical methods. These differences can affect how import and export figures are recorded.
The FBR said discrepancies alone do not provide sufficient evidence of under-invoicing. A proper assessment requires further examination of trade records and relevant transaction details.
To improve transparency, the authority is seeking access to more detailed information through electronic data exchange. Transaction-level records could help officials compare trade declarations and identify inconsistencies more accurately.
The proposed expansion would strengthen information sharing between Pakistan and China. It could also support efforts to improve the accuracy of international trade statistics.
Pakistan Customs Strengthens Measures Against Under-Invoicing
The FBR said Pakistan Customs is taking steps to address import fraud and under-invoicing concerns. These measures aim to ensure fair and transparent customs valuation.
The Directorate General of Customs Valuation has issued and revised valuation rulings for several products. These decisions include items such as yarn and fabrics.
Officials consult industry associations and other stakeholders when reviewing customs values. They also consider international price publications, global market trends, and other relevant information.
These factors help authorities determine appropriate customs values for imported goods. The process also aims to reduce inconsistencies in the valuation of similar products.
Customs Valuation Rules Reviewed for Textile Products
The valuation authority has revised its ruling concerning polyester filament yarn. It is also reviewing customs values for several additional textile products.
The products under review include mink yarn, cotton yarn, core spun blended yarn, and billiard cloth.
According to the FBR, these reviews aim to establish realistic and consistent customs valuations. The process also seeks to address concerns raised by businesses and industry representatives.
Accurate valuations are important for determining applicable customs duties and taxes. They can also help reduce disputes between importers and customs authorities.
FBR Aims to Protect Local Manufacturers
The FBR said its valuation measures are intended to support transparent trade practices and protect domestic industries. The initiative covers sectors beyond textiles.
These include steel, chemicals, tyres, plastics, and automotive components.
By reviewing customs values and improving trade data reporting, the authority aims to address valuation concerns across multiple industries. The measures are also intended to ensure consistent treatment of imported goods.
The reported reduction in the Pakistan-China trade data gap followed reconciliation efforts. The FBR is continuing to pursue better information exchange and improved customs valuation practices.
In other related news also read FBR Sets December Deadline for Major Tax Monitoring Expansion
Further progress will depend on effective data sharing, accurate reporting, and continued reviews of customs values.
