The imported cosmetics market is bracing for a price hike due to the recent increase in customs values for imported cosmetics. This development, initiated by the Directorate General of Customs Valuation Karachi, sets new standards for the import of high-end color cosmetics from various origins. Under Valuation Ruling 1809 of 2023, the customs values of color cosmetics have been revisited, replacing Valuation Ruling No.1404/2019.
The Need for Reevaluation
The need to reevaluate customs values for imported cosmetics stems from multiple factors. Stakeholders within the industry raised concerns about the existing values, suggesting they no longer align with the international market prices. In response to these concerns, an extensive exercise was initiated to reestablish the customs values in accordance with prevailing global market rates. This move aims to ensure that imported cosmetics are valued accurately, creating a fair and competitive marketplace.
Implications of the Increase in Customs Values for Imported Cosmetics
The Directorate undertook an exhaustive market survey to determine the new customs values for color cosmetics, considering the weight, piece, and packaging standards outlined in the ruling. Notably, these changes do not apply to imports by multinational companies such as Unilever, L’Oreal, Johnson & Johnson, who source products from their sister concerns. Such consignments will be assessed under Section 25 of the Customs Act, 1969, maintaining a vigilant approach to detect any irregularities.
Furthermore, the ruling makes provisions for imported cosmetics in the form of gift sets, outlining how they should be assessed according to the PCT of each item. These adjustments in customs values are expected to have a tangible impact on the cost of imported cosmetics for both retailers and consumers, potentially leading to higher prices in the near future.