KARACHI: Federal Board of Revenue (FBR) has increased the customs valuation of imported coal of Afghanistan origin by 69 per cent to $140 per metric ton.
In order to implement the decision, the Directorate of Customs Valuation of the FBR, Peshawar issued Valuation Advice dated August 17, 2022 in respect of Afghan coal.
Earlier, through Valuation Advice No. 551 dated December 31, 2022 the customs value for Afghan origin coal was determined at $83 per metric ton.
The directorate stated that a section of Pakistani Coal importers had approached stating that recently, the value of Afghan –origin coal had been increased substantially.
Therefore, the import value of coal in Pakistan should also be revised / enhanced accordingly.
Since coal is an important industrial raw material for Pakistan, it was imperative to reconsider and revise its customs value (as imported from Afghanistan) commensurate with its prevalent prices in the local / regional market.
The directorate, therefore took up an exercise for the purpose, in consultation with local importer/traders of Afghan Coal in Khyber Pakhtunkhwa.
“Detailed deliberations in this regard were held with all stakeholders on August 3, 2022 and then on August 12, 2022. Trade admitted that prices of Afghan origin coal had undergone considerable increase in recent times and therefore, its customs values for import in Pakistan should also be revised upward.”
Trade also appreciated the fluctuating international price trends of coal and asserted that revised value of Afghan coal, if any, should prevail only for a limited time period, so that the same could be revised again, in due course of time, according to its changing price trend in Afghanistan.
The directorate stated that after in-depth consideration of all relevant aspects of the matter, import value of Afghan-Origin Coal, as imported into Pakistan via land-borders Customs stations of Khyber Pakhtunkhwa, has been determined to be, minimum US $140 per metric ton (C&F) with immediate effect, until further revision in this regard.
Clearance Collectorate (i.e. MCC Appraisement Peshawar) may ensure that henceforth, no consignment of Afghan origin coal (PCT Codes 2701.1200 & 2701.1900) be assessed on a value lower than the above – determined valuation. “However, any import declaration of Afghani Coal bearing value higher than the above mentioned value, may be accepted,” it added.
The valuation advice shall remain valid for a maximum period of three months only, from its date of issuance. However, as agreed with trade, this advice could be revised even before the lapse of such a time period, based on the fresh valuation evidence of Afghan origin coal.
