KARACHI – August 13, 2025 – The Federal Board of Revenue (FBR) has announced revised customs values for various categories of iron and steel scrap, including remeltable, HMS, shredded, and re-rollable grades.
The Directorate General of Customs Valuation issued Valuation Ruling No. 63 of 2025, replacing the earlier ruling No. 56/2025 dated February 18, 2025.
Background and Review Process
The customs values for iron and steel scrap were previously determined in February 2025. Following concerns raised by the Quetta Chamber of Commerce & Industry, M/s Mehmoob Re-Rolling Mills, and M/s Amir Asim Steel Re-Rolling Mills (Pvt) Ltd., a review appeal was filed under Section 25D of the Customs Act, 1969. The Director General remanded the case back to the Directorate, instructing a fresh examination of freight discounts and ensuring that all stakeholders were heard.
A consultative meeting on July 29, 2025, included the Pakistan Ship Breakers’ Association, Pakistan Association of Large Steel Producers, and Quetta Chamber representatives. The debate centered on whether Iranian-origin scrap, being lower in quality and transported by land, should receive a higher freight discount. While some supported the increase, others warned it could harm importers using seaports and distort the market.
Valuation Methodology
The customs valuation process followed Section 25 of the Customs Act, 1969. Transaction values, identical and similar goods prices, and market surveys were evaluated, but due to inconsistencies, a hybrid approach was used. Reference was made to London Metal Exchange (LME) prices, with standard freight adjustments applied for uniformity.
Revised Customs Values Table
| S. No. | Description of Goods | PCT Codes | Origin (By Sea) | Customs Value (US$/MT) |
| 1 | Iron & Steel Remeltable/Shredded Scrap | 7204.3000, etc. | All origins | LME price (LMB for Pakistan) |
| 2 | Iron & Steel Re-Rollable Scrap | 7204.4910 | All origins | Value at S. No. 1 + US$ 75 |
| 3 | Iron & Steel Remeltable HMS Scrap | 7204.4990 | All origins | Value at S. No. 1 − US$ 25 |
| 4 | Iron & Steel Bundle Scrap | 7204.4100 | All origins | Value at S. No. 1 − US$ 55 |
Additional Provisions
For land-route imports, a US$ 60/MT deduction applies, with actual inland freight charges added. Air shipments will factor in the difference between air and sea freight.
The FBR has directed all Customs Collectorates to enforce the ruling immediately and report any anomalies to the Directorate. These revised values will serve as the minimum benchmark, with higher declared or invoiced values taking precedence.