Karachi, April 16, 2024 – In a significant move aimed at regulating the import of soyabean meal into Pakistan, authorities have announced the establishment of a customs value of $0.50 per kg for the determination of duty and taxes.
The decision comes following a comprehensive assessment by the Directorate General of Customs Valuation under the Customs Act, 1969.
The valuation issue surrounding soyabean meal stems from the considerable variance observed in declared values for this commodity, which is imported from various origins into Pakistan. With imports totaling Rs. 21.32 billion during the preceding six months (from July 2023 to December 2023), the surge in import volume prompted authorities to undertake an evaluation of customs values in alignment with prevailing international market rates.
Stakeholders, including representatives from the Pakistan Poultry Association, actively participated in the determination process. A series of meetings held on 01-02-2024, 26-02-2024, and 20-03-2024 provided a platform for thorough discussions on the valuation aspects. Importers highlighted key distinctions between genetically modified organism (GMO) and non-GMO soybeans, emphasizing the higher price rates associated with the latter due to their natural properties.
GMO soyabean meal, predominantly sourced from the USA, Argentina, and Brazil, contrasts with non-GMO variants mainly produced in the African region. Importers underscored the need for customs values to reflect market realities, proposing a benchmark of $500 US$/MT for non-GMO soyabean meal originating from Africa. They advocated for a nuanced approach, considering factors such as protein content, crop yield, and demand-supply dynamics in determining customs values.
The analysis conducted by the Directorate General of Customs Valuation involved a meticulous examination of clearance data spanning ninety days, alongside market inquiries and scrutiny of international price trends. Importantly, insights gleaned from Afghan Transit Trade data shed light on the substantial increase in soyabean meal imports via Afghanistan into Pakistan, underscoring the need for precise valuation mechanisms.
While the current customs value of soyabean meal from Afghanistan stands at $0.271 per kg, the broader analysis indicates a significant uptick in imports from Afghanistan and Iran since the previous financial year. This surge underscores the evolving dynamics of the regional trade landscape and necessitates proactive measures to ensure fair valuation practices.
In light of the fluid nature of international markets, importers stressed the importance of periodic revisions to customs values to reflect price fluctuations. They anticipate a potential decline in non-GMO soyabean meal prices once restrictions on GMO imports are lifted, highlighting the interconnectedness of market dynamics and regulatory frameworks.
The establishment of a $0.50 per kg customs value for soyabean meal marks a pivotal step towards enhancing transparency and consistency in import valuation practices. Moving forward, stakeholders are encouraged to maintain ongoing dialogue to address emerging challenges and promote sustainable trade practices in the soyabean industry.
