FBR Reduces Customs Value on Import of Coal from Afghanistan

Federal Board of Revenue’s (FBR) Directorate General of Customs Valuation has fixed a lower import value of Afghan-origin coal of $95 Per Metric Ton (PMT) for the assessment of duties and taxes of the imported item.

The reduced value would be applicable to the coal imported into Pakistan via land-border Customs stations of Khyber Pakhtunkhwa.

The ruling of the directorate issued on Wednesday said that Customs Value of Afghan Origin ‘Coal’ was determined to be @ $0.140 per KG (or $140 Per Metric Ton, C&F) vide Valuation Advice of 2022, issued by the then Director Customs Valuation, Peshawar which valuation was in-force, till-to-date.

However, Pakistani coal importers have approached the directorate stating that recently, the value of Afghan-origin coal has decreased substantially.

Therefore, the import value of Coal in Pakistan should also be revised/decreased 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. Directorate of Customs Valuation Peshawar, therefore, up an exercise for this purpose, in consultation with local importers/traders of Afghani Coal in KP.

The ruling said that the trade insisted that prices of Afghan-origin coal had undergone considerable decrease in recent times and therefore, its customs values for import in Pakistan should also be revised downward. Trade also appreciated the fluctuating International price trends of Coal and asserted that the revised value of Afghani-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 trends in Afghanistan.

After in-depth consideration of all relevant aspects of the matter, the import value of Afghan-origin coal, as imported into Pakistan via land-border Customs Stations of Khyber Pakhtunkhwa, is hereby determined to be, minimum, $0.095 per Kg. ($95 Per Metric Ton) with immediate effect, until further revision thereof.

This valuation advice shall remain valid for a 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 time period, based on the fresh value evidence of (Afghan-Origin) Coal, if any.

This Valuation Advice supersedes the Valuation Advice dated 17.08.2022, only to the extent of the Afghan-Origin Coal imported through the Land Border Customs Stations of Khyber Pakhtunkhwa and it shall not be applicable in any other cases, it added.

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