KARACHI: The Federal Board of Revenue’s (FBR) Directorate General of Customs Valuation has revised the customs values applied to imports of empty tin cans, following a review process triggered by industry appeals.
Why the Revision Was Initiated
The new rates were notified through Valuation Ruling 2022/2025, replacing the earlier Ruling 1962/2025. The development came after M/s. Fine Daily (Pvt) Ltd., a local importer, challenged the earlier determination under Section 25D of the Customs Act, 1969.
On review, the Director General of Customs Valuation found merit in the request and sent the case back for fresh examination, directing that all stakeholders be given an opportunity to present evidence.
Stakeholders Present Conflicting Views
Fine Daily argued that its imported consignments reflected higher actual values, presenting invoices and supporting documentation. The company also positioned itself as a major player in the market. However, official data later showed that its share of total imports was only around 2.8%, undercutting its claim of market dominance.
Other businesses in the sector painted a different picture, highlighting the squeeze caused by the strong U.S. dollar, inflation, and shrinking demand. They urged the Directorate to align valuations with prevailing global raw material prices, which they argued would better reflect current market realities.
How the Reassessment Was Carried Out
Officials say the valuation process considered several factors beyond the submissions of individual companies. These included:
- International raw material price trends
- Costs added through local processing and manufacturing
- Market intelligence and survey data
The Directorate emphasized that the reassessment was based on verifiable evidence and conducted in line with Section 25 of the Customs Act, ensuring transparency and objectivity.
The Outcome
After reviewing trade data—including Fine Daily’s four consignments imported under the Export Facilitation Scheme in May 2025—the Directorate concluded that the company’s declared values (ranging from US$2.04/kg to US$2.72/kg) did not provide a reliable benchmark for the wider industry.
Instead, customs officials used a combination of domestic and international pricing data, adjusted for value addition, to finalize the revised customs values now in effect.
Why This Matters
Tin cans, though a seemingly niche import, are an essential input for Pakistan’s packaging and food processing sectors. Accurate customs valuation plays a key role in preventing under-invoicing, ensuring fair competition, and maintaining government revenue streams.
The new ruling also reflects the growing emphasis on evidence-based valuation methods, as the FBR seeks to balance government revenue needs with the cost pressures faced by import-dependent industries.
