In order to assess duties and taxes on coal of Afghan origins, the Federal Board of Revenue’s (FBR) Directorate General of Customs Valuation has set a lower import value of $95 per metric ton (PMT).
Coal imported into Pakistan through Khyber Pakhtunkhwa’s land-border Customs posts will be subject to a decreased value. According to the directorate’s decision, which was released on Wednesday, the customs value of “coal” of Afghan origin was established to be $0.140 per KG (or $140 per metric ton, C&F) in accordance with the valuation advice from 2022, which was provided by the then-director of customs valuation in Peshawar and is still in effect today.
However, Pakistani coal importers have contacted the directorate to report that recently, the price of coal with an Afghan provenance has significantly dropped.
As a result, Pakistan’s import price for coal has to be adjusted or dropped. Coal is a crucial industrial raw material for Pakistan, hence it was essential to review and modify its customs value (as imported from Afghanistan) in line with its standard rates in the local/regional market. In order to achieve this, the Directorate of Customs Valuation Peshawar developed an exercise in collaboration with local importers and merchants of Afghani coal in KP.
After careful consideration of all pertinent factors, the import value of Afghan-origin coal, as imported into Pakistan via land-border Customs Stations of K, was determined. Trade also understood 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, in order that the same could be revised again, in due course, according to its changing price trends in Afghanistan.
