The Federal Board of Revenue’s (FBR) Directorate General of Customs Valuation issued a crucial judgment affecting Afghan coal imports. The new import value for Afghan-origin coal is $95 per Metric Tonne (PMT) for customs and taxes.
This new value applies to coal imports via Khyber Pakhtunkhwa land-border Customs posts.
The Customs Value of Afghan Origin ‘Coal,’ determined in 2022 by the then-Director Customs Valuation, Peshawar, was $0.140 per KG (or $140 per Metric Tonne, C&F). It has been valued till now.
Pakistani coal importers are concerned because Afghan-origin coal has lost value lately. They suggested revising Pakistan’s coal import value to reflect this drop. Since coal is a vital industrial raw material for Pakistan, its customs value had to be reassessed and adjusted based on local and regional costs.
The court recognizes that Afghan-origin coal prices have plummeted and that Pakistan should lower its import customs values. International coal prices fluctuate, thus the updated value of Afghan coal, if any, should be valid for a short period and subject to subsequent modifications depending on Afghan pricing trends.
After reviewing all relevant factors, the Directorate of Customs Valuation in Peshawar has set the import value of Afghan-origin coal entering Pakistan through land-border Customs Stations of Khyber Pakhtunkhwa at $0.095 per Kg ($95 per Metric Tonne), effective immediately. Three months after the issue, this value guidance is applicable. If Afghan-origin coal value proof comes during this time, it may be amended earlier.
This Valuation Advice only applies to coal imported via Khyber Pakhtunkhwa’s Land Border Customs Stations and has no additional ramifications.
This FBR judgment aligns the import value of Afghan-origin coal with market circumstances to provide fair and accurate customs assessments for this vital industrial resource.