Pakistan’s Directorate General of Customs Valuation (DGCV) has revised the customs values of iron, steel scrap, and other metals under section 25(9) of the Customs Act 1969.
After fixation of values of steel products for sale taxes by the FBR (Federal Board of Revenue) in August, the DGCV revised the customs values of iron, steel scrap, and other metals, according to official notification. The minimum customs value of iron and steel scrap including shredded, HMS, Press bundle, etc from all origins will be at $530/mt cnf basis which shall be assessed for duty and taxes. The value for motor scrap imports is fixed at $620/mt cnf.
From June 29 to July 29, the government held meetings with various stakeholders including the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Karachi Chamber of Commerce and Industry (KCCI), Pakistan Association of Large Steel Producers, Pakistan Steel Melter’s Association and Pakistan Steel Re-Rolling Mills Association.
Importers were facing problems during the clearance stage with the earlier price reference of London Metal Bulletin (LMB) which has only shredded prices. For other types of scrap like HMS, re-rollable, compressor, motor, there was no published price mechanism.
After extensive discussion over the possible ways to fix the customs values for both re-meltable and re-rollable the customs department revised custom values of metal scrap including ferrous and nonferrous materials.