FBR sets new customs values for milk product imports

May 27, 2024 (MLN): The Federal Board of Revenue's (FBR) Directorate General of Customs Valuation Karachi has fixed new customs values on the import of “Skimmed Milk Powder and Instant Milk Powder” from New Zealand, Australia, Europe, Canada, USA, Turkey, and Iran.

The new customs value are applicable on the import of Skimmed Milk Powder (in Retail Packing up to 5Kg per pack); Skimmed Milk Powder (in Bulk Packing); Instant Milk Powder with vegetable fat (in Retail Packing up to 5kg per pack), and Instant Milk Powder with vegetable fat (in bulk packing).

To note, reduction of 10% would be admissible on total of above value on account of freight charges, If goods are imported through land route, a notice issued by the FBR showed.

The existing valuation ruling was around two years old and the Customs values determined therein were not reflective of prevailing international market.

Therefore, an exercise has been undertaken by this Directorate to determine the same.

To determine the new Customs values, stakeholders submitted that prices have shown downward trend in international market since the issuance of last Valuation Ruling dated April 27, 2022.

It was pointed out that mostly skimmed milk powder is imported in bulk and is used mainly in preparation of confectionery items.

Analysis/Exercise done to determine Customs Values showed that important macroeconomic indicators, which can affect the value and import quantum of the subject goods, have been analyzed.

For instance, the exchange rate of Pakistan Rupees vis-a-vis US Dollar was 190.55 when the previous Valuation Ruling was issued. However, currently this rate is at 278.10.

Subsequently, market inquiry has been conducted.

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