KARACHI: The Federal Board of Revenue has issued a new valuation ruling to determine customs values for imported beverages of foreign brands, aiming to streamline duty and tax collection at the import stage.
The ruling, issued by the Directorate General of Customs Valuation in Karachi, updates the customs values for aerated waters and soft drinks imported from all origins. The move replaces the outdated Valuation Ruling No. 974/2016, which had remained in effect for over nine years.
Brands Covered Under New Valuation
The updated ruling—Valuation Ruling No. 2052/2026—applies to a wide range of globally recognized beverage brands, including Pepsi, Coca-Cola, Mirinda, Fanta, Sprite, and 7UP. It also includes flavored drinks such as Kinza, Glinter, Freez, and tonic beverages under the Schweppes label, along with other international brands.
Why the Revision Was Needed
According to officials, the previous valuation framework had become outdated due to evolving global market dynamics, introduction of new brands, and changing import patterns. To ensure transparency and accuracy, the Directorate initiated a fresh valuation exercise involving extensive stakeholder consultations.
Importers and industry representatives maintained that their declared transaction values were genuine and aligned with international trends, rejecting concerns of under-invoicing. They also emphasized the need to incorporate emerging brands into the valuation system to keep it relevant.
Methodology and Evaluation Process
The customs authorities conducted a detailed analysis of import data from the past 90 days, alongside reviewing documents submitted by stakeholders. Market surveys and online price comparisons were also carried out to verify actual retail and wholesale prices.
The valuation process followed the legal framework outlined under Section 25 of the Customs Act, 1969. However, key methods—such as transaction value, identical goods, and similar goods approaches—were deemed insufficient due to inconsistencies and lack of reliable comparative data.
Ultimately, the Directorate relied on market inquiry-based valuation under Section 25(7), which involved field visits to markets and collection of real-time price data. This comprehensive approach enabled the creation of a supplier-wise database to ensure fair and transparent valuation.
Impact on Imports and Market
The revised customs values will directly impact the calculation of duties and taxes on imported beverages, potentially affecting retail prices in the local market. Importers are now required to comply with the updated benchmarks when declaring goods at customs.
Outlook
The FBR stated that the new valuation ruling reflects current international pricing trends and aligns with statutory requirements. Authorities also indicated that periodic updates will be made to keep pace with evolving market conditions and prevent revenue leakage.
