FBR revises customs values

The Federal Board of Revenue (FBR), through the Directorate General of Customs Valuation Karachi, has introduced major revisions to customs values on a wide range of imported paper products. The updated valuation rulings—covering uncoated offset paper, self-adhesive sticker sheets, non-carbon releasing paper, art card, coated boards, and lightweight coated papers—aim to align local customs assessments with the prevailing prices in the international market. This update comes after various stakeholders requested a fresh review due to significant fluctuations in global paper prices.

With the new rulings, customs values on several categories of imported paper have been increased by 15% to 20%, impacting importers, wholesalers, printers, publishers, and the wider paper-dependent industries of Pakistan. The revisions highlight FBR’s efforts to maintain transparency and standardization under Section 25 and Section 25A of the Customs Act, 1969. The policy adjustments ensure fair valuation as international prices continue to change rapidly.

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Background: Why FBR Revised Customs Values

This latest development follows repeated requests from industry stakeholders who argued that existing customs values were outdated and not aligned with global trends. Imported paper products have experienced price volatility over the past two years due to supply chain disruptions, higher freight costs, and raw material shortages worldwide.

To address these concerns, the Directorate General undertook a comprehensive evaluation exercise. This included market surveys at retail and wholesale levels, analysis of import data, and price comparison with regional and international benchmarks. The new values issued under separate valuation rulings were formulated based on this detailed assessment.

The focus keyword FBR revises customs values underscores the authority’s ongoing efforts to keep customs assessments updated and reflective of real-time pricing.

Revised Values for Uncoated Offset Paper (Ruling 1716/2022)

The first major revision applies to uncoated offset paper used widely for writing, printing, and photocopying. Previously, its customs values were determined under Valuation Ruling 1532/2021. However, due to rising prices in global paper markets, stakeholders requested a fresh evaluation.

Imports originating from Australia, Brazil, China, Indonesia, Singapore, Japan, Thailand, and Russia are now subject to the newly increased customs values. During the assessment process, the Directorate inspected local wholesale and retail markets to record actual selling prices. Data gathered from importers and major paper distributors played a vital role in setting the new values.

This paper grade is essential for offices, educational institutions, printing presses, and the publishing sector. With the revised values, the cost of locally sold printing paper is expected to rise, potentially affecting printing and educational material pricing in the coming months.

Revised Values for Self-Adhesive Sticker Paper (Ruling 1715/2022)

A second ruling has updated the customs values on branded self-adhesive sticker paper, which is widely used in packaging, labeling, corporate branding, and retail applications. The previous values were assessed under Valuation Ruling 1533/2021.

Imports from China, Indonesia, Australia, Brazil, Singapore, Japan, Russia, and Thailand are now subject to revised valuation standards. The Directorate initiated the re-evaluation after stakeholders noted that the earlier values did not match current international rates.

With global demand for packaging materials increasing—especially due to e-commerce expansion—prices of adhesive paper products have risen. The updated customs values reflect this market movement and are intended to curb under-invoicing while maintaining fair competition among importers.

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Revised Values for Non-Carbon Releasing & Coated Papers (Ruling 1717/2022)

The third valuation ruling addresses several other essential paper categories, including:

• Non-Carbon Releasing Paper (NCR Paper)

• Art Card

• Coated Board

• Coated Paper

• Lightweight Coated Paper (LWC)

These are heavily used in packaging industries, graphic design, advertising materials, notebooks, brochures, book covers, calendars, business cards, and premium printing.

Previously valued under Valuation Ruling 1534/2021, these imports from China, Indonesia, Korea, Japan, and Europe have now been re-evaluated. Stakeholders again debated that the older valuations were no longer aligned with global prices, prompting FBR to undertake the necessary review.

The rise in customs values for coated and premium-quality papers will particularly affect packaging companies and printing houses, potentially increasing the cost of finished goods such as cartons, promotional materials, and commercial prints.

Methodology of Determination Under Section 25/25A

To implement accurate and fair customs valuations, FBR follows a statutory sequence outlined in Section 25 of the Customs Act, 1969. The re-evaluation for these paper products involved:

• Market surveys of retail and wholesale sectors

• Collection of price data from importers and local distributors

• Comparison of local market rates with international indices

• Analysis of past import declarations and invoice values

• Examination of global price trends and supply chain conditions

This comprehensive approach ensures that customs values remain consistent with real-world pricing and eliminate under-invoicing or misdeclaration in the import sector. This aligns with the overall goal of ensuring transparency, a key component of the FBR revises customs values initiative.

Impact on Markets and Industries

The 15% to 20% increase in customs values will have immediate implications across the supply chain:

1. Importers

Importers will face higher duties, increasing overall landed costs. This may reduce profit margins and raise prices for wholesalers and retailers.

2. Printing and Packaging Sector

Since printing presses, publishers, and packaging companies rely heavily on imported paper, production costs will likely increase. Businesses that depend on bulk printing—such as publishers of textbooks, newspapers, promotional materials, and packaging firms—may observe significant cost pressure.

3. Retail Prices

Consumers may see price hikes on notebooks, textbooks, stationery items, brochures, and packaging materials.

4. Local Manufacturers

While importers may experience challenges, local paper producers could benefit from reduced competition. Higher customs values may encourage buyers to source paper domestically.

Conclusion

The latest FBR initiative reflects the need for timely updates in customs valuations, especially in sectors affected by fluctuating global prices. By revising customs values across multiple paper categories, the Directorate aims to ensure transparency, curb under-invoicing, and harmonize local assessments with international market conditions.

As FBR revises customs values, importers and industry players must adapt to the newly adjusted rates, which are expected to influence pricing structures across printing, packaging, and retail sectors. While the updated valuations may increase short-term costs, they contribute to fairer market practices and greater regulatory compliance in the long run.