FBR overhauls customs values of Aluminum Hydroxide vide VR No.2108/2026

KARACHI: The Directorate of Customs Valuation has issued Valuation Ruling No. 2108 of 2026 under Section 25A of the Customs Act, 1969, determining new customs values for industrial and pharmaceutical grades of the imported product. The new ruling supersedes Valuation Ruling No. 819/2016, dated March 4, 2016, following a review of international prices, recent import trends and other relevant factors. A meeting with importers and other stakeholders was held on September 24, 2026, as part of the re-determination exercise. FBR reviews customs values after 10 years The customs authorities initiated the fresh valuation exercise after noting that the previous ruling had remained in force for more than 10 years. The Directorate said the passage of time warranted a review of the existing values in light of changing international market conditions and evolving import patterns. Relevant stakeholders were invited to submit their views and documentary evidence in support of their positions on appropriate customs values. During the consultation process, importers maintained that the customs values under the previous framework were below prevailing international prices. They said their declared import values were higher than the determined customs values and reflected prevailing international market rates. Importers requested that the revised values be determined using import data from the preceding 90 days, along with current international price trends. They were subsequently asked to provide supporting documents, including invoices, contracts, price lists and other verifiable evidence. Separate values set for industrial and pharmaceutical grades After examining the available information, the authorities analysed import data covering the preceding 90 days and reviewed international price trends highlighted by stakeholders. The Directorate noted that Aluminum Hydroxide/Alumina Hydrate is primarily an industrial product and is not readily available in the domestic market. As a result, it said a meaningful local market inquiry could not be conducted. The imported goods were also examined according to their grades. The analysis established that both industrial-grade and pharmaceutical-grade products are imported into Pakistan. The FBR therefore decided to establish separate customs values for the two categories to facilitate consistent and transparent assessment at the time of clearance. New customs values notified Under the new ruling, the customs value for industrial-grade Aluminum Hydroxide/Alumina Hydrate originating from China has been fixed at US$0.40 per kilogram. For pharmaceutical-grade Aluminum Hydroxide/Alumina Hydrate imported from India, the customs value has been determined at US$2.84 per kilogram. Both products fall under PCT heading 2818.3000, with separate WeBOC classifications prescribed for the relevant grades. Higher transaction value to prevail The ruling also clarifies how customs authorities should assess consignments where the actual transaction or invoice value is higher than the newly determined customs value. Where the transaction value or the value shown on the relevant invoice exceeds the customs value prescribed under the ruling, assessment will be carried out on the higher value, in accordance with sub-section (1) of Section 25 of the Customs Act, 1969. The provision ensures that the valuation ruling does not operate as a ceiling where the actual import value is higher. Air freight adjustment prescribed The FBR has also specified separate treatment for consignments imported by air. In such cases, the difference between air freight and sea freight will be added to the value for assessment purposes. The new valuation ruling applies to the descriptions and specifications of Aluminum Hydroxide/Alumina Hydrate covered by the prescribed categories. The HS/PCT codes mentioned in the ruling are stated to be for illustrative purposes. The Directorate has directed the relevant Customs Collectorates to ensure implementation of the revised valuation ruling. Any anomaly identified during implementation is to be brought immediately to the notice of the Directorate of Customs Valuation for appropriate consideration. The revision marks the FBR's first major re-determination of customs values for these products since the 2016 ruling, updating the assessment framework in light of more recent import data and international market conditions.