Pakistan Links Steel Scrap Import Value with LME
Tribune reported that Pakistan’s customs authorities have linked the value of steel scrap with the London Metal Bulletin in a bid to avoid confusion at the
Tribune reported that Pakistan’s customs authorities have linked the value of steel scrap with the London Metal Bulletin in a bid to avoid confusion at the time of goods clearance at ports. The Customs Valuation, Karachi Directorate-General issued valuation ruling number 1,517 that linked the value of steel scrap with the London Metal Bulletin. The notification said the decision is made to resolve the problems importers face at the clearance stage because the international market fluctuated according to demand and supply and prices of scrap were also published in the London Metal Bulletin for Pakistani importers.
There are two systems for the valuation of imported goods under Section 25 of the Customs Act. One is ITP (import trade price) system, in which a minimum price is fixed and goods are assessed based on the ITP or declared price in the invoice/ LC (letter of credit, whichever is higher. The second is LMB system, which shows the value of goods as per the London Metal Bulletin on the date of opening the LC or based on the value declared in LC, whichever is higher.
Pakistan Association of Large Steel Producers has lauded the customs’ decision. Welcoming the decision, the steel industry expressed optimism that more export-friendly initiatives would be taken by the customs department to facilitate manufacturers.