Customs Raise Three Steel Items Import Trade Prices

KARACHI  :Customs has raised import trade price (ITP) of three major steel products by 19-34 percent, to $730 per ton on the back of rising steel prices in world market, sources said.

The decision has been taken by the Directorate General of Customs Valuation which has issued formal notification to importers, all concern departments and customs collectors of appraisement, Model Customs Collectorate (MCC) and Preventive at all sea and dry ports, they said.

The three steel products include Cold Rolled Coiled (CR), Hot Rolled Coiled (HR) and Galvanised Products (GP). Their prices have been linked with London Metal Bulletin (LMB) for valuation for duty imposition, and the present raise also has been as per LMB valuation.

The customs has raised the ITP by 109-186 dollars per ton and with current up surge in the ITP of three steel products has been mounted to new peak level. The customs has increased the HR valuation by 179 dollar per ton to 710 dollars from 531 dollars, and CR import trade price by 186 dollars per ton to 730 dollars per ton from 544 dollars.

The ITP of GP has gone up by 109 dollars per ton to 689 dollars from 580 dollars per ton. After the issuance of new ITP, the evaluation of taxation would be on the new price, which has made the steel products more costly in the market.

However, the steel importers had rejected to the new ITP and said that HR, CR and GP prices were already at highest level in the domestic market. They said that if the customs would not reduce the ITP, then prices of these products would go up by Rs 4000-5000 per ton in the local market.

“There is no reason for raise in ITP of three major steel products, as the engineering industry is already facing several problems due to the high cost of raw material,” importers said.

They said that it is more interesting that customs has increased the prices without consultation and, with new changes, raw material (HR, CR) ITP would become higher than the furnished product (GP), which never happened in the past. “We have contacted officials of customs for reduction in ITP prices and dialogue on the side issue would be held soon,” they added.

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