ISLAMABAD: Directorate General of Customs Valuation Karachi has fixed new Customs values on the import of Soyabean Meal (Non-Genetically Modified Organism-GMO) at USD 0.50 per kg from all origins.
In this regard, the directorate has issued a new ruling on Wednesday with detailed analysis of GMO and non-GMO Soyabean Meal.
According to the ruling, Soyabean Meal (Non-GMO) is imported into Pakistan from different origins and there is wide variation in declared values. The import value of this item during the six months (from July-December 2023) was Rs 21.32 billion. Since, the import of Soyabean Meal (Non-GMO) has increased substantially and the determination of customs values of this item is not done under section 25A of Customs Act, 1969, an exercise has been undertaken by this directorate to determine the same in line with values prevalent in the international market.
The ruling further revealed that meetings were convened with the stakeholders including Pakistan Poultry Association. The issues pertaining to the valuation of subject goods were deliberated upon in detail in the afore-referred meetings. The participant also submitted their import documents i.e GDs, Invoices, Packing Lists etc and the same were considered for valuation of the subject goods. During the meetings, the importers shared their viewpoints. The Soyabean Meal is produced as a by-product of Soyabean oil Extraction and it is used in animal feed and food, principally as a food supplement. Currently, there are 2 types of soyabeans, namely GMO soyabeans, and non-GMO soyabeans. The GMO soyabeans are soyabeans that have undergone genetic engineering for a specific purpose. Non-GMO soyabeans are soyabeans that do not have genetic engineering and still have natural properties.
The price rate of Soyabean Meal of Non-GMO based is higher than that of GMO based and the price difference between them is around 30%. Due to GMO (Genetically Modified Organism) technology, crop yield has been increased in less cultivated area and other costing factors like water use during cultivation, is also minimized. GMO Soyabean Meal is mostly produced in USA, Argentina and Brazil. These 3 countries constitute 95% production of GMO Soyabean Meal while Non-GMO Soyabean Meal is mainly produced in African region. At present, Non-GMO Soyabean Meal is being imported into Pakistan.
The importers also confirmed that Afghanistan and Iran are not producers of Soyabean Meal and they have no impact regarding determination of values in international market. Moreover, they are also importing Soyabean Meal from other countries. The importers also briefed about the current price range of Soyabean Meal (NonGMO) and, as per their figure, it varies from 520 USD/MT to 600 USD/MT in the.
They further added that the Customs Values of Soyabean Meal (Non-GMO) from African region should be around 500 USD/MT and it would be feasible for all of the importers and the margin in customs values should be given on the basis of protein content and crop yield etc. The importers also requested to consider other factors like crop yield analysis, demand/supply and protein content variation in Soyabean Meal while determining the Customs values of Soyabean Meal.
The importers informed that prices of Soyabean Meal frequently change in the International Market; therefore, these values should be revised whenever there is significant change in these prices. Further, they informed that due to restriction import of GMO Soyabean Meal in Pakistan, prices of Non-GMO Soybean Meal a high and whenever such restrictions will be removed, prices of NO-GMO will also decline.
Subsequently, prices retrieved from the international publication, namely Food and Agriculture Commodity (Formerly Public Ledger) showing price trend of the subject goods in the international market, have also been examined. Moreover, Afghan Transit Trade data for the period from July 1, 2022 to Feb 25, 2024 has been analyzed. After analysis, it has transpired that Soyabean Meal is mostly imported from India by Afghanistan through Afghan Transit Trade (95%) and the item is being assessed mostly at the Customs Values of 0.60 USD/kg while the Import Data showed that Soyabean Meal (Non-GMO) exported to Pakistan from Afghanistan is being assessed currently at the Customs value of 0.271 USD/kg. Moreover, through Afghan Transit Trade, the import value has increased from Rs 66.74 million (in 2021-22) to Rs 9108.18 million in 2022-2023. Further, import data of Soyabean Meal for past four financial years has also been analyzed and it has transpired that, in Pakistan, there was no import of Soyabean Meal from Afghanistan and Iran before the last 2022-23 and it has increased significantly since the start of 2023, ruling added.
Copyright Business Recorder, 2024