Customs Revises Soft Drink Import Valuation

The Directorate General of Customs Valuation has issued a revised valuation ruling for imported aerated beverages and soft drinks, replacing the previously applicable framework that had remained in force since 2016.

The updated valuation applies to a broad range of branded products, including Pepsi, Coca-Cola, Mirinda, Fanta, Sprite, 7Up, Kinza, Glinter, Freez, and Schweppes, among others, irrespective of origin.

According to officials, the earlier valuation—issued under a 2016 ruling—had become outdated, necessitating a reassessment to align with current market dynamics. The Directorate undertook stakeholder consultations; however, importers maintained that their declared values were reflective of prevailing market conditions and did not involve under-invoicing.

In conducting the review, authorities analysed import data from the preceding 90 days, supplemented by market surveys and online price benchmarks. A brand-specific evaluation was also performed to account for variations in quality, pricing, and product positioning.

The Directorate assessed valuation methodologies under Customs Act 1969, including the transaction value method and other comparative approaches. However, these were deemed unsuitable due to inconsistencies in declared values and insufficient comparable data.

Consequently, customs values were determined under Section 25(7) of the Customs Act 1969, applying the market inquiry method based on wholesale and retail market surveys and prevailing price analysis.

The revised valuation framework is intended to establish a more transparent, consistent, and market-aligned basis for the assessment of duties and taxes on imported beverages.