If you import coconut oil into Pakistan — whether in bulk tankers for your biscuit factory or in retail bottles for supermarket shelves — the Federal Board of Revenue has just changed the number on which your customs duty is calculated. Under Valuation Ruling No. 2116 of 2026, issued by the Directorate General of Customs Valuation under Section 25A of the Customs Act, 1969, the FBR has set fresh origin-based customs values for imported coconut oil, replacing the earlier Valuation Ruling No. 2042 of 2026 dated 10 February 2026.

The new values took effect with the ruling's issuance (reported on 21 October 2026), and customs collectorates across the country have been directed to apply them immediately. More importantly for importers who think the numbers are wrong, the law gives you a short, strict window to object: a revision petition under Section 25D of the Customs Act, 1969, filed within 30 days before the Director General of Customs Valuation in Karachi.

This article explains the new rates in full, how customs valuation actually works in Pakistan, what the ruling does to your duty bill, and — step by step — how to exercise your 30-day right of revision if you believe the FBR has got your product's value wrong.

The New Rates: The Full Table

The ruling fixes cost-and-freight (C&F) customs values in US dollars per kilogram, separately for bulk-packed and retail-packed coconut oil, and separately by country of origin:

Bulk-packed coconut oil (USD per kg, C&F):

  • Philippines and Indonesia: $1.92
  • Malaysia: $1.97
  • Sri Lanka: $2.23
  • Other origins: $2.32

Retail-packed coconut oil (USD per kg, C&F):

  • Philippines and Indonesia: $2.12
  • Malaysia: $2.17
  • Sri Lanka: $2.43
  • Other origins: $2.52

A few points to note about the table. First, C&F means "cost and freight" — the price of the goods plus the freight cost of shipping them to Pakistan, but excluding insurance. It is the standard valuation basis the Directorate uses for these rulings. Second, the values apply to coconut oil falling under HS code 1513.1900 (the Harmonized System classification — the international numbering system customs uses to identify products). Third, virgin and extra virgin coconut oil are expressly excluded from this ruling because of their premium quality — they are assessed on their own, higher values, not on these rates.

The pattern in the numbers is worth noticing: retail-packed oil is valued exactly 20 US cents per kg higher than bulk from the same origin (for example, $2.12 versus $1.92 for Philippines/Indonesia), reflecting the added cost of consumer packaging. And Sri Lankan oil is valued notably higher than Southeast Asian oil — $2.23 versus $1.92 in bulk — a gap that, as we will see, was one of the specific issues debated before the ruling was issued.

Why the FBR Changed the Values

Valuation rulings are not pulled out of thin air, and this one has a documented trail. According to the reports, the Directorate General of Customs Valuation revised the values after a review of international market prices and representations from importers — including specific representations that coconut oil originating from Sri Lanka differed from the products reflected in international price data.

Before finalising the ruling, the Directorate held a stakeholder meeting on 6 October 2026, attended by commercial importers and representatives of the Pakistan Biscuits & Confectionery Manufacturers Association — the industry body for the biscuit and confectionery makers who are among the largest bulk buyers of coconut oil in the country. The Directorate examined import data and consulted published values from the Coconut Development Authority of Sri Lanka and other sources before settling the figures.

This consultation process is normal and important: the law expects the valuation authorities to hear the trade before fixing values that will determine everyone's duty bill. It is also why the ruling can still be challenged — the Directorate's view of the market is an administrative determination, not an unquestionable fact, and Section 25D exists precisely so importers can put a different view of the market before a higher authority.

How Customs Valuation Works in Pakistan

To understand what Valuation Ruling 2116/2026 does to your consignment, you need the basic architecture of customs valuation under the Customs Act, 1969. There are two provisions that matter, and importers constantly confuse them.

Section 25 — the transaction value (the normal rule)

Section 25 of the Customs Act, 1969 sets out the methods for determining the customs value of imported goods. The starting point, under Section 25(1), is the transaction value: the price actually paid or payable for the goods when sold for export to Pakistan, adjusted as the law provides. In plain terms, the normal rule is that duty is charged on what you actually paid for the goods, as shown on your invoice.

But the law recognises that invoice values cannot always be trusted or may not reflect a genuine market price — under-invoicing to evade duty is one of the oldest games in international trade. So Section 25 provides a sequential ladder of fallback methods to be applied in order when the transaction value cannot be used: the value of identical goods (Section 25(5)), the value of similar goods (Section 25(6)), a market enquiry into the price of the goods in the market (Section 25(7)), and further methods after that. The key word is sequential: the assessing officer is supposed to try each method in order, not jump to whichever produces the highest number.

Section 25A — valuation rulings (the benchmark rule)

Section 25A gives the Director General of Customs Valuation the power to determine the customs values of imported (and exported) goods and to issue them as valuation rulings. A valuation ruling fixes a benchmark value for a described product — like the coconut oil table above — and customs collectorates then assess consignments of that product at the ruling value.

In practice, the ruling values function as minimum benchmark values: if your declared invoice value is below the ruling value, duty is assessed on the ruling value, not your invoice. The ruling remains in force until it is rescinded or revised under Section 25A — which is why old rulings like VR 2042/2026 get formally superseded when a new one issues.

So which one applies to your consignment?

Both, in a specific relationship. The valuation ruling sets the floor. Your invoice sets the ceiling question: as the FBR has clarified for this very ruling, where the declared or invoice value is higher than the customs value in the ruling, assessment is made on the higher value under Section 25(1) — and such cases may additionally be referred to the Directorate General of Customs Valuation. In other words:

  • Invoice value below the ruling value → assessed at the ruling value.
  • Invoice value above the ruling value → assessed at the invoice value (Section 25(1)), with a possible referral to the Directorate.

And one more essential distinction: a valuation ruling does not change the duty rate. The rates of customs duty, sales tax and other levies come from the customs tariff and the tax statutes. The ruling only sets the value on which those rates are applied. A higher valuation means a higher duty bill at the same rate — which is exactly why importers care so much about these numbers.

What the Ruling Does to Your Duty Bill: Worked Examples

Let us make the table concrete. All figures below are in US dollars per kilogram on a C&F basis; the actual duty is computed on the rupee equivalent at the prevailing exchange rate, at the tariff rates applicable to HS 1513.1900.

Example 1 — a bulk consignment from Indonesia. A 20,000 kg (20-tonne) bulk shipment of coconut oil from Indonesia is now valued at 20,000 × $1.92 = $38,400 C&F for customs purposes, regardless of a lower invoice. The same 20 tonnes from Sri Lanka would be valued at 20,000 × $2.23 = $44,600 — a difference of $6,200 per container attributable purely to origin. If your supply chain can genuinely source from the Philippines or Indonesia at the lower genuine price, the origin spread in the ruling is worth real money.

Example 2 — bulk versus retail packing. The same 20,000 kg from Indonesia, if imported retail-packed for direct sale, is valued at 20,000 × $2.12 = $42,400 instead of $38,400 — a $4,000 premium reflecting consumer packaging. If you are deciding between importing in bulk and packing locally versus importing finished retail packs, the valuation gap is now a line item in that commercial decision.

Example 3 — invoice above the ruling. Suppose your genuine, documented purchase price for premium-grade (non-virgin) bulk coconut oil from Malaysia is $2.10/kg — above the ruling's $1.97. Under Section 25(1), your consignment is assessed at $2.10, your actual invoice value, not the ruling value. The ruling is a floor, not a ceiling — and the FBR may refer the case to the Directorate General to examine why your price exceeds the benchmark.

Practical tip: Keep your contracts, letters of credit, bank payment records and supplier invoices meticulously for every consignment. If your invoice is above the ruling value, those documents are your proof of the genuine transaction value under Section 25(1). If your invoice is below it and you believe the ruling value is too high, those same documents are the evidence base for your Section 25D revision petition.

Your 30-Day Right to Object: The Section 25D Revision Petition

This is the most important section of this article for importers who disagree with the new values. The law does not leave you at the mercy of the Directorate's table — but it gives you a short clock.

The right

Section 25D of the Customs Act, 1969 provides that a revision petition against a valuation ruling may be filed within 30 days before the Director General, Directorate General of Customs Valuation, Karachi (the Directorate sits at the 7th Floor, Custom House, Karachi). The petition asks the Director General to revise the values fixed in the ruling.

For Valuation Ruling 2116/2026, reported on 21 October 2026, the 30-day window runs to roughly the third week of November 2026. Confirm the exact deadline from the ruling document itself — the 30 days run from the ruling's date, and missing the deadline by even a day can close this particular door. Treat the deadline as immovable.

How to file it — a practical checklist

  1. Engage counsel or a customs clearing agent experienced in valuation matters now, not in week four. A revision petition is a technical legal document, and the evidence must be organised, not dumped.
  1. State precisely what you are challenging. Identify the ruling (Valuation Ruling No. 2116 of 2026), the product description and HS code (1513.1900), and the specific values you dispute — for example, the $2.23/kg bulk value for Sri Lankan origin, or the retail-pack values generally.

3. Attach your evidence of the real market price. This is the heart of the petition. Relevant material includes: - Your recent import invoices, contracts and letters of credit for the same product; - Bank payment records proving the prices actually paid; - Published international price data for coconut oil (commodity exchange quotations, trade publications); - Price data from origin-country authorities — note that the Directorate itself relied on the Coconut Development Authority of Sri Lanka, so countervailing data from the same or similar authoritative sources carries weight; - Evidence of quality or specification differences, if your product differs from what the ruling assumes.

  1. Explain the methodology error, if any. If you contend the Directorate applied the wrong valuation method, relied on unrepresentative data, or ignored the stakeholder representations (such as the Sri Lanka quality/price difference raised before the 6 October meeting), say so specifically, with reference to Sections 25 and 25A.
  1. File within the 30 days and keep proof of filing. File at the Directorate General of Customs Valuation, Karachi, obtain a dated receipt, and keep copies of everything.

What happens after you file

The Director General hears the petition and issues an Order-in-Revision. This is a real remedy with a real track record: for example, an earlier valuation ruling on tyres and tubes (VR 1958/2025) was challenged under Section 25D, and the Director General, through an Order-in-Revision, remanded the matter to the Directorate for a fresh determination of values — directing a re-examination of origins and international price trends. Outcomes vary by case, but the mechanism is substantive, not ceremonial.

If the revision goes against you

The revision petition is not the end of the road. The Customs Act provides a tiered appeal structure: if you are dissatisfied with the Director General's order, an appeal lies to the Customs Appellate Tribunal (commonly called the CAT) — for valuation matters, within 60 days of the Director General's order — and from the Tribunal, on substantial questions of law, to the High Court. Each tier has its own strict deadline, so calendar every one of them the day the Order-in-Revision is received.

What if you miss the 30 days?

Then this particular remedy is gone for this ruling. The ruling continues to apply to your consignments until it is rescinded or revised under Section 25A. That does not mean you are without any option ever again — valuation rulings are periodically revisited, and importers can make representations when the next review exercise begins — but for this ruling, the 30-day petition is the designated challenge, and there is no substitute for filing it on time.

A Note on the Sri Lanka Question

The most commercially significant feature of this ruling may be the Sri Lanka differential: $2.23/kg bulk for Sri Lankan origin versus $1.92 for Philippines/Indonesia — a 31-cent gap, or roughly 16 per cent. The reports indicate that importers specifically represented that Sri Lankan coconut oil differs from the products in international price data, and that the Directorate consulted the Coconut Development Authority of Sri Lanka before fixing the figure.

If you import from Sri Lanka and believe $2.23 overstates the genuine C&F price of your product, you are precisely the kind of importer Section 25D was written for. Your petition should marshal origin-specific evidence: Sri Lankan export price data, your own contracts with Sri Lankan suppliers, freight differentials, and any quality specifications showing what your oil actually is. Generic complaints about "high values" rarely move a revision; origin-specific, document-backed pricing analysis does.

Conversely, if you import from the Philippines or Indonesia, note that your $1.92 bulk value is the lowest in the table — the ruling is relatively favourable to Southeast Asian origins, which is consistent with those countries' position as the world's lowest-cost coconut oil producers.

Frequently Asked Questions

Q: What exactly is Valuation Ruling No. 2116 of 2026? A: A: It is a ruling issued by the Directorate General of Customs Valuation under Section 25A of the Customs Act, 1969, fixing the customs values (in USD per kg, C&F) for imported coconut oil by packing type and country of origin. It supersedes the previous ruling, VR No. 2042 of 2026 dated 10 February 2026. Customs collectorates use these values as the benchmark for assessing duty on coconut oil consignments.

Q: Does the ruling apply to virgin and extra virgin coconut oil? A: A: No. The ruling expressly excludes virgin and extra virgin coconut oil because of their premium quality. Those products are assessed on their own values, not on the $1.92–$2.52/kg table. If you import virgin or extra virgin grades, make sure your goods declarations and supporting documents clearly establish the grade so they are not mistakenly assessed under this ruling.

Q: My invoice price is higher than the ruling value. Which value will customs use? A: A: The higher one. The FBR has clarified that where the declared or invoice value exceeds the customs value in the ruling, assessment is made on the higher value under Section 25(1) of the Customs Act, 1969 — the transaction-value rule. Such cases may also be referred to the Directorate General of Customs Valuation. Keep your contracts, LC and bank payment records ready to substantiate the genuine price.

Q: How do I file a revision petition under Section 25D, and by when? A: A: File a revision petition before the Director General, Directorate General of Customs Valuation, Custom House, Karachi, within 30 days of the ruling. For VR 2116/2026 (reported 21 October 2026), that means roughly the third week of November 2026 — verify the exact date on the ruling document. Attach your import invoices, contracts, LC and payment records, published international price data, and any origin-specific evidence. File through experienced counsel or a customs agent, and keep a dated receipt.

Q: What can the Director General do with my revision petition? A: A: The Director General issues an Order-in-Revision, which can uphold the ruling, modify the values, or remand the matter to the Directorate for a fresh determination — as happened with an earlier tyres and tubes valuation ruling that was sent back for re-examination of origins and price trends. If the order goes against you, you can appeal to the Customs Appellate Tribunal (within 60 days) and thereafter to the High Court on questions of law.

Q: Does a valuation ruling change the duty rate on coconut oil? A: A: No. A valuation ruling only fixes the value on which duty is calculated; the rates of customs duty, sales tax and other taxes come from the customs tariff and the tax laws. A higher valuation increases your duty bill at the same rate — which is why the valuation number, not just the tariff rate, deserves your attention.

Q: I missed the 30-day deadline. Is there anything I can do? A: A: The Section 25D revision remedy for this ruling is time-barred once the 30 days expire, and the ruling will continue to govern your consignments until rescinded or revised under Section 25A. Your practical options are to ensure future consignments are documented at genuine transaction values (so Section 25(1) protects you where your price is higher), and to make representations with supporting data when the Directorate next reviews coconut oil values. Do not let the next deadline pass.

Q: Why are there different values for different countries? A: A: Because coconut oil prices genuinely differ by origin — production costs, quality characteristics, freight routes and market structures vary between, say, the Philippines and Sri Lanka. The Directorate's stakeholder process (including the 6 October 2026 meeting and consultation with the Coconut Development Authority of Sri Lanka) is meant to capture those differences. If you believe the origin differential for your source country is wrong, that is a proper ground for a Section 25D petition supported by origin-specific price evidence. --- ## The Bottom Line Valuation Ruling No. 2116 of 2026 resets the customs value of imported coconut oil in Pakistan with a detailed, origin-based table — $1.92 to $2.32 per kg for bulk and $2.12 to $2.52 for retail-packed, on a C&F basis, under HS code 1513.1900, with virgin and extra virgin grades excluded. It replaces the February 2026 ruling and is already being applied by customs collectorates. For importers, the immediate task is arithmetic: re-price your landed cost against the new table, check the origin spread for your supply chain, and remember that an invoice above the ruling value means assessment at your invoice value under Section 25(1). But the deeper point of this article is procedural. The customs valuation system gives the Directorate the power to fix benchmark values under Section 25A — and in the same breath, it gives you the right to challenge them under Section 25D within 30 days before the Director General in Karachi. That right is real, it has produced remands and revisions in past cases, and it expires quickly. If the new coconut oil values do not reflect the genuine market price of what you import, assemble your invoices, contracts and price data and file the petition now. In customs law, as in much else, the importers who read the ruling on day one are the ones who still have remedies on day thirty. This article provides general legal information for readers in Pakistan about customs valuation and Valuation Ruling No. 2116 of 2026 — it is not legal advice. Valuation and appeal matters turn on their specific facts and documents; consult a qualified advocate or customs consultant before filing a revision petition.

The Bottom Line

This article provides general legal information for readers in Pakistan and is not legal advice. For advice about your own situation, consult a qualified advocate.