FBR has updated customs values for imported branded mineral and sparkling water to ensure fair valuation, protect revenue, and align prices with market reality.
Which Brands and Products Are Covered
The Federal Board of Revenue (FBR), through the Directorate General of Customs Valuation in Karachi, has issued new customs values for the import of eight categories of branded mineral and sparkling water. The revised rates, notified via Valuation Ruling No. 2049 of 2026, are intended to bring declared values closer to actual market conditions and to prevent revenue loss on high-end bottled water imports.
According to officials, the updated customs values apply to well-known branded mineral water labels such as Masafi, Mai Dubai, Evian, Acqua Panna and other similar imported brands. The ruling also covers sparkling mineral water brands including Perrier, San Pellegrino and competing products in the same premium segment. In total, eight main product categories have been identified for valuation purposes.
For customs assessment, the products have been broadly divided into two groups: natural mineral water and sparkling mineral water. This distinction helps customs officials compare like with like, since the production process, brand positioning and typical retail prices can differ significantly between still and sparkling variants.
Why FBR Reviewed Customs Values for Bottled Water
The Directorate of Customs Valuation observed that previous imports of certain branded mineral and sparkling waters were being cleared at values that appeared lower than the actual market reality. This raised concerns that under-valuation could be taking place, resulting in lower customs duties and taxes than what should legally be collected on these luxury and premium products.
To address these concerns and ensure uniform treatment at all ports, the Directorate initiated a formal exercise under Section 25A of the Customs Act, 1969. Importers, trade bodies and other stakeholders were invited to submit documentary evidence, including invoices, contracts and market price lists, and were given an opportunity to present their views during the valuation proceedings.
Importers advocated that their declared transaction values were genuine and in line with recent supply and demand trends. They also shared retail price information and requested that a market survey be carried out to verify that their invoices did not reflect under-invoicing. In response, the Directorate conducted a detailed review of import data for the previous 90 days, cross-checking quantities, unit prices and country of origin for the products involved.
How the New Customs Values Were Determined
Customs officials then applied the valuation methods laid down in Section 25 of the Customs Act, 1969, moving step by step. The transaction value method was examined first but could not be fully applied in some cases due to missing or inconsistent information. The values of identical and similar goods were also considered, yet these too were not always reliable because of differences in purity, brand positioning and price volatility across different origins.
As a result, the Directorate proceeded to conduct a market enquiry under Section 25(7). This included visits to local markets, consultations with retailers and wholesalers, and checks against online price listings. By combining this field research with import data and brand specifications, the authorities arrived at new customs values that better reflect prevailing market levels for imported mineral and sparkling water.
Officials emphasise that the updated valuation tables are designed to ensure uniformity across customs stations and to protect government revenue, rather than to target any particular importer. However, traders bringing in premium bottled water may see higher assessable values compared to previous consignments, which can translate into higher customs duties and taxes at the time of clearance.
Impact on Importers, Retailers and Consumers
For retailers and hospitality businesses that stock imported mineral and sparkling water, the change could lead to some upward adjustment in shelf prices, particularly for high-end brands. The exact impact on consumers will depend on how much of the additional tax burden is passed on in retail pricing and how competition from local or lower-priced alternatives plays out in the market.
From the government’s perspective, the revised customs values are meant to close gaps that allow under-valuation, create a level playing field for compliant importers and make sure that luxury consumption reflects its fair share of taxation. Authorities say the ruling is part of a broader effort to tighten valuation of branded and high-value consumer goods, ensuring that customs assessments are transparent, consistent and aligned with actual market conditions.
