Pakistan removes minimum price on Sri Lankan MDF boards
ECONOMYNEXT – Pakistan has removed a minimum price imposed on Sri Lankan Medium Density Fiberboard (MDF Board), a major export product representing nearly 10 percent of Sri Lanka’s total exports to Pakistan, the commerce ministry said.
Sri Lanka is the second largest supplier of MDF to Pakistan after Malaysia as Sri Lankan exporters have been enjoying duty free market access under the Pakistan – Sri Lanka Free Trade Agreement (PSFTA).
“However, Pakistani authorities placed a valuation rule (the minimum value) for all MDF Board imports (called) ‘Import Trade Price’ in order to eliminate the under-invoicing,” a statement said.
Initially, the valuation rule applied across the board to all countries and later the Pakistani authorities introduced a new valuation rule which discriminates against Sri Lanka compared with other exporting countries.
After considering the appeal made by Sri Lankan authorities, the Pakistan government amended the valuation ruling effective from 29th January 2016 which treats Sri Lankan MDF Boards on par with other exporting countries, the ministry said.