Directorate General of Customs Valuation Karachi has revised customs values on the import of six different kinds of Polyester Fabrics from China and other origins for assessment of duties and taxes.
According to a valuation ruling (1808 of 2023) issued on Monday by the directorate, the new values have been fixed on the import of unbleached polyester grey Fabric (More than 5 Sqm /Kg); unbleached Polyester Microfiber grey Faric b (Upto 5 Sqm / Kg); bleached Polyester Fabric (More than 5 Sqm / Kg); bleached Polyester Microfiber Fabric (Upto 5 Sqm / Kg) and printed Polyester Fabric (More than 5 Sqm / Kg).
The new Valuation Ruling will not apply to polyester fabrics imported by Ms. Utopia Industries (Private) Limited, under the Export Facilitation Scheme, which may please be cleared by the Collectorates under Section 25 of the Customs Act, 1969. Moreover, Regulatory Collectorates / Directorates may conduct an audit and other relevant laws/rules on a regular basis to ensure that there is no under-declaration/loss of revenue.
Earlier, the customs values of Different Polyester Fabrics were determined under Section 25A of the Customs Act, 1969 vide Valuation ruling No.1301/2018.
Representation was received from M/s. Utopia Industries (Private) Limited, for revision/re-determination of Customs values for the subject items. They contended that their imported goods are not meant for home consumption but rather for EFS (Export Facilitation Scheme).
According to them, the application of a Valuation Ruling at the import stage of duty-free goods poses a hurdle in filing an Export Goods Declaration wherein they have to mention the value addition in the assessed values of the imported goods — up to 10 percent which is causing hardship for them through mismatch values/figures. Therefore, they requested to accept their declared values as the transaction values.
In this regard, meetings with stakeholders were scheduled. The issues pertaining to the valuation of subject goods were deliberated upon in detail in the afore-referred meeting.
The importer-cum-exporter  M/s. Utopia Industries (Private) Limited contended that the values — declared by them, along with those provided to the Valuation Department through contracts/invoices— should be accepted. According to them, they are importing duties and tax-free raw materials for value addition and subsequent export.
Due to the mandatory application of Valuation Ruling No.1301/2018 in the WeBOC system on temporarily imported goods — not meant for home consumption in Pakistan — they are facing issues in getting export GDs processed especially when the ‘export value’ is lesser than the minimum criteria of value addition.
