FBR Increases Import Tax on Chinese Chemical Used in Welding and Steel Production

The Directorate General of Customs Valuation, Karachi, has issued updated customs values for the import of Calcium Carbide from China.

The ruling replaces the earlier 2023 valuation (VR 1824-2023) after reviewing international prices and import data.

The ruling had remained in force for an extended period and required review due to changes in international market prices, import trends, declared values, and updated valuation evidence.

The directorate received several representations from stakeholders requesting a reassessment of customs values in line with prevailing global prices, import patterns, and market conditions.

Calcium Carbide is an industrial chemical widely used in the production of acetylene gas and other industrial applications.

To align customs values with current international and domestic market trends, the directorate initiated a fresh valuation exercise under Section 25A of the Customs Act, 1969.

A stakeholder consultation meeting was held, where participants presented their views and were asked to submit supporting documents. The submissions were reviewed in detail alongside available import data.

Import data for Calcium Carbide was analyzed with reference to declared values, assessed values, country of origin, quantities, product descriptions, and relevant time periods.

The data showed variations in declared values across different periods, but comparable import benchmarks were available and used for valuation.

After considering import data, stakeholder input, and other relevant information, the customs values of Calcium Carbide have been re-determined under Section 25(6) of the Customs Act, 1969, the directorate stated.

Accordingly, the updated customs values will now be used as the basis for the assessment of duties and taxes on Calcium Carbide imports.