FBR Makes Imported Seamless Steel Pipes More Expensive

The Directorate General of Customs Valuation in Karachi has revised customs values for imports of carbon steel seamless pipes from all origins, introducing a new valuation mechanism based on international steel prices and fabrication costs.

According to a valuation ruling issued on Thursday, the customs value will now be calculated using the London Metal Exchange price of steel billets, an additional $50 per metric ton as square billet differential, $250 per metric ton as fabrication cost, and actual freight charges.

The earlier valuation ruling issued in 2025 was challenged by local manufacturers Huffaz Seamless Pipe Industries Limited and Peoples Steel Mills Limited under Section 25D of the Customs Act, 1969.

They argued that seamless pipes are produced from round bar feedstock, which is costlier than square billets quoted on the London Metal Exchange, and that additional processing costs should be incorporated into customs values.

Following an order by the Director General of Customs Valuation to conduct a fresh assessment, authorities held consultations with local manufacturers and importers and reviewed submissions from both sides.

The revised values have been determined under Section 25(8) of the Customs Act, 1969, using data from internationally recognized publications and industry sources.