GOVERNMENT OF PAKISTANDIRECTORATE GE ERAL CUSTOMS VALUATION

CUSTOM HOUSE KARACHI*****

To,

The Collectors of Customs, Model Customs Collectorates (Appraisement / PaCTS/Port Qasim/Preventive). Karachi / Lahore / Sambrial (Sialkot) /Faisalabad /Multan Ilslamabad /l Iydcrabad Qucua/ Peshawar.

DETERMI ATIO OF CUSTOM VAL ES OF POLYESTER YAR SAND POLYESTER FABRICS

UNDER SECTION 2S-A O}1~CUSTOMS ACT, t 969

(VALUATION RULING 0.46112012)

No. Misc/02/2006-IV Dated s" July 2012

In exercise of the powers conferred on him by section 25-A of the Customs Act, 1969 and insupersession of Valuation Ruling o. 413 dated 16-1-2012 the Director, Directorate General of CustomsValuation, Karachi, has determined the customs values of polyester yarns of different deniers andpolyester fabrics of different types specified in Annexure A and B to this Ruling for assessment ofduty/taxes on these yarns and fabrics when imported into the country.

1. Description of the valuation issue Earlier Valuation Ruling 0.413 dated 16.1.2012determined custom values of polyester chain items, namely, polyester yarns of different deniersand polyester fabrics of different types. Importers of these goods argued that the values ofpolyester yarns and polyester fabrics witnessed rapid fluctuations in the international markets.The custom values of polyester yarns and polyester fabrics in the existing Valuation Ruling, theyadded, being almost six months old, needed fresh determination. The valuation issue in this casewas to redetermine the custom values of polyester yarns and polyester fabrics with a view toreflect current price trends of these goods in the international markets.

Methodology adopted to determine customs values. Meetings were held with stakeholders on23-04-2012,4-06-2012 and 19-06-2012 in order to ascertain their view points on the currentprice trends of polyester yarns and polyester fabrics in the international markets. To determinethe custom values of polyester yarns and fabric, methods given in section 25 of' the CustomsAct, 1969 were examined to ascertain which methods were applicable to the valuation issue inhand in terms of section 25-A (1) of the Act. Transactional value method provided in section 25(1) was found inapplicable because sufficient information with respect to adjustments to be madeto the transactional value in terms of section 25 (2) was not available. The identical/similargoods valuation methods provided in section 25 (5) (6) were next examined and were found to heapplicable to the valuation issue in hand. Moreover, cost of manufacturing the polyester yarnsand polyester fabrics in the local market were evaluated to affirm the validity of cv idencefurnished by the application ofIdentical / Similar Goods Valuation Methods.

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3. Evidence used to determine custom values. Evidence of valuation furnished through theapplication of Identical/Similar Goods Value Methods when applied flexibly as provided insection 25 (9) of Customs Act, 1969 led to the determination of the fo II0'" ing customs values forpolyester yarns of different deniers and polyester fabrics of different types.

4. Custom values for Polyester yarns and polyester fabrics. The polyester) arns of di ffcrcntdeniers and polyester fabrics of different types as specified in Annexure 1\ and 13or this Rulingshall be assessed to duty/taxes on the customs values pccificd in these I\nnexures.

5. Validity of this Valuation Ruling. The values determined in this Ruling shall continue to bethe applicable custom values for polyester yarns of different deniers and polyester fabrics ofdifferent types till the time this Valuation Ruling is rescinded or revised by the com potentauthority in terms of section 25A of the Customs Act, 1969. Moreover, this Valuation Rulingapplies to cases where declared values are less than the customs values determined in the Ruling.In cases where declared values are more than the customs values determined in the Ruling, theconcerned assessing officers shall accept the declared values in terms of section 25 (I) or' theCu toms Act. 1969.

6. Remedies against this Valuation Ruling. The Customs Act. 1969 prov ides efficaciousalternate remedies against this Ruling. Section 25-D provides that any person aggrieved of theRuling may Iilc a revision petition within 30 days from the date of this Ruling before theDirector General. Directorate General of Customs Valuation. ill Floor. Custom I louse. Karachi.An appeal against the decision in revision of the Director General can be !i led \\ ithin 60 da) s 0("

the decision before the Customs Appellate Tribunal under section 194-i\ (I) (e) of the CustomsAct. 1969. £

(Muf.t?d .Javed Chani)Di rector

Copy for information to:

(I) S.A TO Chairman, 1:.13.R.. Islamabad.(2) Member (Customs), 1:.13.R, Islamabad.(3) Chief Collectors of Customs (South), Custom I louse, Karachi.(4) Chief Collectors of Customs ( orth), Custom l lousc, Islamabad.(5) Director General, Intelligence and Investigation, Islamabad.(6) Director General, Post Clearance Audit, Islamabad.(7) Director General Internal Audit, (Customs), Islamabad.(8) Director General, Customs Valuation, Custom I louse, Karachi.(9) Directors, Intelligence & Investigation, Karachi I /l.ahore I Islamabad.(10) The Project Director WeBOC, I I th Floor, Custom l lousc, Karachi.(II) The Deputy Director (IIQ), Directorate General of Customs Valuation, Karachi for uploading in One Customs &

WeBOC database on the date of issue of this Ruling.(12) Chairman (Valuation Committee), FPCC&I, Federation House, Clifton, Karachi.(13) Chairman (Valuation Committee), KCC&I, Aiwan-e-Tijarat Road, Karachi.(14) Karachi Custom Agents Group, Bohri Road, Karachi.(15) Guard FiiC'.

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DIRECTORATE GENERAL OF CUSTOMS VALUATIONCUSTOM HOUSE. KARACHI

Annexure A

Valuation Ruling No.461 dated 05-07-20120) .Jo\II::WU::n111 ur DI"\..:t~ Y"'LU~.;J ""r .--_"-, "- ••••, "-" "", •••...••••••••••.• , •••• J II,. •.;;II"L,. ••••.--I"UJ" ••••••

chl~1 BASE VALUES OF DRAWN TEXTURED YARNBASIS OF

MEGv.lue PTAnlue MEG ftbe< YARN 75 YARN 100 DTY SO YARN 150 YARN 150 OTY YARN 300 YARN7S DTY YARN DTY YARN 150 YARN ITY YARNITY

VALUATIONper US$ per US$ + DTYSD OTYSD 8LACKOOPE DTYSO TWST 150 OF 1000 OF 1500 (BSY) 130 (BSY) 135

(PRAt •••• ) (PRALdllta. ICI PTA) PTA DYED TPMSD TPMSD

1 2 3 • 5 6 7 8 9 10 11 12 13 14 15 18 17

•••.....•. UnH •••• Ton Pef'fomula ....Ton •... (Co4.3+ (Cots) (CoI.7) (CoI.7) +5375/· (CoI.7) (CoI.7) (CoI.7) (CoI.7) (CoI.7) (CoI.7) (CoI.7) (CoI.7)

(350 Kg) formul. CoI.5) • $1001· +S455I. +$3001 • +$4201. +$2501- +$ 10551- +$8001. +$8001. +$500/. +$5601-

870 "ft'PER TON 1088.00 380.80 1080.00 939.60 1320.40 1420.40 VALUE OF PER TON 1875.40 1795.40 1720.40 1840.40 1670.40 2475.40 2220.40 2220.40 1980.40 1980.40

PRAL & MCC data +Lotte PTA v.h .••• PERKO

YARN(Ap< 12 & June 12) 1.09 0.38 1.08 0.94 1.32 1.42 PER KG 1.88 1.80 1.72 1.94 1.67 2.48 2.22 2.22 1.98 1.98

units US$ PER100GM0.11 0.04 0.11 0.09 0.13 0.14 ':E~':~~ 0.19 0.18 0.17 0.18 0.17 0.25 0.22 0.22 0.20 0.20

100GM/MTR 0.31 0.30 0.28 0.30 0.28 0.41 0.37 0.37 0.33 0.33

PER METER VALUES OF 1SOOM/MTR 0.48 0.44 0.43 0.48 0.41 0.61 0.55 0.55 0.49 0.49GREY FABRIC ON 65%

VALUE ADOCTION 1BOGMlMTR 0.56 0.53 0.51 0.55 0.50 0.73 0.66 0.88 0.59 0.59

200GM/MTR 0.62 0.59 0.57 0.61 0.55 0.82 0.73 0.73 0.65 0.65

100GMlMTR 0.44 0.42 0.40 0.43 0.39 0.58 0.52 0.52 0.47 0.47

PER METER VALUES OF 1SOOMlMTR 0.66 0.63 0.61 0.65 0.59 0.87 0.78 0.78 0.70 0.70FINISHED FABRICS ON135% VALUE ADOCTION 180GMlMTR 0.79 0.76 0.73 0.78 0.71 1.05 0.94 0.94 0.84 0.84

200GM/MTR 0.88 0.84 0.81 0.86 0.79 1.16 1.04 1.04 0.93 0.93

POLYESTER FILAMENT FLAT YARN

YARN YARN 50 YARN 50 YARN SO FPY YARN YARN 75 PFY YARN7S PFY YARN 90 YARN YARN 100PFY YARN 150 YARN 200 YARN 3004550 FPYSD FPYBRT BLACK 75FPYSO BRIGHT BLACKOOPE PFYBLACK 100 PFY BLACK PFY BRT PFYBRT PFYBRT

OOPEOYEO DYED DOPE DYED BRT

CATEGORY

18 ,. 20 21 22 23 24 25 26 27 28 29 30

VALUE OF (CoI.7) (CoI.7) (CoI.7) (CoI.7) (CoI.7) (CoI.7) +$3551. (CoI.7) +$-'75/· (CoI.r) (CoI.7) +$2751- (CoI.7) +5395/· (CoI.7) (CoI.7)+S1501· (CoI.7)

YARN + $4001. +$4001. + $4001. +$5201- +$3551. +$3951- +$2001- +$1501-

PER TON 1820.40 1820.40 1820.40 1940.40 1n5.40 1n5.40 1895.40 1815.40 1695.40 1815.40 1620.40 1570.40 1570.40

PER KG 1.82 1.82 1.82 1.94 1.78 1.78 1.90 1.82 1.70 1.82 1.62 1.57 1.57

PER 100GMS 0.18 0.18 0.18 0.19 0.18 0.18 0.19 0.18 0.17 0.18 0.16 0.16 0.16

100GMlMTR 0.30 0.30 0.30 0.32 0.29 0.29 0.31 0.30 0.28 0.30 0.27 0.26 0.26

PER METER VALUES 1SOOM/MTR 0.45 0.45 0.45 0.48 0.44 0.44 0.47 0.45 0.42 0.45 0.40 0.39 0.39OF

GREY FABRIC ON 65% 1BOGMlMTR 0.55 0.55 0.55 0.58 0.53 0.53 0.57 0.54 0.51 0.54 0.49 0.47 0.47VALUE ADDfTION

200GM/MTR 0.60 0.60 0.60 0.64 0.59 0.59 0.63 0.60 0.56 0.60 0.53 0.52 0.52

PER METER VALUES 100GM/MTR 0.43 0.43 0.43 0.46 0.42 0.42 0.45 0.43 0.40 0.43 0.38 0.37 0.37

OF1SOOM/MTR 0.64 0.64 0.64 0.68 0.63 0.57 0.55 0.55FINISHED FABRICS 0.63 0.67 0.64 0.60 0.64

ON 180GM/MTR 0.78 0.78 0.78 0.83 0.76 0.76 0.81 0.78 0.72 0.78 0.69 0.67 0.67135% VALUE

ADDITION 200GM/MTR 0.86 0.86 0.86 0.91 0.83 0.83 0.89 0.85 0.80 0.85 0.76 0.74 0.74

A ~'~ t

PRINCIPAL APPRAISERPi\KISTAN CUSTOMS

\,'I'\LUATION

Deputy Dl

\BASE VALUES OFVARIOUS CATAGORIESOF FABRICS EFFECTIVEFROM 04-07-2012

POLYESTER LADIES KNITTED GENTS SHIRTING GENTS LADIES NET SUITING FROM SOFA LINING OTHRS/ CLOTH TYPE LADIES JERSY FABRIC SUITING FABRIC EUROPE CLOTH. MATERIAL

SUITING VJ:I VFT31 32 33 34 35 36 37 38 39

CALCULATION (Col.13 X2.35) (CotS (Col.13 (Col.14 (Col.13 (Col.34 (Col. 13 (Cot 22 (Col. 13X2.35) X 2.35) X 2.35) X 2.35) X 2.35) X 2.35) X 2.35) X 2.35)

value of Yam 2.48 1.88 2.48 2.22 2.48 2.89 2.48 1.78 2.48

TYPE 75 TWST 75 DTY 75 TWST 150TWST 75 TWST 150 TWST 75 TWST 75 FPY 75 TWST

PERTON 5817.19 4407.19 5817.19 5217.94 5817.19 6783.322 5817.19 4172.19 5817.19

PER KG 5.81719 4.40719 5.81719 5.21794 5.81719 6.783322 5.81719 4.17219 5.81719Gsm Meter I Kg

PER SQUARE METERVALUES OF FINISHEDCLOTH IN US$

100 10.00 0.58 0.44 0.58 0.52 0.58 0.68 0.58 0.42 0.58 •

150 6.67 0.87 0.66 0.87 0.78 0.87 1.02 0.87 0.63 0.87

180 5.56 1.05 0.79 1.05 0.94 1.05 1.22 1.05 0.75 1.05

200 5.00 1.16 0.88 1.16 1.04 1.16 1.36 1.16 0.83 1.16

rho '. ·~ ~l'. Princi a

Valuation Officer Jal ~J•. "' <it! • A I t I <" ,... ••••••• _\L

Valuation Ruling No.461 dated 05-07-2012. Annexure B.

'II 'U'iO"I ••" !lll1 'Ii-- -.EN

PRINCIPAL APPRAISERPAKISTAN CUSTOMS

V~lUATION

Deputy Direc