KARACHI: The Directorate General of Customs Valuation Karachi has issued a new ruling on the customs values for the import of Water-Based Acrylic Type Self-Adhesive Tape (BOPP/OPP) and Hot Melt Rubber-Based Self-Adhesive Tape in Jumbo/Log Rolls or retail packaging.
The ruling, number 1996 of 2025, applies to imports from China, Hong Kong, Malaysia, Korea, UAE, Taiwan, Canada, Europe, Japan, and the USA.
The customs values of these goods were previously determined through a Valuation Ruling, which was later challenged before the Director General of Customs Valuation under Section 25D of the Customs Act, 1969. Following this challenge, the Director General issued Order-in-Revision No. 04/2025, remanding the ruling for re-determination of customs values, using the valuation methodology outlined in Section 25 of the Act.
A consultation process was conducted, involving several stakeholders, including local manufacturers and representatives from the Karachi Chamber of Commerce and Industry (KCCI). Importers argued that the current customs values were too low compared to international market prices, urging a revision to reflect actual market trends.
M/s Universal Coating, a local manufacturer, claimed that the existing values were insufficient and did not align with international market conditions, citing under-invoicing as a key issue.
For the re-determination of the customs values, the Directorate reviewed 90 days’ worth of data, scrutinizing market inquiries in line with the Directorate’s Office Order No. 17 of 2014. They also considered the computed value method under Section 25(8) of the Customs Act, which takes into account the constituent materials such as BOPP (raw material), BOPP films, and adhesives.
However, due to a lack of information regarding conversion costs and allied expenses from the exporting countries, this method could not be solely relied upon.
Ultimately, the Customs Directorate determined the customs values based on Section 25(9) in conjunction with Section 25(7) and Customs Rule 121(2) of the Customs Rules, 2001. The determination process included a flexible application of the valuation methods, ensuring they align with the aims of the law while considering international market practices.
