FBR Revises Customs Values for Polyester, Viscose, and Acrylic Yarn Imports

The Directorate General of Customs Valuation Karachi has revised the customs values on the import of Polyester Spun Yarn, Viscose Spun Yarn, Acrylic Spun Yarn, and their blends from China, Thailand, Indonesia, and Vietnam. According to the ruling, the customs values of Polyester Spun Yarn, Viscose Spun Yarn, Acrylic Spun Yarn, and their blends were previously determined under Section 25A of the Customs Act, 1969, via Publication Value Reference No. 02, dated December 29, 2022. Subsequently, representations were received from the Pakistan Yarn Merchants Association (PYMA) and other stakeholders, requesting a re-determination of customs values for these items, as more than 90 days had elapsed since the issuance of the aforementioned Publication Value Reference. It was argued that the values determined in the earlier ruling no longer reflected prevailing international market prices. Accordingly, the Directorate undertook a fresh exercise to re-determine the customs values of the subject goods. During consultations, importers informed the Directorate that a consensus-based formula for valuing Polyester Spun Yarn, Viscose Spun Yarn, and Acrylic Spun Yarn had previously been developed in coordination with the Department. However, they stated that this formula had become obsolete due to a significant decline in the import volume of various yarn types. Importers further asserted that, despite repeated representations and efforts on their part, the customs values of these items had not been revised since 2022. As a result, the Computed Value Method under Section 25(8) of the Customs Act was considered but found inapplicable, as exact data regarding the cost of production in the countries of export was unavailable. Taking all factors into account and after carefully analyzing the available information from various sources, the customs values of the subject items were determined. The international market prices of raw materials, Polyester, Viscose, and Acrylic staple fibers, used in the production of Polyester, Viscose, and Acrylic Spun Yarn, were obtained from the CCF Group. Thereafter, the conversion costs (i.e., the conversion of PSF to Polyester Spun Yarn, VSF to Viscose Spun Yarn, and ASF to Acrylic Spun Yarn of assorted counts) were calculated count-wise using prices available in reputable international publications. These calculations were used to determine the customs values of 100% Polyester Spun Yarn and Viscose Spun Yarn. Similarly, the conversion costs of blended Polyester, Viscose, and Acrylic Spun Yarns were calculated, and these were added to arrive at the customs values of blended Polyester, Viscose, and Acrylic Spun Yarns. Additionally, the conversion costs for converting Viscose Spun Yarns into multiple folded yarns (2-ply and 3-ply) were also determined using prices from reputable international publications. These conversion costs were added to the values of Polyester and Viscose Spun Yarn.