Customs value of polyester fabric revised

Directorate General Customs Valuation (DGCV) has revised the customs values of different polyester fabrics under sub-section (7) of section 25 of the Customs Act, 1969. The customs values of different polyester fabrics were determined vide two different valuation rulings - 1224 & 1225 earlier in 2017. The importers of polyester microfiber fabric repeatedly told that the said items were not covered under the rulings and the same were incorrectly being assessed under the existing rulings.
Following the Model Customs Collectorate (MCC) West and MCC Port Qasim references sent to address the issue of polyester microfiber fabrics, an exercise has been initiated for determination of the customs values of the polyester microfiber fabric and clearly delineate this type of fabric from other polyester fabrics in terms of section 25-A of the Customs Act, 1969.
For the purpose, meetings with stakeholders including commercial importers, All Pakistan Textile Mills Association (APTMA) and representatives of clearance Collectorates were held on April 23 and May 4 to discuss international price trends of the subject goods.
The importers of polyester microfiber grey fabric strongly opposed the departmental practice of assessing the imported polyester microfiber fabric and requested to assess as per their transaction values.
After hearing the viewpoint of Collectorate in detail, the DGCV has later applied valuation methods and transaction value methods under section 25 and sub- section (1) of section 25 of the Customs Act, 1969, respectively but was found inapplicable due to wide variation of values displayed in the import data.
Therefore, similar goods value method as provided in sub-sections (5) & (6) of section 25 ibid were examined for applicability to the valuation issue in the instant case but this method could not be relied upon exclusively. In line with the statutory sequential order of section 25, the DGCV has conducted market inquiries under sub-section (7) of section 25 of the Customs Act, 1969. As there were certain differences in prices in different markets therefore, a number of surveys were conducted to arrive at customs values. Finally reliance was placed on sub-section (7) of section 25 of the Customs Act, 1969 to determine customs values of different polyester fabrics.