ISLAMABAD: The Directorate General of Customs Valuation Karachi has issued new customs values on the import of carbon steel seamless pipes from all origins.
The new valuation ruling revealed that the value (per ton) would be LME-price of Steel Billet plus USD50-as Square-Billet Differential plus USD250 - as Fabrication Cost plus actual freight.
The customs value of Carbon Steel Seamless Pipes was earlier determined IN 2025. The said RULING was assailed under Section 25D of The Customs Act, 1969 by M/s. Huffaz Seamless Pipe Industries Limited and M/s. Peoples Steel Mills Ltd (local manufacturers). The Director General, Customs Valuation, vide Order-in-Revision No. 55/2025, rescinded PVR 621-2025 with directions to conduct a fresh exercise, particularly addressing (a) round-bar feedstock instead of LME-Iisted square billets and (b) inclusion of the associated differential cost. The present PVR has been issued in compliance with the said directions on the basis of verifiable industry sources.
Fresh meetings were convened. The local manufacturers contended that (i) the LME billet price relates to square construction billets and not to seamless round-bar feedstock; (ii) round-bar feedstock is approximately USD180-200 per metric ton expensive than LME square billets; (iii) an additional USD 170-200/MT is incurred for ng square billets into round bars; and (iv) freight at USD 60/MT is arbitrary. The importers maintained that fabrication cost should not exceed USD 300/MT. Local manufacturers and importers made written submissions and documents to support their respective contentions and the same were analyzed in detail.
In compliance with the order-in-Revision, the computed value under Section 25(8) of the Customs Act, 1969 read with Rule 121 of the Customs Rules,2001 has been reconstructed by adopting four discrete and individually verifiable cost elements: (a) LME billet price; (b) square-billet differential; (c) fabrication cost; and (d) freight.
Further details given in the ruling as follows:
(a) LME price of Steel Billet: This price is adopted as the base benchmark for the main constituent material, taken as published on the date of contract.
(b) Square-Billet Differential (USD 50/MT): It is an established industry fact that seamless pipes are pierced from round continuous-cast billets and not from square billets (sources: Firgelli Automations; TMK Group Continuous-Cast Billet; steels-Supplier). Round billets are cast directly from round-mould crystallizers using the same molten steel; the incremental cost arises only from lower casting pulling-speed and marginally higher yield loss. Continental Steel quantifies the seamless billet premium at approximately lFl5% above plate/square equivalent.
Accordingly, USD 50/MT is adopted as square billet differential. The local manufacturers ‘claim of USD 180-200/MT is not adopted as it is unsupported by any published industry source, conflates the shape premium with a separate steel-chemistry (vacuum-degassing /aluminum-killing) premium not unavoidable for commodity seamless pipe of HS 7304.3900, and was not backed by documentary evidence during hearings.
(c) Fabrication/Conversion Cost (USD 250/MT): The conversion cost from billets to finished seamless pipes is benchmarked against five independent international sources.
Finally, online information as well as values from internationally acclaimed publications, ie, LME etc. under proviso of sub-section (l) of Section 25A of the Customs Act, 1969 and cost of fabrication so gathered have been utilized and analyzed for determination of custom values of the subject goods under Section 25(8) of the Customs Act, 1969, it added.
Copyright Business Recorder, 2026
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