DGCV revises customs value of polyester filament yarn

Directorate General of Customs Valuation (DGCV) has revised the customs values of Polyester Filament Yarn (PFY) under sub-section (9) of the section 25 of the Customs Act, 1969.

According to details, the customs values of PFY were earlier determined vide valuation ruling no. 1387 in 2019. Therefore, the representations were filed by various importers, trade association i.e. M/s Pakistan Yarn Merchants Association, wherein it was contended that due to downward trend of values of basic raw material i.e. pure terephthalic acid (PTA) and mono ethylene glycol (MEG) for polyester filament yarn, the customs values determined in the existing valuation ruling are not reflective of prevailing prices in international markets. Therefore, an exercise was undertaken by the Directorate to determine customs values of the subject goods under section 25-A of the Customs Act, 1969.

For the purpose, meeting with different stakeholders including Pakistan Yarn Merchants was called and discussed the issues pertaining to the valuation of subject goods in detail.

The values of PFY are determined by the Directorate taking into consideration the import clearance data of two major constituent raw materials of subject goods i.e. PTA and MEG. The import clearance data for last two months were obtained from PRAL and data of locally manufactured PTA was obtained from its local manufacturers. Thereafter the calculation was done by the Directorate to arrive at weighted average value of PTA. The weighted average value of PTA and MEG so determined was applied to the formula prescribed and circulated by the Board vide C. No. 3(20)/TAR-I/90-Yarn in 2005 to determine the customs values of PFY.

On the basis of information collected and exercise conducted as per formula, the values of PFY have been determined under sub-section (9) of the section 25 of the Customs Act, 1969.