Business Recorder
ISLAMABAD: After a period over 10 years, the Directorate General of Customs Valuation Karachi has fixed new customs values on the import of BoPP films (an industrial raw material used in the manufacturing of packaging products) from China, Europe, USA and Canada, according to a new valuation ruling (VR). Background of the issue revealed that the Customs values of Biaxially Oriented polypropylene (BOPP) Films were determined vide Valuation Ruling in 2015 under Section 25A of the Customs Act, 1969. The said Valuation Ruling is now more than ten (10) years old, and the customs values determined therein are no longer representative of the current international market prices of the subject goods. Since the issuance of the VR, international prices of the key raw material for the BoPP Film, namely polypropylene (pp) resin have undergone significant fluctuation. Furthermore, numerous representations were received from importers of BoPP films and manufacturers of BoPP Tape requesting revision of customs values to reflect the prevailing market realities. The changing dynamics of key raw material prices, coupled with the passage of over a decade since the last determination, necessitated a comprehensive revision of the existing valuation ruling. Therefore, an exercise has been undertaken by this Directorate to re-determination the Customs values of BOPP Films under Section 25A of the Customs Act, 1969. Meetings were conducted on the aforementioned dates under Section 25A of the Customs Act, 1969. Relevant stakeholders including importers of BoPP films, manufacturers of BOPP Tape and manufacturers of Bopp attended, and their viewpoints were heard in detail. Ninety (90) days’ import data was retrieved and thoroughly scrutinised’. The analysis revealed that there are significant variations between the declared values and the customs values determined in the erstwhile valuation Ruling. International price publications and raw material price indices for Polypropylene (pp) resin have also been examined. It was observed that PP resin prices have undergone substantial changes, which materially impacts the intrinsic production cost of BoPP Film. The Directorate also examined international market trends of BOPP Film from major exporting countries including China. As BOPP Film is an industrial raw material used in the manufacturing of BOPP Tape and other packaging products and is not freely available in local retail or wholesale markets, the deductive method under Section 25(7) of the Customs Act. 1969 was also found inapplicable. In line with the statutory sequential order of Section 25 of the Customs Act, 1969, the computed value method under Section 25(8) was examined. Accordingly, the customs values of BOPP Films have been determined under Section 25(9) read with Section 25(8) of the Customs Act, 1969, the ruling added. Copyright Business Recorder, 2026
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