FBR Revises Customs Valuation for Polyester, Viscose, and Acrylic Yarn Imports
The Federal Board of Revenue (FBR) has announced revised customs values for Polyester Spun Yarn, Viscose Spun Yarn, Acrylic Spun Yarn, and their blends, following industry requests for updated valuation in line with current international market trends.
Previously, the customs values of these yarn types were determined under Section 25A of the Customs Act, 1969, through Valuation Ruling No. 02 issued on December 29, 2022. However, the Pakistan Yarn Merchants Association (PYMA) and other stakeholders later submitted representations, noting that more than 90 days had passed since the ruling and that the values no longer reflected prevailing global prices.
Importers informed the Directorate that a consensus-based formula for valuing these yarns had been developed earlier in coordination with the Department. However, this formula had become outdated due to a notable decline in the import volumes of several yarn types. They further pointed out that despite repeated follow-ups, no revision to the 2022 customs values had been made until now.
In response, the Directorate undertook a comprehensive review to re-determine values. While the Computed Value Method under Section 25(8) of the Customs Act was considered, it was deemed inapplicable as precise cost-of-production data from exporting countries was unavailable.
Instead, the Directorate analyzed multiple data sources, including international market prices of raw materials such as Polyester Staple Fiber (PSF), Viscose Staple Fiber (VSF), and Acrylic Staple Fiber (ASF). Price information was obtained from the CCF Group, a reputable industry source.
Conversion costs — from PSF to Polyester Spun Yarn, VSF to Viscose Spun Yarn, and ASF to Acrylic Spun Yarn — were calculated count-wise using price references from recognized international publications. These calculations formed the basis for determining customs values of 100% Polyester and Viscose Spun Yarn.
For blended yarns, conversion costs of combined Polyester, Viscose, and Acrylic Spun Yarns were assessed and added to establish their customs values. Additionally, the costs of converting Viscose Spun Yarn into multi-fold yarns (2-ply and 3-ply) were determined and included in the final valuation.
The updated customs values aim to bring valuations in line with market realities, ensuring fair assessment for both importers and the revenue authorities.