The Directorate General of Customs Valuation, Karachi, has revised the customs values for imported biaxially oriented polypropylene (BOPP) films after more than ten years. The authority issued a new valuation ruling for imports coming from the United States, China, Canada, and Europe.
Old Valuation No Longer Reflects Market Prices
Customs officials last set the valuation of BOPP films in 2015 under Section 25A of the Customs Act, 1969. Over time, this valuation became outdated and no longer matched current international market prices. Authorities decided to update the values to ensure they reflect real import costs.
Industry Requests Prompt Review
Importers of BOPP films and manufacturers of BOPP tape asked the department to revise the customs values. They said the existing rates did not match actual market conditions.
In response, the directorate started a detailed review process. Officials held meetings with stakeholders and carefully considered their feedback before moving forward.
Data Analysis and Market Study
The department collected and analyzed import data from the past 90 days. The data showed clear differences between declared import values and previously assigned customs values.
Officials also reviewed global price trends of polypropylene (PP) resin, which is the main raw material used to produce BOPP films. They found that fluctuations in PP resin prices have directly affected production costs.
Valuation Method and Final Decision
The directorate noted that BOPP film is mainly used as an industrial raw material for packaging and tape manufacturing. Since it is not commonly sold in local retail markets, the deductive valuation method was not suitable.
After reviewing all available methods under Section 25 of the Customs Act, officials selected the computed value method as the most appropriate approach.
Based on this method, the directorate has re-determined the customs values under Section 25(9), read with Section 25(8) of the Customs Act, 1969. The new values aim to align import assessments with current global market conditions and improve transparency in customs valuation.
