KARACHI: Directorate-General Customs Valuation has issued a new valuation ruling for determining customs duties and taxes on the import of plastic raw materials.
The latest valuation, released by the Directorate General of Customs Valuation on January 28, 2025, takes into account international price benchmarks such as Platts Polymerscan and ICIS while incorporating inputs from the Pakistan Plastic Manufacturers Association (PPMA). The new valuation will be updated periodically to reflect changes in global market trends.
Background of the Valuation Adjustment
The need for a valuation revision arose following a formal representation made by PPMA on January 3, 2025. The association submitted a price schedule for plastic raw materials based on international market trends, covering both prime quality and recycled materials imported into Pakistan from various global sources.
Pakistan Customs observed significant discrepancies between declared values and assessed values of imported plastic raw materials.
Particularly, the valuation of recycled plastic raw materials had not been determined under Section 25A of the Customs Act, 1969. Due to these inconsistencies, Customs initiated an exercise to align the valuation process with prevailing international market rates to ensure fair taxation and duty assessment.
Customs’ Valuation Review Process
To address the issue, Pakistan Customs conducted a detailed analysis by retrieving 90 days’ clearance data of plastic raw material imports. The scrutiny revealed variations in declared values and assessed values, further reinforcing the need for an updated valuation mechanism.
To ensure transparency and accuracy, Customs consulted key stakeholders and conducted a comparative study using international pricing sources such as Platts Polymerscan and ICIS. These publications provided a comprehensive price trend analysis for plastic raw materials, which was then cross-checked with import data from the relevant period.
Following a thorough review, Pakistan Customs adjusted the customs values of plastic raw materials based on verified international pricing trends. The revised valuation is expected to improve transparency in import taxation and minimize under-invoicing and mis-declaration.
Implications of the New Customs Valuation
The revised customs valuation framework will help streamline import procedures and ensure that import duties are assessed fairly and consistently. Moreover, the updated valuation will provide greater predictability for importers and reduce disputes over customs value assessments.
Pakistan Customs has assured that it will continue to monitor international market prices and work in collaboration with industry stakeholders to make timely adjustments when necessary. The new valuation ruling is expected to enhance compliance and promote a level playing field in the plastic manufacturing industry.
