KARACHI: Directorate General of Customs Valuation Karachi has fixed new customs values on the import of Iron & Steel Scrap (Re-meltable/ HMS/ Shredded/Re-Rollable Scrap from all origins.
According to a valuation ruling issued by the directorate on Wednesday, the customs values of Iron & Steel Scrap (Re-meltable/ HMS/Shredded/Re-Rollable Scrap determined vide Publication Valuation Ruling No. 561/2025 dated 8.02.2025.
The Chamber of Commerce & Industry, Quetta (QCCI), M/s Mehmoob Re-rolling Mills and M/s Amir Asim Steel Re-rolling Mills (Pvt) Ltd, filed a review appeal under Section 25D of the Customs Act, 1969 before the Director General, Directorate General of Customs Valuation.
The Director General vide its Order-in-Revision No. 3112025 dated 24.04.2025 remanded back the case with directions that the Directorate, reconsider the percentage of freight discount. The matter requires re-examination, taking into account all relevant documentary evidence and after affording ample opportunity of hearing to the petitioners, so as to address and resolve the issue appropriately.
The Directorate initiated the exercise for re-determination of the customs values of the afore-stated items under Section 25-A of the Customs Act, 1969.
A meeting was held with key stakeholders, including the Pakistan Ship Breakers’ Association, Pakistan Association of Large Steel Producers and QCCI, to discuss the valuation of imported goods.
The QCCI President argued that Iranian-origin goods are cheaper due to lower quality and land-route transportation, and therefore merit a higher freight discount. However, other stakeholders maintained that the existing discount is fair, and cautioned that increasing it beyond seven percent would adversely impact importers using sea ports, leading to market distortion and competitive imbalance.
The Directorate assured that all concerns will be reviewed in light of documentary evidence and after affording a fair hearing to all parties.
The ruling said the valuation methods given in section 25 of the Customs Act, 1969 were applied sequentially to address the valuation issue at hand. The transaction value method as provided in sub-section (1) of Section 25 of the Customs Act, 1969, was found inapplicable as declared values do not correspond to market prices.
The values of identical and similar goods as per sections 25 (5) & (6) ibid could not be solely relied upon due to absence of absolute demonstrable evidence of qualities and quantities of commercial level etc. Market enquiry as envisaged under sub-section (7) of Section 25 of the Customs Act, 1969 was conducted but could yield no results as prices varied according to selling point in the market. Computed value method as provided in Section 25(8) could not be applied for valuation of the aforesaid goods, because the manufacturing cost of originating countries are not available.
