KARACHI: The Directorate General of Customs Valuation in Karachi has revised the reference values used to calculate duties on imported spun yarn, a move aimed at aligning rates with current global market conditions.
Under Valuation Ruling No. 64/2025, the updated figures apply to polyester, viscose, acrylic spun yarn, and their blends originating from China, Thailand, Indonesia, and Vietnam.
Why the Change Was Needed
The previous customs values were set in December 2022 under the Customs Act, 1969, but importers argued they no longer reflected reality. The Pakistan Yarn Merchants Association (PYMA) and other industry players urged authorities to revisit the rates, pointing out that more than 90 days had passed since the last review and that global fiber prices had shifted significantly.
Industry representatives also noted that an earlier valuation formula—developed jointly with Customs—had become outdated due to falling import volumes and market volatility.
How the New Rates Were Calculated
Customs officials ruled out using the Computed Value Method under Section 25(8) of the law, citing a lack of reliable production cost data from exporting countries. Instead, they drew on international raw material pricing from sources such as the CCF Group, then added estimated conversion costs to arrive at the new customs values.
The updated rates cover both pure and blended spun yarns, including higher-value 2-ply and 3-ply varieties. Conversion costs for each fiber type—polyester, viscose, and acrylic—were determined from industry publications and incorporated into the final valuations.
Industry Impact
The revision is expected to provide importers with a more accurate cost base and could help smooth trade flows amid fluctuating raw material markets. However, yarn traders will be watching closely to see if the new values remain in step with ongoing shifts in global fiber prices.
