Customs value of fleece fabric revised

Directorate General Customs Valuation (DGCV) has revised the Customs values of fleece fabric under sub-section (7) of section 25 of the Customs Act, 1969. According to details, the customs values of fleece fabric were determined vide valuation ruling No.683 in 2014. Therefore, several representations from commercial importers including Karachi Textile Lining and Coated Fabrics Association were received wherein they requested to revise the existing valuation ruling in accordance with the prices in international markets.
The existing valuation ruling is more than three and half years old and required to be revised in line with the prevailing prices in the international market. Keeping in view the prevailing prices in the international markets, the Directorate has initiated an exercise for determination of the customs values of the fleece fabric under section 25-A of the Customs Act, 1969.
For the purpose, the meetings with stakeholders including commercial importers and representatives of clearance Collectorates were held in February, May, July and September 2018 to discuss the price trends of the subject good. The Karachi Textile Lining and Coated Fabrics Association contended that the customs values of fleece fabric in existing valuation ruling are on higher side because it is based on Fully Drawn Yarn (FDY) which is much cheaper item.
The view point of the departmental representatives was diagonally opposed to the contention of importers. They contended that the Karachi Textile Lining and Coated Fabrics Association have not substantiated their submissions with corroborative documentary evidences, requisite through notices for meetings of stakeholders.
The departmental representatives stated that the prices of basic raw material, i.e, different type of yarns of polyester are showing upward trend in the international markets. Therefore, they contended that that the customs values determined in the existing valuation ruling are on lower side and required to be rationalized by revising upward in accordance with prices in international markets.
The view point of all participants was heard in detail and considered to arrive at Customs value for subject goods. The valuation methods provided in section 25 of the Customs Act, 1969 were duly applied in their regular sequential order to arrive at customs values of subject goods.
In line with the statutory sequential order of section 25, the Directorate conducted market inquiries under sub-section (7) of section 25 of the Customs Act, 1969. As there were certain differences in prices in different markets therefore, a number of surveys were conducted to arrive at customs values. Later, the Directorate relied on sub-section (7) of section 25 of the Customs Act. 1969 to determine the customs values of fleece fabric.