New Valuation Ruling No. 69 of 2026 establishes a comprehensive computational formula incorporating LME billet prices, square-billet differentials, and fabrication costs.
The Federal Board of Revenue (FBR), through the Directorate General of Customs Valuation in Karachi, has issued Valuation Ruling No. 69/2026, superseding the previous ruling to establish a clear computational formula for assessing the customs values of carbon steel seamless pipes of assorted sizes.
The fresh regulatory exercise was initiated following an Order-in-Revision directed by the Director General of Customs Valuation. Local manufacturers—including M/s. Huffaz Seamless Pipe Industries Limited, M/s. Peoples Steel Mills Ltd, and M/s. Jamal Seamless Pipe (Pvt) Ltd—had contested the earlier Valuation Ruling No. 68/2026 under Section 25D of the Customs Act, 1969. In response, stakeholder meetings were convened to review appropriate calculation methodologies under Section 25(8) of the Customs Act.
Key Components of the New Valuation Formula
After reviewing input from both local manufacturers and commercial importers regarding raw material benchmarks, general expenses, and value additions, the Directorate adopted five verifiable cost elements: LME billet price, square-billet differential, fabrication cost, freight, and miscellaneous costs.
The minimum customs values (C&F) in US Dollars per ton are structured as follows:
• China Origin: Assessed based on the LME price of steel billet domestic, ex-works plus 2% of the LME price for general expenses, plus US$ 50/- as a square-billet differential, plus US$ 300/- as fabrication cost, plus actual freight.
• All Other Origins: Assessed based on the LME price of steel billet export, plus US$ 50/- as a square-billet differential, plus US$ 300/- as fabrication cost, plus actual freight.
Implementation and Enforcement
The ruling states that if declared invoice values for a consignment exceed the calculated customs values, the assessment will proceed on the higher values in line with Section 25(1) of the Customs Act, 1969. Customs Collectorates across the country have been directed to ensure strict implementation of the new formula, with revision petitions remaining open to aggrieved parties within 30 days under Section 25D of the Act.
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