Karachi, March 2025 – The Directorate General of Customs Valuation, Government of Pakistan, has issued new Valuation Rulings to revise the customs values of Non-Alloy Steel Wire and Iron or Non-Alloy Steel Wire Rod (Low/High Carbon).
The revisions, effective immediately, come in response to fluctuating international market prices and stakeholder concerns about outdated valuation benchmarks.
Revised Valuation for Non-Alloy Steel Wire
The updated valuation ruling for Non-Alloy Steel Wire (not plated or coated) supersedes the previous Ruling No. 1330/2018, dated September 28, 2018. Given the global price shifts and increased freight costs, the new ruling was formulated to reflect the latest price trends.
During stakeholder consultations held on December 2, 2024, importers expressed concerns over rising exchange rates and inflation, which have significantly impacted business costs. Additionally, smuggling along the Afghan and Iranian borders has created distortions in market pricing. Importers requested that valuations align more closely with international London Metal Exchange (LME) prices and actual freight charges.
After a thorough review using methodologies outlined in Section 25 of the Customs Act, 1969, customs authorities determined that:
• The customs value will be based on LME prices of Wire Rod (Mesh Quality), with a 5% addition for draw quality.
• An additional $235 per metric ton (MT) will be added for conversion costs.
• Freight charges of $60 per MT will apply, with adjustments for land and break-bulk shipments.
Customs authorities emphasized that these valuations serve as minimum benchmarks. If invoice values are higher than the declared customs values, assessments will be made on the higher amounts as per Section 25(1) of the Customs Act.
Valuation Changes for Iron or Non-Alloy Steel Wire Rod
Similarly, the valuation for Iron or Non-Alloy Steel Wire Rod (Low/High Carbon, Draw Quality) has been updated, replacing Valuation Ruling No. 1331/2018. Meetings with industry representatives on January 10 and February 7, 2025, highlighted the same concerns over dollar exchange rate volatility, inflation, and smuggling.
Following analysis under Section 25 of the Customs Act, 1969, the customs authorities established the following valuation structure:
• Low Carbon Wire Rod: LME prices plus 5% for Draw Quality, with a minimum $60/MT freight cost.
• High Carbon Wire Rod: The same valuation as Low Carbon Wire Rod, with an additional $66/MT due to high carbon content.
For land route imports, actual freight costs will be applied instead of the fixed $60/MT charge. Customs also stated that for air shipments, the difference between air and sea freight will be factored into assessments.
Implementation and Compliance
Both rulings instruct all Collectorates of Customs across Pakistan to enforce the new valuations effectively. Any discrepancies should be reported to the Directorate General of Customs Valuation for immediate rectification.
Industry stakeholders, including the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and regional Chambers of Commerce, have been notified. The changes aim to streamline import assessments, prevent undervaluation, and curb illegal trade practices.
With these updates, the government seeks to ensure fair trade practices while maintaining competitiveness in steel imports, ultimately stabilizing the local market and revenue collection from the sector.