Customs Revises Polyester Yarn Values

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The Directorate General of Customs Valuation has issued a new valuation ruling revising customs values for Polyester Filament Yarn, replacing the previous determination issued just over three months ago after citing a rise in international market prices for the commodity.

Valuation Ruling No. 2101/2026, issued on July 24, 2026, supersedes Valuation Ruling No. 2069/2026, which had been notified on April 16, 2026.

The revision followed requests from industry stakeholders, who maintained that global prices for polyester filament yarn had increased since the last valuation and urged the Directorate to update customs values accordingly. A stakeholder consultation meeting was held on July 7, 2026, to hear the views of all parties.

Importers opposed revising the existing values, arguing that international prices of polyester filament yarn and its raw materials continue to fluctuate because of ongoing geopolitical conflicts. However, local manufacturers contended that prices have followed a sustained upward trend and should be reflected in the updated valuation.

To determine the revised values, the Directorate examined 90 days of import data covering April 17 to July 17, 2026, along with evidence submitted by both importers and manufacturers. It also reviewed pricing data from the CCF Group, which indicated that international prices had risen compared with pre-war levels, while global freight costs had also increased. Both factors were incorporated into the final customs valuation.

Stakeholders also sought a valuation discount based on a claimed local sales tax exemption available to Chinese exporters. After reviewing the matter, the Directorate concluded that the FOB export prices published by the CCF Group could be used after adjusting them by deducting local VAT to determine a fair customs value, while prevailing sea freight charges were also included in the calculations.

As required under Section 25 of the Customs Act, 1969, the Directorate evaluated all prescribed valuation methods in sequence. The transaction value method could not be applied because the required data under Section 25(2) was unavailable. The identical and similar goods methods were also rejected due to insufficient verified information on product quality, quantity, specifications and commercial level. The deductive value method relied on outdated international prices, while the computed value method was ruled out because manufacturing cost data from the country of origin was unavailable. Consequently, customs values were determined under Section 25(9) read with the proviso to Section 25A.

The revised C&F values, expressed in US dollars per kilogram, differ according to yarn type and denier range. For DTY yarn in the 1–60 denier category, customs values have been fixed at $1.79 for semi dull, full dull, bright trilobal and raw white variants, while cationic DTY has been valued at $2.00. For FDY yarn within the same range, the values are $1.45 and $1.75, respectively. Customs values gradually decrease across higher denier categories, with the 241-and-above range fixed at $1.33 and $1.48 for DTY, and $1.31 and $1.34 for FDY. Dyed yarn will attract an additional $0.10 per kilogram.

The ruling further states that where the declared or invoiced value exceeds the customs value determined under the ruling, assessment will be made on the higher declared amount in accordance with Section 25(1) of the Customs Act. For consignments arriving by air, the difference between air and sea freight charges will also be added to the customs value.

The Directorate has instructed all Collectorates of Customs to enforce the revised valuation immediately and promptly report any implementation issues or irregularities.