The Directorate General of Customs Valuation in Karachi of FBR has updated the customs values for the import of biaxially oriented polypropylene (BOPP) films used in plastic packaging after more than ten years.
FBR has released a new valuation ruling concerning the import of BOPP films for plastic packaging from the USA, China, Canada, and Europe.
As per the background of the case, the customs values for BOPP films were last established through a valuation ruling issued in 2015, in accordance with Section 25A of the Customs Act, 1969.
This ruling is now over a decade old and does not accurately represent the current international market prices.
Since that time, the global prices of polypropylene (PP) resin, the primary raw material used in the production of BOPP films have undergone considerable fluctuations.
The directorate has also received numerous requests from BOPP film importers and manufacturers of BOPP tape, urging a revision of customs values to align with the existing market conditions.
After evaluating the sequential valuation methods outlined in Section 25 of the Customs Act, the computed value method specified in Section 25(8) was deemed suitable.
FBR examines international trends for plastic packaging products
Considering the variations in raw material prices and the extended period since the last valuation, FBR began a thorough review to re-establish customs values under Section 25A of the Customs Act, 1969.
International price trends and published guides for polypropylene (PP) resin were also reviewed.
The analysis verified that the fluctuations in PP resin prices have had a major effect on the production costs of BOPP films.
Additionally, the directorate observed that BOPP film serves as an industrial raw material in the production of BOPP tape and packaging products, and is not typically found in local retail markets.
As a result, the deductive valuation method under Section 25(7) was not applicable.
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