ISLAMABAD: The Directorate General of Customs Valuation Karachi has revised customs values for imported nylon, polyester and polypropylene tufted and woven carpets, as well as needle-punch carpets and artificial turf, setting benchmark values of USD 2.45 per square metre for specified nylon tufted carpets and USD 1.95 per square metre for specified polypropylene/ polyester woven carpets.
According to Valuation Ruling No. 2118 of 2026, issued under Section 25A of the Customs Act, 1969, the revised values have been determined after reviewing prevailing international prices, recent import trends and relevant technical information. The ruling has superseded the earlier Valuation Ruling No. 927/2016, dated September 8, 2016. The Directorate initiated the fresh valuation exercise as the previous ruling had remained in force for more than 10 years. Notices were issued to relevant stakeholders, providing importers and other concerned parties an opportunity to present their views and submit documentary evidence in support of their declared transaction values.
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During a stakeholder meeting held on October 19, 2026, importers maintained that their declared transaction values were genuine and reflected prevailing international market prices. They also contended that imports of the subject goods had declined and requested the authorities to retain the existing customs values.
However, the Directorate examined the stakeholders’ submissions against import data for the preceding 90 days, international price trends and information available on international websites concerning the composition, specifications, quality, manufacturing processes, raw materials and applications of the imported products.
The ruling states that the valuation methods prescribed under Section 25 of the Customs Act, 1969, were examined and applied in their prescribed sequence. The transaction value method could not be adopted because adequate and verifiable information required for adjustments under Section 25(2) was unavailable.
The identical and similar goods methods were also considered but could not be relied upon exclusively because the available import data did not provide complete and verifiable particulars regarding quality, specifications, quantities, commercial level, industrial usage and other comparable characteristics.
Similarly, the deductive value method was examined through market enquiries but could not be effectively applied because of variations in specifications, composition, quality and other technical characteristics. The computed value method was also found unsuitable due to the unavailability of authenticated information on production costs, processing and conversion expenses and other manufacturing costs in the exporting countries.
Consequently, the Directorate determined the customs values under Section 25(9) of the Customs Act, 1969, on the basis of the most appropriate, reliable and reasonably available information on record.
Under the revised ruling, nylon tufted carpets weighing 1,000 grams per square metre will be assessed at USD 2.45 per square metre for all origins. For carpets not covered by this weight specification, the assessable value will be calculated by dividing the total net weight by the total area in square metres and multiplying the result by USD 2.45.
Polypropylene/ polyester woven carpets weighing 1,000 grams per square metre will be assessed at USD 1.95 per square metre, irrespective of origin. For products outside the specified weight category, the assessable value will be determined by dividing total net weight by total square metres and multiplying the result by USD 1.95.
The ruling also covers polypropylene/ polyester tufted carpets, polypropylene/ polyester needle-punch carpets and artificial turf, with their respective Pakistan Customs Tariff (PCT) classifications and proposed WeBOC codes specified in the valuation schedule.
The Directorate has clarified that where the actual transaction value or the value stated on the invoice retrieved from a consignment is higher than the customs value determined under the ruling, assessment will be made on the higher value in accordance with Section 25(1) of the Customs Act, 1969.
In the case of consignments imported by air, the difference between air freight and sea freight will also be added for assessment purposes. The ruling will apply to goods matching the descriptions and specifications set out in its schedule, while the listed HS codes are for illustrative purposes.
Copyright Business Recorder, 2026