FBR Revises Import Rates for Moisture-Resistant Plastic Used in Packaging

The Directorate General of Customs Valuation, Karachi has revised customs values on the import of biaxially oriented polypropylene (BOPP) films after more than a decade.

In this regard, the directorate has issued a new valuation ruling for the import of BOPP films from the USA, China, Canada, and Europe.

According to the background of the case, customs values of BOPP films were last determined through a valuation ruling issued in 2015 under Section 25A of the Customs Act, 1969. That ruling is now over 10 years old and no longer reflects current international market prices.

Since then, global prices of polypropylene (PP) resin—the key raw material used in BOPP film production—have experienced significant fluctuations.

The directorate also received multiple representations from importers of BOPP films and manufacturers of BOPP tape, requesting a revision of customs values in line with prevailing market conditions.

Given the changes in raw material prices and the long gap since the last valuation, the directorate initiated a comprehensive review to re-determine customs values under Section 25A of the Customs Act, 1969.

Meetings were held with relevant stakeholders, including importers of BOPP films and manufacturers of BOPP tape. Their input was reviewed in detail. Data covering 90 days of imports was also collected and analyzed, which showed notable differences between declared import values and previously assessed customs values.

International price trends and published indices for polypropylene (PP) resin were also examined. The analysis confirmed that fluctuations in PP resin prices have significantly impacted production costs of BOPP films.

The directorate further noted that BOPP film is an industrial raw material used in the manufacturing of BOPP tape and packaging products, and is not commonly available in local retail markets. Therefore, the deductive valuation method under Section 25(7) was not applicable.

After reviewing the sequential valuation methods under Section 25 of the Customs Act, the computed value method under Section 25(8) was considered appropriate.

Accordingly, customs values have been re-determined under Section 25(9) read with Section 25(8) of the Customs Act, 1969.