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DGCV revises customs duty of textile lining material fabric

Directorate General Customs Valuation (DGCV) has revised the customs duty of textile lining material fabric and textile invisible coated lining material fabric under section 25(9) of the Customs Act, 1969. According to the revised valuation, previous values of textile lining material were determined in 2013, therefore, an exercise was undertaken to revise the same according to trends prevailing in the current international market.

For the purpose, the meetings were scheduled in Jan, February and April, and all stakeholders were requested to submit the relevant documents. The requisite documents were not submitted by any stakeholder however importers and representative of trade organizations presented their point of view that the prices of subject item varies internationally due to different gram-mages, kind and different thicknesses as per sample. Moreover, the untwisted yarn which is the raw material of the subject item has declined significantly. The main stress of the importers was that textile invisible coated fabric which is similar item is being assessed and released at lower rate ranging from $2.30 to 2.65 which has created un-stability in the local market.

Later, the Directorate has adopted valuation methods, transaction value method, identical/similar goods value methods but the same could not be exclusively relied on. Thereafter, market enquiry as envisaged under Section 25(7) of the Customs Act, 1969, was conducted. The prices of different types of textile lining material in the market varied significantly and were heavily dependent on quality of the material and the location of the selling point or shop in the city.

Online values were also checked. The computed value method as provided in section 25(8) of the Customs Act, 1969 could not be applied as the conversion costs from constituent material at the country of export were not available. All the information was evaluated and analyzed for the purpose of determination of customs values. Consequently, the Custom values of textile lining material fabric and textile invisible coated lining material fabric were determined under Section 25(9) of the Customs Act, 1969.

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