The Federal Board of Revenue (FBR) has revised the customs valuation mechanism for imported carbon steel seamless pipes, a move that is expected to increase the assessed value and import cost of the product.
The new valuation framework was introduced through a ruling issued by the Directorate General of Customs Valuation in Karachi and applies to imports of carbon steel seamless pipes from all countries of origin.
Under the revised mechanism, customs values will be calculated using the London Metal Exchange (LME) steel billet price, along with an additional $50 per metric ton as square billet differential, $250 per metric ton as fabrication cost, and applicable freight charges.
The decision follows objections raised against the previous valuation ruling issued in 2025 by Huffaz Seamless Pipe Industries Limited and Peoples Steel Mills Limited under Section 25D of the Customs Act, 1969.
The local manufacturers argued that seamless steel pipes are produced using round bar feedstock, which is more expensive than the square billets referenced by the London Metal Exchange. They also maintained that additional manufacturing and processing costs should be reflected in the customs valuation methodology.
Following the appeal, the Director General of Customs Valuation ordered a fresh assessment of the product’s customs values. Authorities subsequently conducted consultations with both domestic manufacturers and importers and reviewed technical submissions from all stakeholders.
According to the ruling, the revised values were determined under Section 25(8) of the Customs Act, 1969, using data from internationally recognized steel market publications and industry sources.
The updated valuation is expected to impact import costs for seamless steel pipes, which are widely used in the oil and gas, construction, engineering, and industrial sectors. Higher customs values could result in increased duties and taxes on imports, potentially affecting downstream industries that rely on the product.
Officials said the revised mechanism aims to ensure more accurate customs assessments and align import valuations with prevailing international market conditions and production costs.
