The Directorate General of Customs Valuation has updated the import valuation method for carbon steel seamless pipes from all origins, introducing a revised formula linked to global steel benchmarks and production costs.

Under the new ruling, customs values will be determined using the London Metal Exchange (LME) price of steel billets, along with an added USD 50 per metric ton for billet differential, USD 250 per metric ton for fabrication costs, and actual freight charges.

The earlier valuation ruling issued in 2025 was challenged by local manufacturers, including Huffaz Seamless Pipe Industries Limited and Peoples Steel Mills Limited, under Section 25D of the Customs Act, 1969.

The companies argued that seamless pipes are manufactured using round bar feedstock, which carries higher costs than square billets referenced in LME pricing. They also requested inclusion of additional processing costs in valuation.

Following a directive for reassessment, the Customs Valuation authority held consultations with industry stakeholders and reviewed technical and financial submissions from both importers and domestic producers.

The revised valuation has been finalized under Section 25(8) of the Customs Act, 1969, using internationally recognized pricing data and industry cost references.