Customs Revises Import Values for Coated Fabrics Imports

The Directorate General of Customs Valuation has issued a revised valuation ruling governing the import of PVC, PU, and other coated fabrics originating from multiple jurisdictions, including China, Taiwan, Korea, Japan, Thailand, the Far East, the United Kingdom, and the United States. The updated benchmarks have been notified through Valuation Ruling No. 2068 of 2026, superseding the earlier framework established under Valuation Ruling No. 1730-2023, in accordance with Section 25A of the Customs Act, 1969.

The revision process was initiated following formal representations submitted by stakeholders in December 2025, wherein importers highlighted a downward trend in international prices of relevant raw materials and sought corresponding adjustments in customs valuation.

Pursuant to these representations, the Directorate undertook a comprehensive re-assessment exercise, including stakeholder consultations with both importers and domestic manufacturers to evaluate prevailing global price trends and their implications for customs valuation.

Importers contended that international market prices had softened and advocated for alignment of customs values with actual transactional benchmarks, as envisaged under Section 25 of the Customs Act. Conversely, local manufacturers opposed any downward revision, asserting that input costs remain elevated and cautioning that reduced customs values could adversely impact the domestic artificial leather industry.

Following a detailed review of submitted data, market indicators, and stakeholder positions, the Directorate concluded that a revision of customs values was warranted. The newly notified rates are intended to reflect updated international pricing dynamics and ensure accuracy in the assessment of import consignments in accordance with applicable legal provisions.