Pakistan’s import duty on cotton yarn effective from Nov 1

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Pakistan’s Federal Board of Revenue (FBR) has imposed 10 per cent regulatory duty (RD) on eight different types of cotton yarns including woven fabrics of cotton from November 1, 2015.

According to a State Regulatory Order, 10 per cent RD has been imposed on the import of cotton yarns (other than sewing thread), containing 85 per cent or more by weight of cotton, not put up for retail sale; Cotton yarn (other than sewing thread), containing 85 per cent or more by weight of cotton, not put up for retail sale.

The duty has also been imposed on cotton yarn (other than sewing thread), containing less than 85 per cent by weight of cotton, not put up for retail sale; cotton yarn (other than sewing thread) put up for retail sale; Woven fabrics of cotton, containing 85 per cent or more by weight of cotton, weighing not more than 200 g/m2; woven fabrics of cotton, containing 85 per cent or more by weight of cotton, weighing more than 200 g/m2; woven fabrics of cotton, containing less than 85 per cent by weight of cotton, mixed mainly or solely with man-made fibres, weighing not more than 200 g/m2; woven fabrics of cotton, containing less than 85 per cent by weight of cotton, mixed mainly or solely with man- made fibres, weighing more than 200 g/m2 and other woven fabrics of cotton.

The government decision has come under flak from the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) which has alleged that yarn manufacturers have allegedly established a cartel across the country and increased the price to Rs1200 per bag of 100 pounds compared to the earlier price of Rs 800 in a week that will directly hit the apparel sector, according to a newspaper report.

The price rise came after the announcement of 10 per cent regulatory duty on the import of yarn and fabric.

“Though the duty will be slapped from next month, the additional cost is already being included in yarn import deliveries to the apparel sector,” said PRGMEA Chief Coordinator Ijaz Khokhar.

Earlier this month, the Government announced a 10 per cent import duty, effective from November 1, 2015, on the import of cotton yarn from India by Pakistani textile companies.

Finance Minister Ishaq Dar had announced the decision after holding a series of meetings with All Pakistan Textile Mills Association (APTMA). (SH)

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