Customs duty exemption on cotton yarn import
The Federal Board of Revenue, under Pakistan’s service of business, has informed about the waiver of entire customs duties on the import of cotton yarn (other than sewing thread) up to June 30, 2021.
This exemption is pertinent to cotton yarn, regardless of its cotton weight or it is intended for retail sales or not, the FBR said in is warning SRO 533(I)/2021.
The FBR’s notification follows the decision dated April 14, 2021 of the Economic Coordination Committee (ECC) of Pakistan’s cabinet withdraw customs duty application on the import of cotton yarn.
“The withdrawal of customs duty is meant to ensure smooth supply of cotton and cotton yarn and bridge the gap between domestic production and overall demand for inputs,” the Economic Coordination Committee (ECC) had aforementioned in its decision.
In spite of the fact that yarn costs have been declining, material exporters in Pakistan trust it is still very high. Production of Cotton in Pakistan has been falling lately.