Textile exporters ask for custom free yarn import

KARACHI: Demanding full liberty to import yarn to complete export orders, the value-added textile exporters on Tuesday urged the government to remove 5.0 percent custom duty on import of 32 single yarns and below count until cotton yarn scarcity was controlled. Due to the unavailability of cotton yarn, the prices of cotton yarn have increased by 9.62 percent, which upshot the cost of manufacturing, pushing the exporters towards an unviable situation and un-competitiveness, a statement said.

Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani said exporters were unable to meet export commitments because the market had substandard cotton yarn.

Pakistan Hosiery Manufacturers Association (PHMA) had earlier demanded the government to allow duty-free import of cotton yarn to facilitate value-added textile export sector, as cotton yarn was unavailable in the local market, he said. However, the government only removed the regulatory duty. “Sense of severe unrest and uncertainty prevails, as exporters feel it ‘discriminatory’ because in the case of cotton, the government had allowed complete duty-free import,” Bilwani said. He admitted that the removal of regulatory duty has supported the value-added textile sector to some extent, but insisted that the situation necessitated and demanded to also remove the customs duty to fully support the value-added textile sector to complete their export orders.

Exporters asked the government to accord the matter high priority as part of its policy to enhance exports.

They also appreciated the government for streamlining and automating sales tax refunds mechanism, which has been working efficiently and delivering 99 percent results. The customs rebate disbursement has also been delivering 99 percent, they added.

Further, exporters requested to automate the DLTL/ DDT disbursement system as well, so the proceeds could be transferred to the exporters electronically.