May 2009


 

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Textile associations in Pakistan put forward ideas for industry development

Leading textile-related export associations of Pakistan asked the Ministry of Textile and Federal Board of Revenue (FBR) to abolish the customs duty on the import of textile/weaving and stitching machinery etc, among other requests including massive changes in customs tariff and revision of Temporary Importation Scheme. Some export associations also proposed revamping of licensing of freight forwarders rules to monitor their activities to avoid misuse. Other suggestions included changes in procedures for "analysis certificates" requirements; issuance of bank guarantees/indemnity bonds; relaxation of conditions in the Temporary Importation Scheme and proper adoption of the harmonized customs tariff schedules.

The Pakistan Textile Exporters Association (PTEA) proposed to the government reduction of customs duty under SRO.575(I)/2006 from 5% to zero on the import of textile machinery for spinning, weaving, processing, stitching and knitting. It also suggested 5% concessionary duty on the import of spare parts of the textile industry, as well as duty reduction from 20% to 10% on import of sodium hydroxide caustic soda in the coming budget.

The Pakistan Readymade Garments Manufacturers and the Exporters Association (PRGMEA) emphasized the importance of zero customs duty on the temporary imports of buttons, denim and other items. It also proposed new procedures for release of bank guarantee, indemnity bonds along with post dated cheques under the Temporary Importation Scheme (SRO.1065(I)/2005) and etc. Concessionary rate of 5% duty on the import of 100% polyester filament yarn, poly/viscose yarn, acrylic yarn and mixed yarn was proposed by the Pakistan Silk and Rayon Mills Association.


 
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