Govt imposes 10% regulatory duty on cotton yarn, fabric imports from India

KARACHI: The cotton yarn, fabric commercial and value addition sector exporters will face 10 percent regulatory duty on imports from India from November 1.

Spinning sector of the country has filed the case of anti-dumping against Indian cotton and cotton-yarn imports with National Tariff Commission (NTC) and it is still pending with the NTC.

Government without consulting the NTC has increased the regulatory duty from five percent to 10 percent on import of cotton yarn and fabric from India.

Pakistan Apparel Forum (PAF) said value added apparel sector was representing Pakistan Hosiery Manufacturers and Exporters Association, Pakistan Readymade Garments Manufacturers, Exporters Association, Pakistan Knitwear and Sweater Exporters Association, Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association, who were major stakeholders of value added apparel sector.

The performance of value addition by woven garments sector is 846 percent, hosiery/knit garments 616 percent and spinning sector is 59 percent. Members of the PAF advised if government wanted to take decision on its own then it should abolish NTC.

The import of Indian fabric is already banned as per import policy 2012-15 and the government has imposed ten percent regulatory duty on import of fabric from India. It seems that government is bent on favouring the spinning sector for unknown reasons.

Emerging textile report of India cotton yarn export per destination is that India exports cotton yarn to Pakistan during 2014 in 25,983 metric tonnes at higher value – $4.09 per kg, while during 2014, India exported 521,831 metric tonnes cotton yarn to China at $2.91 per kg, Bangladesh 158,466 metric tonnes at $3.52 per kg, Egypt 59,812 metric tonnes at $3.29 per kg, Vietnam 51,072 metric tonnes at $3.39 per kg, Colombia 28,033 metric tonnes at $3.19 per kg and Turkey 13,763 metric tonnes at $3.79 per kg.

The PAF said in year 2010, many of the spinning mills claimed that in the history of the spinning sector of Pakistan they had made record profits and still are making huge profits and even at that time several of the spinning mills showed losses and still that spinning mills are doing losses, government may confirm from their balance sheets.

The 90 percent value added textile sector does not take Long Term Financing (LTF) and majority of small and medium units do not take export refinance, it shows government is pampering the large size units and destroying the small and medium size units which provides huge employment including poor female workers, who work on stitching machines and the government wants to create unemployment, chaos and disaster.

 

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