Home / Knowledge / News / Textiles / Imposition of duties on yarn, force 25 mills to shut down
Imposition of duties on yarn, force 25 mills to shut down
30
Jun '10
Almost 25 spinning mills have shut down, within the last two weeks, due to duties imposed by the government on their superior-quality yarn exports, which is not utilised by the local industry.

As per Ejaz Gohar, Chairman, All Pakistan Textile Mill Association (APTMA-Punjab), the superior quality yarn producing mills, which have the capacity to grip their stocks, are currently functioning and have assured their buyers that, once the government fulfills its promise of lifting the ban by July 26, the export orders will be delivered.

Further more, APTMA members also said that, import and export of cotton is duty free, which is the basic raw material for cotton yarn. However, there is a 15 percent duty imposed on yarn exports, which has a much higher value.

Also, although there is a 4.5 percent duty and anti-dumping duty imposed on the imports of polyester fibre, no duty is levied on yarn imports made out of Polyester Staple Fibre (PSF), and this is according to SRO 15(I) 2010, January 6.

APTMA members opine that, by providing duty-free entry in to the Pakistani market, government is providing advantage to the foreign manufacturer of polyester yarn. Further more, government is also side-tracking the domestic polyester fibre producers by imposing duty on their raw material.

More so, due to these problems, Pakistani exporters; efforts to penetrate in to developed markets is getting hampered, informed Gohar.

In the meantime, APTMA PSF committee has made a demand that, government should lift all bans on imports of PSF and raw material imports of textile industry should be made duty-free, mainly because the duty drawback system is ineffective.

Spinners further mention that, the key possibility of surging the textile exports is in PSF related goods, as world-over use of PSF is about 65 percent as against cotton, which is 35 percent.

Due to discriminatory duties imposed on PSF goods, textile sector of Pakistan is unable to enter the PSF product based textile markets. Spinners allege that, in China PSF is available at Rs 100 a kg FOB China ($1.17 per kg) as against Rs 133 per kg, being charged by Pakistani producers.

Fibre2Fashion News Desk - India

Must ReadView All

Textiles | On 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search