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 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Unipar Carbocloro plant in the city of Cubatão, São Paulo state. Courtesy: Wikipedia

Textiles | On 10th Dec 2016

Brazil’s CADE clears Solvay’s 70.59% stake sale in Indupa

Brazil’s administrative council for economic defence (CADE) has...

Interviews View All

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Bani Batra

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

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search