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Put fabric import from Dubai in negative list: PYMA
29 Apr '16
3 min read
The Pakistan Yarn Merchants Association (PYMA) has reiterated its demand for a government crackdown on fabric import from Dubai.
Pakistan Yarn Merchants Association (PYMA) Central Chairman Muhammad Usman on Thursday urged the government to put fabric import from Dubai on negative list, as there are no weaving/knitting factories in Dubai.
To resolve the conflict over imposition of regulatory duty on polyester filament yarn, he suggested that fabric imports from any part of the world should be allowed under legal channel, which included Letter of Credit (LC) or Documents Against Payments (DP), whereas payments via banking channels could save the local downstream industry.
Usman said local makers of polyester filament yarn can only meet 25 per cent of the downstream industry’s demand, while remaining 75 per cent of the requirement is met through imported yarn.
Despite the fact that an investigation was currently underway by National Tariff Commission to review the anti-dumping duty, some manufacturers were lobbying to ensure imposition of regulatory duty, which might result in the collapse of weaving and knitting industry, he said.
Usman warned that these attempts by local manufacturers would put the entire weaving and knitting industry in a grave situation by increasing the cost of yarn, thus making the entire downstream industry uncompetitive.
“This will also increase the cost of yarn and fabric, thus making the entire downstream industry uncompetitive,” he added. “The results would be disastrous for the exports, which are already suffering on account of high energy costs.”
He said that few local manufacturers were making attempts to monopolise in order to gain short-term benefits at the expense of large downstream sector, which was the backbone of the country's economy.
The PYMA Chairman pointed out that an anti-dumping duty of 18 per cent was imposed on imported filament yarn from Thailand, Malaysia, Korea and Indonesia in 2005 and at that point in time, a total of 17 local yarn manufacturers were operating, whereas this raw material was not being imported from China.
Despite improving the situation, the measure proved to be counterproductive as during the last 8 years since the imposition of anti-dumping duty, the number of local manufacturers had reduced to just four units while the market share had also shrunk drastically, he added. Usman suggested that a long term solution for dealing with these serious issues was to modernise and upgrade plants of the local manufacturers to enhance their production capacity. (SH)
Pakistan Yarn Merchants Association (PYMA) Central Chairman Muhammad Usman on Thursday urged the government to put fabric import from Dubai on negative list, as there are no weaving/knitting factories in Dubai.
To resolve the conflict over imposition of regulatory duty on polyester filament yarn, he suggested that fabric imports from any part of the world should be allowed under legal channel, which included Letter of Credit (LC) or Documents Against Payments (DP), whereas payments via banking channels could save the local downstream industry.
Usman said local makers of polyester filament yarn can only meet 25 per cent of the downstream industry’s demand, while remaining 75 per cent of the requirement is met through imported yarn.
Despite the fact that an investigation was currently underway by National Tariff Commission to review the anti-dumping duty, some manufacturers were lobbying to ensure imposition of regulatory duty, which might result in the collapse of weaving and knitting industry, he said.
Usman warned that these attempts by local manufacturers would put the entire weaving and knitting industry in a grave situation by increasing the cost of yarn, thus making the entire downstream industry uncompetitive.
“This will also increase the cost of yarn and fabric, thus making the entire downstream industry uncompetitive,” he added. “The results would be disastrous for the exports, which are already suffering on account of high energy costs.”
He said that few local manufacturers were making attempts to monopolise in order to gain short-term benefits at the expense of large downstream sector, which was the backbone of the country's economy.
The PYMA Chairman pointed out that an anti-dumping duty of 18 per cent was imposed on imported filament yarn from Thailand, Malaysia, Korea and Indonesia in 2005 and at that point in time, a total of 17 local yarn manufacturers were operating, whereas this raw material was not being imported from China.
Despite improving the situation, the measure proved to be counterproductive as during the last 8 years since the imposition of anti-dumping duty, the number of local manufacturers had reduced to just four units while the market share had also shrunk drastically, he added. Usman suggested that a long term solution for dealing with these serious issues was to modernise and upgrade plants of the local manufacturers to enhance their production capacity. (SH)
Fibre2Fashion News Desk – India
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