The Federal Board of Revenue (FBR) on Saturday notified the concession of duty free import of cotton yarn to ensure yarn availability for the textile chain of the country. The FBR has made it mandatory that yarn imported would not be allowed for retail sale and imports would be limited to textile units using it as raw material.
The Cabinet Committee on Textile in its second meeting had decided to abolish 5 percent customs duty on import of cotton yarn falling under Chapter 52 of the Harmonised Tariff Schedule. The meeting of the Cabinet Committee on Textile had taken the decision while reviewing the production, prices and domestic availability of cotton yarn in the country. After in-depth deliberation in which all factors were examined, it was decided that corrective measures are required to be taken urgently to provide a level-playing field to all stakeholders in the textile chain and need of all should be fulfilled in a competitive manner. The committee had decided that customs duty on import of cotton yarn falling under Chapter 52 of the Harmonised Tariff Schedule would be removed. The committee will keep the yarn exports under review and may take corrective measures if exports cross the level of 50 million kilogrammes per month. Exports of yarn will be allowed only against L/Cs and advance cash received through normal banking channels and following registrations of contracts with the TDAP.
