ISLAMABAD: The Ministry of Commerce will support the demand of the All Pakistan Textile Mills Association (APTMA) for imposition of 10 percent regulatory duty on import of synthetic yarn.
On October 17 this year, the government had imposed a 10 percent regulatory duty on imports of cotton yarn, grey and processed fabric, particularly from India, in a bid to protect the domestic industry from dumping of cheap raw material with effect from November 1. However, the government did not impose duty on synthetic yarn.
Yarn is a long continuous length of interlocked fibres, suitable for use in the production of textiles, sewing, , crocheting knitting, weaving, embroidery, and rope making. Thread is a type of yarn intended for sewing by hand or machine.
Synthetic fibers are the result of extensive research by scientists to improve on naturally occurring animal and plant fibers. Generally the synthetic fibers is created by extruding fiber-forming material through spinnerets into air and water forming a thread. These fibers are called synthetic or artificial fibers. Some fibers are manufactured from plant-derived cellulose.
A well-placed official source at Ministry of Commerce, told this scribe here that government’s decision of imposition of 10% regulatory duty on import of cotton yarn had proved counter productive because import of synthetic yarn had increased by several times because the middleman had indulged in its import in bulk quantity.
Moreover, massive import of synthetic yarn has inflicted serious loss to local yarn producers and manufacturers. Therefore, the APTMA has approached the Ministry of Commerce to get support on this issue. APTMA wants equal treatment towards both the forms of yarn.
MoC will support APTMA in its demand by taking up matter with Finance Ministry, Federal Board of Revenue on the forums of Economic Coordination Committee of the Cabinet and other platforms. Ministry of Commerce has asked the Ministry of Textile Industry to hold consultations with APTMA to resolve the issue under the schedule of 54 and 55 of Pakistan Customs Code regarding change of tariffs of regulatory duty.
