ECC approves removal of customs duties on textile sector

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved removal of Additional Customs Duties (ACDs) and Regulatory Duties (RDs) on selected HS Codes (Harmonized System Codes) of textile sector.

The ECC, in the meeting held, approved removal of Additional Customs Duties (ACDs) and Regulatory Duties (RDs) on selected HS Codes of textile sector, including fibers, yarns and fabrics of Nylon, Viscose, Acrylic, Rayon, Silk, Wool and vegetable based fibers like Hemp ets, said a press release issued by Ministry of Commerce here.

The summary was moved by Ministry of Commerce, after approval of the National Tariff Policy Board in its meeting held on August 24, 2020.

The rationalization has been done with an objective of increasing the share of MMF (Man Made Fibers) for better per unit prices in the international markets, product diversification and, most importantly, value addition in our textile sector.

This is in pursuance of the policy of Ministry of Commerce for cost reduction by reducing the duties, including ACDs and RDs, on raw materials as well as intermediaries.

This is also an essential part of promoting industrialization under ‘Make in Pakistan’, and ensuring ‘export led growth’ in the country.

Rationalization Plan, the National Tariff Commission has initiated studies of different sectors including textile sector.

During the analysis, it was observed that textile sector in Pakistan is using 70pc Cotton and 30pc MMF in manufacturing of textile goods, which is opposite to the general trend among the top exporting countries in textile sector.