ISLAMABAD: The Federal Board of Revenue (FBR) has exempted up to June 30, 2021 the importers of cotton yarn from payment of customs duty.
According to a notification issued by the FBR on Thursday, the federal government has waived the whole of customs duties on import of cotton yarn (other than sewing thread) containing 85% or more by weight of cotton, not put up for retail sale; cotton yarn (other than sewing thread) containing less than 85% by weight of cotton, not put up for retail sale and cotton yarn (other than sewing thread) put up for retail sale.
This notification shall remain in force till June 30, 2021.
The Economic Coordination Committee (ECC) had withdrawn customs duty on import of cotton yarn in order to facilitate the value-added exporters.
It is pertinent to mention here that the regulatory duty was already withdrawn in December 2020 on the recommendation of the commerce ministry.
Now the value-added manufacturers and exporters can import cotton yarns at zero-percent customs duty.
Copyright Business Recorder, 2021