Customs Rules: PHMA expresses concern over draft amendments

KARACHI: Pakistan Hosiery Manufacturers & Exporters Association (PHMA) has taken strong notice to the FBR’s notification issued vide SRO 1359(I)/2025 dated 29th July 2025 proposing draft amendments in Customs Rules 2001 to introduce draft amendments in Rule 871, 872, 876, 877, 879, 880, 882, 883 & 885 which will defeat the objective and purpose of Export Facilitation Scheme to provide a level-playing field, competitive and enabling environment to exporters to ease down their liquidity pressure and facilitate their cash-flow so that they may get new orders to enhance their exports.

In a letter to Shah Faisal Secretary (Export Policy) Federal Board Revenue (FBR), Jawed Bilwani Patron in chief PHMA, Central Chairman Muhammed Babar Khan and Chairman South Zone Faisal Arshad Shaikh said that the proposed amendments tantamount to imposition of taxes and levies mainly on import of cotton yarn and grey cloth on import-stage by excluding the same from the scope of Export Facilitation Scheme.

Approval and implementation of said draft amendments will shatter the hard enterprise of exporters to enhance exports, shall lead to decline in export and foreign exchange earnings due to liquidity crunch and in-competitiveness.

Continuation and implementation of Export Facilitation Scheme (EFS) in its Original status and position prior to Federal Budget 2024-2025 is inevitable and lifeline to enhance national exports and the proposal of imposing taxes and duties at the import-stage for importation of materials to manufacture goods meant for exports will sabotage apparel and textile exports.

In view of this PHMA conveys strong objection on subject draft amendments which are harsh and anti-export and not acceptable in order to safeguard the value-added apparel & textile exports. Any decision taken by the FBR/ Government arbitrarily and without consultation of Value-Added Apparel and Textile Exporters Association will lead to serious repercussions and will cause decline in national exports and foreign exchange earnings.

PHMA further requested to immediately call broad-based meeting of all Value-Added Apparel & Textile Exporters Associations in this regard.

They noted that PHMA was established in 1960, holds the distinction as premier and largest Trade Organisation representing more than 1200 exporters of Value-Added Apparel - Hosiery / Knitwear products having Association’s offices in Karachi, Faisalabad, Lahore and Sialkot.

The Hosiery/ Knitwear Sector alone earns approx. USD 5 billion annually for the country which includes knitted products of T-Shirts, Trousers, Hoodies, Socks, Bed-sheets, Dyed Fabric etc. and provides huge urban employment.

The Hosiery/ Knitwear exports rank among top-export in the total textile as well as national exports.

Copyright Business Recorder, 2025