Trade with India: textile industry for abolishing non-ad valorem duties

Textile industry of the country has urged the government to create level playing field for normalisation of trade with India by abolishing non-ad valorem duties imposed by India, it is learnt reliably. Stakeholders urged the government to negotiate with Indian government for abolishing duties on textile import during a meeting held in the Textile Ministry where all the stakeholders were given presentation on Tariff Rate Quota (TRQs) administration under European Union concession.
Textile stakeholders urged the government to persuade Indian government to abolish import tariff on Pakistan textile products or else impose the same import tariff on Indian imports, sources revealed. Sources said that after giving Most Favoured Nation (MFN) status to India, custom duty on 80 percent textile products would be slashed to five percent whereas India's imposed high import tariffs.
There is a huge difference between the MFN status for India (given by Pakistan) and MFN status for Pakistan (as given by India). Pakistan MFN status for India is comparatively open and the deal will hurt textile sector. Industry stakeholders revealed that according to India import tariff, a Pakistani-made jean worth Rs 200 would be sold in India at Rs 200 plus an extra duty of Rs 182.
Similarly Pakistani bed-sheet would be subject to a duty of Rs 108 while some garments would be subject to Rs 1,110 duty. It was further revealed that India collected CVD additional duty, Central Excise Cess and Special CVD on imports. Therefore government of Pakistan should negotiate with India to abolish all these duties and in case of Indian refusal the government of Pakistan should impose the same import tariff on Indian products to save local industry.