Pak textile exports bag drawback on raw material imports

The Pakistan textile exporting industry has received a bonanza from the government in the form of a duty drawback on customs duty paid on import of raw materials used in manufacture of textile products meant for export.

Through a circular, subject to certain conditions, the Federal Board of Revenue (FBR) notified that it has permitted repayment of customs duty paid on imported raw materials used in the manufacture of textile export goods.

The imported raw materials cover a range of inputs including enzyme, Sodium Persulphate, Hydrogen Peroxide, Peroxide Stabilizer, Mercerizing Assistant, Sequestering Agent, Wetting Agent/Detergent, Acetic Acid/Neutralizing Agent, Provatex CP – a fire retardant chemical, Resin-Lyofix CHN, Turpex-Can strength improver softener, etc.

The repayment of duty would be available on the export of 100% cotton or blended polyester/ cotton/Trevira (all blends) dyed THPC fire or flame retardant woven fabric; 100% cotton dyed THPC fire or flame retardant (Provatex ACS special) woven garments; blended cotton/ polyester/Trevira (all blends) dyed THPC fire or flame retardant (Provatex ACS special) woven garments and many other textile products.

One of the conditions says that the said goods should have been produced as per the formula furnished to FBR, showing the quantity of various imported raw materials specified and used in the production or manufacture of the goods specified and manufacturer maintains proper record of the goods.

Other conditions include that the goods are exported out of Pakistan and an application for repayment of customs-duties is presented within 210 ten days of export or of the publication of this notification or within 180 days from the date of realization of foreign exchange.

Source : fibre2fashion.com