APTMA lauds Customs crackdown on import fraud

Textile millers under the All Pakistan Textile Mills Association (APTMA) have applauded Pakistan Customs for acting against misdeclared imports and improper use of the Export Facilitation Scheme (EFS), according to Business Recorder. The praise focused on fabric imports, although the association wants further steps against illicit trade. APTMA contends that shipments entering duty and tax free under EFS place imported goods ahead of domestic inputs, which bear an 18 percent sales tax.

Removing cotton yarn from EFS coverage reduced imports of that yarn to 21,587 tonnes, a 42 percent drop in the opening quarter of FY2027. However, the body warned that abuse continues in man-made yarns and fabrics. Since FY2024-Q1, man-made yarn shipments under the scheme climbed from 3,056 tonnes up to 12,773 tonnes, while fabric went from 660 to 8,628 tonnes, with no matching growth in exports. Customs officers recently detected fabric tinted with food dye that was passed off as dyed cloth.

The association has asked the government to remove all yarn and textile goods in Chapters 52 and 55 from the scheme, to revise customs values every quarter, and to set up a joint panel with the FBR to tackle under-invoicing. According to APTMA, these measures would safeguard jobs and government income.