The Central Board of Revenue (CBR) has issued new rules and guidelines for import of polyester fabrics and yarn to curb under-invoicing and restrict the import of Indian fabrics through Middle East. The restriction came after the request of local polyester fabric industry at a meeting with the CBR chief last Tuesday here, an industrial sector source told Business Recorder.
According to the textile industry, board has announced elimination of fabrics and yarn import from Customs Administrative Reform (Care) list and its import has banned through advance cash payment with a view to curbing the menace of under-invoicing.
The polyester fabric and yarn are paving the way for the local market in huge quantity being imported via Gulf states, which do not have polyester fabric manufacturing facilities.
The fabric of Indian-origin arrives in the local market by way of Gulf countries because its import in Pakistan is officially banned and importers are not showing certificate of origin (CO) of the imported commodity.
The illegal import of fabrics is causing the colossal loss to the national exchequer and also affecting the local industry badly.
Last Tuesday, a delegation of polyester fabric chain industry met CBR Chairman Abdullah Yousuf in Karachi, and informed him about the present situation and requested him to restrict the import of fabrics and yarn from Care system.
The CBR chief took instant decision and issued directives for new rules and guidelines to implement them in letter and spirit. The approved points would be implemented from March 1, source said.
The board has amended the rules for the import of fabric and announced ban on the import of Indian fabrics via Gulf countries, he said, adding: "These amendments were made at the request of the industry."
In line with the new rules and guidelines, fabrics and yarn imports have been removed from Care list and its valuation will be determined through manual system. Fabrics imports from Gulf countries through advance cash payments have also been banned which will only be allowed through a letter of credit (L/C) and not through advance cash payments.
New rules say that now the packaging list and description of fabrics goods will be made conditional for clearance. In case the necessary information are not provided then the imported goods will not cleared.
Import of Stock lots, Job lots, sub-standard and non-assorted fabrics are legally banned and yet these are cleared without any hindrances, while the contents will show its import automatically stopped, source said.
The board has also announced penalties and strict action will be taken against the rule transgressors and strictly discourages goods clearance at low rates. The new valuation formula will be legalised through the Notification u/s 25 A of the Customs Act.
The CBR chief turned down the local industrialists' request of polyester fiber imports from Gulf countries that should be cleared only after valuation by Karachi Customs and clearance from dry ports should be avoided.
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