Used clothing imported in the garb of garments, unstitched cloth under red channel, will be examined 100 per cent by the Federal Board of Revenue (FBR). This will help facilitate the textile sector and remove apprehension about this, along with quick payment of duty drawback and valuation ruling for used cloth. Sources say the FBR Model Customs Collectorates (MCCs) have been issued instructions by the FBR on textile-related issues after a meeting with the All Pakistan Textile Mills Association (APTMA).

Key measures regarding the textile sector have been implemented at the FBR’s field formations level after the instructions. The FBR informed customs collectors about a meeting with APTMA by the Advisor to Prime Minister on Revenue in FBR, wherein, the import of unstitched cloth and new garments in the garb of used clothing was agitated by APTMA. Thus, the collectorate should place any unstitched fabric and or new garments that may be concealed in the used clothing, under red channel for hundred per cent examination and the Board should be notified about this immediately.

The Model Customs Collectorates have also been instructed that the valuation of used cloth also comes under this and that the matter may be looked into for fixing a fair import value. Special instructions have been issues to the Collector of Customs, Faisalabad to speed up the payment of duty drawback to the textile exporters. Besides, the value of foreign origin imported cloth would also be revisited.