FBR Exempts Customs Duty on Import of Cotton

The Federal Board of Revenue (FBR) has exempted customs duty on the import of three types of cotton yarn up to June 30, 2021. In this connection, the FBR has issued an S.R.O. 533(I)/2021 on Thursday. Under the notification, the federal government has exempted the whole of customs duties leviable on import of cotton yarn (other than sewing thread), containing 85% or more by weight of cotton, not put up for retail sale; cotton yarn (other than sewing thread), containing less than 85% by weight of cotton, not put up for retail sale and cotton yarn (other than sewing thread) put up for retail sale. This notification shall remain in force till June 30, 2021. The Economic Coordination Committee (ECC) had withdrawn customs duty on the import of cotton yarns, in order to facilitate the value-added exporters. The regulatory duty was already withdrawn in December 2020 on the recommendation of the commerce ministry. Now the value-added manufacturers and exporters can import cotton yarns at zero-percent customs duty.