ISLAMABAD: Pakistan Customs has stepped up scrutiny of fabric imports under the Export Facilitation Scheme after concerns that some consignments were allegedly being misdeclared to claim duty and sales tax exemptions.
The Federal Board of Revenue said Customs field formations are carrying out enhanced checks on relevant consignments to establish the correct description and nature of imported fabric.
Where necessary, physical inspections are being backed by laboratory testing to determine the actual composition of the goods and identify any violation of customs laws or procedures.
The action has been welcomed by the All Pakistan Textile Mills Association, which raised concerns over the alleged misuse of the Export Facilitation Scheme in relation to greige fabric imports.
APTMA Flags Alleged Misuse of EFS
APTMA said greige fabric had been excluded from the Export Facilitation Scheme under SRO 1435(I)/2025, but alleged that some consignments were still being imported under incorrect descriptions to obtain exemptions from customs duty and sales tax.
The association said such practices could deprive the government of legitimate revenue while placing compliant domestic textile manufacturers at a competitive disadvantage.
APTMA also appreciated the role of Customs field formations in examining consignments and taking enforcement action where misuse is suspected.
Customs Steps Up Physical and Lab Checks
Pakistan Customs said officers are examining the description, classification and composition of imported fabric more closely.
Samples may be sent for laboratory testing where physical examination alone is not sufficient to determine whether goods have been correctly declared.
The enforcement measures are intended to identify misdeclaration and ensure that exemptions available under the EFS are used only for eligible imports.
FBR Says Trade Facilitation and Enforcement Will Continue
Pakistan Customs said trade facilitation for legitimate businesses would continue alongside stricter enforcement against the misuse of exemptions, concessions and regulatory procedures.
It said stronger controls would be maintained to protect government revenue, safeguard compliant businesses and ensure that facilitation schemes operate transparently and for their intended purpose.
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