ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) on Aug. 30, 2026, praised the Federal Board of Revenue (FBR) and Pakistan Customs for taking action against the misdeclaration of fabric imports under the Export Facilitation Scheme (EFS), saying the move could help protect local manufacturers from unfair competition and prevent revenue losses.
APTMA said it had repeatedly raised concerns about the misuse of the EFS to import greige fabric, which was removed from the scheme under SRO 1435(1)/2025 in August 2025. According to the association, large quantities of such fabric continued to enter Pakistan without customs duties and sales tax through the misdeclaration of imported goods.
The association said the practice had harmed domestic fabric manufacturers, who face competition from imports while investing heavily in local production and employment.
Pakistan Customs has now begun more careful physical inspections of fabric shipments imported under claims of EFS exemptions. APTMA said physical checks, along with laboratory testing of samples, could help authorities determine the actual type and description of imported fabric and identify cases in which exemptions were improperly claimed.
APTMA said testing in several inspected consignments reportedly found the use of food coloring instead of proper dyeing. The association said violations were recorded in those cases.
The textile association urged Customs authorities to conduct physical inspections and laboratory tests on all fabric consignments imported under the EFS across the country. It also called for the same checks to be carried out at dry ports.
It said some importers reportedly do not have the required fabric-processing machinery and that imported fabric may instead be diverted to the open market. APTMA said that when wrongdoing is confirmed, the licenses of the entities involved should be suspended and criminal proceedings should be started according to the law.
The association said it expects the FBR to continue enforcing the rules to prevent misdeclaration, safeguard domestic manufacturing and ensure the EFS is used only for its intended purpose. APTMA said the scheme should not be used as a means of avoiding duties and taxes or facilitating corruption.
