PYMA appeals Tarin not to impose R&D on polyester filament yarn

KARACHI: Saqib Naseem, central chairman of Pakistan Yarn Merchants Association (PYMA), has urged Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin not to succumb to the pressure of the local manufacturers, and to reject any proposal for the imposition of regulatory duty on imports of polyester filament yarns, especially HS Code 5402.3300 and HS Code 5402.4700.

Expressing concern over the rumours circulating about lobbying for imposition of regulatory duty on imported polyester yarn by local manufacturers of polyester filament yarn, Naseem in a letter to the finance adviser said that the local manufacturers of polyester filament yarn were lobbying with the relevant agencies, especially the Ministry of Commerce, to impose regulatory duty on imported polyester yarn.

This would be extremely detrimental to the local consumers of polyester filament yarn, and would be against the government’s policy of ensuring the availability of raw materials to the industry and consumers at competitive prices.

He said: “In the letter that despite the fact that local manufacturers of polyester filament yarn were already enjoying discounted tariffs, efforts to implement regulatory duties will significantly increase the production cost of [the] local industries,” therefore, no such proposal should be considered, which is detrimental to the domestic industries.

The PYMA chairman said that the current Customs duty of 11 per cent is rather excessive. For your information the Custom duty on polyester staple fiber is 7 per cent and the local manufacturers of PSF seem to be doing with this level of protection.

There is no significant production cost difference between polyester staple fibre and polyester filament yarn.

The weaving and knitting industry (user industry) is already facing a very challenging situation due to very high cotton and polyester yarn prices, and imposition of regulatory duty would be extremely counterproductive, especially when the local user industry has to import 65 per cent of its requirements of polyester filament yarn from foreign suppliers.

Naseem urged the government not to listen to the unjust pressure of the local manufacturers of polyester filament yarn to impose regulatory duties, and only take measures to reduce the cost of production of domestic industries and stabilise the economy.

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