Pakistan Government Urged To Take Action Against Alleged Indian Fabric Dumping

Industry news

Pakistan Government Urged To Take Action Against Alleged Indian Fabric Dumping

Pakistani textile manufacturers have urged the Government of Pakistan to immediately take strict action against alleged illegal imports of Indian fabrics under fake origin certificates of origin, since it is badly hurting the local industry. Indian fabrics under fake certificates of origin from China and Hong Kong are being dumped in Pakistan, according to the All Pakistan Textile Mills Association (APTMA).

Recently, Pakistan’s Directorate General Intelligence and Investigation of the Federal Board of Revenue (FBR) seized around 18 containers of Indian fabric, which came through Dubai under Chinese certificate of origin. According to the Pakistani media, none of these Chinese or Hong Kong companies existed.

Around eight months ago, Pakistani fabric manufacturers had complained to Pakistan Customs officials, after which sales of Pakistan-made fabrics had increased due to the strict action against Lahore-based importers of Indian fabrics. After the Pakistani Customs department intervention eight months ago, imports of Indian fabric had slowed down, but did not end completely since smuggling continues through Iranian and Afghan borders with Pakistan.

Karachi Cotton Brokers Association Chairman Naseem Usman said that Indian fabrics enter Pakistan through Dubai and Afghanistan borders under fake certificates of origin. According to Pakistani fabric manufacturers, Indian fabric worth over Rs 700 million had already landed in Pakistan, since 88 containers were cleared by Pakistani Customs authorities based on fake documents submitted by importers. Import of Indian fabric has occurred despite being officially disallowed since polyester filament yarn and fabric are on Pakistan’s negative import list, according to a member of the Pakistan Silk & Rayon Mills Association.