ECC approves withdrawal of duties on imported cotton.

ISLAMABAD -- The Economic Coordination Committee (ECC) of the Cabinet in its meeting held on December 30, 2019 approved two cases submitted by the Ministry of Commerce, related to withdrawal of regulatory duty/customs duty and additional customs duty on imported cotton, and for allowing import of cotton through the Torkham Border.

The ECC was informed that Cotton remained duty free till the slab of 0% was abolished in 2014-15 and Custom Duty of 1% was imposed along with 5% Sales Tax, said a press release issued by Ministry of Commerce here on Monday.

Later on, 1% slab was increased to 2% and then 3% along with 2% additional customs duty to make it 5%. Since 2017 the duties are withdrawn from January/February and re-imposed in July-August.

It was also discussed that by January 1st, 2010 majority of the cotton would be lifted from the farmers. Therefore, to further protect the farmers, the ECC of the Cabinet allowed duty free import of cotton with effect from January 15, 2020.

The ECC of the Cabinet was also briefed that under Rule 28 of the Plant Quarantine Rules of 1967 / Plant Quarantine Act 1976, cotton was only allowed through sea route. As trade with India is currently suspended by Pakistan, therefore, Afghanistan and the Central Asian States are the more viable economic sources for the import of cotton.

The ECC allowed import of cotton from Torkham Border subject to fulfillment of all sanitary and...

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