Spinning Sector Overview

SPINNING | DUTY & SALES TAX STRUCTURE PACRA Additional Custom Duty Custom Duty Regulatory Duty Total PCT Code Description 2019- 2018- 2019- 2018-2019- 2018- 2019-2020 2018-2019 2020 2019 2020 2019 2020 2019 Raw Cotton 52.01 Cotton, not carded or combed 52.03 Cotton, carded or combed 0% 0% 0% 3% 0% 0% 0% 3% 0% 0% 0% 3% 0% 0% 0% 3% 52.04 Cotton sewing thread, whether or not put up for retail sale Cotton yarn (other than sewing thread), containing 85% or Yarn 2% 0% 16% 16% 0% 0% 18% 16% more by weight of cotton, not 52.05 put up for retail sale 2% 0% 11% 11% 10% 10% 23% 21% Cotton yarn (other than sewing thread), containing less than 85% by weight of cotton, not 52.06 put up for retail sale 2% 0% 11% 11% 10% 10% 23% 21% Cotton Yarn (other than sewing thread) put up for retail Description Imported Local Imported Local In addition to Sales Tax, there is Advance Tax of 1% applicable on the import of these products. However, the amount of Advance Tax is adjustable against final income tax liability. Polyester filament yarn is subject to anti-dumping duty in the range of 3.25-11.35% on imports from China and Malaysia. This duty has been in effect since August 2017 providing protection to local players. Sales Tax 5% 10% 17% 17% 52.07 sale 2% 0% 11% 11% 10% 10% 23% 21% Synthetic Filament Yarn (other than sewing thread), not put up for retail sale (includes 54.02 polyester and nylon) 2% 0% 11% 11% 2.5% 5% 16% 16% Artificial Filament Yarn (other than sewing thread), not put up for retail sale (includes 54.03 viscose rayon) 2% 0% 11% 11% 0% 0% 13% 11% Source: Federal Board of Revenue (FBR), National Tariff Commission 26

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