By SKM
August 30, 2026
ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) has welcomed the Federal Board of Revenue (FBR) and Pakistan Customs’ crackdown on the alleged misdeclaration of fabric imported under the Export Facilitation Scheme (EFS), saying the practice has caused serious damage to domestic manufacturers and resulted in revenue losses to the government.
APTMA said Customs had begun subjecting fabric consignments claiming duty and tax exemptions under the EFS to detailed physical examination and laboratory testing to determine their actual description.
The association said the action was necessary as greige fabric had been excluded from the EFS under SRO 1435(I)/2025 in August 2025, yet such consignments had allegedly continued to enter the country duty- and sales-tax-free through misdeclaration.
According to APTMA, laboratory tests conducted on a number of consignments reportedly found the use of food colouring instead of proper dyeing, leading to the recording of contraventions.
APTMA urged Customs authorities to make physical examination and laboratory testing mandatory for all fabric consignments imported under the EFS across the country, including through dry ports.
The textile body also called for verification of the manufacturing facilities of companies importing fabric under the scheme. It alleged that some importers did not have the requisite fabric-processing machinery and that imported fabric was instead being diverted to the domestic open market.
APTMA said any importer found involved in wrongdoing should face suspension of its license and criminal proceedings in accordance with the law.
The association maintained that misuse of the EFS not only deprived the government of legitimate customs duty and sales tax revenues but also created an uneven playing field for domestic fabric manufacturers that had invested heavily in production capacity and employment.
APTMA Chairman Kamran Arshad said the association expected the FBR to continue enforcement against misdeclaration and ensure that the EFS was used strictly for its intended purpose.
The association said sustained action against misuse of the scheme would help protect domestic manufacturing, improve revenue collection and prevent the EFS from being exploited for tax evasion.Ends
