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After a gap of about one month, cotton yarn export has resumed and some 2,000 tons quota at a price of 3.5 dollar per kg sanctioned by the ministry of textile was utilised in a day. Sources told Business Recorder the Federal Board of Revenue, on the request of the ministry of textile, has issued formal SRO 388(I)/2010 for the amendment to the prior notification 323(I)/2010 of May 13, in which some 15 percent regulatory duty was imposed on the export of cotton yarn.
According to the new SRO, export of cotton yarn has been allowed entailing quota and price restriction and exporters can dispatch a quantity of 2,000 tons of value added cotton yarn with a minimum price restriction of 3.5 dollar per kg. Following the issuance of the SRO by the ministry of finance, the customs authorities allowed export of cotton yarn and in the first phase exporters were permitted to dispatch quota of some 2,000 tons of value added cotton yarn, sanctioned by the ministry of textile.
Interestingly, the quota of 2,000 tons was exported in a single day by spinners as hundreds of container were waiting shipment eversince imposition of regulatory duty. As per notification, export under already opened Letters of Credit (LCs) would be allowed after the scrutiny conducted by a joint committee comprising representatives of the ministry of textile industry, value added textile and spinners.
However, duty-free export of those orders, LCs of which were opened by foreign buyers before the imposition of regulatory duty, has not started yet. So far the ministry of textile industry has not constituted any committee to evaluate the LCs. Sources said export of yarn against valid LCs, on first-come-first-served basis, will be allowed duty-free for a maximum quantity of 32,000 tons. Sources added that the committee is likely to be constituted in a few days, after which export of already booked orders would be resumed.
11 June, 2010 by admin