FBR Catches Importers Misdeclaring Fabric to Get Duty-Free Benefits

Meanwhile, the textile industry has welcomed a Federal Board of Revenue (FBR) crackdown on importers misdeclaring fabric to obtain duty and tax exemptions under the Export Facilitation Scheme (EFS).

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• The All Pakistan Textile Mills Association (APTMA) remarked Pakistan Customs has kicked off stricter physical inspections and laboratory testing of fabric consignments imported under the scheme.
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• According to APTMA, laboratory tests of some consignments reportedly discovered food colouring instead of proper dyeing, leading Customs to record violations.
• The association remarked it supports further FBR and Customs action to ensure the scheme remains focused on genuine export-related activity.

For context, the All Pakistan Textile Mills Association (APTMA) remarked Pakistan Customs has kicked off stricter physical inspections and laboratory testing of fabric consignments imported under the scheme.

APTMA remarked greige fabric was removed from the EFS in August 2025, but such imports had continued through alleged misdeclaration, depriving the administration of revenue and hurting local fabric manufacturers. Taxpayers to Complete NADRA Biometric Verification At Home.

Meanwhile, the association pressed the FBR to apply physical inspections and laboratory testing to all fabric consignments imported under the EFS nationwide, including through dry ports.

APTMA additionally called on verification of importers' manufacturing facilities. It remarked some firms allegedly lack the machinery needed to process fabric and may instead be diverting imported material into the domestic market.

Meanwhile, the association pressed authorities to suspend the licenses of businesses discovered violating the rules and initiate legal proceedings where required.

APTMA Chairman Kamran Arshad remarked continued enforcement was necessary to prevent the EFS from being misused for tax evasion and to protect local manufacturers that have invested in production and employment.

Notably, the association remarked it supports further FBR and Customs action to ensure the scheme remains focused on genuine export-related activity. Stay Connected with ProPakistani.

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In short, FBR Catches Importers Misdeclaring Fabric to Get Duty is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.