APTMA Urges Equal Cess Treatment For EFS Imports Through Karachi
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✧ GENERATE BRIEFING
The All Pakistan Textile Mills Association (APTMA) has formally appealed to Pakistan Single Window (PSW) CEO Syed Aftab Haider, urging the digital customs platform to grant uniform exemption from the Punjab Infrastructure Development Cess (PIDC) for all goods imported under the Export Facilitation Scheme (EFS) through Karachi ports by Punjab-based manufacturers. While EFS consignments cleared via Lahore Dry Port or Lahore Airport currently enjoy automatic exemption from the cess, shipments processed through southern port facilities in Karachi face conflicting application, creating financial and logistical friction for export-oriented units.APTMA’s representation highlights that under Section 6 of the Punjab Infrastructure Development Cess Act, 2015, goods carrying federal exemptions from customs duties and taxes are legally protected from the infrastructure levy. Furthermore, under Rule 880(1) of the Export Facilitation Scheme, 2021 (notified via SRO 957(I)/2021), authorized users are entitled to procure eligible input materials completely free of customs duty, sales tax, federal excise, and withholding tax against verified Goods Declarations.
The All Pakistan Textile Mills Association (APTMA) has urged the Pakistan Single Window (PSW) to exempt goods imported under the Export Facilitation Scheme (EFS) by Punjab-based exporters from the Punjab Infrastructure Development Cess.
In a letter to PSW CEO Syed Aftab Haider, APTMA said EFS goods declarations are already exempt from the cess when consignments are cleared through Lahore Dry Port or Lahore Airport. The association argued that the same treatment should apply to EFS consignments cleared through Karachi ports.
Legal Framework and Statutory Provisions
APTMA referred to Section 6 of the Punjab Infrastructure Development Cess Act, 2015, which provides that goods exempted by the federal government from import duties and taxes are also exempt from the infrastructure cess.
The association also cited Rule 880(1) of the Export Facilitation Scheme, 2021, notified through SRO 957(I)/2021. Under the rule, authorised EFS users can obtain eligible input goods without payment of customs duty, federal excise duty, sales tax or withholding tax, subject to the scheme’s conditions.
APTMA said eligible imports are cleared against Goods Declarations carrying the relevant EFS authorisation number. On this basis, it argued that EFS Goods Declarations filed at Karachi ports by Punjab-based exporters should also qualify for exemption from the Punjab Infrastructure Development Cess.
System Reconfiguration and Cost Competitiveness
The textile body has asked PSW to review its system configuration in consultation with the Punjab Revenue Authority (PRA) and the Federal Board of Revenue (FBR) so that the cess is not charged on eligible EFS consignments.
APTMA also requested an official clarification for exporters, importers and customs agents to remove uncertainty over the treatment of such consignments.
The request comes as the textile industry remains focused on reducing costs associated with export manufacturing. APTMA has previously raised concerns that infrastructure-related levies could add to the cost burden faced by Punjab-based exporters and affect their competitiveness in international markets.
