The All Pakistan Textile Mills Association (Aptma) has asked the Pakistan Single Window (PSW) to exempt eligible imports made under the Export Facilitation Scheme (EFS) from the Punjab Infrastructure Development Cess when Punjab-based exporters clear their consignments through Karachi ports. The association has raised the issue over what it considers inconsistent treatment of qualifying EFS consignments, pointing out that similar shipments cleared through Lahore Dry Port and Lahore Airport are already being treated as exempt from the provincial cess.
In a communication addressed to the Pakistan Single Window, Aptma Secretary General Mohammad Raza Baqir requested that the same exemption be applied to eligible Goods Declarations filed at Karachi ports. The association said Punjab-based exporters using Karachi as a clearance point should not face an additional infrastructure cess when the underlying imported goods qualify for duty and tax exemptions under the federal Export Facilitation Scheme.
Aptma based its position on Section 6 of the Punjab Infrastructure Development Cess Act, 2015. According to the association, the provision exempts goods that have already been exempted by the federal government from duties and taxes on imports. Aptma argued that this provision should cover qualifying EFS consignments regardless of the port through which the goods are cleared, provided the shipments meet the applicable conditions of the federal scheme.
The association also referred to Rule 880(1) of the Export Facilitation Scheme, 2021. Under this provision, authorised users can acquire eligible input goods without payment of customs duty, Federal Excise Duty, sales tax and withholding tax, subject to the requirements and conditions of the scheme. The EFS provides an established framework for exporters to obtain inputs used in export-oriented production without the normal burden of applicable import duties and taxes.
Aptma further pointed to Rule 880(1)(a), which permits eligible input goods to be imported on a duty- and tax-free basis through a Goods Declaration carrying the relevant EFS authorisation number. The association maintained that where an importer has obtained the necessary EFS authorisation and the Goods Declaration qualifies under the scheme, the exemption from federal duties and taxes should be recognised when determining whether additional charges apply.
The textile industry body argued that Punjab Infrastructure Development Cess should not become payable simply because an eligible Goods Declaration is filed at a Karachi port rather than at a clearance point in Lahore. According to the association, the location of customs clearance should not change the treatment of goods that already qualify for exemption under the federal Export Facilitation Scheme. It has therefore asked the PSW to ensure that the system applies the relevant exemption consistently across different ports.
Aptma has also requested the PSW to review its system configuration in coordination with the Punjab Revenue Authority (PRA) and the Federal Board of Revenue (FBR). The association wants the system to prevent the automatic application of the Punjab Infrastructure Development Cess to eligible EFS declarations processed through Karachi ports. Such a technical adjustment, according to the association’s request, would help ensure that the treatment of qualifying consignments is aligned with the applicable legal and regulatory framework.
The association has additionally sought an official clarification for exporters, importers and customs agents. Aptma said clear instructions would help ensure uniform implementation and prevent the collection of the cess from consignments that meet the requirements for exemption. A formal clarification could also reduce uncertainty for businesses that use different ports for importing production inputs under the EFS.
The request comes after the Pakistan Single Window announced on October 1 that the Punjab Infrastructure Development Cess would be collected through its system. The development has prompted the textile industry association to seek clarification and a system-level adjustment for EFS consignments. The issue is particularly relevant for Punjab-based textile exporters that rely on Karachi ports for the movement and clearance of imported inputs.
The matter now involves coordination between the Pakistan Single Window, the Punjab Revenue Authority and the Federal Board of Revenue to determine how eligible EFS declarations should be processed through the digital customs and trade facilitation system. Aptma’s request is focused on ensuring that qualifying imports receive consistent treatment regardless of whether the Goods Declaration is filed through Lahore-based facilities or Karachi ports.
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