Expiry of SRO 410 on September 30, 2003 has affected the textile trade. Exports of value added textile items have dropped sharply because the customs authorities have stopped releasing fabrics and other accessories duty free after the expiry of SRO 410. 

The exporters of value-added textile goods under the SRO 410 have been making temporary imports for exports of such fabrics and accessories, which are not manufactured locally but are required for value-addition in textile goods.

However, the withdrawal of this facility has dealt a blow to textile trade, maintain exporters. Under this SRO exporters used to import large variety of accessories and fabrics without paying duty at import stage but the same was adjusted at export stage.

For the last couple of years the government had been striving hard to introduce a system under which there would be ''no duty no remission''. Ultimately, Duty and Tax Remission Rules for Exports (DTRE) were introduced under SRO 185. However, the DTRE rules were infected with many flaws, which exporters kept pointing out to the Central Board of Revenue. Despite a number of meetings and discussions resulting in amendments in the rules, exporters are still not satisfied.