According to an agreement on an "early harvest" preferential tariff program for the Free Trade Area, signed by China and Pakistan, the two countries will lower tariff continuously on textile and apparel categorized by 501 tariff numbers, including partial wool, cotton fabric, chemical fiber yarn, chemical fiber fabric, nonwovens, carpet, fleece fabric, knitted or crocheted fabric, knitted or crocheted apparel and accessories, bed sheet and other home textiles. In 2006, products under 30 tariff numbers will enjoy the preferential tariff, and till 2008 the zero-tariff products will cover 471 tariff numbers.

The tariff reduction includes:
1. Since Jan. 1, 2006, Pakistan will give preferential tariff to textiles under 30 tariff numbers from China, the preferential rate from 7% to 100%.
2. Since Jan. 1, 2006, China will continuously cut the tariff under 471 tariff numbers from Pakistan till Jan. 1, 2008, when the tariff rate cut to zero.

Ctei.gov.cn