By Abdul Ghani

In a move aimed at clearing up confusion among importers, the Customs Classification Committee of the Federal Board of Revenue (FBR) has classified coated fabric and artificial leather as textile products, according to a document available with Wealth Pakistan.

The issue was raised with the Office of the Chief Collector of Customs (Appraisement), South Karachi on December 16, 2025, after traders complained that identical goods were being classified differently at the ports.

Earlier, some consignments of these goods were classified as plastic items, while the others were cleared under the textile categories. This created disputes, delays, and uncertainty, as the classification directly affects the amount of customs duty and taxes to be paid.

After reviewing the matter, the Customs Classification Committee issued its decision through Public Notice No. 03/2026 dated March 10, 2026, clearly defining how these goods will now be classified for import.

In simple terms, coated fabric is normal cloth with a thin layer of plastic on its surface called polyurethane (PU). This makes the fabric stronger, water-resistant, and gives it a leather-like appearance. Such material is widely used to make artificial leather products like shoes, bags, furniture covers, and car seats.

The committee clarified that PU-coated fabric will be treated as textile goods for customs classification and duty, and artificial leather made from such fabric will also fall under the textile category rather than the plastics category.

Officials said the decision will ensure uniform application of rules across customs stations, reducing disputes and helping importers clear goods more smoothly. The move is expected to offer clarity and ensure more consistent duty assessment for businesses dealing in coated fabrics and artificial leather products.

Credit: INP-WealthPk