Used clothing import to Pakistan: EPZ and domestic
Pakistan is one of the world's largest sorting hubs for used clothing, with most of the trade passing through Karachi. Buyers import by one of two routes, and the difference matters on every document.
Why Pakistan sorts so much of the world's used clothing
Karachi's port, an experienced sorting workforce and long-standing re-export links to Africa, Central Asia and the Middle East have made it a major processing hub. Much of the activity is in the Karachi Export Processing Zone (KEPZ), alongside domestic importers in Karachi and beyond.
Route 1: freezone (EPZ) import, duty deferred
Units in an export processing zone import under bond, sort, and re-export most of their output. Duty is deferred while goods stay in the zone. A limited share of output may be sold into the domestic market with duty paid on that share, under the zone rules in force at the time. Those rules have been under discussion in 2026, so check the current position before relying on any domestic-sale share.
Route 2: domestic, duty-paid import
Domestic importers pay customs duty and sales tax at import and sell locally or re-export. They need the right registrations (including tax registration) and import documents in their own name.
Why the route is fixed before loading
A container should not change route after it lands. On Ragtrail the buyer's route is declared on their verification file and on the trade record, and the documents are consigned to match. See how it works for sorting houses and our compliance page.
What arrives, and what leaves
Containers arrive CIF Karachi from the UK, US, Canada, Australia and Europe. After sorting, output leaves as graded bales for export markets, especially in Africa, or as bundles for local traders, with non-rewearable textiles going to wipers and recycling.