CURRENT EXPORT POLICY OF PAKISTAN Export Policy

CURRENT EXPORT POLICY OF PAKISTAN

Export Policy the Rationale Ø Control and regulation Ø Facilitation Ø Meeting the global and regional obligations on hazardous chemicals, ODS, copy and proprietary rights, endangered species, etc Ø Nuclear fissile materials and dual use equipments etc. 2

Legal Basis Ø Section 3(1) of the Import & Export (Control) Act, 1950. AND Section 16 of the Customs Act, 1950 Ø Section 5 of the Import & Export (Control) Act, 1950 AND Section 156 of the Customs Act, 1969 3

Essential Provisions of Export Policy Order, 2009 Ø Definitions: 3 + 6 l l ‘Gift Parcel’ ‘Sample’ Ø Basis of Export: the foreign exchange rules, regulations and procedures 4

The Exclusions or Exceptions Stores of vessels, conveyances or airlines and baggage of crew or passengers—excluding banned or restricted items Ø Manifested trans-shipped goods. Ø Goods, stores or equipment sold abroad on government to government basis OR exports authorized by the Ministry of Defence. Ø Samples Ø l l l not banned not exceeding $ 25000 f. o. b value no limit when mutilated 5

Contd…. Ø Gift parcels of value upto $ 5000 Ø Relief goods by Cabinet Division Ø Bonafide baggage of outgoing passengers Ø Goods of persons travelling out of Pakistan in any quantity and without any encashment certificate – of course except banned items. 6

Relaxation & Authorization Ø Of any prohibition or restriction by F. G Ø Any export, export-cum-import or re-export authorization to be valid for a period of six months, unless specified. Ø Re-export of frustrated cargo, subject to Customs Rules, 2001 7

Export to Afghanistan & to CARs through Afghanistan (1) In Pak Rupees Ø All goods produced or manufacture in Pakistan. Ø No goods manufactured in bonds. Ø Without form ‘E’ Ø Land route Ø Filing of Regular S. B (G. D) Ø No zero-rating, rebate of FED and repayment or drawback of C. D. 8

(2) In Convertable Currency Irrevocable L. C Ø No goods of schedule III Ø l l l l Cigarettes etc. Dyes & chemicals Yarns PVC and PMC materials Polyester Metalized film Ball bearings Vegetable ghee & cooking oil from EPZ’s and manufacturing bonds Confirmed orders Ø Proof of realiz of proceeds through banking channel or advance payment in convertable currency. Ø 9

Contd…. Zero-rating, rebate, repayment allowed. Ø Conditions: Ø l l Ø Only through authorized routes: l l Ø Verified import by Afghan Customs “For Export Only” or “For Export Only—Supply for Aid to Afghanistan—Not for Sale in Pakistan” marking Torkham Chaman Ghulam Khan (Cement) Qamar ud Din Karez. EPZ and manufacturing bonds exports allowed only without zero-rating, rebate, repayment—of course no export of vegetable ghee & cooking oil 10

(3) Export to ISAF Ø On deferred payment basis without LC Ø Conditions: l l l Strictly to ISAF Shipping to ISAF by their authorized agents—duly endorsed by ISAF receiving agent in Afghanistan. Payment in Foreign Exchange received within 60 days of shipment 11

(4) Export by International Donor Agencies Ø By or on behalf of l l UNHCR WFP UNDP, UNFPA, UNICEF ICRC, WHO, FAO On International Tenders as relief goods allowed the facility of duty drawback against foreign exchange payments on LC, advance payment and DA/DP basis Ø Normal duty-drawback on exports to CARs via Iran—also. Ø Acetic anhydride not allowed Ø 12

Export-cum-Import Exports for re-import after repair, replacement, refilling Ø Indemnity bond to Customs Ø Pakistani exported goods can be replaced if found defective as per terms of sale on l Furnishing copy of the Contract l Communication from the buyers Ø Export-cum-Import of vehicles for travelling abroad on: l Carnet de passage by AAP; or l Guarantee by I. C. C. Pakistan; or l Indemnity Bond by the owner. Ø 13

Contd… Ø Temporary export and re-import of local machinery or equipment for: l l l Awarded works Construction, engineering and electrical companies Undertaking Evidence of contract No refund of import duties Ø Temporary export-cum-re-import of products for participation in foreign exhibitions, fairs, tests, processes – on indemnity bonds or undertaking 14

Re-Exports Ø Export of imported goods in original and unprocessed form not allowed, except— l l l Parts from ship breaking Scrapped battery cells Waste dental amalgam Waste exposed x-ray films Old machinery without refund or drawback Imports made on back-to-back LCs as per SBP’s conditions 15

Contd… Ø All imported goods in original form on Form-E on l l l Sight LC Advance Payment Usance LC Document Acceptance (DA) Deferred Payment (DP) “Quality problem” imported goods Ø Export of un-utilized balance of imported goods by manufacturer-cum-exporter (not fully consumed) Ø Goods imported under any duty—free schemes. Ø 16

Miscellaneous Ø Export from EPZs—abroad or within the Tariff Area—EPZ Rules, 1981 to apply Ø Allied restrictions to apply l l l Antiquities Act, 1975 Arms Act, 1878 Copyright Ordinance, 1962 Customs Act, 1969 Drugs Act, 1976 Explosive Act, 1884 17

Contd… l l l F. E Regulations Act, 1947 Merchandize Marks Act, 1889 Pakistan Animals Quarantine (Import & Export of Animals & Animal Products) Ordinance, 1979 Poison Act, 1919 Petroleum Act, 1934 Any other law (? ) Ø Non-compliance of Export Policy Order to be the non-compliance of the Act(? ) 18

Schedule—I (Banned) 1. Intoxicants & liquors of Prohibition Ordinance, 1979 Bonafide medicinal 2. Wildlife NOC from NCCW 3. Charcoal, Firewood -- 4. Wood & Timber -- 5. Fissionable materials -- 6. Anti-personal landmines -- 7. Antiquities Old vehicles & aircrafts 19

Schedule—I (Banned) 8. Contd…. Chemicals of Appendix—A Export to CWC ratifying countries 9. Vegetable ghee & cooking oil Ø Value additions of 15%, packs upto 16 litres or 16 kgs Ø 50% value addition in non-edible uses, packs of 0. 5 litre or 0. 5 kg 10. Counterfeit products -11 Sann Hemp -- 12. Wild mammals & reptiles -20

Schedule—II (Conditional) 1. Wheat 2. Cotton No condition on import by UN or any relief agency for re-export to Afghanistan as relief goods Ø. EPB regist. of export contracts on 1% value deposit. Ø. SB(GD) + Contract + Cotton Grading and Classif. Certificate by P. C. S Institute Ø. Irrecoverable L. C within 35 days. 21

Schedule—II (Conditional) Contd…. Ø. Completion of shipment within 180 days of the contract registration. Ø. If LC not opened within 35 days or non-performance of Contract occurs, proportionate forfeiture of security by SBP (of the quantity not shipped). Ø. Exports on “Types” as well as “Grades”: no requirement of Certificate in case of exports on the basis of Type. 22

Schedule—II (Conditional) Contd…. 3. Basmatic Rice Quality check by EPB 4. Metals 5. Arms, Ammunitions, Explosives, etc Complete rocket & U. Air Vehicles & their parts Nuclear substances, radioactive materials etc covered under PNRAO, 2001 By foreign enterprises to be governed by M/O P & N. R for price check NOC from M/O Defence 6. 7. NOC from M/O Defence As per PNRA procedure notified 23

Schedule—II (Conditional) 8. Equipment for production, use or application of nuclear energy or activity. 9. Precious & semiprecious stones & gold jewellary 10. Poppy seeds 11. Urea Contd…. As per PNRA procedure notified SRO 266(I)/01 07. 05. 2001 dated of imported seeds licitly growing countries as per Single Convention. ECC approval 24

Schedule—II (Conditional) 12. Pet Dogs & Cats 13. Wild boars, its meat & skin 14. Surgical instruments 15. Livestock 16. Fruits in retail packing 17. DAP, NP & other fertilizers Contd…. Q. C by Animal Plant Quarantine Department By non-Muslims Certificate from Sialkot Material Testing Laboratory. Conditions of Ministry of Food, Agriculture & Livestock. Gross weight to be indicated Except re-export of fertilizer by UNDP or any UN agency 25

For Export of Chemicals: Appendices A, B, C, D, E & F A. B. C & D. F. List: not allowed exports except to R. S’s List allowed on EUC to non—R. S’s E. U. C’s Instructions. Ø The progressive phasing out as per CWC 26

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