The commerce ministry on Tuesday notified the procedures for export and import of goods announced in the Trade Policy 2006-07. According to the import policy order, imports may be allowed against all modes of payment subject to procedures prescribed by the State Bank of Pakistan (SBP) whereas the importers have to reach commodity exchange arrangements with the suppliers.
For imports under loan, credits and bilateral assistance requiring contracts to be approved by the Economic Affairs Division (EAD) or some other agency of the government, letter of credit (L/C) to be opened with in 60 days of registration of contract with a bank designated by the SBP.
According to the policy order, relocation of complete projects has been allowed in all the industrial sectors, including high-tech and export-oriented sectors.
Licensed call centres would be allowed to import complete call centres, their parts, spares and components in second hand or used condition under re-location scheme exclusively for their own use and not for sale.
Complete laboratory projects for quality control and complete effluent treatment plants would be permissible to be re-located under this scheme. Spare-parts on the regular inventory list of projects being re-located may be new, old, used or second hand. Complete projects and spare-parts would be permissible for import under the relocation scheme even if their substitutes are being manufactured locally.
Relocation of project machinery and equipment would be subject to fitness certificate by any of the pre-shipment inspection companies subject to the condition that the machinery is in good working condition and the remaining life is not less than 10 years.
Construction, mining, oil and gas and petroleum sectors would be allowed to import second hand plants, machinery and equipment and their parts, actually required in Pakistan for their projects.
The units operating in the Export Processing Zones (EPZs) are allowed to import goods as well as tariff areas in accordance with the rules and procedures prescribed under the Customs Export Processing Zones Rules, 1981.
Units operating in the EPZs may sell defective goods, wastes, used packaging material, empty drums and cartons, to the tariff area subject to the condition that the total value of such sales during a year does not exceed three percent of their FOB exports. Besides, such sales would be subject to payment of normal duties and taxes.
The plant and machinery import for EPZs or already installed, would be allowed to be sold or shifted to tariff areas by approval of the EZP authority irrespective of that the machinery is old or new and whether it has remained installed in EPZ for any period its import is otherwise permissible into tariff area under the import policy.
The units established in the EPZ can sell only 20 percent of their total production to tariff areas in Pakistan, while 80 percent would be exported to foreign countries.
Admission of goods into Gwadar Special Economic Zone from abroad and from the tariff areas would be allowed in accordance with the rules and procedures to be notified by the government.
In the export order, the commerce ministry has notified that all items and commodities produced or manufactured in Pakistan, exported via land route or by air against irrevocable letters of credit, confirmed orders on realisation of export proceed through banking channels or advance payment, in convertible foreign currency, would be allowed (i) zero-rating of sales tax on taxable goods, (ii) rebate of central excise duty, and (iii) repayment or drawback of customs duty.
However, the exporters have to provide proof that goods exported from Pakistan have reached Afghanistan would be verified on the basis of copy of import clearance documents by Afghan customs authorities across the border.
The export would be allowed only through export land routes ie Torkham, Chaman, Ghulam Khan, (for export of cement only) and Qaman Uddine Karez (when it becomes operational).
The export from EPZ and manufacturing bonds, except vegetable ghee and cooking oil would be allowed, but these exports would not be entitled to zero-rating of sales tax on taxable goods, rebate of CED and repayment of drawback of customs duty, provided that exports made to International Security Assistance Force (ISAF) may be made on deferred payment basis without opening of L/Cs.
The notification also said that normal duty drawback would remain available for exports to the Central Asian Republics via Iran. However, export of acetic anhydride to Kabul would not be allowed till further orders.
The export of imported goods in their original and unprocessed form would not be allowed except parts obtained from ship breaking, scrapped battery cells, waste dental amalgam, waste exported X-ray films, old machinery provided no refund of import levies or duty-drawback would be made.
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