ISLAMABAD: Ministry of Commerce on Thursday issued Statuary Regulatory Order (SRO), allowing barter trade with Iran, Afghanistan and Russia from June 1, 2023.

According to the SRO, application for authorization of import and export of goods under the B2B barter trade facility shall be submitted online by traders or their authorized agents through the online BT Module in WeBOC system to the regulatory collector. The application shall contain the following information: (i) name and address of importer; (ii) name and address of exporter; (iii) description, quantity and value of goods to be imported; (iv) description, quantity and value of goods to be exported; (v) validity and expiry dates of the contract; and (vi) declaration that the goods shall originate from the respective countries for which the Barter Trade facility has been allowed.

(2) Copy of the contract duly verified by the Pakistani Mission in the country for which barter trade facility has been authorized, certifying the facts that the subject foreign company, individuals and proposed goods for BT are ‘Non-Sanctioned’, as notified by Ministry of Foreign Affairs from time to time, shall be uploaded in support of the application.

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The application shall be reviewed and examined under the provisions of IPO and EPO in vogue and the conditions set out in this Order. If the application is found in order, an approval (authorization) may be accorded by the regulatory Collectorate of Customs and an approval number shall be generated by the system against the NTN of the applicant.

The Ministry of Commerce may impose country or commodity specific conditions or restrictions for imports and exports of goods under this B2B barter trade mechanism. Export and import under this Order shall be allowed in respect of the commodities and from the countries as specified in Appendix-A to this Order.

Trade of goods under a B2B BT arrangement shall be allowed on the principle of “import followed by export”. The export would be made to the extent of value of imported goods, subject to the tolerance mechanism provided hereinafter for any exigency. However, a Pakistani trader shall be responsible to net-off value of goods on quarterly basis, ie, within 90 days after issuance of authorization.

Copyright Business Recorder, 2023