Import and Export Management

Muhammad Zahid Malik

zahid.malik@iqra.edu.pk
How Government can Affect
Import/Export
 How Government can Affect Import/Export
1. Free Trade Agreements (FTAs)
a) Pak-Afghan Trade Agreement
b) Agreement on South Asian Free Trade Area
c) Pak Malaysia Trade Agreement
d) Pak China Trade Agreement
e) Pak Sri Lanka Free Trade Agreement
f) Pak Iran Preferential Trade Agreement
g) SAARC Preferential Trade Agreement (SAPTA)
h) Pak Mauritius Preferential Trade Agreement
2. Monetary Policies/Fiscal Policy
3. Foreign Exchange Controls
4. Import Tariff
5. Trade Barriers
6. Trade Restrictions
7. Import Requirements and Documentation
8. Temporary Entry Facilitation
9. Web/IT Resources
Export Policy of Pakistan 2016-2018

4
 Salient Features of Pakistan’s Export Policy
1. The current Export Policy of Pakistan was enforced in April 2016 against SRO 344(I)/2016
dated 18th April, 2016 which repealed Export Policy of 2013.

2. It has total 18 Sections.

3. Section 2 covers definitions. All definitions are self explanatory.

4. Exports are allowed from Pakistan as per Foreign Exchange Rules issued by State Bank of
Pakistan from time to time {Section 3}

5. Exports of all goods are allowed except those specified in Schedule I and Items of
Schedule II shall be allowed subject to fulfillment of Conditions mentioned therein {4}.
There are 8 clauses which details exception to the provisions of this Section.

6. The Federal Government can allow relaxations in restrictions and prohibitions for reasons
which shall be recorded. {5}

7. Re-export of frustrated goods are allowed as per Customs Rules.

8. Exports to Afghanistan is allowed under certain conditions in Pak Rupees via Road but it
will not be subject to facilities like zero rating sales tax, rebate on excise duty and custom
duty drawback {7}. Such facilities will be allowed in convertible currency via LC etc.
 Salient Features of Pakistan’s Export Policy
9. Export-cum-import is allowed under certain conditions like repair, replacement, refilling,
vehicles for travelling abroad, machinery & equipment for work awarded abroad, foreign
exhibitions, etc.{8}

10. Export of imported goods in their original and unprocessed form is not allowed except for
certain conditions (deferred payment after quality approval and quality could not be
approved) {9}

11. Export of Chemicals are allowed as per Appendix A, B and C {11}

12. Exports from EPZ is allowed as per EPZ Rules 1981.{12}

13. Items in Schedule IV shall be subject to Minimum Export Prices (MEP. {14}

14. Restriction under other Acts and Laws shall be part of this Order {16}
Import Policy of Pakistan 2016-2018

7
 Salient Features of Pakistan’s Import Policy
1. The current Import Policy of Pakistan was enforced in April 2016 against SRO 345(I)/2016
dated 18th April, 2016 which repealed Import Policy of 2013.

2. It has total 22 Sections.

3. Section 2 covers definitions. Definition of “tariff Area” is important.

4. Imports are allowed against all modes of payments {Section 3(1)}

5. Contracts for imports under loans, credits and bilateral assistance should be registered
with Economic Affairs Divisions and LC must be opened within 60 days of registration
{Section 3(3)}

6. Imports from all over world is allowed unless otherwise banned or prohibited in the Order
{4}

7. Amendment to this Order will not affect where BL is issued or LC is opened prior to
issuance of amendment {4}
 Salient Features of Pakistan’s Import Policy
8. Section 5 Describes Prohibitions and Restrictions details of banned items are given in
Appendix A. This ban is however in not applicable on Government/Diplomatic
Missions. Appendix B under section 5 talks of items importable subject to conditions.

9. Prohibitions and restrictions under any other Law shall also be applicable. {6}

10. For any dispute about the Import Status of an item, matter shall be referred to Ministry
of Commerce if it can not be resolved by Customs Authorities {8}.

11. New, used or refurbished Plant, machinery and equipment is allowed for relocation of
Projects with certain conditions.{9}

12. Second hand plant, machinery, equipment are allowed for Construction, Mining and
Petroleum Sectors with certain conditions {9(ii)}

13. Commercial Importers can also import used plant, machinery and equipment on behalf
of construction companies registered with Pakistan Engineering Council {9(ii-6)}

14. Import of used machinery & Equipment shall be allowed on completion of Overseas
Projects by Pakistani Companies subject to conditions {9(iii)}

15. Manufacturers cum exporters are allowed import of items actually required for
production of export items, with certain item restrictions {11}.
 Salient Features of Pakistan’s Import Policy
16. Import-cum-export is allowed subject to submission of indemnity bond or bank guarantee
subject to the satisfaction of customs authorities. Permanent retention of such items to be
allowed by FBR against payment of duties and taxes assessed by customs List of
Companies and items falling under this section is provided in the Section {12}

17. Import into Export Processing Zones is allowed as per EPZ Rules, 1981.

18. Import of Vehicles under personal baggage, transfer of residence and gift scheme is
allowed as per procedure under Appendix “E” {15}

18. Import of duty free car for disabled persons is allowed upto 1350cc under authorization by
Ministry of Commerce and recommendation of Federal or Provincial Health Deptt. {16}