EPZA Year Book 2010

YEAR BOOK 2010
Export 14%
Presumptive Tax 14%
Investment Portfolio 11%
Capital Investment 60%

INTRODUCTION
Export Processing Zones Authority was established on 28th

February, 1980 after approval from the ECNEC with the mandate to
plan, develop and manage the Zones and to provide for matters
connected therewith or ancillary thereto.
The first EPZ at Karachi was established / developed from the

Government Grants. The funds were released through Annual
Development Plan. An amount of Rs. 362.589 million was released
for the development of KEPZ which was completed in 1989. Now
KEPZ is completely colonized. Since inception, EPZA has shown
consistent growth in exports, employment and revenue generation.
The targets and benefits envisaged in the PC- I for KEPZ have
adequately been met.
The achievements and contributions of the EPZA to the economy

and its financial strength were not aptly marketed in the past. It is
a great accomplishment that EPZA has so far contributed an
amount of Rs. 854 million in the development projects from its own
resources. It has also deposited an amount of Rs.1.25 billion in
Government treasury on account of Presumptive Tax. EPZA is now
a financially stable organization.
Mr. Aftab Ahmed Memon, Chairman EPZA took the initiative and
directed to take out the Year Book of EPZA. The book contains
basic information about EPZA and its achievements & contributions
during the year 2009 – 2010 along with the forecast for next five
years. EPZA Ordinance and relevant SROs are also included for
reference.
1
Ministry of Industries & Production
Govt. of Pakistan
MESSAGE
It gives me immense pleasure to know that Export

Processing Zones Authority is publishing its first ever Year Book for
2010.
Investment plays a key role in country‘s overall

development and progress. The present Government attaches top
priority to all those efforts which are instrumental in increasing
exports. Our Government has taken several initiatives to facilitate the
growth / enhancement in overall business activities in the country
through privatization, deregulation & inviting FDI.
It is encouraging to learn that the efforts of Export

Processing Zones Authority have been impressive, particularly during
last two years, EPZ has played a major role in promoting
diversification in exports. Besides, it has also successfully created
employment opportunities and manifested the growth of allied
manufacturing sector.
I am confident that this report will give deep insight of the

organization to the stakeholders and help foreign / local investors to
choose EPZA as their investment destination.
Mir Hazar Khan Bijarani

Federal Minister
3
Govt. of Pakistan
MESSAGE
I am delighted to learn that Export Processing Zones

Authority is taking out its first Year Book 2010.
Export Processing Zones Authority has successfully

traversed a long way of 30-years with a new dimension to increase
the volume of investment, diversification of exports and generating
employment and strengthening the economic base of the country.
With active support of the Government, EPZA is showing a

consistence growth in exports despite economic recession of 2007-
08. It is indeed a matter of appreciation that EPZA has worked in
improvement of social and environment compliance within
manufacturing units operating in the Zone.
I hope EPZA will continue its efforts to achieve the desired

goals.
Abdul Ghaffar Soomro

Secretary
5
Export Processing Zones Authority
Govt. of Pakistan
MESSAGE
It is my privilege to present the first ever Year Book of EPZA. EPZA
could not optimize the means of communication to keep informed all concerned
about the happenings and achievements. The strengths and weaknesses of EPZA
were, therefore, neither available to analytical minds, nor were there any efforts to
attract analysis or even criticism. EPZA has, at best, been an isolated and
insulated compartment in the past. For any organisation to be vibrant and
dynamic, the dissemination of information, openness and transparency have to be
the hallmark if the organisation has to adopt a move-forward strategy.
For the past two years, EPZA has started posting the relevant
information, progress and developments of the Authority on its website as well as
publishing in the print media. Budget, income/expenditure statements, progress
reports are now available on the website. EPZA has also published its quarterly /
annual performance reports. Year Book 2010 is the latest addition to this
information sharing effort. This is not only to ensure transparency, but also to find
out where we erred and what the remedial measures could be.
Despite global economic recession since 2007, exports from EPZs have
grown consistently from US$ 348 Million in 2007-2008 to US$ 396 Million in 2009-
2010. For the financial year 2010-2011, the export target has been set at US$ 500
Million. We, at EPZA, are confident that with consistent and supportive policies of
Government of Pakistan, the exports would surely touch the benchmark of US$
One Billion by the Year 2015.
Recognizing the role of corporate social responsibility for uplift and
benefit of the people, EPZA has decided to provide financial assistance to
organizations like SIUT, FATMID, LRBT and SHAUKAT KHANAM for rehabilitation
of patients. EPZA will also contribute to the education sector in the form of
scholarships to the deserving students. The allocations for these activities have
been made in the budget estimates of 2010-2011. EPZA has also contributed to
the flood relief funds of Prime Minister of Pakistan and Chief Ministers of
Provinces with Rs.10 million and Rs.4 million for each province respectively.
This report is a clear reflection of improvement in financial health,
enhancement in exports and revenues of the organisation. We strongly believe
that we will continue to achieve our targets.
I am hopeful that this Year Book 2010 would provide the insight of this
organisation to all its stakeholders. The local / foreign investors would also benefit
from this book.
Aftab Ahmed Memon

Chairman
7
MANDATE
Making all arrangements for planning,
development and management of the
zones and to provide for matters
connected therewith or ancillary thereto.
8
VISION
Proactively facilitate the investors and
create enabling environment for them to
enhance export-led manufacturing, trade
and investment so as to achieve export of
USD one billion by 2015.
9
CONTENTS
S. # DESCRIPTION PAGE #
1. Report Highlights 13
2. Editorial Board 15 – 17
3. Corporate Information 18-19
4. Management 21-23
5. Why Invest in EPZ 24-25
6. We Provide 26
7. We Offer 27
8. EPZs of Pakistan 29-43
9. Performance 2010 45-55
10. Monthwise Import & Export 2010 57-62
11. Financial Highlights 63-72
12. Key Visits 2010 73-76
13. Top Exporters 77-81
14. Future highlights 83-88
Appendices
15. EPZA Ordinance 91-102
SROs & Standing Orders, Public Notices &

16. 103-192
Regulations
11
REPORT HIGHLIGHTS
 EPZA was established in 1980 by Government of

Pakistan through ordinance i.e., EPZA Ordinance IV
of 1980.
 First EPZ at Karachi was completed in 1989. it is

completely colonized and in operation. Now
Management has developed Phase-II.
 EPZ‘s established at different locations are as follows:
i. Risalpur EPZ 2002

ii. Saindak EPZ 2003
iii. Sialkot EPZ 2005
iv. Tuwairqi Steel EPZ 2006
v. Duddar EPZ 2009
 PERFORMANCE OF 2009 - 10
 Exports increased by 14%.
 Tax revenues increased by 14%.
 Investment of surplus funds increased by 11%.
 Foreign Investment increased by 60%.
13
EDITORIAL BOARD
Patron
Aftab Ahmed Memon
Editor –in-Chief
Shahid Ikram Hashmi
Editorial Board
Muhammad Yusuf Soomro
Mr. Riaz Ahmed Shaikh
Agha Sohail Asif
Mr. Umer Kazi
Mr. Asim Jawed
Mr. Bilal Islam
Design & Layout

Samreen Mangi
Shazia Shaikh
Mehwish Hussain
15
PATRON
Aftab Ahmed Memon
Mr. Aftab Ahmed Memon, Chairman EPZA and Patron of Year Book
2010 is a Civil Servant from the District Management Group Batch of
1980. He did his Bachelors in Mechanical Engineering in 1973.
Besides his engineering degree. Mr. Memon has done his L.LB. and
Masters in Public Administration. Additionally, Mr. Memon has to his
credit Post Graduate Diplomas in Public Administration, Business
Administration and International Relations. He has served in various
capacities in the Provincial governments of Punjab and Sindh and has
the distinction of heading nine departments as Secretary to
Government of Sindh which include Excise, Agriculture, Local
Government, Services & General Administration, Information, Inter
Provincial Co-ordination and Land Utilization besides having worked in
Finance and Industries at different levels. He has also served in the
Federal Government at different levels.
EDITOR-IN-CHIEF
Shahid Ikram Hashmi
BSc (Engg.), MBA (Finance). Served for 35 years in various
capacities. He attended local & foreign trainings. His core
strength is trade and investment issues. Presently working
as Administrator KEPZ.
EDITORIAL BOARD
Muhammad Yusuf Soomro
BSc (Hons), MSc (Chemistry). Is a civil servant from the Railways
(Commercial & Traffic) Group Batch of 1983. Served for 34 years
in different Government departments in various capacities. He
attended local & foreign trainings. His core strength is
administration. Presently working as Secretary EPZA.
Riaz Ahmed Shaikh

Graduated in Electrical Engineering and Master in International
Trade Law & Economics. Served for 6 years in private sector
and for 11 years as civil servant in different capacities &
departments. His core strength is trade & commerce issues.
Presently working as GM (Finance) in EPZA.
Agha Sohail Asif
Graduation in Commerce & Master in Economics. Served 27
years in EPZA in various division & capacity. Attended various
trainings locally & abroad. His core strength is economic &
business related issues. Presently working as DGM (Finance)
in EPZA.
16
Ghulam Umer Kazi
Bsc.(Hons), MSc. (Electronics), PGD in (HR/Admin) . Served for
20 years in Government departments in the field of Admin &
HR. His core strength is Administration HR and Training
Development. Presently working as DGM (Admin & HR) in
EPZA
Asim Jawed
MBA (Finance), 14 years experience in the field of finance, &
accounts with multinational & government organizations. His
Core strength is Management Reporting, Budgeting, Financial
Accounting. Joined EPZA in January 2006 and presently
working as Manager (Accounts).
Bilal Islam
BS in Information Technology and certified Microsoft
professional. Masters in International Relations. Serving in
EPZA since 2005. His core strength is networking. Presently
working as Assistant Manager (IT).
DESIGN & LAYOUT

Samreen Mangi
MIT- worked as a Lecturer Computer Science – Szabist
Larkana. Joined EPZA in November 2010.
Shazia Shaikh
BS (Software Engineering).
INTERNSHIP - IT Department of Sui Southern Gas
Company (SSGC) through National Internship Program of
Pakistan. Joined EPZA in November 2010..
Mehwish Hussain,
BS (Computer Engineering), Worked as an Instructor
:Roshi Computer Institute. Joined EPZA in November 2010.
17
CORPORATE INFORMATION
Export Processing Zones Authority is a body corporate working under the
Ministry of Industries & Production, Government of Pakistan. The
management and its affairs are run by the Board of Directors which is
constituted by Federal Government in pursuance of sub-section (1) of section
6 of Export Processing Zones Authority Ordinance, 1980 (IV of 1980).
The Board comprises of following members:
1. Mr. Aftab Ahmed Memon

Chairman
Export Processing Zones Authority
Karachi.
2. Mr. Ahmed Bukhsh Lehri

Chief Secretary
Government of Balochistan
Quetta.
3. Mr. Muhammad Niaz Butt

Joint Secretary (I & F)
Government of Pakistan
Islamabad.
4. Syed Ghulam Ali Shah

Chief Secretary
Government of Sindh
Karachi.
5. Mr. Anis-ul-Hassnain
Secretary
Board of Investment,
P.M. Secretariat USAID Old Building
Islamabad.
6. Sheikh Muhammad Tanveer

Chairman
Din Group
Lahore.
7. Engr. M.A.Jabbar
Managing Director
Qaim Automotive Industries
Karachi.
18
8. Mr. Zaigham Adil Rizvi
Director (Project)
M/s. Al-Tuwairqi Steel Mills limited
Karachi.
9. Mr. Abdur Rauf

Chief Executive
M/s. Shahzad Adpparels (Pvt) Ltd.
Karachi
HEAD OFFICE
Landhi Industrial Area , Extension
Mehran Highway Landhi,
Karachi – 75150
Web: www.epza.gov.pk
Email: info@epza.gov.pk
REGIONAL OFFICE
5th Floor , LDA Plaza, Egerton Road,
Lahore.
BANKERS
National Bank of Pakistan
Habib Bank Limited
United Bank Limited
MCB Bank Limited
Bank Al-Habib Limited
Allied Bank Limited
Habib Metropolitan Bank Limited
AUDITORS
M/s. Anjum Asim Shahid Rehman,
Chartered Accountants
Karachi.
19
MANAGEMENT
21
MANAGEMENT
Aftab Ahmed Memon

Chairman
Nusrat Iqbal Jamshed Muhammad Yusuf Soomro Shahid Ikram Hashmi

Director (IP) Secretary EPZA Administrator (KEPZ)
Zahoor Ahmed Riaz Ahmed Shaikh Mumtaz A. Memon

GM (Facilities) GM (Finance) GM (Engineering)
22
Ghulam Rasool Shaikh Muhammad Ashraf Ali Agha Sohail Asif
GM (IP) GM (North) DGM (Finance)
Salahuddin Soomro Asif Aftab Ghulam Umer Kazi

DGM (Facilities) DGM (North) DGM (Admin/HR)
23
WHY INVEST IN EPZ
1. One window operation with simplified procedures.
2. Secured environment.
3. Customs bonded area.
4. Uninterrupted power supply .
5. Gas provided by utility company on priority.
6. Continuous water supply by EPZA .
24
7. Environment friendly atmosphere .
8. Easy access to sea and air port.
9. Abundance of skilled and educated workforce.
10. Developed land available at competitive rates for 30 years lease.
11. Relief from double taxation subject to bilateral agreement.
12. Off-shore Banking Units available to facilitate financial transactions.
13. Offices of Clearing & Forwarding agents within the zone.
25
WE PROVIDE
1. Power supply through dedicated Grid Station up to 50 MW.
2. Water supply of one million gallons per day.
3. Telephone exchange of 4000-lines.
4. Emergency medical facilities.
5. Dedicated security round the clock.
6. Fire Station within the Zone.
7. Fire hydrants infront of every unit.
26
WE OFFER
1. Duty free import of machinery, equipment and materials.
2. Freedom from national import regulations.
3. Exemption from Exchange Control Regulations of Pakistan.
4. Repatriation of capital and profit allowed.
5. No sales tax on input goods including electricity/ gas bills.
6. Import of duty free vehicles allowed with certain conditions.
7. Supply of goods to Customs Manufacturing Bonds allowed.
8. Sub-contracting outside the zone and vice versa allowed.
9. Inter-transfer of finished goods among the units of EPZ allowed.
10. Domestic market available to the extent of 20%. Exceptions allowed

under certain conditions.
11. Presumptive tax collected by EPZA @1% on FOB value of exports as

final tax liability.
12. Obsolete / old machinery can be sold in the local market upon payment of
applicable taxes.
13. Sale of defective goods/waste permitted in local market up to maximum

of 3% of total value upon payment of duties / taxes.
27
EPZs of PAKISTAN
29
DEVELOPMENT STRATEGY
The management after successful colonization / operation of KEPZ has

started the efforts for its expansion. Five new EPZ‘s have been
established in all the four provinces with following modus operandi:-
1. With funding from Govt. of Pakistan:

First project at Karachi (KEPZ) was developed under Public
Sectors Development Plan (PSDP). The funds for development
were provided through ADP. It is fully colonized. EPZA provides
maintenance and operational facilities to investors.
2. Under Joint Venture:

EPZ at Sialkot was developed through joint venture between the
EPZA and Punjab Small Industries Corporation (PSIC). Another
EPZ at Risalpur was established by Sarhad Development
Authority (SDA) in Khyber Pukhtoonkhwa. Responsibility for
maintenance of the Zone lies with respective J.V partner whereas
EPZA provides the necessary operational facilities to the
investors.
3. Exclusive Project Declared as EPZ:

The mining projects at Saindak, Reko Dig and Duddar were
granted status of exclusive EPZs by Government of Pakistan.
Land to all these mining projects was leased by the Federal
Ministry of Petroleum & Natural Resources and the Govt. of
Balochistan for specific period and purposes. These EPZs were
notified under the cabinet decision.
Al-Tuwairqi Steel Mill is another exclusive project of Al-Tuwairqi

Group. It will produce pellets through DRI technology. The role of
EPZA in these exclusive projects is to facilitate import / export
operations in collaboration with FBR.
31
KARACHI EXPORT PROCESSING ZONE
Location : Karachi
Zone area : 305 acres
Number of industrial plots : 434 (Phase – I)

242 (Phase – II)
Industries in operation : 119 (Phase-I) – 284 plots

10 (Phase-II) – 90 plots
Units under construction : 4 (Phase-II) – 7 plots
Type of Industries : Value added garments, Gems &

Jewelry, Chemicals, Plastic
goods, Food processing
Key Attractions :  Secured area
 Green environment
 Uninterrupted Power is provided
by the EPZ‘s own Grid Station
32
EPZs OF PAKISTAN
KARACHI
Export Processing Zone
It is a first project of EPZA established in

Karachi. It is located at a distance of 18
Kilometers from Jinnah International Airport.
KEPZ has been developed on an area of
305 acres (Phase-I & II). 58% of total area
is occupied by Roads and Greenbelts due
to which the zone has become
environmental friendly.
Phase – I
Phase-I comprises of 211 acres of land. It
was completed in 1989. In phase - I, 434
Plots were created for setting up of
industries, 22 plots for the banking sector
and 10 plots for the supporting enterprises.
At present there is no vacant plot in Phase -
I.
Phase – II
Phase-II comprises of 94 acres of land.
There are 242 plots out of which 146 plots
have already been allotted to 34 industrial
units.
33
SIALKOT EXPORT PROCESSING ZONE
Location : Sialkot
Number of industrial Units : 223
Industries in operation : 07
Type of Industries : Surgical instruments

Sports goods
Leather garments & products
Engineering goods
34
EPZs OF PAKISTAN
SIALKOT
Sialkot EPZ was established on an area

of 238 acres on specific demand of
Sialkot Chamber of Commerce and
Industries. It is a joint venture between
EPZA & Punjab Small Industries
Corporation (PSIC). Infrastructure was
developed at the cost of Rs. 184 million
with funds generated by the private
sector/ allottees of the project. All plots
have been allocated / given on
ownership basis to the allottees by
PSIC. All operational facilities are
provided by EPZA as per rules &
procedures. The prospective sectors for
investments are sports / surgical goods,
leather products & garments, furniture,
imitation jewelry etc. This zone was
formally inaugurated by Governor
Punjab on June 22, 2002, and the Zone
became operational in 2005.
35
RISALPUR EXPORT PROCESSING ZONE
Location : Risalpur
Number of industrial Units : 53
Industries in operation : 04
Type of Industries : Trading & Warehousing

Furniture
36
EPZs OF PAKISTAN
RISALPUR
The specific objective for developing EPZ

at Risalpur was to promote trade and
industries targeting the market of Central
Asian States to / through Afghanistan.
REPZ was established on an area of 92
acres on the demand of Provincial
Government. It is a joint venture between
EPZA and Sarhad Development Authority
(SDA). All operational facilities are provided
by EPZA as per rules & procedures. The
cost of infrastructure development is
Rs.138 million which was funded by SDA
from its own resources. The Zone has 50
plots of various sizes for industrial units
and 87 for warehousing / trading units. The
Zone is in operation since 2002.
37
SAINDAK EXPORT PROCESSING ZONE
Location : Saindak,
District Chagai Balochistan
Project Operation : Federal Ministry of Petroleum &

Natural Resources and Govt. of
Balochistan on behalf and for
Saindak Metal Corporation along
with MRDL /MCC
Product : Extraction of Blister Copper &

Gold
Employment : 1000 Foreigners

500 locals
38
EPZs OF PAKISTAN
SAINDAK
This is a single entity zone for mining of Copper & Gold. It is located at
Saindak, district Chagai Balochistan. The area of 1284 acres was leased
by the Government of Pakistan to a Chinese Company i.e., M/s.
MRDL/MCC Resources Development Company (Pvt.) Ltd. for a period of
ten years. EPZA role is confined to facilitate import /export operations in
collaboration with FBR. This Zone started its operation in August 2003. It
is providing employment to 1500 locals and foreigners.
39
DUDDAR EXPORT PROCESSING ZONE
Location : Duddar,
District Lasbella, Balochistan
Project Operation : Federal Ministry of Petroleum &

Natural Resources and Govt. of
Balochistan along with MDMD /
MCC
Product : Extraction of Zinc & lead
Employment : 250 Foreigners

250 locals
40
EPZs OF PAKISTAN
DUDDAR
This is a single entity zone for mining of Zinc and lead. It is located in
district Lasbela, Balochistan. The area of 1500 acres was leased by the
Government of Pakistan to a Chinese company i.e., M/s. MDMD/MCC
Duddar Minerals Development Company (Pvt.) Ltd. EPZA‘s role is
confined to facilitate import/export operations in collaboration with FBR.
Operational activities started in September 2009. The zone is providing
employment to 500 locals & foreigners .
41
TUWAIRQI STEEL MILLS LIMITED, EPZ
Location : Bin Qasim

Karachi
Leased to : M/s. Tuwairqi Steel
Product : Pellets through Direct Reduced

Iron (DRI) process
Project Capacity : 1.5 million tons per year
Employment : 1000
42
EPZs OF PAKISTAN
TUWAIRQI STEEL MILLS LIMITED
Tuwairqi Steel Mills Limited (TSML), a subsidiary of Saudi Arabia‘s AL-

Tuwairqi Holdings, has been established on an area of 220 acres. It is located
at Port Qasim Karachi. Government of Pakistan has granted the status of
EPZ to the TSML along with option to export 100% of its production to Tariff
Area apart from ATH plant and neighboring Gulf countries. TSML has adopted
world‘s most advanced Direct Reduction Iron (DRI) technology to produce
Pellets. The production is closely supervised by DRI experts of Midrex (USA),
Kobe (Japan), MMTE (Iran) and ATH (Saudi Arabia). The design capacity of
plant is 1.5 million tons per annum of high quality pellets.
a) Project Status: Phase-I of TSML is nearing completion. It will offer its

pellets for sale in domestic / international market in 2nd quarter of 2011. In
phase-II, Electric Arc Furnace and continuous caster will be set up. The
Pelletization Plant has been envisaged in phase-III.
b) Environment, Health & Safety Standard: Internal processes at TSML

are well defined in the areas of health, safety, environment & quality.
TSML have obtained the NOC from the Environment Protection Agency
besides adhering to National Environment Quality Standards (NEQS) and
also conducts audit of Environment Management System periodically. The
company plans to study various options to recycle / reuse its production
waste in the second and third phase. Occupational health and safety
standards at the site are regularly monitored & managed by the team of
competent professionals.
c) Benefits: TSML will not only be a source of transfer of latest technology of

quality steel making but will also provide the impetus to industrial growth in
Pakistan. The project will create 1000 direct jobs and 3500 indirect jobs
opportunities. The project has also established technology centre in
Karachi for future needs of the country & also for ATH worldwide.
43
PERFORMANCE
EPZA EXPORT
2008-09 2009-10
US$ 348.169 million US$ 395.467 million
45
CONTRIBUTION TO ECONOMY BY EPZA
EPZA is contributing to the economy by enhancement of foreign
investment, generation of employment and setting up of allied
manufacturing industries. It is constantly diversifying and expanding its
operation with commitment to achieve its mandate through sustainable
policies & support of Government.
Contribution of EPZA to the economy on following accounts:
Equivalent to
Description US $
PKR
19.119
Presumptive Tax 1.3 Billion
million
DEVELOPMENT OF KEPZ PHASE - II:
Aggregate
Description Cost
(PKR)
Infrastructure development of KEPZ
570 million
Phase – II on 100 acres
PRESIDENT KARACHI PACKAGE:
Contribution
Description Amount
(PKR)
Railcop Bridge on railway crossing at
133 million
Landhi Industrial Area
Mehran Highway, Cattle colony to Port
151 million
Qasim
46
PERFORMANCE OF 2009 - 10
The Financial Year 2007-08 was a turbulent year for the world economy.
The economy witnessed soaring energy prices, unprecedented surge in
food inflation and financial market crises to match the great depression.
These developments have caused adverse effects of different degrees on
the economies in different part of the world. These international crises had
multiple effects on the US / European economies resulting in reduction of
buying power of their people. The international recession as well as direct
and indirect cost of war against terror by Pakistan have also affected its
economy particularly on export based manufacturing sector.
Despite prevailing recession, exports from EPZs has registered

reasonable growth. It contributed in creating the employment for the local
youth, generation of revenue for the Government of Pakistan, increase in
investment of surplus funds and foreign investment in the Zone. EPZA
also initiated extensive media campaign in the last quarter of 2009-10 to
apprise the stakeholders about its achievements.
The performance of EPZA for the year 2009-10 is summarised below:
Variance
Description 2008-09 2009-10
(%)
Export 348.169 395.584 14%
Presumptive Tax 3.481 3.956 14%
Investment of surplus
16.463 18.206 11%
funds
Foreign Investment 14.080 22.445 60%
47
EXPORT FROM EPZs
(Amt in million US$)
Variance
Description 2008-09 2009-10 over 2008-
09 (%)
KEPZ 215.431 235.899 10%
Saindak 131.106 151.179 15%
Sialkot 0.584 0.643 10%
Risalpur 1.003 1.255 25%
Duddar - 6.491 -
Total 348.169 395.467 14%
Note: Duddar EPZ came in operation in September 06, 2009.
EXPORT 2009-10
1.255
6.491 0.643
Karachi
Saindak
Duddar
151.179 Risalpur
235.899 Sialkot
48
EXPORT 2009 - 10 Vs. 2008 -09 (Amt in million US$)
235.899 151.179
240 155
235 150
230 145
225 140
215.431 131.106
220 135
215 130
210 125
205 120
2008-09 2009-10 2008-09 2009-10
KEPZ SAINDAK
0.643
0.65 1.255
1.4
0.64
0.63 1.2 1.003
0.62 1
0.61
0.6 0.8
0.584
0.59 0.6
0.58
0.57 0.4
0.56 0.2
0.55
0
2008-09 2009-10
2008-09 2009-10
SEPZ REPZ
49
EXPORT COMMODITY WISE (KEPZ)
Share Share
of of Variance
Sectors 2008-09 Sector 2009-10 Sector over
in Total in Total 2008-09
Export Export
Garments 143.221 67% 162.355 69% 13%
Worn Clothing 25.487 12% 27.017 11% 6%

Plastic Products 6.997 3% 8.387 4% 20%
Paper 0.210 - 0.601 - -
Print &
Packaging 2.539 1% 3.618 2% 42%
Products
Chemicals &
8.856 4% 10.416 4% 18%
Allied Products
Trading Units 9.484 4% 7.015 3% (26%)
Others 18.636 9% 16.490 7% (12%)
Total 215.430 100% 235.899 100% 10%
162.355 2008-09
2009-10
143.221
27.017 8.387 0.601 3.618 10.416 7.015 16.490

25.487
18.636
6.997 2.539 8.856 9.484
0.210
50
2008-09
8.856 Garments
2.539 9.484
Worn Clothing
0.210
18.636
Plastic Products
6.997
25.487 Paper
143.221
Print & Packing
Products
Chemicals & Allied
Products
Trading Units
Others
2009-10
Garments
10.416 7.015
3.618 16.490 Worn Clothing
0.601
8.387 Plastic Products
27.017 Paper
162.355 Print & Packing

Products
Chemicals & Allied
Products
Trading Units
Others
51
EXPORT REGION WISE (KEPZ)
Description 2009-10 (%)
Europe (ECC) 2.109 1%
USA / Canada 31.676 14%
Gulf / Middle East 5.477 2%
African Countries 2.420 1%
Tariff Area 99.538 42%
Central Asia 21.883 9%
Australia / New Zealand 37.489 16%
South Africa 18.760 8%
Europe (Other than ECC) 0.590 -
Far East Asia 8.642 4%
Japan / Korea 7.315 3%
Total 235.899 100%
52
7.31 2.11
0.59 8.64 5.48
31.77 2.42
18.76
37.49
21.88 99.54
EUROPE (ECC) USA / CANADA

GULF / MIDDLE EAST AFRICAN COUNTRIES
TARIFF AREA CENTRAL ASIA
AUSTRALIA / NEW ZEALAND SOUTH EAST ASIA
EUROPE (OTHER THAN ECC) FAR EAST ASIA
JAPAN / KOREA
53
CONTRIBUTION TO GOVT. REVENUE
(PRESUMPTIVE TAX)
Variance
2008-09 2009-10
(%)
3.481 3.956 14%
25
20
15
10
2008-09
2009-10
54
FOREIGN INVESTMENT (KEPZ)
Variance
2008-09 2009-10
(%)
14.080 22.445 60%
25
20
15
10
2008-09
2009-10
55
IMPORT & EXPORT
57
MONTHWISE IMPORT & EXPORT
(KEPZ)
IMPORT EXPORT
Month
Tariff Tariff
Abroad Total Abroad Total
Area Area
July 3.406 6.203 9.609 2.403 14.200 16.603
August 3.252 5.912 9.164 2.136 13.843 15.979
September 3.374 6.919 10.293 2.061 12.837 14.898
October 4.755 6.839 11.594 2.570 15.626 18.196
November 3.375 6.018 9.393 2.300 13.490 15.790
December 4.396 7.660 12.056 2.504 14.612 17.116
January 4.156 8.007 12.163 2.433 19.083 21.516
February 4.048 7.134 11.182 2.457 16.563 19.020
March 5.331 9.512 14.843 3.137 18.678 21.815
April 4.993 9.809 14.802 3.189 21.397 24.586
May 5.522 12.476 17.998 3.197 20.604 23.801
June 6.375 11.831 18.206 3.294 23.285 26.579
Total 52.983 98.320 151.303 31.681 204.218 235.899
58
(REPZ)
IMPORT EXPORT
Month
Tariff Tariff
Area Area
July - 0.065 0.065 - 0.063 0.063
August - 0.030 0.030 - 0.098 0.098
September - 0.174 0.174 - 0.010 0.010
October - 0.106 0.106 - 0.093 0.093
November - 0.166 0.166 0.103 0.029 0.132
December - 0.131 0.131 0.063 0.091 0.154
January - 0.100 0.100 0.075 0.094 0.169
February - - - 0.137 - 0.137
March - - - 0.044 0.076 0.120
April - 0.049 0.049 - 0.086 0.086
May 0.034 0.092 0.126 - 0.038 0.038
June - 0.086 0.086 - 0.155 0.155
Total 0.034 0.999 1.033 0.422 0.833 1.255
59
(SEPZ)
IMPORT EXPORT
Month
Tariff Tariff
Area Area
July - 0.002 0.002 - 0.009 0.009
August 0.024 0.269 0.293 - 0.007 0.007
September 0.022 - 0.022 - 0.041 0.041
October - - - - 0.024 0.024
November 0.002 0.044 0.046 - 0.031 0.031
December 0.018 0.002 0.020 - 0.007 0.007
January 0.002 0.095 0.097 - 0.009 0.009
February 0.007 - 0.007 - 0.019 0.019
March 0.017 0.189 0.206 - 0.097 0.097
April 0.005 0.051 0.056 - 0.127 0.127
May 0.007 0.004 0.011 - 0.093 0.093
June - 0.001 0.001 - 0.179 0.179
Total 0.104 0.657 0.761 - 0.643 0.643
60
(DUDDAR)
IMPORT EXPORT
Month
Tariff Tariff
Area Area
July 0.198 0.125 0.323 - - -
August 0.247 0.012 0.259 - - -
September 0.336 0.168 0.504 - 1.121 1.121
October 0.409 0.162 0.571 - - -
November 0.240 0.065 0.305 - - -
December 0.316 0.443 0.759 - - -
January 0.415 0.154 0.569 - - -
February 0.553 0.647 1.200 - 1.876 1.876
March 0.558 0.007 0.565 - 1.478 1.478
April 0.449 0.742 1.191 - 0.713 0.713
May 0.609 0.291 0.900 - 1.303 1.303
June 0.088 0.221 0.309 - - -
Total 4.418 3.037 7.455 - 6.491 6.491
61
(SAINDAK)
IMPORT EXPORT
Month
Tariff Tariff
Area Area
July 4.036 1.303 5.339 0.134 23.969 24.103
August 3.376 1.323 4.699 0.058 20.180 20.238
September 2.403 0.488 2.891 0.035 15.373 15.408
October 3.999 2.168 6.167 0.075 21.131 21.206
November 2.894 1.072 3.966 0.135 7.401 7.536
December 4.275 1.298 5.573 0.068 10.890 10.958
January 1.171 1.545 2.716 0.142 7.012 7.154
February 2.519 1.531 4.050 0.071 - 0.071
March 4.737 0.865 5.602 0.238 - 0.238
April 3.92 0.030 3.950 0.066 21.199 21.265
May 5.06 0.111 5.171 - 23.002 23.002
June 4.624 1.715 6.339 - - -
Total 43.014 13.449 56.463 1.022 150.157 151.179
62
IMPROVING
FINANCIAL POSITION
FINANCIAL HIGHLIGHTS
GROWTH IN INCOME
2008 - 09 2009 - 10
Rs. 106.250 million Rs. 151.008 million
63
BUDGET 2009 - 10
(Rs. in millions)
2008 - 9 2009 - 10
DESCRIPTION
VARIANCE
BUDGET ACTUAL BUDGET (%) Vs.
2008-09
260.000 247.920 TOTAL REVENUE 275.000 11%
284.000 266.532 OPERATING 275.000 (3%)

EXPENDITURE
WITHOUT EXTRA
ORDINARY ITEM
(24.000) (18.612) OPERATING (0.000) -

SURPLUS /
(DEFICIT) WITHOUT
EXTRA ORDINARY
ITEM
100.000 124.862 INVESTMENT 117.00 (6%)

INCOME
76.000 106.250 NET SURPLUS 117.000 10%

BEFORE EXTRA
ORIDNARY ITEM
EXTRA ORDINARY
ITEM:
60.000 - RESTRUCTURING 60.000 (100)

EXPENSES
16.000 106.250 NET SURPLUS 57.000 (46%)

AFTER EXTRA
ORDINARY ITEM
65
CAPITAL BUDGET 2009 - 10
(Rs. in millions)
S. # DESCRIPTION AMOUNT
BUILDING & STRUCTURE
(i) Construction of Visitors Room at Main Gate 20.00
(ii) Construction of Custom Examination Office 11.00
(iii) Construction of Underground Reservoir 20.00

Construction of Boundary Wall around Pump
(iv) 4.00
House
(v) Garment Training Center 2.50
(vi) SB Park 5.00
(vii) Upgradation of Gate House 1.50

Construction of wall on the Easter Flank of
(viii) 5.00
approach road
Construction of Garbage Dumping Places at
(ix) 1.00
KEPZ Phase – II
(x) Building of IP & Facilities Division 10.00
TOTAL 80.000
WATER DISTRIBUTION SYSTEM & SEWERAGE SYSTEM
(i) Upgradation of Water Distribution System 15.00
TOTAL 15.00
ELECTRICAL UPGRADATION
(i) Upgradation of electrical installation 10.00
TOTAL 10.00
66
(Rs. in millions)
S. # DESCRIPTION AMOUNT
DEVELOPMENT WORKS
(i) Development of KEPZ Phase-II 85.00
(ii) Mehran Highway 40.00
(iii) Feasibility of Gwadar EPZ 50.00
TOTAL 175.00
MACHINERY & EQUIPMENTS
(i) New Weighbridge 5.00
(ii) NADRA Security System 35.00
(iii) ACs / Refrigerators/Photocopiers 2.00
TOTAL 42.00
FURNITURE & FIXTURE
Upgradation of Administration &

(i) 3.00
Engineering Offices
TOTAL 3.00
IT & OFFICE EQUIPMENTS
(i) IT Hardware / Networking 5.00
(ii) IT Software 5.00
TOTAL 10.00
67
INCOME & EXPENDITURE
ACCOUNT 2009 - 10
 During the year under review, EPZA managed to

generate surplus income of Rs. 151.008 million, which is
favourable by 157% from the budget estimates.
 The effective managerial control on resources &

diversification of investments resulted in maximizing the
earnings and revenues despite the financial crunch. An
amount of Rs. 411.641 million has been realized vs.
budget estimates of Rs. 393.680 million reflecting 5%
increase.
 Due to increase in inflation, salaries were increased by

the Government of Pakistan in the Finance Bill 2009-10.
Moreover, utility tariff was also enhanced and KEPZ
Phase-II came into operation. However, the effective
financial control has been exercised, which resulted in
substantial reduction in the expenditure which are
favorable by 78% compared with budget estimates.
69
INCOME & EXPENDITURE
ACCOUNT 2009 - 10
(Rs. in millions)
VARIANCE
BUDGET ACTUAL
(%)
INCOME
Revenue 248.440 271.890 9%
Interest income 117.000 126.560 8%
Other income 26.560 11.511 -57%
Amortization of deferred
1.680 1.680 0%
income
393.680 411.641 5%
EXPENSES
Administrative and general

275.000 260.633 5%
expenses
Other extra-ordinary
60.000 - 100%
expenses
335.000 260.633 78%
SURPLUS FOR THE

58.680 151.008 157%
YEAR
70
ACTUAL
151.008, 18%
INCOME
411.641, 50%
260.633, 32%
EXPENSES
SURPLUS
ACTUAL VS. BUDGET
411.641
392
260.633
335
151.008
57 ACTUAL
BUDGET
INCOME
EXPENSES
SURPLUS
BUDGET ACTUAL
71
INVESTMENT OF SURPLUS FUNDS
Variance
2008-09 2009-10
(%)
16.463 18.206 11%
25
20
15
10
2008-09
2009-10
72
KEY VISITS
2010
73
VISIT OF MIR HAZAR KHAN BIJARANI, HONOURABLE MINISTER
FOR INDUSTRIES & PRODUCTION (MOIP) TO EPZA
Minister MOIP visiting M/s. Casual Sportswear in KEPZ
Minister MOIP visiting M/s. YKK in KEPZ
74
Mr. Mushtaq Soomro, Proprietor MAK Enterprises briefing the Minister.
Visit of Mr. Tariq Birlas, Vice Chairman / CEO of Tuwairqi Holding

Company, KSA.
75
Mr. Abdullah Caliskan, Secretary General ECO Chamber of Commerce
& Industry discussing issues of mutual interest with Chairman EPZA
Chairman EPZA presenting momento to Ms. Fisun AKTUG, Trade

Attaché, Consulate General of Turkey, Karachi.
76
TOP EXPORTERS
2009 - 2010
77
TOP EXPORTERS 2009 - 10
S. 2008 - 2009 - LINE OF

DESCRIPTION
# 2009 2010 PRODUCTION
Industrial/medical safety
gloves, household and
1 Beltexco Ltd. 29.3 39.2
industrial allied safety
products
Manufacture industrial
work gloves, PVC dipped
2 Prime Safety Ltd. 25.2 33.8
gloves, for DIP gloves
And Garments
Manufacture of Ready
Made Garments
3 J&M Clothing Co. 29.0 28.1 'Burmuda, Trousers,
Shirts, Jeans, Woven
Pants, Etc.
YKK Pakistan (Pvt.)
4 12.2 18.8 Manufacturing of Zippers
Ltd.
Unisex Jeans/Trousers,
5 Casual Sportswear 14.0 13.7 Dying /Finishing and
Manufacturing of Jeans
Trading activities of
Retex Global (Pvt.) grading,sorting and
6 10.3 10.7
Ltd. recycling of 2nd hand
textiles,shoes and toys
Manufacture of Ready
Made Garments
'Burmuda, Shirts,
7 Rija Fashions 9.0 10.1 Summer Short /Denim
Jacket /Denim Trousers
/Mens Set of 3 Western
Shirts / Etc.
Manufacturing of
Denim Clothing
8 5.6 8.9 garments (Trousers) and
Company (Pvt.) Ltd.
in house washing facility
Production of gold, silver,
Star Jewelry (Pvt.)
9 4.3 3.5 platinum & stone studded
Ltd.
jewelry
78
2008 - 2009 -
S. # Unit Name Line of Production
2009 2010
Food Products,
Ahmed Import Machinery, Construction
10 3.1 3.2
Export House (T/U) Material, Tea, General
Items i.e. Sugar etc.
International
Agarbatti Incense Sticks
11 Fragrance 3.0 3.1
& Attar
Corporation
Ahmed Food
12 1.8 3.0 Jams, pickles, spices
International
Crystal Holdings
13 3.0 2.9 Grading of Used Cothing
Limited
Sunrise Rags Co. Processing of Second
14 3.0 2.6
(Pvt.) Ltd. Hand Used Clothing
Auxiliary for Textile

Polygal Habib Gums Printing /(Guar
15 2.0 2.3
N.V. Derivative) /Dehusked
Guar Gum Splits
Recycling of Used
Universal Rags Clothes, Wiping Clothes
16 1.6 2.0
(Pvt.) Limited /Clothing /Zippers &
buttons
Recycling of plastic
moulding compound
Modern Plastic manufacturing cum-
17 1.6 2.0
Industries processing of paper
items, metallic yarn from
polyester
79
TOP EXPORTERS (KEPZ) 2009 - 2010
2008 - 2009 -
2009 2010
a) Assembly/
Manufacture of Audio
Video Cassettes,
Compact Discs, Floppy
Discs, Computers, Data
Processing Equipments
(b) Plastic Injection
Moulding (c) Coating of
United International Magnetic Tapes, Video
18 0.0 2.0
Industries Tapes, Adhesive Tapes,
Coating of NOR Paper
(Carbon-less) Special
Coatings for Magnetic
Door Entry Cards, Credit
Cards, Security Cards,
Fax Paper, And Special
Security Papers, Heat
Sensitive Papers etc.
Textile Garments
Sunpo Industries Manufacturing (Industrial
19 2.5 1.9
Ltd. Garments /Coveralls
/Overalls)
Processing of Used
20 ABC Rag Company 0.0 1.9
Clothing
Bonded Fiber, polyester

fiber wedding,
S.A.H. Enterprise Corrugated cartons and
21 0.0 1.8
Inc. readymade garments
(jackets, pants, shirts,
garments
80
2008 - 2009 -
2009 2010
Electronic component
assembly unit for
22 Shaan Technologies 1.7 1.8 assembly of light emitting
diodes (led) wire, plastic
or metal components
Manufacturing of
Polypropylene bags, P.P
woven bags, jumbo
bags, monofilament
anted bags & P.P tape
Pakistan Japan
23 2.8 1.7 24-03-90 / 12-07-99
Petrochemical Ltd.
Recycle polypropylene
P.P granule from pp
waste generated 30-05-
2006 / Recycling of used
clothing.
M. Mawji & Sons Trading of Used Textile

24 0.0 1.6
Int'l (Pvt.) Ltd. Clothing
A.Q. & Company Manufacture of Hashmi

25 0.0 1.5
International Kajal
81
FUTURE HIGHLIGHTS
83
BUDGET 2010 - 11
(Rs. in millions)
2009 - 10 2010 - 11
DESCRIPTION
VARIANCE
BUDGET ACTUAL BUDGET (%) Vs.
2009 - 10
275.000 285.081 TOTAL REVENUE 310.00 9%
275.000 260.633 OPERATING 299.00 (15%)

EXPENDITURE
WITHOUT EXTRA
ORDINARY ITEM
- 24.448 OPERATING 11.00 (50%)

SURPLUS /
(DEFICIT) WITHOUT
EXTRA ORDINARY
ITEM
117.000 126.560 INVESTMENT 127.00 -

INCOME
117.000 151.008 NET SURPLUS 138.00 (9%)

BEFORE EXTRA
ORIDNARY ITEM
60 EXTRA ORDINARY
ITEM:
- - Contribution for flood 26.00 -

effectees
57.000 151.008 NET SURPLUS 112000 (26%)

AFTER EXTRA
ORDINARY ITEM
85
EXPORT PROJECTIONS
2011 – 2015 (5 YEARS)
ZONE 2010-11 2011-12 2012-13 2013-14 2014-15
KEPZ 251.00 275.00 305.00 335.00 375.00
Saindak 152.50 157.00 166.25 175.50 184.50
Sialkot 1.25 1.50 1.75 2.00 2.25
Risalpur 0.50 0.75 1.00 1.25 1.50
Duddar 15.25 16.75 18.25 20.25 22.75
TSML - 205.00 246.00 369.00 451.00
Total 420.50 656.00 738.25 903.00 1037.00
86
EXPORT PROJECTIONS
2011 – 2015 (5 YEARS)
1,200.00
1,037.00
1,000.00 903.00
800.00 738.25
656.00
600.00
420.50
400.00
200.00
-
2010-11 2011-12 2012-13 2013-14 2014-15
500.00
450.00
400.00
350.00
300.00 2010-11
2011-12
250.00
2012-13
200.00
2013-14
150.00 2014-15
100.00
50.00
-
KEPZ SAINDAK REPZ SEPZ Duddar TSML
87
CORPORATE SOCIAL RESPONSIBILITY (CSR)
In the wake of recent floods which were national catastrophe, EPZA

contributed Rs. 26 million towards different Flood Relief Funds as per
following details:
Beneficiary Amount
• Prime Minister Relief Fund Rs. 10 million

• Chief Minister Punjab Flood Relief Fund Rs. 4 million
• Sindh Flood Relief Fund Rs. 4 million
• Balochistan Flood Relief Fund Rs. 4 million
• Kyber PakhtoonKhwa Flood Relief Fund Rs. 4 million
Apart from above, EPZA has allocated following amounts in the budget of
2010-11.
Beneficiary Amount
• SIUT Rs. 1 million

• LRBT Rs. 0.5 million
• Fatmid Foundation Rs. 0.5 million
• Skin Hospital Rs. 0.5 million
• Shaukat Khanum Hospital Rs. 0.5 million
• Scholarships to student of
all five provinces & Saindak Rs. 3 million
• Scholarship for disabled students Rs. 0.5 million
88
APPENDICES
1. EPZA ORDINANCE
2. SROs, STANDING
ORDERS & PUBLIC
NOTIES
89
EPZA ORDINANCE
(IV OF 1980)
91
EXPORT PROCESSING ZONES AUTHORITY
ORDINANCE IV OF 1980
CHAPTER – I : Preliminary
CHAPTER – II : Constitution of the Authority
CHAPTER – III : Power and Duties Of the Authority
CHAPTER – IV : Acquisition of Land
CHAPTER – V : Establishment
CHAPTER –VI : Finance
CHAPTER – VII : Miscellaneous
93
THE GAZETTE OF PAKISTAN
EXTRAORDINARY
PUBLISHED BY AUTHORITY
ISLAMABAD, WEDNESDAY, FEBRUARY 6, 1980
PART – I
Acts, Ordinance, President‘s Orders and Regulations including Martial Law

Orders and Regulations.
GOVERNMENT OF PAKISTAN
MINISTRY OF LAW AND PARLIAMENTARY AFFAIRS
(Law Division)
(Islamabad, the 6th February, 1980)
No.F.17(1)/80.Pub.- The following Ordinance made by the President is

hereby published for general information:-
ORDINANCE NO. IV OF 1980

AN
ORDINANCE
to establish an Export Processing Zones Authority
WHEREAS it is expedient to establish an Export Processing Zones Authority

for making all arrangements for the planning, development and management
of the Zones and to provide for matters connected therewith or ancillary
thereto;
AND WHEREAS the President is satisfied that circumstances exist which

render it necessary to take immediate action;
Now, THEREFORE, in pursuance of the Proclamation of the fifth day of July

1977, read with the Laws (Continuance in Force) order, 1977 (C.M.L.A.Order
No. 1 of 1977), and in exercise of all powers enabling him in that behalf, the
President is pleased to make and promulgate the following Ordinance:-
94
CHAPTER – I
PRELIMINARY
1. Short title, application and commencement..- (1) This Ordinance

may be called the Export Processing Zones Authority Ordinance, 1980.
(2) It shall apply to all industrial undertakings set up or operating in the
Export Processing Zone.
1[(3) It shall come into force on such date as the Federal Government may,
by notification in the official Gazette, specify.
2. Definitions.- In this Ordinance, unless there is anything repugnant in

the subject or context:-
(a) ―Authority‖ means the Export Processing Zones Authority
established under section 4;
(b) ―Board‖ means the Board constituted under section 5;
© ―Bonded area‖ means an area declared as a public warehouse
under section 12 of the Customs Act, 1969 (IV of 1969);
(d) ―Chairman‖ means the Chairman of the Authority;
(e) ―Industrial undertaking‖ means an industry, undertaking or
establishment engaged in the production, distribution or
processing of such goods or the providing of such services as
may be specified in this behalf by the Federal Government;
(f) ―Investor‖ means a person or company investing in an industrial
undertaking located in a Zone;
(g) ―manufacture‖ with its grammatical variations and cognate
expressions, means the process of converting materials into a
new product or article, whether or not by power operated
machinery, whereby a change in tariff classification has been
effected;
(h) ―prescribed‖ means prescribed by rules;
(i) ―rules‖ means rules made under this Ordinance;
(j) ―tariff area‖ means any area in Pakistan outside the limits of a
Zone; and
(k) ―Zone‖ means such area as the Federal Government may, by
notification in the official Gazette, declare to be a Zone for the
purposes of this Ordinance.
3. Zone to be bonded area.- Every Zone shall be a bonded area.
1[(3) Specified by S.R.O. 208(1)/80, dated 02-02-1980 for the following;

In exercise of the power conferred by sub-section(3) of section-1 of the
Export Processing Zones Authority Ordinance, 1980 (IV of 1980), the
Federal Government is pleased to specify the 20th day of February
1980, to be the date on which the said Ordinance shall come into force.
95
CHAPTER – II
CONSTITUTION OF THE AUTHORITY
4. Establishment of the Authority.-(1) There shall be established an

Authority to be known as the Export Processing Zones Authority for
carrying out the purposes of this Ordinance.
(2) The Authority shall be a body corporate, having perpetual succession
and common seal, with power, subject to the provisions of this
Ordinance, to acquire and hold property, both moveable and
immovable, and shall by the said name sue and be sued.
5. Management.- The general direction and administration of the

Authority and its affairs shall vest in a Board.
6. Constitution of the Board.- (1) The Board shall consist of not more
than nine members, including the Chairman to be appointed by the
Federal Government.
(2) The Chairman and other members of the Board shall hold office during
the pleasure of the Federal Government and unless sooner removed
shall hold office for a period of three years.
(3) No act or proceeding of the Board shall be invalid merely on the
ground of the existence of any vacancy in, or defect in the constitution
of, the Board.
(4) The Chairman and each member of the Board shall receive such
salaries and allowances or such fee as may be determined by the
Federal Government in each case.
7. Duties and functions of Chairman and members.-(1) The Chairman

and members shall discharge such duties and perform such functions
as are assigned to them under this Ordinance or by the Federal
Government.
(2) Until the Board is duly constituted, the Chairman shall, subject to such
directions as the Federal Government may, from time to time, give,
exercise the powers, discharge the duties and perform the functions of
the Board.
8. Headquarters of the Authority.- The headquarters of the Authority

shall be situated at Karachi.
96
CHAPTER – III
POWERS AND DUTIES OF THE AUTHORITY
9. Master Plan and master programme.- The Authority shall prepare a

master plan and a phased master programme for the development of
the Zones.
10. Preparation of scheme for infrastructure.- The Authority

may, pursuant to the master plan, prepare schemes in respect of:-
(a) land use, zoning and land reservation;
(b) public buildings;
© industrial warehousing and buildings;
(d) transportation and communications;
roads, streets, railways, jetties, walls, workshops, sheds, godowns, navi
gation channels;
(e) telecommunication, including wireless, telex and telephones;
(f) community facilities, including water supply, sewerage
disposal, electricity supply, gas supply and other public utilities; and
(g) environmental control and prevention of pollution.
11. Sanctioning of industries, etc.- (1) The Authority may, with the
approval of the Federal Government, frame schemes and lay down
procedure in respect of sanctioning the establishment and operation of
industries in the Zones.
(2) An industry sanctioned under sub-section(1) shall operate subject to
such terms and conditions as may be enunciated in the letter of
sanction issued by the Authority.
(3) The materials and manufactured goods shall not be exported from the
Zones into the tariff area except to the extent and in the manner to be
specified by the Authority in each case with the prior approval of the
Federal Government.
12. Power of the Authority.- (1) Subject to the other provisions of this
Ordinance and the rules, the Authority may take such measures and
exercise such powers as may be necessary for carrying out the
purposes of this Ordinance.
(2) In particular, and without prejudice to the generality of the powers
conferred by sub-section(1), the Authority may:-
(i) incur any expenditure;
(ii) undertake any work in the Zones in pursuance of any scheme;
(iii) procure plants, machinery, instruments and material required for its
use;
(iv) enter into and perform all such contracts as it may consider necessary;
(v) cause studies, surveys, experiments and technical research to be made
or contribute towards the cost of any such
studies, surveys, experiments or technical research;
(vi) restrict or prohibit by general or special order any change in the use of
land and alteration in buildings and installations; and
(vii) cause removal of any work obstructing the execution of any of its
schemes.
97
CHAPTER – IV
ACQUISITIION OF LAND
13. Liability to acquisition.- All land within the Zones shall be liable to
acquisition at any time in accordance with the provisions of this
Chapter.
14. Acquisition of Land.- (1) Where any land or interest in any land within
any Zone is required by the Authority for any of its purposes, that land
or interest shall be acquired under the Land Acquisition Act, 1894 (I of
1894), by the Provincial Government concerned at the request of the
Authority.
(2) The acquisition of land or interest therein shall, for the purposes of the
Land Acquisition Act. 1894(I of 1894), be deemed to be required for a
public purpose.
98
CHAPTER – V
ESTABLISHMENT
15. Establishment.- (1) The Authority may, from time to time, appoint
such officers, servants, experts or consultants as it may consider
necessary for the performance of its functions, on such terms and
conditions as it may deem fit;
Provided that the Chairman may, in cases of urgency, appoint such

officers, servants, experts or consultants and on such terms and
conditions as he deems fit, subject to subsequent approval by the
Board.
(2) The Authority shall be competent to take disciplinary action against
its officers and servants.
16. Chairman, members, officers, etc., to be public servants.- The

Chairman, members, officers, servants, experts and consultants of
the Authority shall, when acting or purporting to act in pursuance of
any of the provisions of this Ordinance, be deemed to be public
servants within the meaning of section 21 of the Pakistan Penal
Code (Act XLV of 1860).
17. Indemnity.- No suit, prosecution or other legal proceeding shall lie

against the Authority, the Chairman, any
member, officer, servant, expert, or consultant of the Authority in
respect of anything done or intended to be done in good faith under
this Ordinance.
18. Delegation of powers.- The Authority may, by general or special

orders, delegate to the Chairman or a member or officer of the
Authority any of its powers, duties or functions under this
Ordinance, subject to such conditions as it may think fit to impose.
99
CHAPTER – VI
FINANCE
19. Authority‟s Fund.- (1) There shall be established a fund to be

known as the Export Processing Zones Authority Fund which shall
vest in the Authority and shall be utilized by the Authority, in
accordance with the general or specific directions of the Federal
Government to meet charges in connection with its functions under
this Ordinance, including the payment of salaries and other
remuneration to the Chairman, members, officers, servants, experts
and consultants of the Authority.
2) The Export Processing Zones Authority Fund shall consist of:-
(a) grants made by the Federal Government;

(b) loans obtained from Government;
© grants made by the local bodies;
(d) sale proceeds of moveable and immoveable property and
receipts for services rendered;
(e) Loans obtained by the Authority with the special or general
sanction of the Federal Government;
(f) foreign aid and loans obtained from any source outside
Pakistan with the sanction of, and on such terms as may be
approved by, the Federal Government;
(g) all rates, taxes, fees, charges levied and fines imposed by the
Authority under the regulations made under this Ordinance;
(h) all revenues derived by the Authority from any property
administered by the Authority; and
(i) all other sums receivable by the Authority.
100
CHAPTER – VI
FINANCE
20. Authority to be deemed to be a local Authority.- The Authority shall

be deemed to be a local authority within the meaning of the Local
Authorities Loans Act. 1914 (IX of 1914), for the purpose of borrowing
money in accordance with the said Act and the execution of any
scheme under this Ordinance shall be deemed to be a work which
such authority is legally authorized to carry out.
21. Borrowing, etc., by the Authority.- The Authority may, with the prior
approval in writing of the Federal Government, raise funds for the
purpose of its working capital by issuing bonds and debentures
carrying interest at such rates as may be approved by the Federal
Government.
22. Budget.- In the month of January each year, the Authority shall submit
to the Federal Government for approval a statement of the estimated
receipts and expenditure in respect of the next financial year in such
manner and form as may be prescribed.
23. Audit and accounts.- (1) The Accounts of the Authority shall be
audited every year by the Auditor-General of Pakistan in such manner
as may be prescribed.
(2) Copies of the audit report shall be sent to the Authority and the
Authority shall send the report along with its comments to the Federal
Government.
(3) The audit report shall be available for public inspection.
(4) The Federal Government may issue directions to the Authority for the
rectification of matters objected to by the Auditor-General and the
Authority shall comply with every such direction.
101
CHAPTER – VII
MISCELLANEOUS
24. Disputes to be referred to arbitration.-(1) Any dispute relating to the

interpretation of the provisions of any agreement made under any
scheme prepared under section 10 between the Authority and an
investor or the rights of the parties to such agreement or any rights
conferred or any liability imposed by this Ordinance shall be referred
for arbitration to an arbitrator appointed by the parties.
2) Any award made upon such reference shall be final and binding on
the parties and shall not be subject to any appeal or any other
remedy.
(3) The provisions of the Arbitration Act, 1940, (X of 1940) shall, so far as
they can be made applicable, apply to arbitrations under sub - section
(1).
25. Power to exempt.- The Federal Government may, by notification in

the official Gazette, exempt any Zone from the operation of all or any
of the provisions of any law for the time being in force which relates to
any matter within the legislative competence of Parliament.
26. Power to make rules.- The Federal Government may, by notification

in the official Gazette, make rules for carrying out the purposes of this
Ordinance.
27. Power to make regulations.- (1) The Authority may, with the
approval of the Federal Government, make regulations, not
inconsistent with the provisions of this Ordinance or the rules, for
carrying out the purposes of this Ordinance.
2) In particular and without prejudice to the generality of the foregoing
power, such regulations may provide for the levy of fees, rates and
charges for services rendered by the Authority.
GENERAL M. ZIA-UL-HAQ
PRESIDENT
K. M. A. SAMDANI
SECRETARY
102
SROs, STANDING ORDERS
& PUBLIC NOTICES
103
MINISTRY OF INDUSTRIES
NOTIFICATION
Islamabad, the 23rd September, 1981
EXPORT PROCESSING ZONES AUTHORITY RULES, 1981
S.R.O. 1058(1)/81.- In exercise of the powers conferred by section 26 of the Export

Processing Zones Authority Ordinance, 1980 (IV of 1980), the Federal Government
is pleased to make the following rules, namely:-
1. Short title and commencement.- (1) These rules may be called the Export
Processing Zones Authority Rules, 1981
(2) They shall come into force at once.
2. Definitions.- In these rules, unless there is anything repugnant in the subject or

context:
(i) ―application‖ means an application to the Authority for setting up industrial
undertaking in the Zones in such form as may be specified from time to
time by the Authority;
1[(ia) ―foreign collaborator‖ means an investor, whether a foreigner or a non-
resident citizen of Pakistan, who makes investment in a Zone in a joint
venture with a resident citizen of Pakistan;
2[(iaa) ―Controller of Insurance‖ has the same meaning as in the Insurance
Act, 1938 (IV of 1938);
3[(ii) ―Foreign investment‖ means an investment made by foreigner and/or a
non-resident citizen of Pakistan in form of cash, foreign exchange or
equipment or in any other form approved by the Authority;
4[(iii) ―foreign investor‖ means an investor who is not a citizen of Pakistan or is
non-resident citizen of Pakistan or a company incorporated outside
Pakistan by a foreign national and/or non-resident citizen of Pakistan;
5[(iiia) ―insurer‖ shall have the same meaning as in the Insurance Act, 1938 (IV
of 1938).
1[(ia) Added by S.R.O. 580(1)/85, dated 09-06-1985.

2[(iaa) Added by S.R.O. 857(1)/82 dated 08-09-1982.
3[(ii) Sub. By S.R.O. 165(KE)/89, dated 30-08-1989 for the following:
“foreign investment” means investment made by a foreigner in an industrial

undertaking in a Zone, in the form of cash, foreign exchange, imported
machinery or equipment, or in any other form approved by the Authority;
4[(iii) Subs. By S.R.O. 165(KE)/89, dated 30-08-1989 for the following;
“foreign Investor” means an investor who is not a citizen of Pakistan or a

company incorporated outside Pakistan by foreigners;
5[(iiia)Added by S.R.O-857(i)/82, dated 08-08-1982.
105
6[(iv) ―Joint Venture‖ means an industrial enterprise set up with participation
between foreign investors or between a foreign investor and a resident
citizen of Pakistan or a company incorporated in Pakistan whose share in
investment shall not exceed 40% of the total investment;
7[(v) ―non-repatriable investment‖ means an investment in foreign currency
which is purchased from the State Bank of Pakistan by a resident citizen
of Pakistan or company incorporated in Pakistan on the condition that
capital, dividends and profits shall not be repatriated outside Pakistan;
(vi) ―Ordinance‖ means the Export Processing Zones Authority Ordinance
1980 (IV of 1980);
(vii) ―registration‖ means registration of an investor with the Authority;
(viii) ―regulations‖ means regulations made by the Authority under section 27
of the Ordinance; and
(ix) ―Scheme‖ means a scheme prepared under section 10 or framed under
section 11 of the Ordinance.
(ix) Eligibility.- The following categories of persons shall be eligible to establish

industrial undertaking in a Zone, namely:-
(1) a foreign investor;

8[(2) a foreign investor in collaboration with a resident citizen of Pakistan or a
company incorporated in Pakistan through exchange investment under
the provisions of the State Bank of Pakistan F/E Circular No. 12; and
9[(3) a resident citizen of Pakistan or resident forms and companies of
Pakistan, are allowed to make equity investment in companies whether
incorporated or not or joint ventures, through foreign exchange
investment up to 100% under the provisions of the State Bank of Pakistan
F.E. Circular No. 12 of 2001.
6[(iv) Sub. by S.R.O. 165(KE)/89, dated 30-08-1989 for the following:

“Joint venture” means an industrial enterprise set up with participation
between foreign investors or between foreign investor and a non-resident
citizen of Pakistan with non-repatriable investment;
7[(v)a.Subs. by S.R.O.165(KE)/89, dated 30-08-1989 for the following:
“non-repatriable investment” means an investment in foreign currency out of

the earnings abroad by a non-resident citizen of Pakistan, who has not
surrendered his Pakistan passport, on the condition that capital, dividends
and profits would not be repatriated outside Pakistan;
b. The words “in joint venture with a foreign investor” omitted by
SRO.915(1)/92, dated 23-09-1992.
8[(2) Subs. by SRO.80(KE)/2005, dated 03-07-2005.
9[(3) Subs. by SRO.80(KE)/2005, dated 03-07-2005.
106
4. Investment to be in foreign currency.- All investments made in a Zone shall
be in foreign convertible currency.
5. Type of industries to be set-up etc. (1) Export oriented industries requiring

sophisticated technology, advanced marketing arrangement, using local raw
materials and labour shall be preferred.
(2) Industries which compete with similar export industries in the tariff area
would normally not be allowed to be set up in the Zone.
(3) Supporting enterprises to provide essential services to industrial
undertakings in the Zone shall be allowed to be set up.
10[(4) Consignment and distribution services for receiving and storing goods
meant for export to foreign markets and to the tariff area subject to the
provisions of national import policy shall be permitted.
(5) Industries manufacturing prohibited items, such as, narcotics, alcoholic
drinks, armaments or those causing serious environmental pollution shall
not be permitted to be established in the Zones.
6. Application for setting up industrial undertaking.- 11[(1) Investors desiring to

establish an industrial undertaking in a Zone shall submit 11 (…..) their
application to the Authority complete in all respect.
(2) Each application shall be accompanied by a non-refundable fee specified
by the Authority from time to time.
7. Power of the Authority to accept or reject any application.- (1) The Authority
may accept or reject any application without assigning any reasons.
(2) If the application is accepted, the Authority shall issue a letter of sanction
to the investor containing the terms and conditions subject to which the
sanctioned industry shall operate.
8. Time for implementation of the sanction.- On receiving the letter of

sanction, the applicant shall be required to implement and complete the industry
within the period specified in the letter of sanction failing which the sanction shall
stand cancelled, provided the Authority may, for sufficient cause, extend the said
period.
10[(4) Subs. by SRO.165(KE)/89, dated 30-08-1989 for the following:

Consignment and distribution services for receiving and storing foreign
goods meant for re-export shall be permitted.
11[(1) The words “twelve copies of” omitted by SRO. 1287(I)/84, dated 26-12-1982
107
9. Registration.- If an industrial undertaking is sanctioned for a Zone, the
investor shall register himself or itself with the Authority before commencing
work on the project or site by entering into an agreement in such form, as
may be specified from time to time, by Authority containing the general
terms, conditions and procedure under which an industrial undertaking is
sanctioned to operate in the Zone:
Provided that the Authority may exempt any investor from one or more of the
general conditions laid down in the agreement.
12[9.A Power of the Authority to cancel sanction.- If in the opinion of the

Authority an investor has failed to carry out the purpose for which, or has not
fulfilled the conditions of, the sanction accorded to him under sub-section (1)
of section 11 of the Ordinance, it may, after giving him notice to show
cause, cancel, revoke or withdraw the sanction.
10. Issue of licenses to banks to open branches, etc.- (1) Licenses for
opening of branches in a Zone to banks may be issued by the State Bank of
Pakistan hereafter in this rule and rule 11 referred to as the Bank:
(a) to foreign banks operating in Pakistan outside the licensing policy on
merit; and
(b) to Pakistani banks on merit.
(2) The banks to whom licenses are issued under sub-rule(1) shall meet
all preliminary expenses of opening of branches from their external
resources.
(3) The Bank shall not allow the incorporation of any bank or
subsidiaries thereof in a Zone.
(4) The branches of the banks opened in the Zones, hereafter in this rule
and rule 11 referred to as branches, shall not be eligible for any
financial assistance from the Bank.
(5) The branches may, in addition to the business of banking, engage in
all or any of the forms of business enumerated in section 7 of the
Banking Companies Ordinance, 1962 (LVII of 1962).
(6) The banking statistics of the branches shall not form part of the
banking statistics of Pakistan:
Provided that the Bank may, with a view to obtaining statistical data about
the operations of the branches, call such periodical returns from such
branches from time to time as it may think fit.
11. Dealings in foreign exchange, etc.- (1) The Bank may issue licenses to the
branches for transacting foreign exchange business in the Zones.
(2) The rules applicable to the import into, and export from, Pakistan of
Pakistani currency shall apply to the import into, and export from, the
Zones to the tariff area.
12[9.A Added by SRO.1287(I)/82, dated 26-12-1982
108
(3) Foreign currency notes and other foreign currency instruments may
be exported from the Zones to the tariff area.
Provided that all such foreign currency notes shall, immediately after
entry, be surrendered to an authorized dealer in the tariff area.
(4) All imports into the Zones shall be paid for out of the importers own
foreign exchange resources abroad without involving, either directly
or indirectly, Pakistan resources.
(5) Imports into the Zones from the tariff area shall be deemed to be
exports from Pakistan and imports into the tariff area from the Zones
shall be deemed to be imports from abroad and shall be subject to
the same conditions and restrictions as are applicable to similar
imports from abroad.
13[11-A Issue of licenses to Insurers to open branches, etc.- (1) Licenses for
opening of branches in a Zone to an Insurer may be issued by the Authority:-
(a) to Pakistani insurers on the recommendations of the Standing
Committee constituted under the Federal Government Resolution
No.12/11/1973 Ins.2, dated the 8th December, 1975; and
(b) to non-Pakistani insurers on the recommendations of the Controller of
Insurance.
(2) The Insurers to whom licenses are issued under sub-rule (1) shall
meet all preliminary expenses of opening of branches from their
external resources and all expenses on the maintenance of such
branches shall be met either out of the earnings of these branches or
from the insurers external resources.
(3) The Authority shall not allow the incorporation of any insurer or
subsidiary thereof in a Zone.
14[11-B Furnishing of information report, return, etc.- All insurers operating in a

Zone shall furnish information and submit returns or reports from time to time
to the Controller of Insurance in the manner required by him in writing.
12. Travel of Pakistanis, etc., in the Zones.- (1) Pakistanis of occupant

industries holding identity cards from a Zone‘s administration and
proceeding on official visit shall pay the cost of the ticket in convertible
foreign exchange.
(2) The expatriates employed by the occupant industries shall, in respect
of their foreign travel both on private and official account, pay the cost
of the ticket in convertible foreign exchange.
13[11.A Added by SRO.857(I)/82, dated 08-09-1982.

14[11.B Added by SRO.857(I)/82, dated 08-09-1982.
109
13. Maintenance of accounts and credit facilities.- (1) Persons resident of the
tariff area shall not be permitted to maintain accounts with the branches of
bank in the Zones.
(2) Foreign exchange funds of the enterprises may be kept with the
banks in a Zone in any convertible currency.
(3) No industrial undertaking in a Zone shall be extended any credit
facility out of Pakistan resources including financing by the Industrial
Development Bank of Pakistan.
14. Rebate of excise and customs duties for supplies to Zones.- The
normal excise and customs duties and other taxes leviable on raw
materials, machinery, or goods in the tariff area shall be eligible for rebate
under the existing rules when supplied to a Zone.
15. Facilities.-(1) The Authority shall undertake to provide infrastructure

facilities such as electricity, water, gas, telephone and telex which are
considered necessary for efficient industrial operations in a Zone:
Provided that the cost of providing such facilities shall be borne by industries
set up in a Zone.
(2) The Authority may also provide to investors a list of contractors for
providing necessary services such as stevedoring, movement of
goods to and from a Zone, factory design and construction for their
information and guidance.
(3) Postal, fire services, first aid station and medical centers shall be
provided within a Zone.
15[(4) Supporting enterprises including banking, insurance and such
services as may be specified by the Federal Government from time to
time shall also be provided within a Zone.
16. Imports and exports.- A 16(i) service charges of 16(ii) 0.5% on the F.O.B
value of all goods 16(……) exported from any Zone shall be payable to
the Authority.
17. Entry into and exit from a Zone.-(1) Entry and exit of persons and
goods into and from a Zone shall be in accordance with the regulations
framed by the Authority.
15[(4) Added by SRO.1287(I)/82, dated 26-12-1982

16 Omitted by SRO.165(KE)/89, dated 30-08-1989, for the following;
In rule 16, the words “imported into or” shall be omitted.
16(i) Added through cirular No. Fin-FR(CIR) /001/005 dated April 20, 2005
subsequent to BOD decision taken 67th meeting held on July 27,
2002.
16(ii) Substituted by SRO –(1)/2000 dated August 24, 2004 MOI NO.
1(8)/2000-INV-IV
110
(2) Payments for raw materials, machinery or goods and services
purchased by a Zone investor from the tariff area shall be made in
convertible foreign currency.
18. Monetary transactions.- All payments to labour, managerial staff and for
services and facilities within a Zone shall be made in Pakistani rupees
against the surrender of foreign exchange to an authorized bank or banks as
may be designated by the Authority.
19. Environmental pollution.- Industries whose operation results in the

creation of harmful affluents that cause environmental pollution shall be
required to adopt such measures as are necessary for the proper treatment
of the pollutants before they are disposed of.
20. Cost of additional services.- The Authority may impose such fees or
charges for services which it may additionally provide from time to time in
connection with-
(a) development and maintenance of public utilities and installations;
(b) measures for maintenance of environmental, sanitation and public
safety; and
(c) such other related services which the Authority may deem necessary.
21. Suspension and cessation of operations.- (1) If an industrial undertaking

in a Zone decided to cease or suspend its registered operations, a written
notice thereof shall be se4nt to the Authority before the decision is
implemented.
(2) Subject to the provisions of the relevant laws and the rights of
mortgage creditors, the cessation of business operations shall have
the effect of automatically cancelling the certificate of registration
upon which the industrial undertaking shall cease to be entitled to the
incentives provided for it.
22. Employment of foreign nationals.- (1) An investor may employ foreign

nationals for which an application shall be made in the form prescribed by
the Authority.
(2) A foreign national employed under sub-rule (1) shall be granted an
initial term of employment of three years, extendable from year to
year.
(3) Request for further extension shall be filed with Authority atleast thirty
days before the expiry date of the authorized stay.
111
23. Exclusion of items detrimental to public health & safety.- The Authority
may at any time, order the exclusion from a Zone of such
goods, chemicals, materials, processes or operations which in its judgement
are detrimental to the public interest, health or safety.
24. Privilege of the Authority to call for reports.- The Authority may order any
industrial undertaking or its supporting enterprise to report on the following
particulars, namely:
(i) monthly report on manufacturing process or assembly of

commodities;
(ii) monthly report on commodity import and export;
(iii) status of arrival of commodities imported into the Zone;
(iv) suspension of business operation for over one month;
(v) any other information which is considered necessary by the Authority
concerning the business activities of the industrial undertaking and its
supporting enterprise.
17[24.A Change in incentive package.- Change in the incentive package, under

which an investment has been sanctioned in a Zone, shall not be made
except where such change is more advantageous to the investor and is also
accepted by him.
25. General Provision.- (1) The Authority may, from time to time issue
memoranda and circulars to implement the provisions of these
rules, regulations and schemes
(2) The Authority may, with the approval of the Federal Government set
up on Advisory Committee for the Authority which may include
representatives of the private sector.
HASINUDDIN AQUIL
Deputy Secretary
17[24.A Added by SRO.165(KE)/89, dated 30-08-1989.
112
THE CUSTOMS RULES, 2001
Notification No. S.R. O. 450(1)/2001, 18th June, 2001
CHAPTER XII
EXPORTS
SUB CHAPTER (c)

EXPORT PROCESING ZONE
225. Definitions.-- In this sub-chapter, unless there is anything repugnant in

the subject of context,-
(a) ―Authority‖ means the Export Processing Zones Authority established
under the Ordinance;
(b) ―Collector of Customs‖, in relation to a Zone, means the Collector of
Customs, in whose jurisdiction such Zone is established;
(c) ―import‖, in relation to a Zone, means import from abroad and includes
goods introduced into a Zone from the Tariff Area‘
(d) ―investor‖ and ―industrial-undertaking‖ shall have the same meaning as
are, respectively, assigned to them in the Ordinance;
(e) ―Ordinance‖ means the Export Processing Zones Authority Ordinance
1980 (IV of 1980);
(f) ―Tariff Area‖ means any area in Pakistan outside the limit of a Zone; and
(g) ―Zone‖ means such area as is declared by the Federal Government to
be a Zone under the Ordinance.
226. Import of goods into the Zones.--(1) Subject to sub-rules (7) and
(8), any goods can be imported into the Zones from abroad or from the Tariff Area.
(2) A separate bill of entry in respect of goods imported for a Zone along
with other documents showing details of the goods as required under the Act and
the Rules made thereunder shall be presented to the Customs authorities for
assessment and clearance.
(3) Goods imported into a Zone shall be assessed in accordance with the
existing procedure.
(4) The exemption granted under Board‘s Notification No.SRO.
881(I)/80, dated the 23rd August, 1980 shall, be applicable to
machinery, equipment, materials to be used solely within the limits of a Zone and
goods imported into the Zone for warehousing purposes:
Provided that Investors in Export Processing Zones shall be allowed to dispose
off their machinery in tariff area after three years from date of filing of the bill of entry
of its import subject to import policy order and payment of duties and taxes.
(5) An investor or his licensed clearing agent duly approved and authorized
by the Authority shall carry out necessary formalities regarding Customs clearance.
113
(6) All goods so cleared shall be secured and forwarded to the Zone under
Customs supervision, a pass shall be sent with the goods specifying the name of the
importer and the clearing agent, if any, number of vehicle, description and quantity
of goods with the marks and numbers and contents thereof and, on receipt of the
goods in the Zone, the officer of Customs allowing the goods to enter the Zone shall
retain the pass.
(7) Admission of goods imported for a Zone shall not be refused except
when the goods are liable to restrictions or prohibitions imposed on the grounds of
public morality or order, public security hygiene or health or for veterinary or phyto-
pathological consideration, or relating to the protection of patents, trademarks or
copy-rights.
(8) Hazardous goods may be allowed to be admitted to a Zone only when
an area specially designed for its storage is made available within the Zone.
(9) Goods admitted to a Zone may remain there for such period as may be
prescribed by the Authority.
1[(10)(a)Import of vehicles shall be allowed without payment of customs duty and
other taxes as per the entitlements given in the table below, namely:-
TABLE
S.No. Quantum of Investment in EPZ Vehicles Allowed
(1) (2) (3)
1. US$ 10.00 million or more upto US$ 25 million; 03

2. More than US$ 25 Million but less than US$ 50 Million; 05
3. Equal to or more than US$ 50 Million but less than
US$ 75 Million 10
US$ 100 Million 15
US$ 125 Million; and 20
6. Equal to or more than US$ 125 Million, 25
(b) subject to a maximum of one motor car of up to 1600 c.c. within the
number of vehicles allowed and shall be further subject to the verification of the
amount of investment and completion of the project within a time period of three
years by the Export Processing Zones Authority.}
2[(11) Units employing upto 25 workers will be allowed to import or purchase
one coaster while units employing more than 25 will be allowed to import or
purchase a bus upto 50 seats. Similarly, units with turnover of US$ 5.00 million or
more per annum will be allowed to import or purchase one cargo vehicle or truck.]
1[(10)a. Sub-rule (10) substituted by Notification No. S.R.O 889(1)/2007, dated 1st September, 2007
reported as PTCL 2008 St.578 (ii). Before substitution sub-rule (10) was added by
Notification No. S.R.O 461(1)/2004, dated 12th June, 2004, reported as PTCL 2004 St. 1181.
2[(11) . Sub-rule (11) added by Notification No. S.R.O 461(1)/2004, dated 12th June. 2004, reported
as PTCL 2004 St. 1181.
114
3
[(12) Mining Projects in the notified Export Processing Zones may import
vehicles, free of customs duty and sales tax, according to their requirements on
production of full justification supported by the Ministry of Petroleum and Natural
Resources.]
227. Introduction of goods into the Zones from Tariff Area.- (1) Goods
from the Tariff Area required for further processing in a Zone shall be admitted after
completion of export formalities which normally observed for export out of the
country.
(2) Goods which are entitled to exemption or repayment of Customs-duties
and sales tax on exportation shall qualify for such exemption or repayment
immediately after these have been admitted in to a Zone in accordance with the
provisions of the Board‘s Notification No. S.R.O 882(1)/80, dated 23rd August, 1980.
228. Export of goods from the Zones.- (1) Any goods removed from a
Zone for exportation shall be exported under the export procedure as laid down in
the Act and the rules made there under 1[***].
(2) Goods cleared for export shall be forwarded to the exporting station
under Customs supervision; a pass shall be sent with the goods, specifying the
name of the Exporter and the clearing agent, if any, number of vehicles, description
and quantity of goods with the marks and numbers and, on receipt of the goods shall
retain the pass.
(3) All Customs formalities regarding removal of goods from the Tariff Area
shall be completed at the main Customs Check Post or any place within the Zone
approved for this purpose by the Collector of Customs.
(4) Export Processing Zones manufactures shall be treated at par with the
bonded manufacturers in tariff area.
2[(5) The units established in the Export Processing Zones 3[excluding the
units as mentioned in the table below, shall export only upto twenty per cent of their
total production to tariff areas in Pakistan while eighty per cent shall be exported to
other countries 4[:]]
3 [(12) Sub-rule (12) added by Notification No. S.R.O. 492(1)/2005, dated 23rd
May, 2005, reported as PTCL 2005, St. 603(ii).
1[***] The words, letters, full stop, figures and comma ― and documentation shall be
completed on the basis of exemption from duties and taxes under the Board‘s
Notification NO.S.R.O881(1)/80, dated 23rd August,1980‖ omitted by Notification No.
S.R.O. 461(1)/2004, dated 12th June, 2004 reported as PTCL 2004 St. 1181.
2 [(5) Sub-rule (5) inserted by Notification No. S.R.O. 461(1)/2004, dated 12th
June, 2004, reported as PTCL 2004 St. 1181.
3[ Substituted for the words ―excluding M/s. Al-Tuwairqi Steel Mills Karachi‖ by
Notification No .S.R.O 483(1)/2007, dated 9th June, 2007, reported as PTCL 2007 St.
1770(i) Earlier The words and comma ―excluding M/s. Al-Tuwairqi Steel Mills Karachi‖
inserted by Notification No. S.R.O. 23 (1)/2006M dated 5th January, 2006, reported as
PTCL 2006 St. 1147(I).
4 [:]] Substituted for the full stop by Notification No. S.R.O. 240(1)/2006, dated 13th
march, 2006, reported as PTCL 2006 St.1255 (ii).
115
5[Provided that the limit of twenty per cent on exports to tariff areas in Pakistan shall
not apply to the goods supplied free of charge for relief operations in earthquake hit
areas through Federal Relief Commissioner or NGOs approved by the Economic
Affairs Division, Government of Pakistan.]
1TABLE
S. No. Name of Unit Maximum Level of Export

to Tariff Area
(1) (2) (3)
1. M/s. Al-Tuwairqi Steel Mills, Karachi 100% of the production
2. M/s. Filling & Packing Material 50% of the production]
Manufacturing Company (FIPCO), Karachi
2[3. M/s. MRDL Saindak 100% of the production of
magnetite concentrate to
Pakistan Steel]
3[4. Units established in the Export Processing 50% of the production]
Zone, Gawadar
229. Removal of goods from the Zone to Tariff Area:- (1) Removal of
imported raw materials, imported goods in the same state and goods produced by
investors in a Zone to Tariff.
Area for home consumption may be allowed subject to the import restrictions and
formalities applicable to imports from abroad; customs-duties and other taxes levied
on imports into Tariff Area from the Zone shall be the same as duties and taxes
levied on similar imports from abroad.
(2) Any goods permitted by the aforesaid authority for entry into the Tariff
Area under sub-rule (1) may be taken out of the Zone after fulfilling all the
requirements prescribed under the Act and the Rules made hereunder for the direct
import from aboard into the Tariff Area.
(3) The point in time to be taken into consideration for the purpose of
determination of value and the rate of duties and other taxes applicable on goods
removed for home consumption shall be determined in accordance with provision of
the Act and the Rules made thereunder.
(4) The goods produced in a zone and removed to Tariff Area for home
consumption shall be chargeable to customs-duties in the state in which they enter
the Tariff Area.
Explanation:- `The normal value of the goods manufactured in the E.P.Z., on
entry into the Tariff Area and vice versa shall be assessed as per the provisions of
section 25 of the Customs Act, 1969.
5[ Provisio added by Notification No. S.R.O. 240(1)/2006, dated 13th March 2006, reported as
PTCL 2006 St. 1255(ii)
1T Table added by Notification No. S.R.O. 483(1)/2007, dated 9th June, 2007, reported as PTCL
2007 St. 1770(1).
2[3. S. No 3 and the entries relating thereto added by Notification No. S.R.O (1)/2009, dated 19th
February, 2009.
3[4. S. No 4 and the entries relating thereto inserted by Notification No. S.R.O 600(1)/2009, dated
26th June, 2009.
116
230. Subcontracting for units of the Tariff Area.- Units operating in a Zone
shall be allowed to undertake subcontracting for units of the tariff area subject to
payment of duty and taxes on value addition only and sales tax if chargeable on the
value of supply with the prior permission of the Collector of Customs on such
conditions, restrictions and limitations as may be prescribed by the Collector or as
otherwise provided in the Act or the Rules made thereunder:
Provided that in case of chargeability of central excise duty or sales tax, shall be
collected in the same manner and time as if it were duty of customs payable under
the Customs Act, 1969 (IV of 1969).
231. Destruction.- Any goods admitted to a Zone on having been rendered

unfit for consumption may be allowed to be destroyed or rendered commercially
value-less by an officer of Custom not below the rank of Assistant Collector of
Custom in such manner as may be prescribed by the Collector of Customs:
Provided that manufacturer in Export Processing Zone is allowed to remove @
3% of the total value of export, the defective ‗B‘ grade goods, waste, used packing
materials, empty drums and cartons generated or produced in the Zone to tariff area
on payment of duties and taxes.
232. Unaccounted good.- If any importer fails to give proper account of the
imported goods to the satisfaction of an officer of Customs not below the rank of an
Assistant Collector of Customs, the importer shall pay on demand an amount equal
to the duties and taxes leviable thereon and shall also be liable to pay penalties
imposed for such violation under the Act and the rules made thereunder.
233. Remission of dutie.- Subject to the satisfaction of the Collector of

Customs, the duties and other taxes, if any, may be remitted in full or in part, as the
case may be, in the following cases, namely:-
(i) When any goods are damaged or destroyed by unavoidable

circumstances or causes beyond the control of the importer or the owner;
(ii) When the waste or refuse of the goods is destroyed in accordance with
rules 231; and
(iii) When goods imported are bona fide samples for study, testing or design.
234. Restriction on removal of goods from the Zone.- No goods shall be

ttaken out from any Zone except as provided in rules 228,229,230 and 231, or for
transfer to another Zone or to a customs manufacturing bond in a tariff area or for
subcontracting with the prior permission of the Collector of Customs on such
conditions, restriction and limitation as may be prescribed by him or as otherwise
provided in the Act or the rules made thereunder.
117
235. Transfer of ownership: Transfer of ownership of goods admitted to a
Zone may be allowed:
Provided that retail sale of such goods shall not be allowed‘ 1[:]
2[Provided further that exporters from tariff area may be allowed to purchase
goods from within the units in the Zone to be exported to foreign destination directly
from Export Processing Zone under the supervision and seal of Export Processing
Zone and Customs authorities duly escorted by Customs fulfilling all the related
formalities.]
236. Security of the Zones: (1) Each Zone shall be delimited and bounded
with secured boundary fending and suitable check posts may be established after
approval of the Collector of Customs.
(2) The construction of the check post shall be carried out by the Authority in
accordance with the layout plan approved b y the Collector of Customs.
(3) The Collector of Customs may impose restriction on means of access to
a Zone and establish the hours of business. The Collector of Customs may keep the
means of access to a Zone under permanent or intermittent supervision, and make
spot checks on the goods introduced into the Zone to ensure that these are subject
to only authorized operations and to see that no unauthorized goods have been
introduced.
1[:] Substituted for the full stop by Notification No. S.R.O. 493(1)/2009, dated 13th
June, 2009
2[ Provisio added by Notification No. S.R.O. 493(1)/2009, dated 13th June, 2009
118
THE CUSTOMS RULES, 2001
Notification No. S.R. O. 450(1)/2001, 18th June, 2001
Sub-Chapter IX
Export Processing Zones under PACCS
Import and Export of goods to and from the Zones
(Transshipment scheme)
511. Customs clearance at the Zones: - All cargo to and from the Zones shall be
cleared by the Collector of Customs or Collectorate exercising jurisdiction over the
Zone.
512. Transshipment of cargo:- All cargo to and from the Zones shall be allowed
transshipment facilities by the port of entry in case of imports and the port of exit in
case of exports.
513. Limitations: - Only such goods shall be allowed transshipment facilities from
the first port of entry to a Zone as have been distinctly manifested for that Zone.
514. Procedure at the port of entry or exit: - The procedure hereinafter laid down
for the transshipment of goods from the first port of entry to the Zones shall be
applicable under PACCS.
515. Transshipment permits:- No separate declaration at the port of entry or, for
that matter, any permit except the manifest shall be required for transshipment of
goods through PACCS and on receipt whereof, PACCS shall electronically
authorize the Terminal Operator to hand over those consignments to a bonded
carrier that approaches the Terminal Operator with delivery orders from the shipping
line for the goods where the address of the importer in the manifest is of a Zone.
516. Safe Carriage: - The Terminal Operator shall, subject to authorization by

PACCS handover the cargo to the carriers as may approach the Terminal Operator
under rule 515 for carriage of goods to the Zone and, soon where after, the Terminal
Operator shall electronically communicate the relevant particulars to PACCS. For
purposes of safe carriage the carrier shall be governed by rule 329.
517. Delivery of cargo: - All cargo consignments for transshipment to the Zone may
be delivered by the Terminal Operator to the bonded carriers on 24 hours a day and
seven days a week basis.
518. Intimation of transshipment: - As soon as a consignment for the Zone leaves

the exit gate of the terminal at the first port of entry, PACCS shall electronically
intimate the Collectorate of Customs exercising jurisdiction over the Zone regarding
the particulars of the departed consignment.
519. Arrival of cargo at destination:- Where any transshipment of cargo

consignment arrives at the Zone of destination, the concerned office of the
Collectorate exercising jurisdiction over the4 Zone shall electronically intimate
receipt of such consignment to the Model Collect orate of Customs.
119
520. Reminder to Zones: - In case no acknowledgement for receipt of departed
consignments is received from the concerned office of the Collect orate of
jurisdiction after lapse of 72 hours of departure from the port of entry, a reminder or
notice to that effect shall be electronically communicated to the Collect orate of
jurisdiction.
521. Non-response by Collectorate of jurisdiction:- The Collectorate exercising

jurisdiction over a Zone shall acknowledge the receipt of transshipment of goods or
cargo consignment within 144 hours of the intimation thereof, contrary whereto, the
matter shall be electronically communicated to the Collector of Customs, and in
case no response is received from the Collector of Customs within 72 hours of such
communication to him, the matter shall be electronically communicated to the Board.
522. Non-receipt of departed consignment:- In case non-receipt of consignment

is reported by the concerned office of the Collectorate of jurisdiction on lapse of 144
hours of the intimation of departure of goods, the PACCS shall, notwithstanding any
other action that may be taken under the law, proceed to take action against the
bonded carrier blocking their future carriage until the matter is resolved.
523. Application of risk management system:- All goods under transshipment to

the Zones shall be subject to the PACCS, it shall either be scanned by the Terminal
Operator or examined by the customs authorities before handing over the
consignment to the bonded carrier, whereupon, either the scanned image or
examination re4port, as the case may be, shall be transmitted online before the
Terminal Operator hands over the consignment to the bonded carrier.
524. Examination of goods under transshipment to the Zone: - No consignment

under transshipment to the Zones shall be subject to examination at the first port of
entry, unless:
(a) Illicit fire arms or explosive material is detected during scanning.
(b) The goods have been classified as risky and are not claimed from the
first port of entry for carriage to a Zone despite lapse of 72 hours of the arrival of
goods.
525. Exports from Zones:- The Collectorate exercising jurisdiction over the Zone
shall forward the cargo to the Model Collectorate of Customs after clearing it for
exports and an intimation whereof shall be made online soon after the consignment
departs from the Zone through a bonded carrier whereto rules 514 to 523
shall, mutatis mutandis, apply.
526. Examination of exports: - Export consignment under transshipment from the
Zones shall not be subjected to either risk management system or examination at
the Model Collectorate of Customs, unless:
(a) The seals of the containers upon arrival at the port of exit are found to be
either missing or broken.
(b) The container has been damaged en-route.
(c) The Collectorate of jurisdiction from where the consignment has

originated, requests the Model Collectorate of Customs to examine the consignment
on basis of specific information.
Explanation: Provisions relating to scanning of goods shall be effective from the date
the scanners become operational at the port.
120
Exemption from custom duty and sales tax for all goods imported into
and exported from the Export Processing Zones.
MINISTRY OF FINANCE AND ECONOMIC COORDINATION

Islamabad, the 23rd August, 1980
Customs
S.R.O. 881(I)/80.- In exercise of the powers conferred by section 19 of the

custom act ,1969 (IV of 1969),and section 7 of the Sales Tax Act,1951 (III of
1951), the Federal Government, subject to such conditions, limitations and
restrictions as the Central Board of Revenue may impose from time to
time, is pleased to exempt from the whole of customs-duties and sales tax
leviable on all the goods imported into and exported from the Export
Processing Zones established under the Export Processing Zones Authority
Ordinance, 1980 (IV of 1980).
[C. No. 9(10)-SS(CB)/77]
G. A. JAHANGIR,
Joint Secretary
121
Repayment of Custom – duties and sales tax paid on the raw materials
used in the manufacture of goods admitted into the Export Processing
Zones from the Tariff Area of Pakistan.
MINISTRY OF FINANCE AND ECONOMIC COORDINATION

Islamabad, the 23rd August, 1980
Customs
S.R.O. 882(I)/80.- In exercise of the powers conferred by clause (c) of

section 21 of the Customs Act, 1969 (IV of 1969), and sub-section (2A) of
section 27 of the Sales Tax Act, 1951 (III of 1951), the Central Board of
Revenue is pleased to authorize the repayment of customs-duties and sales
tax paid on the raw materials used in the manufacture of goods admitted into
the Export Processing Zones established under the Export Processing Zones
Authority Ordinance, 1980 (IV of 1980), at such rates and subject to such
conditions as are applicable to the goods exported outside Pakistan.
[C.No.9(10)-SS(CB)/77]
NASIR AHMED
Secretary
122
Notification S.R.O. 582(1)/80, dated 02-06-1980
relating to exemption of Karachi Export Processing Zone
from Import & Export Regulations.
Islamabad, the 2nd June, 1980.

Export Processing Zones Authority Ordinance, 1980 (IV of 1980), the Federal
Government is pleased to exempt Karachi Export Processing Zone from the
provisions of the Registration (Imports and Exports) Order, 1952, 1[the import
Trade Control Order, 1973], the Import Policy Order issued from time to time
and Schedules I to IV and VI annexed to the Ministry of Commerce‘s
Notification NO. SRO. 685(1)/79, dated the 31st July, 1979, except in so far
as they relate to supplies from Karachi Export Processing Zone to the tariff
areas of Pakistan.
(No.5(1)/80-P.1)
HASINUDDIN AQUIL
Deputy Secretary
1[ Inserted by S.R.O. 853(1)/81 dated July 30, 1981
123
Relating to exemption of the Export Processing Zones
from State Bank of Pakistan Act, 1956 (XXXIII) of 1956) and Banking
Companies Ordinance 1962 (LVII of 1962).
Islamabad the 23rd November, 1981

Government is pleased to exempt the Export Processing Zones from all the
provisions of the State Bank of Pakistan Act, 1956 (XXXIII of 1956), and the
Banking Companies Ordinance, 1962 (LVII of 1962), except sections
7, 25A, 32, 40, 41 and 42 thereof*.
HASINUDDIN AQUIL
Deputy Secretary
124
3
Relating to exemption of the Export Processing Zones
from Foreign Exchange Regulations Act 1947
(VII of 1947)
Islamabad the 13th December, 1981

Government is pleased to exempt the Export Processing Zones established
under the said Ordinance from the provisions of the Foreign Exchange
Regulations Act, 1947 (VII of 1947).
HASINUDDIN AQUIL
Deputy Secretary
125
MINISTRY OF FINANCE, PLANNING
AND PROVINCIAL COORDINATION
FINANCE DIVISION
(External Finance Wing)

Islamabad, the 25th May, 1980
S.R.O. 535(I)/80:- In exercise of the powers conferred by sub-section (1) of

section 12 of the Foreign Exchange Regulation Act, 1947(VII of 1947), the
Federal Government is pleased to direct that the following further amendment
shall be made in its Notification No. 1(7)-ECS/48, dated the 1st
July,1948, namely:-
In the aforesaid Notification, in the proviso,-
(a) in item 4, for the full-stop at the end a semi-colon and word ― ; and ‖
shall be substituted ; and
(b) after item 4 amended as aforesaid, the following mew item shall be
added namely :-
―5. Goods processed or manufactured or processed and manufactured

in and exported from Export Processing Zones established under
the Export Processing Zones Authority Ordinance, 1980 (IV of 1980).‖
[Case No. 8(1)-EF(G)/74 (Vol-I).]
MIRZA AFZAL BAIG,

Section Officer.
126
MINISTRY OF FINANCE, PLANNING
AND PROVINCIAL COORDINATION
FINANCE DIVISION
(External Finance Wing)

Islamabad, the 25th May, 1980

section 12 of the Foreign Exchange Regulation Act, 1947(VII of 1947), the
Federal Government is pleased to direct that the following further amendment
shall be made in its Notification No. 1(6)-ECS/48, dated the 1st
July,1948, namely:-
In the aforesaid Notification, in the proviso,-
(a) in item 6, for the full-stop at the end a semi-colon and word ― ; and ‖
shall be substituted ; and
(b) after item 6 amended as aforesaid, the following mew item shall be
added namely :-
―7. Goods processed or manufactured or processed and manufactured

in and exported from Export Processing Zones established under the
Export Processing Zones Authority Ordinance, 1980 (IV of 1980).‖
[Case No. 8(1)-EF(G)/74 (Vol-I).]
MIRZA AFZAL BAIG,

Section Officer.
127
Notification S.R.O. 858(I)/82, dated 08-09-1982
relating to exemption of the Export Processing Zones
from the Insurance Act, 1938 (IV of 1938) and Pakistan Insurance
Corporation Act, 1957 (XXXVII of 1952).
Islamabad, Wednesday, September 8, 1982
S.R.O.858(1)/82:- In exercise of the powers conferred by section 25 of the

Government is pleased to exempt the Export Processing Zones from all the
provisions of the Insurance Act, 1938 (IV of 1938), and the Pakistan
Insurance Corporation Act, 1952 (XXXVII of 1952).
[No. 5(6)/81-P1)
MUHAMMAD HASIN KHAN

Chief Research Officer
128
Exemption from central excise duty on such goods
manufactured in the Tariff Area of Pakistan as are imported into an
Export Processing Zone for use as raw materials or intermediary goods
for further manufacture of goods in the Zone for export.
CENTRAL BOARD OF REVENUE
Islamabad the 18th October, 1992

Central Excise

section 12A of the Central Excises and Salt Act, 1944 (I of 1944), the Federal
Government is pleased to exempt from the whole of central excise duty such
locally manufactured goods used as raw materials or intermediary goods by a
manufacturer located in an Export Processing Zone for further manufacturing
of goods in that Zone for export provided that the provisions of rule 13 of the
Central Excise Rules, 1944, read with chapter IX thereof, have been
observed.
Explanation. – ―Export Processing Zone‖ means such area as is declared by

the Federal Government to be a Zone under the Export Processing Zones
Authority Ordinance, 1980 (IV of 1980).
[C. No. 16 (28)-CEB/84]
MUMTAZ ALI
Additional Secretary
129
Revenue Division
CENTRAL BOARD OF REVENUE
Islamabad the 7th June, 2003
C.No. 1(1)-CEB/03
7. Import of excisable goods by units located in export processing

zones:
CED exemption to all excisable goods was available if imported by

manufacturers located in Export Processing Zones while at local
stage, only raw materials/semi-finished excisable goods were exempted
if purchased by the units located in EPZ and used as raw
materials/intermediary goods. This distortion has been done away with.
Now CED exemption is available to raw materials/intermediary goods
imported or locally purchased by the manufacturers located in EPZ for
use as raw materials/intermediary goods used in manufacturing of
finished goods. No exemption of CED on finished goods
(cement, beverages, cigarette etc.) will be available on import/locally
purchased goods. The prevailing notification for imported goods S.R.O.
54(1
)/2000, dated the 18th August has been rescinded concurrently.
UMAR FAROOQ
Chief (Central Excise)
130
Islamabad, the 10th October, 1982
EXPORT PROCESSING ZONES

(CONTROL OF EMPLOYMENT) RULES, 1982
S.R.O. 1003(I)/82:- In exercise of the powers conferred by section 26 of the

Government is pleased to make the following rules, namely:-
1. Short title and commencement.- (1) These rules may be called the
Export Processing Zones (Control of Employment) Rules, 1982.
(2) They shall come into force at once.
2. Definitions:- In these rules, unless there is anything repugnant in the

subject or context;
(i) ―employee‖ means a person employed or engaged for hire or for
any pecuniary consideration to work within a Zone and includes a
worker and workman;
(ii) ―Ordinance‖ means the Export Processing Zones Authority
Ordinance, 1980 (IV of 1980); and
(iii) all other words and expressions used but not defined in these
rules shall have the meaning assigned to them in the Ordinance.
3. Terms and conditions of service.-(1) The service of an employee

shall be governed by the terms and conditions as laid down in his letter
of appointment issued under sub-rule (2) by the employer under his
signature and accepted by the employee.
(2) The employer shall issue a letter of appointment in duplicate
containing the agreed terms and conditions of employment in details to
every employee except to a person engaged on day-to-day basis.
(3) The employee shall put his signature or thumb impression on the
duplicate copy of his letter of appointment in token of his acceptance
and return the same to the employer.
131
(4) The employer shall be responsible to make payments of all
contributions which would have been required to be paid by the
employer under section 20 of the Provincial Employees Social Security
Ordinance, 1965 (West Pakistan Ordinance No. X of 1965), and
section 9 of the Employees Old-Age Benefits Act, 1976 (XIV of
1976), had the Zones not been exempted from the provisions thereof.
(5) The Authority may from time to time issue instructions to employers
regarding minimum wages, payment of wages, over-time
work, leave, holidays, daily and weekly working hours, health and
safety measures and other compensations not specifically mentioned
in these rules and the letter of appointment issued under sub-rule (1)
and any violation of the instructions so issued shall render the sanction
for the establishment of the industrial undertaking liable to be
cancelled.
(6) Any agreement of employment contrary to these rules shall be void.
4. Prohibition of strike. No employee shall.-

(a) refrain from or refuse to work or go slow or go on strike, or
(b) commence, continue, instigate, incite or compel others to take
part in or support, go slow or strike.
5. Termination of service.- The service of an employee may be

terminated by an employer in accordance with the terms and
conditions contained in his letter of appointment referred to in sub-rule
(1) of rule 3;
Provided that, if the letter of appointment contains no provision in that

behalf the employer may terminate the service by giving thirty days
notice in writing or on payment of substantive pay or wages in lieu
thereof.
6. Resignation.- An employee may resign from service by giving thirty

days notice in writing or on payment of substantive pay or wages in
lieu thereof.
132
7. Adjudication.- (1) An employee may refer a dispute as to the terms
and conditions of his service or interpretation of these rules, within
thirty days of an order passed by the employer, to the Labour Welfare
Officer of the Zone, to be appointed by the Authority for the purpose.
(2) Upon receipt of an application under sub-rule (1), the Labour Welfare
Officer shall, after hearing the parties, adjudicate and determine the
dispute.
(3) The decision of the Labour Welfare Officer shall be in writing.
(4) Any party aggrieved by a decision of the Labour Welfare Officer
may, within thirty days of the date thereof, file an appeal to the
Manager, Labour, of the Zone, to be appointed by the Authority for the
purpose.
(5) An appeal filed under sub-rule (4) shall be heard and determined by
the Manager, Labour, whose decision shall be final.
(6) If the parties to a dispute or appeal, at any time before the final
decision of the case, satisfy the Labour Welfare Officer or
Manager, Labour, that the dispute has been resolved amicably, such
dispute or appeal may be allowed to be withdrawn.
(7) No counsel shall be allowed to appear in any proceedings before the
Labour Welfare Officer or the Manager, Labour;
Provided that the employer may be represented by an officer
nominated by him for this purpose.
MUHAMMAD HASIN KHAN

133
Notification S.R.O. 1004(I)/82, dated 10-10-1982
relating to exemption of Export Processing Zones from
various labour laws.
EXPORT PROCESSING ZONES

S.R.O.1004(1)/82.- In exercise of the powers conferred by section 25 of the

Government is pleased to exempt the export processing zones from all the
provisions of the following laws, namely:-
(1) The workmen‘s Compensation Act, 1923 (VIII of 1923);

(2) The Factories Act, 1934 (XXV of 1934);
(3) The payment of Wages Act., 1936 (IV of 1936);
(4) The Minimum Wages Ordinance, 1961 (XXXIX of 1961);
(5) The Provincial Employees‘ social Security Ordinance, 1965 (W.P.
Ordinance No. X of 1965);
(6) The West Pakistan Industrial and Commercial Employment
(Standing Orders) Ordinance, 1968 (W.P. Ordinance No. VI of
1968);
(7) The Industrial Relations Ordinance, 1969 (XXIII of 1969);
(8) The West Pakistan Shops and Establishment Ordinance, 1969
(W.P. Ordinance No. VIII of 1969); and
(9) The Employees‘ Old-Age Benefits Act, 1976 (XIV of 1976).
[No.5(6)/81-P-1]
MUHAMMAD HASIN KHAN

134
E.P.Z. CONTROL OF EMPLOYMENT ORDER NO. 1 OF 1983
In experience of power conferred by the sub-rule (5) of rule 3 of Export

Processing Zones Authority (Control of Employment) rules 1982, the
Competent Authority is pleased to issue the instructions, regarding working
hours and rest periods as follows:-
1. SHORT TITLE AND COMPENCEMTNT:

i. These instructions may be called EPZ Control of Employment order
No. 1 of 1983.
ii. They shall come into force at once.
iii. They shall apply to all Employers & employees as defined in the
E.P.Z.A. (Control of Employment) as rules 1982.
2. WEEKLY WORKING HOURS OF WORK:

i. No employee shall be allowed of required to work in an
establishment/industrial undertaking for more than forty eight (48)
hours a week the factory is seasonal one, for more than fifty hours
in a week.
ii. Hours worked shall include all time during which an employee is on
duty, or allowed leave by the circumstances.
3. DAILY HOURS OF WORK:

i. No employee shall be asked to work more than eight hours in any
day excluding meal periods tea and prayer breaks. However if the
hours of work on one or more days are less than eight, the limit of
eight hours may be exceed in remaining days but in no case more
then (48) hours per week.
ii. In the case seasonal establishment, the daily working hours of
employee shall be so adjusted as not to exceed 50 hours in a week.
4. MEAL PERIODS, TEA & PRAYERS TIME OFFS:
Employers shall provide reasonable time for meals, tea and prayers
during working hours in addition to daily working hours.
135
5. WEEKLY REST PERIOD:
i. Every employer shall provide his employees a rest period not less
than twenty four (24) consecutive hours after every day for six
consecutive normal work days.
ii. The employer shall determine the schedule of weekly rest day for
his employees.
6. GAZEETED HOLDYS:
i. All the gazetted & optional holiday announced by Govt. of Pakistan
shall be treated as holidays for every employee of Industrial
undertaking/Establishment provided that the establishment is not
running shift.
ii. In case of shifts, the employer shall provide compensatory leave or
overtime payment by mutual consent.
7. OBLIGATION TO WORK ON A REST DAY:

i. The employer may require his employees to work on any day.
ii. In case of actual or impending emergencies caused by serious
accident, fine flood, typhoon, earthquake, epidemic of other disaster
or calamity to prevent loss of life and property, or imminent danger
to public safety.
iii. In case of urgent work to be performed on the machinery, equipment
or installation, to avoid serious loss which the employer would
otherwise suffer.
iv. In the event of abnormal pressure of work out to special
circumstances, where the employer cannot ordinary be expected to
resort to other measure.
v. To prevent loss or damage to perishable goods.
vi. Where the nature of work requires continuous operations and the
stoppage of work may result in irreparable injury or loss to the
employer and
vii. Under other circumstances analogous, or similar to the forgoing as
determined by the authority.
(PERVAIZ AKHTAR SANKHLA)

Dy. General Manager (Facilities)
136
E.P.Z. CONTROL OF EMPLOYMENT ORDER NO. 2 OF 1983
In exercise of powers conferred by sub rule (5) of rule 3 of Export

processing Zones Authority ( Control of Employment) Rules 1982, the
Competent Authority is pleased to issue the instructions regarding minimum
wages allowance and overtime work.
1. SHOET TITILE & CIMMENCEMENT:

i. These instructions may be called E.P.Z. control of Employment
Order No.2
ii. They shall come into force at ones.
iii. They shall apply to all employers and employees as defined in the
EPZ (control of Employment) rules 1982.
2. DEFINITION:
i. Unskilled workers means a worker who does not possess
institutionalized training or reasonable experience of recognized
technical skill of the trade.
ii. I―Apprentice‖ manes a person who is employed whether on payment
of wages or not, for the purpose of being trading in any trade and
craft or employment in any Industrial Undertaking.
3. Minimum Wages:
i. Every unskilled worker, other than apprentice employed in the
industrial undertaking of zone shall be paid wages at the rate not
lower than Rs.600/- per month.
ii. IThe said rate of wages shall be applicable to all time rated workers
including temporary and piece rated workers.
iii. IThe employer shall fix the rate of remuneration for piece rated
workers so as to ensure that workers in such piece works
occupations are enabled by working 8 hours per day and six days in
each week to earn not less than Rs.600/-p.m.
iv. The wages of skilled and supervisory staff shall be determined by
the employer himself Commensurate with his qualification and
experience.
v. Other allowances and perquisites shall be the sole discretion of the
employer.
137
4. OVERTIME WORK:
When any employee is required to work overtime in any industrial undertaking
more than forty eight (48) in a week, the wages payable to such employee in respect
of overtime work shall be calculated at double the rate wage payable to him.
5. CASUAL,SICK & EARNED LEAVE:

i. Every employee shall be entitiled to casual leave with full wages for
minimum ten (10) days in every year. Such leave shall not ordinarily be
granted of more than three days and shall not be accumulated.
ii. Every employee shall be entitled to sick leave with full wages for a total
period of 8 days in every year. Such leave, if not availed of by any
employee during a calendar year, may be carried forward, but total
accumulation shall not exceed sixteen (16) days at any time.
iii. Every employee shall be entitled to earned leave with full wages for
minimum period of (14) days after continuous employment for a period of
twelve (12) months. Such leave if not availed of by any employee in any
year may be accumulated upto 30 days, No further accumulation of or
addition to such leave will be permissible.
iv. The employee, may at his request in lieu of warned leave not availed of by
him, be paid by the employer full wages for such leave.
NOTE: The employee must, as far as possible, seek prior permission for the
leave from his employer. In case of emergency and illness, he should ensure t
inform his employer the reason for not attending his duties at the earliest
opportunity).
6. DEDUCTION ASSENCE FROM DUTY:

The employer may deduct wage on account of the unauthorized absence of an
employer from the place of work, such absence being for whole of any part of the
period during which he is required to for whole or any part of the period during which
he is required to work.
7. MEDICAL CARE AND RELIEF FOR DEATH AND ENJURY UNDER

SOCIAL SECURITY SCHME:
Till such time as arrangements are made with the social security
Institution, the employer shall undertake to provide the following benefits to each
employee, other than casual worker:
i. Medical care, through a recognized medical institution, to be extent
available to a secured person under the social security scheme.
ii. Group insurance – for injury and / or death in the course of
employment, such that the compensation received by the affected person
or his/her hiers is not less than that admissible under the social security
scheme and sec. 10(B) of west Pakistan (Standing order ordinance.)
SHAHID I. HASHMI
Manager (Facilities)
138
KARACHI PROCESSING ZONE
No. Fac-17-005 February 19, 1984
E.P.Z. CONTROL OF EMPLOYMENT ORDER NO. 3
In exercise of powers conferred by the rule (5) of rule 3 of Export

Processing Zones Authority Rules 1982, the Competent Authority is pleased
to issue instructions regarding apprenticeship as follows:-
1. SHORT TITLE & COMMENCEMENT

i. These instructions may be called E.P.Z.
Control of employment Order No.3
ii. They shall some into force at once.
iii. They shall apply in all employers and Employees as defined in the
E.P.Z (Control of Employment) rules 1982.
2. DEFINITIONM:
i. ‗Audit‘ means a person who has completed his seventeen year.
ii. ‗Adolescent‘ means a person who has completed his fifteenth but
has not completed has seventeen year:
iii. ‗Child‘ means a person who has not completed his fifteenth year.
3. MINIMUM AGE OFR APPRENTICESHIP:

i. The minimum age for enrolment as an apprentice shall be 15 years.
ii. Every apprentice must be physically fir at the time of recruitment.
iii. The medical examination shall be done qualified doctor nominated
by and at the cost of employer.
DURATION OF APPRENTICESHIP:
The duration of apprenticeship for every trade, expected degree of skill
and minimum educational qualification laid down at the time of entrance.
139
5. STIPEND & INCENTIVE DURING PERIOD OF APPENTICESHIP:
i. The employer shall pay to apprentice, during the period of
apprenticeship stipend of at least Rs. 400/-
ii. No apprentice shall be paid stipend on the basis of pace of work.
iii. Note withstanding the provision of 5(i) and 5(ii) the employer shall
be free to offer and pay monetary and other in incentives to an
apprentice for good progress during his apprenticeship.
6. WORKING HOURS, LEAVE & HOLIDAYS:

i. Working hours, leave and holidays for an apprentice shall be the
same as for other employees in the industrial undertakings.
ii. No. person other than adult shall be allowed to work in night shift or
overtime. Adult women shall also not be allowed to work between
2200 to 600 hours.
7. It shall not be obligatory on the part of employer to offer an employment

to an apprentice on the completion of apprentice to serve the employer after
the completion of his apprenticeship. An employer shall not recruit the same
person as an apprentice more than once.
8. CERTIFICTION:
The employer shall arrange to issue certificate to his apprentice on

successful training during apprenticeship period. The certificate shall indicate
the specific trade, period or nature of training including related instructions
undergone, the degree of proficiency achieved etc.
SHAHID I. HASHMI
Manager (Facilities)
140
E.P.Z. CONTROL OF EMPLOYMENT ORDER NO. 4
In exercise of the power conierred by rules IV & V of the Export Processing Zones
Authority (Control of Employment) Rules 1982, the Employment Authority is pleased to issue
the following instructions regarding Social Security benefits for the workers of industrial
Undertaking at Karachi Export Processing Zone.
1. SHORT TITLE AND COMMENCEMENT:

i. These instructions may be called E.P.Z. Control of Employment Order No.4
ii. They shall come into force on the first day of May, 1985.
iii. They shall apply to all the industrial undertaking in KEPZ.
2. DEFINITIONS:
―Employee‖ –means any person working, normally for at least twenty four hours per
week, for wages in or is connection with the worker of any Industrial undertaking under
any written contract of service or apprenticeship.
―employer‖-means the owner of the industrial undertaking and includes any
agent, manager or representative of the owner.
―Wages‖-means remuneration for service payable in cash to a person, not being less
than remuneration based on the minimum rates of wages declared under the EPZ
control of Employment order No. 2 without taking in to account deduction for any
purpose, under a contract of service or apprenticeship, and shall be other additions in
respect of the cost of living and any payment by the employer to the worker in respect
of any period of authorized leave.
EXCLUSTON:
Payment of overtime,
Any payment to defray special expenses.
3. REGISTRATION OF THE EMPLOYEES WITH AN INSURANCE CO.

All the employees working in the Industrial undertakings of the Karachi Export
Processing Zone shall be insured for providing social security benefits and workmen
Compensation with an insurance Company on the terms and conditions which are not
less favorable than those mentioned in appendix-I, the employers shall set apart 7% of
the premium shall be paid to the Insurance Company for providing cover to the
employee as detailed in Appendix-I, and the balance shall be paid to the employee till
such time as alternative arrangements for providing these benefits are made.
4. SUBMISSION OF STATEMENT:
Every employer shall submit a monthly statement t oEPZA/KEPZ Administration in
which the details of the premium paid to the Insurance Co., and the balance disbursed
to the employee are given.
5. NON- COMPLIANCE:
Failure to comply with these Instructions shall render an employer liable to action
under EPZA (Control of Employment) Rules 1982.
(MIRZA JAFAR HUSAIN)

General Manager (Facilities)
141
142
No.1/4/83-visa
Government Of Pakistan
Ministry Of Interior
______________
Islamabad ,The 21st May 1986.
Office Memorandum
Subject: Grant of visas to investors and foreign persons in KEPZ and their registration .
The undersigned is directed to refer to minister of industries O.M NO.9(30)/84-

admn.IV dated 17th march ,subjected noted above and to say that it has been
decided that following procedure may be adopted for insurance of visas and
registration etc. of the foreign investors and their personnel working in Karachi
export processing zone:
I. 1.The intending visitors would be granted a single journey entry visa valid
by three months by our concerned on production or a letter from the khi
authority in each case ,after due checking.
II. On arrival in Pakistan they and their family members would be issued
multiple journey valid for one year by the regional passport office
concerned on clearance by the concerned agencies.
III. Multiple journey visas would be rendered for such periods as
recommended by the said authority, on yearly basis.
IV. As regard registration of foreigners ,it would be done in the office of the
foreigners registration officer Karachi. officer of KEPZA should take care
of the foreigners to avoid hardship to them.
The ministry is requested to bring the above procedure to the notice of all the
attending investors/ visitors, under intimation to this ministry.
Mushataq Ahmed Gujar

Section officer
143
MINISTRY OF COMMERCE
NOTIFICATION
Islamabad, the 7th March, 2002

section 3 of the Imports and Exports (Control) Act, 1950 (XXXIX of 1950), the
Federal Government is pleased to direct that the following further amendments shall
be made in the Export Policy and Procedure Order, 2000, namely:-
In the aforesaid Order,
(1) for paragraph 8 the following shall be substituted, namely:-
(8) Export to Afghanistan and through Afghanistan to Central
Asian Republics
(1) In Pak Rupees.- Subject to provisions of sub-paragraph (1) of paragraph
5, export of all commodities produced or manufactured in
Pakistan, excluding those manufactured in manufacturing bonds, shall be
allowed via land route, against Pak-rupee on filing of regular shipping
bills without Form ‗E‘. Such exports shall not be entitled to (i) zero-rating
of sales tax on taxable goods, (ii) rebate of central excise duty; and (iii)
repayment of drawback of customs-duty.
(2) In convertible currency.- Subject to provisions of sub-para (1) of

paragraph 5 and Schedule IV, all items and commodities produced or
manufactured in Pakistan exported, via land route or by air against
irrevocable letters of credit, or advance payment, in convertible foreign
currency, shall be allowed (i) zero-rating of sales tax on taxable
goods, (ii) rebate of central excise duty and (iii) repayment for drawback
of customs-duty, subject to the following conditions, namely:-
(a) the Pakistan Embassy or Consulate in Kabul, Kandhar and
Jalalabad shall verify the arrival of export consignments from
Pakistan. (This condition of verification from Pakistan Missions shall
remain suspended until these Missions or Sub-Missions become
fully functional);
(b) packages or retail packing shall prominently and indelibly be
marked with the expression "For Export Only", and in case of
international donor agencies "For Export only – supply for aid to
Afghanistan (insignia of the organization) – not for sale in Pakistan";
(c) export shall be allowed only through authorized export land routes
i.e. Torkham and Chaman; and
(d) export from Export Processing Zones and manufacturing
bonds, except vegetable ghee and cooking oil, shall be allowed but
these exports shall not be entitled to (i) zero-rating of sales tax on
taxable goods, (ii) rebate of central excise duty; and (iii) repayment
or drawback of customs duty.
144
(3) Export by international donor agencies.- Export of such goods as are
made by or on behalf of UNCHR, World Food
Programme, UNDP, UNFPA, ICRC, WHO, FAO, UNICEF against
international tenders, as relief goods to Afghanistan, shall be allowed the
facility of normal duty drawback against payment in convertible foreign
currency, through all standard modes of payment including letters of
credit, advance payment and DA/DP basis.
(4) Normal duty drawback shall remain available on exports to the Central
Asian Republics via Iran.
(5) Export of acetic anhydride to Afghanistan shall not be allowed till further
order.
(2) after paragraph 12A, the following new paragraph shall be
inserted, namely:-
"12B. Export of petroleum and petroleum products to Afghanistan:- The
export of petroleum & petroleum products shall be made by
refineries and approved oil marketing companies only. Zero-rating of
sales tax, rebate of central excise duty and normal repayment /
drawback of customs duty shall be allowed on these products
against irrevocable letters of credit or advance payment in
convertible currency";
(3) in Schedule 1, for serial No. 9 in column (1) and the entries relating
to in columns (2) and (3) the following shall be substituted, namely:-
"9. Vegetable ghee and cooking oil.- The export of vegetable
ghee and cooking oil shall be allowed (excluding that manufactured
in manufacturing bonds in case of exports to Afghanistan only)
provided there is value addition of fifteen per cent for edible uses in
packs up to five liters for cooking oil and five kilograms for vegetable
ghee and fifty per cent value addition in non-edible uses in packs up
to one half litre or half kilogram"; and
(4) after Schedule III the following new Schedule shall be
added, namely:-
"SCHEDULE –VI
(See paragraph 8)
Negative List of items for exports to Afghanistan under Duty Drawback Scheme.
(1) Cigars, cheroots, cigarillos and cigarettes of tobacco or of tobacco
substitutes.
(2) Dyes and chemicals.
(3) Yarn all types.
(4) PVC and PMC materials.
(5) Polyester metalized film.
(6) Ball bearings.
(7) Vegetable ghee and cooking oil (if exported from Export Processing Zones
or manufacturing bonds.)―
[F.No.18(11)/2000-E.IV]
(MOHAMMAD ASHRAF)
Deputy Secretary
145
MINISTRY OF INDUSTRIES AND PRODUCTION
(Export Processing zones Authority)
Islamabad, the 21st November, 1994
NOTIFICATION
S.R.O. 214(KE)/94:
In exercise of the powers conferred by sub-section (I) of section 27 of the Export

Processing Zones Authority Ordinance, 1980 (IV of 1980), and rule 17 of the Export
Processing Zones authority Rules, 1981, the Export Processing Zones Authority, with
the approval of the Federal Government , is pleased to make the following
regulations, namely :-
1. Short title, application and commencement.-- (I) These

regulations may be called the Export Processing Zones (Control of Entry and Exit of
Persons and Goods) Regulation, 1994.
(2) They shall apply to all zones.
(3) They shall come into force at once
2. Definitions.-- (I) in these regulations, unless there is anything

repugnant in the subject or context.—
(a) ―authorised officer‖ means an officer authorised in this behalf by
the chairman, to issue a past to person for entry into a Zone; and
(b) ―Ordinance‖ means Export Processing Zones Authority Ordinance
1980 (IV of 1980)
(2) The words and expressions used but not defined in these
regulations shall have the meanings assigned to them in the Ordinance.
3. No entry without a valid pass.-- No person shall enter in Zone

unless he is in possession of valid pass issued by the authorised officer.
4. Person eligible for issuance of passes.-- (I) The following

categories of persons shall be eligible to be issued passes for entry into a
Zone, namely :--
(a) the investor ;
(b) any duly authorized representative of the investor ; and
© authorized clearing agent
Provided that a person against whom an enquiry or investigation is pending or

who is involved in any unlawful act in the vicinity or within a Zone shall not be allowed
to enter or re enter the Zone and a register of all such persons shall be maintained for
the guidance of the authorities concerned with the enforcement of these regulations.
(2) Any person aggrieved by any order, other than an order passed under sub
regulation (1) of regulation 9, refusing his entry or re-entry in the Zone may prefer an
appeal to the Chairman of the Authority whose decision shall be final.
146
5. Entry without obtaining pass in certain cases.-- Customs Police
officers, fire-fighting personnel and equipments and hospital ambulance may be
allowed entry, while on duty, on production of their identity cards if they cannot obtain
passes due to exigencies of situation.
6. Mutilation and destruction of pass to be reported.-- In case of

mutilation or destruction of a pass the holder there of shall immediately report this fact
to the authorised officer who may after such enquiry as he may deem fit, issue a new
pass.
7. Passes not transferable.-- Passes issued under these regulations

shall not be transferable.
8. Persons and vehicles liable to search.-- All persons and vehicles

entering in or going out of a Zone shall be liable to be searched at the gate or any
where within the Zone.
9. Prosecution of persons involved in unlawful acts.-- (I)Where a

person is found involved in theft or smuggling including abetment thereof, In a Zone
or vicinity thereof, he shall be handed over to the concerned authorities for
prosecution according to law and in case such person is convicted of the offence, he
shall not be allowed entry in the Zone.
(2) If an information is received that an attempt is being made to

smuggle out goods by concealing them in a car, or through an export
consignment, the Shift Incharge or, as the case may be, the Inspector shall stop the
car or vehicle and issue a detention Order specified in Annex to these regulations and
forth-with report the matter to the Incharge of the Zone.
(3) After the issue of aforesaid detention Order the car or the vehicle
carrying the consignment shall not be removed from its place till such time the matter
has been investigated by Customs authorities and clearance given by them in writing.
10. Gate pass for entry of goods.--The authorised officer may issue a
gate pass to a person, specified in regulation 4, in quadruplicate consisting of
blue, pink, white and yellow copies.
11. Entry of dutiable goods in a Zone.-- Where the dutiable goods are
brought into a Zone, the investor, his representative or his authorised clearing agent
shall present all the four copies of the Entry Gate Pass to the Shift Incharge, Inspector
(Security) or the Security Guard at the gate.
12. Duties of the Shift Incharge, etc.---The Shift Incharge, Inspector

(Security) or the Security Guard, on presentation of the pass, shall :-
(a) Check that the seal of the packages or container is intact ;

(b) check that the number of the vehicle is the same as mentioned in
gate pass ;
© verify the marks and numbers on th packages ; and
(d) verify the number of packages or container.
147
13. Procedure after checking--- (I) After checking any of the officials
specified in regulations 12 shall---
(a) sign and stamp all the four copies of the gate pass ;
(b) write down the name of the driver with time and date the white copy
of the gate pass and retain it ; and
© return the remaining three copies of the gate pass to the investor, or,
as the case may be, to his representative or his authorised Clearing
Agent, for presenting them, alongwith goods, to the Customs Check
Post.
(d) After customs-clearance the pink copy of the pass should be handed
over to the Shift Incharge or Inspector and goods shall be taken to
the industrial undertaking.
14. Entry and exit of petty items.--- (I) Petty Item including
construction material like sand, earth or crush stone shall be brought into the Zone
subject to such directions as the Authority may specify and the name of the driver with
time and date shall be written on the while copy of the gate-pass.
(2) The item like shuttering, mixing machine or tool tackles shall be
brought into the Zone in accordance with procedure specified in sub-regulation (I) and
the custom officer concerned shall, at the time of entry, affix a stamp ―RETURNABLE
― on the white copy of the gate pass.
(3) The contractor shall, at the time of removing the goods from the
Zone, retrieve the white copy from the security official on duty, obtain clearance from
the customs both on the white and yellow copies and thereafter hand over the white
copy to the security official to remove the goods from the Zone.
15. Exit gate pass.---The authorised officer may issue Exit Gate Pass
to any of the persons specified in regulation 4, for taking out goods from the Zone, in
quadruplicate consisting of blue, pink, white and yellow copies.
16. Exit of dutiable goods.--- The Investor, his representative or, as

the case may be, his authorised Clearing Agent may be remove from the zone
dutiable goods on presenting all the four copies of the Exit Gate Pass to the Customs
authorities at the check post.
17. Custom Officer to sign and stamp certain copies, etc.--- After
necessary processing, the Custom Officer on duty shall sign and stamp all the four
copies, retain blue copy of the gate pass and return the remaining copies to the
person presenting the gate pass.
148
18. Presentation of three copies.---On receiving the pink, white and
yellow copies of the pass from the Custom, the same shall be presented to the Shift
Incharge, inspector (Security), or, as the case may be, the Security Guard at the gate who
shall---
(a) ensure that all the three copies of the Gate Pass bear signature and
stamp of the Custom Officer ;
(b) check that vehicle number is the same as specified in the gate pass ;
© Check that seal on the packages of the container is intact ;
(d) count the number of the packages or container and verify with those
specified in the gate pass ; and
(e) verify the marks and numbers given on the packages of the containers.
19. Procedure after checking.---After checking, any of the officials specified in

regulation 18 shall---
(a) sign and stamp all the four copies of the pass ;
(b) write name of the driver with time and date on the white copy and retain it
with the pink copy ; and
© return the yellow copy to the investor, his representative or, as the case
may be, his authorised Clearing Agent for presenting the same along with
goods at the Custom Check Post.
20. Passes to be entered in a register.--- All gate passes shall be entered

in a separate register and the white copies of the passes shall be retained for record in
the Security Division while the pink copy shall be sent to the Facilities Division of the
Authority.
21. Gate passes to be deposited.--- The gate passes received in one shift
shall be handed over to the Shift Incharge or the Inspector of the next shift and so on till
the next working day when all gate passes shall be deposited with Assistant Manager
(Security).
22. All passes to be noted.--- All entry and exit gate Passes of goods and
persons shall be noted in the Daily Round Book by the respective Shift Incharge or the
Inspector immediately after the consignment enters into, or moves out of, the Zone gate.
23. Relaxation.--- (I) The provisions of these regulations shall be strictly

complied with by all functionaries of the Authority responsible for their enforcement and
no official of the Authority shall relax any provisions thereof :
Provided that where in any emergent situation the compliance of the regulations is
not possible he case shall be referred to the Incharge of the Zone who for reasons to be
recorded in writing, may relax any provision of the regulations and if such a situation
arises after the office hours the verbal permission from the said officer shall be obtained
on telephone and entry to this effect shall be made in the Daily Round Book.
(2) The Shift Incharge or, as the case may be, the inspector (Security) shall, on
the next working day, obtain written confirmation, on Daily Round Book, from the Incharge
of the Zone of the verbal relaxation referred to in sub-regulation (1).
(No. SEC/3/020)
JAVED AHMED
Secretary
149
PART lll THE GAZETTE OF PAKISTAN, EXTRA, DEC 22, 1994 2329
DETENTION ORDER
WHEREAS Vehicle No……………….. (Loaded with ……………………………..

Un-loaded)
Packages) has made a request or the exit from ………………………………………..
Export Processing Zone today at____________________________________
(Time)
WHEREAS on the basis of the information received. I have reason to

believe that some unspecified quantity of unauthorized unaccounted of or good are
being illegally removed from the side Zone through above mentioned vehicle;
I, therefore, in pursuance of sub-regulation (2) of regulation 9 of Export

Processing Zones Authority (Control of Entry and Exit of Goods and
Persons)Regulations, 1994, seize above said vehicle and put the same under
detention and direct that the vehicle No………………………..(Loaded with…………….
Un-loaded
Packages) shall not be removed from its present unit Customs authorities have
satisfied themselves about the suspected illegal removal of good.
INSPECTOR /SHIFT INCHARGE

………………..Export Processing Zone Gate House.
Copy to:
i. Mr./M/s……………………………………………
……………………………………………………………………..
ii. Incharge ……………………………………….Export Processing Zone

Custom Check Post……………………………………………
150
INCOME TAX ORDINANCE – 2001
GOVT. OF PAKISTAN
FEDERAL BOARD OF REVENUE
(REVENUE DIVISION)
CHAPTER X
Part – V
Advance Tax and Deduction of Tax at Source
Division III
(Deduction of Tax at Source)
Section – 154
Export
5[(3A) The Export Processing Zone Authority established under Export
Processing Zone Authority Ordinance, 1980 (VI of 1980), shall at the
time of export of goods by an industrial undertaking located in the areas
declared by the Federal Government to be a Zone within the meaning of
the aforesaid Ordinance, collect tax at the rate specified in Division IV of
Part III of the First Schedule.]
5[ Inserted by the Finance Act, 2003
151
INCOME TAX ORDINANCE – 2001
GOVT. OF PAKISTAN
(REVENUE DIVISION)
THE FIRST SCEDULE
Part – III
(Deduction of Tax at Source)
Division IV
(Export)
1[(1) The rate of tax to be deducted under sub-section (1), (3), (3A), (3B) or (3C)
of section 154 shall be 1% of the proceeds of the export.]
1[ Substituted by the Finance Act, 2009.
152
REVENUE DIVISION
*****
Islamabad, the 29th June, 2009.
NOTIFICATION
(INCOME TAX)
S.R.O. 606(I)/2009.- In exercise of the powers conferred by sub-

section (2) of section 53 of the Income Tax Ordinance, 2001 (XLIX of
2001), the Federal Government is pleased to direct that the following further
amendment shall be made in the Second Schedule to the said
Ordinance, namely:-
In the aforesaid Schedule, in Part I, after clause (126C), the

following new clause shall be inserted, namely:-
―(126D) Profit and gains derived by a taxpayer from an industrial

undertaking set up in the Gwadar declared by the Federal
Government to be a Zone within the meaning of Export
Processing Zone Authority Ordinance, 1980 (IV of 1980) as
Export Processing Zone, Gwadar, for a period of ten years
beginning with the month and year in which the industrial
undertaking is set up or commercial operation
commenced, whichever is later.‖.
_______________________________________________________________
[C.No.1(51)INC/2007]
(Khalid Aziz Banth)

Member (Direct Taxes)/Additional Secretary
153
COLLECTORATE OF CUSTOMS (EXPORTS)
CUSTOM HOUSE KARACHI
NO.SI/MISC/216/98-CUS/EPZ Dated 28-09-2002
STANDING ORDER NO.05 /2002-(EXPORTS)
Subject: PROCEDURE FOR TRANSFER OR GOODS FROM TARIFF AREA TO

KARACHI EXPORT PROCESSING ZONE FOR SUB-CONTRACTING AT
KEPZ
In order to facilitate the Investors at KEPZ, Central Board of Revenue has

allowed the facility of reverse sub-contracting in the Export Processing Zone by units
based in tariff area and in this regard CBR has added rules 230 in sub-chapter (C ) of
SRO 450(1)/2001, dated 18.06.2001. Accordingly in-order to prescribe the detailed
Customs procedure for availing the facility of Sub-Contracting, the following
instructions are hereby issued for immediate compliance by all concerned:-
2. CENTRAL GUIDE LINES:
The facility of sub-contracting shall be restricted only to such type of items

which are capable of identification at the time of entry into and removal from the
KEPZ, after the goods have been processed, embellished, worked and further
manufactured, as the case may be.
3. APPLICATION BY INVESTOR:
The investor, in the KEPZ, shall apply for reverse subcontracting work to
be carried out by him on the prescribed format (annexed as ‗A‘) in quadruplicate to the
Assistant/Deputy Collector of Customs 1directly. Each copy shall be duly marked as
‗original‘, ‗duplicate‘, ‗triplicate‘ and ‗quadruplicate‘. The investor shall declare on each
copy of application the relevant particulars of the reverse sub-contracting work e.g.
name of the unit in the tariff area from which the goods are brought in, nature of the
sub-contract, materials to be brought into the Zone, quantity, value of the imported
inputs to be used by the unit in the KEPZ, its processing charges, etc.
1 The word ―directly‖ added by letter No. SI/MISC/216/98-CUS/EPZ dated

May 05, 2005
154
4. DOCUMENTS TO BE SUBMITTED BY THE INVESTOR:
At the time of submission of application to the 2Assistant/Deputy Collector

of Customs, the Investor shall submit the following documents along-with the
application:
a) A copy of the reverse sub-contracting agreement.

b) An Indemnity Bond (as per annex-B) equal to double the amount of
the value of the goods as given in the agreement.
c) A post-dated cheque equal to the amount of Indemnity Bond.
d) An undertaking to the effect that the sub-contracting work will be
completed within the stipulated period.
5. 3deleted
6. ACTION TO BEA TAKEN BY CUSTOMS (KEPZ):
i. 4After approval of the case by the Assistant /Deputy Collector of

Customs, the Customs shall process the case in the light of rule-230, sub-
chapter (C ) of SRO 450(1)/2001 dated 18.06.2001. The concerned
Appraising Officer shall scrutinize and process the case for detachment of
Indemnity Bond and post-dated cheque. The Appraising Officer, while
processing the case, shall ensure that the value of the material being
brought into the Zone and the value of the goods after processing are fair
and in accordance with Section 25 of the Customs Act, 1969. He shall
also check that the undertaking, Indemnity Bond and post-dated cheque
submitted by the investor are equal to twice the amount of ascertained
value of the material to be admitted into KEPZ for reverse sub-
contracting.
ii. The Principal Appraiser (KEPZ) shall maintain a master register for each
unit in KEPZ availing the facility of reverse sub-contracting. The Principal
Appraiser shall also ensure that the relevant data of the application has
been entered in the register maintained for the reverse sub-contracting.
The Indemnity Bond and Post-dated Cheque shall be detached after
approval from Assistant/Deputy Collector (KEPZ). The Assistant /Deputy
Collector (KEPZ) shall allow the entry of sub-contracting goods into KEPZ
for a period as he may deem fit. However, a maximum period of one year
may be allowed by AC/DC (KEPZ) and, in rare circumstances, further
extension may be allowed by the Additional Collector which shall not be
more than 180 days in any circumstances.
2 Assistant /Deputy Collector of Customs substituted by letter No.

SI/MISC/216/98-CUS/EPZ dated May 05, 2005.
3 Deleted vide letter No. SI/MISC/216/98-CUS/EPZ dated May 05, 2005
4 ―After approval of the case by the Assistant/Deputy Collector of Custom‖
added by letter No. SI/MISC/216/98-CUS/EPZ dated May 05, 2005
155
iii. The Original copy shall be kept in the relevant file; duplicate, triplicate and
quadruplicate copies of the application shall be handed over to the
applicant or his authorized representative. The duplicate copy of the
application, duly processed by Customs, shall be handed over to KEPZ
Authority for issuance of Gate Pass. The applicant or his authorized
representative shall deliver the triplicate copy to Customs Preventive staff
at KEPZ Gate, while the investor shall retain quadruplicate copy for his
own record. The Customs staff poste4d at the KEPZ gate shall endorse
particulars of passing in of the material on the triplicate copy. They shall
send the triplicate copy to Principal Appraiser (KEPZ) after all the
material, to be admitted in the Zone, has been passed in or after the
expiry of the time period allowed for sub-contracting. The Principal
Appraiser (KIEPZ) shall get the consignment examined as and when the
goods are admitted into KEPZ. He shall verify the particulars declared in
the application and also have the unit surveyed, if required, for the
issuance of analysis card. Such survey shall be conducted in case where
consumption of the imported raw material by the investor is involved. If an
earlier survey of identical nature has already been conducted, which is
not more than one year old, re-survey shall not be required.
7. REMOVAL OF FINISHED GOODS FROM KEPZ TO TARIFF AREA
i. After completion of the sub-contracting work, the Investor shall approach

the Customs Authorities at KEPZ on the prescribed format (Annex-C) for
removal of the manufactured goods,. He shall submit the final break-up of
processed goods in terms of the total value, processing charges and
value of imported inputs, if utilized.
ii. On the basis of this application, the terms of contract and the unit
consumption mentioned in the Analysis Card, if any, the Customs
authorities shall examine the goods and endorse examination report on
the serially numbered assessment slip, with five copies of each serial
number (Annex-D). Duty and taxes shall be worked out on value addition
only, keeping in view the provisions of Section 25 of the Customs
Act, 1969.
iii. Principal appraiser (KEPZ) shall retain the first copy of the assessment
slip. Four copies of the assessment slip shall be detached and handed
over to the Investor for payment of duty and taxes as worked out by the
concerned appraising officer. The bank shall make endorsement of the
payment on each of the four copies of the assessment slip. The duplicate
copy shall be handed over to Customs Preventive Staff posted at the gate
at the time of removal of goods from KEPZ to tariff area. The investor
shall deliver the triplicate copy to KE4PZ authorities for issuance of gate
pass.. The Investor shall retain the quadruplicate copy for his record.
156
iv. Removal of the goods shall be allowed in the presence of the ―Examining Officer
of Customs (KEPZ). The Custms Staff posted at the gate shall endorse the
vehicle number and the number of packages on the duplicate copy of the
application.
8. RELEASE OF INDEMNITY BOND/POST-DATED CHEQUE:
After removal of goods, the Investor shall apply to Assistant/Deputy

Collector (KEPZ) for release of the Indemnity Bond and Post-dated Cheque submitted
at the time of admission of the material into Zone. On being satisfied that all mate3rial
brought into the Zone has been utilized and there after cleared on payment of duties
and taxes in accordance with the procedure prescribed in this regard, he shall release
the post-dated cheque and Indemnity Bond within three days of the receipt of
application.
9. ACTION AGAINST THE INVESTOR:
In case the investor fails to complete the sub-contracting or contravenes

any provisions of law for the time being in force, the, the Assistant / Deputy Collector
of Customs (KEPZ) shall proceed against the investor in terms of the Indemnity Bond
submitted by him and the relevant penal provisions of the Customs Act, 1969 and the
Rules made there under.
(AFTAB ANWAR BALOCH)

Collector
157
Note: The declaration in point 4 & 6 must be compared with units, their form and
shape actually brought as given against Serial Nos. 13 & 14 and discrepancies
noted.
Signature and Seal of Customs Officer

Export Processing Zone, Karachi
Annexure
P A R T-1
Forrm No.EPZA 19 adition October, 1983

_________________________________
_________________________________
EPZA REGISTRATION NO.__________

DATED __________________________
The Assistant Collector of Customs,
Export processing Zone.
Karachi.
SUBJECT:- APPLICATION FOR PERMISSION OF SUB-CONTRACTING
Kindly permit our firm to transfer raw-material/semi-finished goods to Tariff

Area for further processing. Necessary Particulars are given below:-
1. Name of the firm/Enterprise in the ______________________

Tariff Area to whom the sub-contract is awarded. ______________________
______________________
2. Nature of sub-contract work _______________________________

(use separate sheet to give the details)
3. Mate rial to be transferred _______________________________
4. Form & Shape of end-product _______________________________
5. Material used/unit of end Product _______________________________

(use separate sheet to given the details)
6. Value added in the Tariff Area that will _______________________________

be surrendered to State Bank of Pakistan (Attach the terms & conditions of sub-
contract in support of it)
7. Units of end-product that will
be brought back to the Zone. _______________________________
8. Expected date of return of goods back to

the Zone. _______________________________
9. Description of Security attached _______________________________
It is certified that the above mentioned particulars given in this application are true
and correct and we undertake that goods shall be brought back to the zone as per
declaration given above.
Name, Signature and seal of the
Authorized person of the investor
158
PART-II
CERTIFICATE FOR TRANSFER OF GOODS TO TARIFF AREA/KEPZ
10. Permission is hereby granted to transfer the raw material/semi processed

material/goods to Tariff Area that will eventually return to KEPZ after partial
processing in the form, shape and quantity as stated above.
Name, signature and seal of

Authorized officer of Karachi
Forwarded to
Assistant Collector
Of Customs, Incharge,
EPZ.
NOTE: Issuance of this certificate of transfer of goods is based on the

statement & representations contained in this application. Any false statement or
mis-representation in this application will render the applicant liable to such action as
may be considered appropria to by EPZA and Customs.
PART-III
11. Goods as per declaration against serial number 3 above are allowed to be
removed from the zone to Tariff Area.
____________________________
Seal of Custom Officer at EPZ
Note: (Any discrepancy in the quantity actually removed and those declared must be
recorded below).
159
PART-IV
12. I/We hereby certify that an amount of ______________________ has been paid
to Messrs…………………………………………………………………………………..
(Name of firm)
With the details of work and payment in respect thereof vide Bank Draft No./Pay
Order/Cheque No…………………………………………………………………………
_________________________________
Signature & Seal of Investor/or his

Authorized representative.
PART-V
13. Units of End Product actually brought back into the Zone. ___________________
14. Form and shape of End product units.___________________________________
160
Annexure-“A”
CUSTOMS MACHINE NO._________________
DATED:_________________________________
NAME OF UNIT:_________________________
EPZA REGISTERATION NO._______________
DATED:_________________________________
The Assistant/Deputy Collector of Customs,

Export Processing Zone,
Karachi.
SUBJECT: APPLICATION FOR PERMISION OF SUB-CONTRACTING AT KEPZ.
Kindly permit our firm to transfer raw material/semi-finished goods from tariff area to EPZ
for further processing Necessary particulars are given below:
1.
NAME OF THE FIRM/ENTERPRISE IN ________________________________
THE TARIFF AREA WITH WHICH THE ________________________________
SUB-CONTRACT HAS BEEN MADE ________________________________
2. MATERIAL TO BE TRANSFERRED TO ZONE

Material ________________________________
Quantity ________________________________
Unit Value (Foreign Currency) ________________________________
Total Value (Foreign Currency) ________________________________
3. DUTY FREE IMPORTED MATERIAL TO USE BT THE INVESTOR.
4. PROCESS TO BE CARRIED OUT:

i). ________________________________
ii) ________________________________
iii) ________________________________
iv) ________________________________
5. MANUFACTURED/PROCESSED GOODS ULTIMATELY TO BE

CLEARED FOR TARIFF AREA:
Material ______________________________________________
Quantity ______________________________________________
Unit Value ______________________________________________
Total Value ______________________________________________
6. VALUE ADDITION AS PER TERMS OF CONTRCT (No-----2).
7. DUTY AND TAXES LEVIABLE

Customs Duty ____________________________________________
Sales Tax ____________________________________________
Income Tax ____________________________________________
8. i) Indemnity Bond Number & Date ______________________________
ii) PDC Number & Date _____________________________________
iii) Others ___________________________________________________
It is certificated that the above mentioned particulars given in this application are true
and correct and we undertake that the goods shall be brought back to the Zone as per declaration given
above.
Name Signatures and seal of the

161
PART-II
PERMISION FOR TRANSFER OF GOODS FROM TARIFF AREA TO KEPZ
This is to certify that the above referred particulars have been verified and
found correct. It is therefore recommended that permission may please be granted to the
above material to be transferred to K.E.P.Z from Tariff area.
1 Name, Signatures and seal of _______________________________

Authorized Officer of Karachi] _______________________________
Export Processing Zone _______________________________
Forwarded to Assistant/Deputy
Collector of Customs, Incharge EPZ
Annexure-“B”
ON APPROPRIATE NONJUDICIAL STAMPED PAPER

Indemnity Bond:
Date of Issue ______________________________

Date of Expiry _____________________________
Amount Rs.________________________________
This indemnity is made on the _______________________ day of 2 year

between the M/s. __________________________________(Manufactures/Investors in
EPZ). Through Deputy Collector/Assistant Collector of Customs Exports.
Whereas, the Assistant/Deputy Collector of Customs has in accordance with

terms of Standing Order_________________________________ dated _____________
has allowed us to release the consignment for transfer of goods from Tariff Area to
Karachi Export Processing Zone for sub-contracting under the conditions that we shall:
i. Observe rules, procedure and instructions that may be prescribed in respect

of sub-contracting in terms of aforesaid Standing order.
ii. Pay on demand a sum of Rupees__________________ that becomes the
double the value of the goods in question as penalty imposed by the
Collector of Customs/Adjudicating Officer for violation of rules and act.
iii. Maintain record of input goods and output goods.
iv. Abide by such further conditions imposed by the Collector of Customs a may
be necessary for the purposes of identification and accounting of input goods
used in the sub-contracting of the goods.
v. We shall compete the sub-contracting work within the time period allowed by
Deputy/Assistant Collector (KEPZ).
vi. Take away the input goods which have not undergone sub-contracting within
the stipulated period. If not so, abide by the decision of Collector of
Customs/Adjudicating Officer, regarding imposition of penalties and other
action.
162
Now therefore in pursuance of this Bond the Manufactures M/s.
______________ hereby agrees to indemnity if the said Collector of Customs
(Exports) to the extent of Rs.______________ (Rupees
_______________________________________) and also against costs and
expenses which may be incurred by the Collector of Customs in recovery of the
above amount.
It is further agreed that the above amount may be recovered by Customs

as an arrears of Land Revenue under sub-Section (2) of section 202 of Customs Act
1969 (IV of 1969), if the Manufactures fail to abide by any condition laid down in rules
and aforesaid Standing Order.
In witness of the parties hereto have hereon put their hands and seals the
day above mentioned.
1. M/S.________________________________
Name _______________________________
Position in the Firms____________________
Zone Registration No.___________________
NIC No._______________________________
2. Deputy/Assistant Collector of Customs

Exports for and on behalf of the
Collector of Customs (Exports).
Annexure “C”
Machine No. of _________________________Application
CUSTOMS MCHINE NO.________________

DATE________________________________
NAME OF UNIT________________________
EPZA REGISTRATION NO.______________
DATED_______________________________
163
Annexure “C”
Machine No. of _________________________Application
CUSTOMS MCHINE NO.________________

DATE________________________________
NAME OF UNIT________________________
EPZA REGISTRATION NO.______________
DATED_______________________________
The Assistant/Deputy Collector of Customs,
Export Processing Zone,.
Karachi
SUBJECT:- APPLICTION FOR PERMISSION FOR TRANSFER OF GOODS FROM

KEPZ TO TARIFF AREA ON COMPLETION OF SUB-CONTRACTING.
Kindly permit our firm to transfer finished goods from EPZ to tariff area on
completion of sub-contracting work necessary particulars are given below:-
1. NAME OF THE FIRM/ENTERPRISE IN ______________________

THE TRIFF AREA WITH WHICH THE ______________________
SUB-CONTRACT HAS BEEN MDE ______________________
2. MATERIAL TO BE TRANSFERRED TO ZONE.

Material _________________________________________________
Quantity _________________________________________________
Unit Value _________________________________________________
Total Value ________________________________________
3. DUTY FREE IMPORTED MATERIAL USED BY THE INVESTOR.
4. PROCESS CARRIED OUT:

(i) _________________________________________________
(ii) _________________________________________________
(iii) _________________________________________________
(iv) _________________________________________________
5. INPUT OUTPUT RATIO OF MATERIAL USED & ANALYSES CARD NO &

DATE
Material ________________________________________
Quantity ________________________________________
Unit Value ________________________________________
Total Value ________________________________________
6. VALUE ADDITION AS PER TERMS OF CONTRACT (No—2)
7. DUTY & TAXES LEVIABLE:

Customs Duty (only value addition) ______________________
Sales Tax _______________________________
Income Tax _______________________________
8. i) Indemnity Bond Number & Date ________________________

ii) PDC Number & Date ______________________________
iii) Others ___________________________________________
164
It is certificated that the above mentioned particulars given in this
application are true and correct and we under take that the goods shall be brought
back to the zone as per declaration given above.
Name, Signatures and seal of the

Permission is hereby granted to transfer the processed goods/material to

tariff area after processing in the form, shape and quantity stated above.
PRINCIPAL APRAISER
Forwarded to Assistant/Deputy
Collector of Customs, Incharge EPZ
Note:- Issuance of this certificate of transfer of goods is based on the

statement & representation in this application will render the applicant liable to such
action as may be considered appropriate by EPZA and customs.
165
Annex - D
ASSESSMENT SLIP FOR PROCESSED GOODS

UNDER REVERSE SUB-CONTRACTING
Machine No. of Name & Address of unit

Inward Application: ____________
________________ Unit in Tariff Area
_________________
Date:
___________________________ Name of Unit in EPZ to
_____________
Machine No. of Outward Which sub-contracting
Application: ______________
______________________ Was allowed
_____________________
Date:
1. Description of goods
___________________________ EPZA Registration No.
Tariff Heading _____________
2.
Quantity Date of Registration:

3.
_______________
4. Unit Value
5. Total Value
6. Value Addition in EPZ
7. Duties & Taxes payable
(a) Custom Duty
(b) Sales Tax
© Income Tax
(d) Others
(e) Total
Examiner Appraiser Principal Appraiser
166
NAME CUSTOM HOUSE
Karachi dated 06.02.1987
STANDING ORDER NO. 2/86 (P).
SUBJECT:- PROCEDURE OF TRANSFER OF GOODS FROM EXPORT PROCESSING

ZONE TO TARIFF AREA FOR PARTIAL PROCESSING FACILITY OF
SUB-CONTRACTING REGARDING.
In pursuance of Para 10 of SRO.249 (1)/81 dated 25.03.81, the following

procedure is laid down to avail the facility of sub-contracting in theTariff Area by the
Investors of Export Processing Zone, Karachi:-
1. The facility of sub-contracting shall be restricted to only such type of goods

which are capable of identification before leaving the EPZ area, and re-entry
in to the EPZ after the goods have been
processed, embellished, decorated, worked and further manufactured.
2. The investor in the EPZ area shall make out an application in triplicate in the
name of Assistant Collector of Customs 2by declaring the particulars like the
name of the enterprises whom the sub-contract has been granted, the nature
of sub-contract, the material to be transferred, value and its
quantity, form/shape of end product, material used in it of end-
product, Customs duty and taxes involved, particulars of bank
guarantee, name of the bank etc. for processing in the Tariff Area in the form
given in part-1 of the Annexure.
3. 3 Deleted
4. The processing staff in the EPZ would examine the consignment in the place
within the zone approved ed for the purpose and tally particulars given
already in the application made by the investors and would calculate the
amount of duty and taxes involved on the goods in the light of para. 6 of
SRO No.249(1)/81 dated 25.03.81.
5. The investor would then furnished a bank guarantee equivalent to the
amount of duty and taxes involved from a scheduled bank of Pakistan in case
the goods are otherwise importable in the import tariff area of the country
and if the goods are not importable then in addition to the amount of duty and
taxes laviable equal to the value of the goods. After a certificates in the form
set out in Part-III of the Annex. Issued by the EPZA is produced and the
bank guarantee is furnished, the Assistant Collector of Customs Incharge
EPZ would then allow the removal of the goods to the Tariff Area for the
purpose of processing by another party by way of sub-contracting.
2 In para-2 line 3 the words ―and submit it through EPZ Authority‖ deleted by
letter No. SI/Misc/216/98-Cus/EPZ dated May 05, 2005
3. Para -3 wholly deleted vide letter No. SI/Misc/216/98-Cus/EPZ dated May
05, 2005
167
6. No. Customs escort would be provided as it would be the responsibility of the
investor to safely transfer the goods to the destination and bringing it back to
zone. The investor will then take the goods outside the Zone at his own risk
and cost for purpose of further processing and would be responsible to return
the goods back to the zone within the specified time for the purpose. On the
basis of these documents, the Customs Officer at the gate will issue a gate
pass bearing these particulars.
7. After the completion of the processing, the goods shall be brought back to
the EPZ and would be examined and verified by the gate staff as well as the
appraising staff in the form given in Part-V of the annex. On satisfying the
same, the Assistant Collector of Customs will release the bank guarantee to
the investor, after a certificate in the form set out in Part-IV of the Annex. Has
been given by him.
8. Where the investor thinks that the job of further processing is not expected to
be completed within the specified time due to cartain reasons beyond the
control of the other party to whom the job of the sub-contracting has been
given , he may apply to the Assistant Collector before the expiry of the said
period for granting extension in the time limit. The Assistant Collector after
satisfying himself would allow the extension in the time period upto a
maximum limit of two months.
9. In case the investor fails to bring back the goods to the EPZ, the Assistant
Collector of Customs shall forthwith encash the bank guarantee lying already
with the Customs under Rule 8 of SRO.249(1)/81 dated 25.03.81 and the
importer shall for such violation also be liable to pay penalty laid down in the
Act & the Rules made thereunder.
Sd/-
(MAHMOOD AHMED)
COLLECTOR OF CUSTOMS
(Preventive)
Copy to all concerned as per Distribution list.
(SHAHID BASHIR)
for COLLCTOR OF CUSTOMS
(Preventive)
Note: The declaration in point 4&6 must be compared with units, their form
and shape actually brought as given against Serial Nos. 13 & 14 and discrepancies
noted.
_________________________________
Signature and Seal of Custom Officer
Export Processing Zone Karachi.
168
P A R T-1
Forrm No.EPZA 19 adition October, 1983

_________________________________
_________________________________
EPZA REGISTRATION NO.__________

DATED __________________________
The Assistant Collector of Customs,

Export processing Zone.
Karachi.
SUBJECT:- APPLICATION FOR PERMISSION OF SUB-CONTRACTING
Kindly permit our firm to transfer raw-material/semi-finished goods to Tariff

Area for further processing. Necessary Particulars are given below:-
1. Name of the firm/Enterprise in the ______________________

Tariff Area to whom the sub-contract is awarded. ______________________
______________________
2. Nature of sub-contract work _______________________________

(use separate sheet to give the details)
3. Material to be transferred a. Quantity _______________________________

b. Value _______________________________
4. Form & Shape of end-product _______________________________
5. Material used/unit of end Product _______________________________

(use separate sheet to given the details)
6. Value added in the Tariff Area that will _______________________________

be surrendered to State Bank of Pakistan (Attach the terms & conditions of sub-
contract in support of it)
7. Units of end-product that will
be brought back to the Zone. _______________________________
8. Expected date of return of goods back to

the Zone. _______________________________
9. Description of Security attached _______________________________
It is certified that the above mentioned particulars given in this application are true
and correct and we undertake that goods shall be brought back to the zone as per
declaration given above.
Name, Signature and seal of the

169
PART-II
CERTIFICATE FOR TRANSFER OF GOODS TO TARIFF AREA/KEPZ
10. Permission is hereby granted to transfer the raw material/semi processed

material/goods to Tariff Area that will eventually return to KEPZ after partial
processing in the form, shape and quantity as stated above.
Name, signature and seal of

Authorized officer of Karachi
Forwarded to
Assistant Collector
Of Customs, Incharge,
EPZ.
NOTE: Issuance of this certificate of transfer of goods is based on the

statement & representations contained in this application. Any false statement or
mis-representation in this application will render the applicant liable to such action as
may be considered appropria to by EPZA and Customs.
PART-III
11. Goods as per declaration against serial number 3 above are allowed to be
removed from the zone to Tariff Area.
____________________________
Seal of Custom Officer at EPZ
Note: (Any discrepancy in the quantity actually removed and those declared must be
recorded below).
170
PART-IV
12. I/We hereby certify that an amount of ______________________ has been paid
to Messrs…………………………………………………………………………………..
(Name of firm)
With the details of work and payment in respect thereof vide Bank Draft No./Pay
Order/Cheque No…………………………………………………………………………
_________________________________
Signature & Seal of Investor/or his

Authorized representative.
PART-V
13. Units of End Product actually brought back into the Zone. ___________________
14. Form and shape of End product units.___________________________________
171
CUSTOM HOUSE, KARACHI
No. SI/MISC/170/07-Cus-EPZ
9th July, 2007
STANDING ORDER NO. 02/2007-EXP
SUBJECT: PROCEDURE FOR REPAIRING OF GOODS BY THE INVESTORS OF

KEPZ IN TARIFF AREA.
It has been observed that the goods other than raw material and
finished goods having value less than US$ 500/- are brought into / out from Export
Processing Zone Karachi to tariff area for the purpose of repair of goods and there is
no customs procedure to regulate it. The issue was discussed in a meeting with
Export Processing Zone Authorities on 25-06-2007 and the following procedure has
been worked out to regulate the movement of goods for the purpose of repairs;
i. For the goods having value less than US $ 500/-, the Investor shall apply
on its letterhead (in triplicate) to the Principal Appraiser (Export
Processing Zone Karachi), stating the value, purpose and duration of time
for which they need to be taken in /out from the Zone. The Appraising
staff after examining the case, shall grant the permission for the period as
considered necessary for the same. After the grant of permission by
Appraising staff, the Export Processing Zone Authority shall issue gate
pass and the Preventive staff at gate shall allow it accordingly by
recording the particulars in their register and detaining a copy of the
application.
ii. The goods having value more than US $ 500/- shall be regulated as per
procedure laid down in Standing Order No. 2/87 (P) dated 5-2-1987
amended vide Standing Order No. 4 / 1999 (Exports) dated 22-07-1999.
(KHALID MAHMOOD)
Collector
172
No. SI/MISC/635/CUS-EPZ/2001 June 19, 2001
PUBLIC NOTICE NO. 4/2001-EXP
Subject: CLEARANCE OF WASTE/USED PACKING MATERIAL, ETC FROM

KARACHI EXPORT PROCESSING ZONE
With a view to streamline the removal/export of waste materials form the EPZ
and to meet the demand of stake-holder, legal provision have been mark. In addition to
the custom formalities as required under the existing procedure, these provisions shall
apply mutatis mutandis. The following instructions are issued fro compliance by all
concerned:
i. An investor who intends to clear any or all such materials to tariff area on
payment of duty and taxes, shall apply on the prescribed proforma in triplicate as
per annex – A to Export Processing Zones Authority with complete details of all
items and value of exports so that the limit of 3% of the total value of their annual
exports can be monitored. Export Processing Zones Authority alongwith customs
shall verify and certify the contents of all information contained in the application
form and affix signature and stamp of the authorized person in the relevant
column. Duplicate copy shall be retained by EPZA for its record. Original and
triplicate copy shall be handed over to the investor. Original copy shall be
attached with Bill of Entry and triplicate copy shall be retained by the investor for
its record.
ii. With a view to smoothen the removal of waste and difficulties in the clearance of
such waste, value of aforesaid goods have also been assessed and given at
Annexure – B to ensure its transparent clearance. In case, any item is nint listed
in annex-B the investor may approach in advance Export Processing Zone
Authority and Customs for taking necessary action.
2. The investors of Karachi Export Processing Zone can remove the following
materials up to 3% of the value of their annual exports to tariff area, on payment of duty
and taxes:-
i. Defective or ‗B‘ grade goods
ii. Waste
iii. Used packing materials
iv. Empty drums
v. Empty cartons
3. The information contained in annex – ‗B‘ is being circulated for the sake of
reference, transparency and guidance of the investors. The same may change from time
to time.
(Munir Qureshi)
Collector
Encl: As above.
173
Annexure-B to the Public Notice No. 4/2001/Exp. dated 19-06-2001
MINIMUM ASSESSABLE VALUES OF WASTE AND SCRAP
FOR KARACHI EXPORT PROCESSING ZONE
S. No. Description of Waste PCT Heading Assessable Value

1. Cotton Yarn Waste 5202.9900 $ 410/ Bale
Blended/Cotton Fabrics Waste upto 9‖ 6310.9000 $0.17 Per Kg
2.
(Cutting of Curtain and Bed Sheets) 6309.0000 $0.12 Per Kg
Blended/Cotton Fabrics Waste from 9‖
3. to 2 meters (Cutting of Curtain and Bed 6310.9000 $0.50 Per Kg
Sheets)
Cotton/Blended Fabrics Waste
4. Garment Cutting (Tailoring Cutting) up 6310.9000 $ 0.03 Per Kg
to 5‖ in irregular shape.
Nylon Fabric Waste with Wadding
6310.9000 $ 0.04 Per Kg
5. (Tailoring Cutting) --------- do -------------
6309.0000 $ 0.31 Per Kg
------(Lace Curtain)
6 Scrape of GI Pipe & Steel Bar 7204.4190 $550/MT
7. Paper Role Bobbin/Card Board Waste 4707.9000 $110/MT
Empty Plastic Tanks with Metal
8. 3915.9000 $15/- Per Piece
Fencing (1000) Liters
9 Acrylic Sheet Cutting Waste 3915.9000 $400/- MT
Empty Plastic Drum/Can (Serviceable) Rs.250 p/d Amen:

(Capacity 205 Kg) PN: 02/02 (Exp)
10 3915.9000
(Capacity 100 Kg) Rs.100 p/d
(Capacity 25 Kg) Rs. 20 p/d
Empty Iron Drum 200/205 Ltr.

Rs. 105 p/d
Empty Used Iron Drum Capacity 100
Rs. 100 p/d
11 Ltr 7310.2900
Empty Used Iron Drum 25 Kg
$1.00 /PC
----------------- do -----------------21 Kg
12 Scrape of Plastic Drum 3915.9000 $320/ MT
Scrape of Polyester Film/Video
13 3915.9000 $250/ MT
Pancake Cutting
Empty Edible Oil Canes Capacity 5
$0.50/PC
14 Liters 3923.9000
1.00/PC
---------------do-------------- 10 Ltrs (of tin)
174
Annexure-A to the Public Notice No. 4/2001/Exp. Dated 19-06-2001
APPLICATION FOR REMOVAL OF WASTE, USED PACKING MATERIALS AND

DEFECTIVE OR „B‟ GRADE GOODS ETC.
Name & Address of the investor : M/s. _________________________
Description of goods manufactured : _____________________________
Description of raw material imported : _____________________________
Total value of exports for the year___ : _____________________________
Description & value of material intended to be cleared
Quantity Value
Defective Goods. _________________ ___________
‗B‘ grade goods _________________ ___________
Waste _________________ ___________
Used packing material _________________ ___________
Empty drums _________________ ___________
Carton _________________ ___________
Total _________________ ___________
Percentage in terms of total value of exports ______%

_________ .
for use by Export Processing Zone Authority
Total value of exports US$ ____________________

Items allowed to be cleared ____________________
Value & quantity of items allowed to be cleared. US$._____________________
Signature & stamp of

authorized person.
Remarks, if any.__________________________________________________
__________________________________________________________________.
for use by Customs
Import permit No._______________________________________________

Quantity allowed by Export Processing Zone Authority_________________
Quantity cleared vide Bill of Entry No.______________ dated___________
Signature of Signature of Signature of

Examiner Appraiser Principal Appraiser
175
COLLECT ORATE OF CUSTOMS (EXPORTS)
No. SI/MISC/19/99-CUS/EPZ Dated: 18-07-2001
PUBLIC NOTICE NO. 5/2001 - EXP
It has been observed that presently there is no prescribed procedure

governing the incoming and outgoing of the machinery/equipment brought into the Export
Processing Zone Karachi, on rental basis for a limited period, against a fixed and agreed
amount of rent, between the investor in EPZ and the lender in the tariff area. To facilitate
the investors in EPZ and to streamline the system, the following procedure is laid down:
i. Any investor desirous of temporary import of machinery/equipment into EPZ, on

rental basis, shall approach the Export Processing Zones Authority with the following
documents:
a) Agreement signed between the lender of the machinery/equipment and the
investor showing the value of machinery in Pak rupees or US$ (as is
conveniently available) and agreed rental amount in US$ alongwith the period
agreed.
b) Complete description of the machinery/equipment, machine number/marks,
model, brand, type etc. if the machinery is locally made with no proper
identification marks etc, then the investor shall attach photographs for the same.
c) Evidence of payment of rental charges in foreign exchange (US Dollars) through
an encashment certificate issued by EPZ-Offshore Banking Units.
ii. EPZA shall issue an authorization letter/permission to the investor to ring the
machinery/equipment.
iii. Then the investor shall approach Customs Staff with an undertaking binding himself
that in case of default in return (export) of the rental machinery within agreed/allowed
or extended period, the investor shall pay the amount equal to the value of the rental
machinery in foreign exchange (US$) to the lender in tariff area.
iv. Assistant Collector of Customs shall allow the entry of machinery/equipment after the
examination proves that there is no discrepancy between the description given in the
documents and its physical being.
v. On the expiry of initially agreed period, the Authority can extend the same as long as
it is satisfied that machinery/equipment in use is contributing to the export of goods.
vi. At the end of agreed or extended period, on the application of the investors, the
Authority shall allow return of the said machinery/equipment.
vii. At the time of exit, the Customs shall carry out the examination to verify that the
same machinery/equipment is being returned/removed to tariff area.
2. The above procedure is applicable from the date of issuance of this Public
Notice and all the previous cases shall be dealt as per past practice.
(Munir Qureshi)
Collector
176
MODEL COLLECTORATE OF CUSTOM EXPORTS
CUSTOM HOUSE
KARACHI
NO. SI/MISC/96/2009/CUS/EPZ September 28, 2009
OFFICE ORDER NO. 04/09/EXP/EPZ
Subject:- PROCEDURE FOR THE EXCHANGE OF FAULTY/DEFECTIVE GOODS
To streamline the exchange of faulty goods exported to Tariff Area,

following procedure is laid down.
i. Importers in Tariff Area will make a written request to the investor in EPZ for
the exchange of faulty goods along-with the relevant documents i.e. GD,
Invoice, Packing list.
ii. The concerned investor will approach customs authority for seeking
permission to bring back the faulty goods in Zone. After procuring permission
to bring back the faulty goods to the examination area adjacent to the
Customs EPZ by getting incoming gate pass from the EPZ Authority.
iii. The custom examination staff will endorse the examination report on the
request of the investor after satisfying himself to the effect that the goods
brought in are identified as the same goods as were earlier exported from
the Zone and are faulty/defective.
iv. The custom staff posted at check post will examine the goods being replaced
and after verifying the quantity etc. will endorse his report on the reverse of
the request of the investor, on the basis of which the zone authority will
issue an outgoing gate pass and the goods will be replaced.
v. A master register shall be maintained by the customs office in EPZ to
account for such transactions in the format given in Annexure ―A‖.
vi. The EPZ Authority shall also maintain a register on the for referred to as
―Annexure-A‖ as a permanent record.
2. The facility will only be available to the exporters when the request for the
exchange of faulty goods is furnished within 07 days from the export of their
consignment to Tariff Area.
(Amer Rashid)
Collector
177
MODEL COLLECTORATE OF CUSTOM EXPORTS
CUSTOM HOUSE
KARACHI
NO.SI/MISC/96/2009/CUS/EPZ September 28, 2009
OFFICE ORDER NO. 05/09/EXP/EPZ
Subject: PROCEDURE REGARDING SHORT SHIPMENT OF GOODS IN

CASE OF EXPORT TO TARIFF AREA.
It has come to the notice of undersigned that some investors of KEPZ are
facing hardships as there is no laid down procedure for short shipment. It often
happens that the investor is not able to export complete shipment i.e. as per the
quantity mentioned in GD and NOC. In such cases, in order to facilitate the investors
of KEPZ, and to streamline the working, the following procedure for short shipment is
prescribed:
i. The Investor who intends to avail the short shipment will endorse on the
reverse of GD the details of short shipped goods in the following manner:
Short shipped No. of cartons

Short shipped Weight
Short shipped Value
Short shipped Quantity
ii. The Examining Officer upon receipt of such information will examine the
goods and will physically endorse the short shipment statement
examination report.
iii. The Zone will make the necessary changes in their record regarding
short shipment of goods before issuing gate pass.
02. No remission of custom duty and other taxes on account of short

shipment will be admissible to the importers.
(Amer Rashid)
Deputy Collector
178
Annex - A
S.No GD No IGM Index Importer Exporter Description Total Date of Defective Value of Date of Re
& Date No. No Name /Investor of Goods Quantity Pass /Rejected Defective/ pass in m
out Quantity Rejected Defective/ ar
Goods Rejecte ks.
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (1
3)
179
INTERNAL SALE
GOODS IMPORTED BY SELLER:
GOOD SOLD TO: M/S,
IMPORT DETAILS:
S.No. G.D. No. DESCRIPTION QUANTITY VALUE US$ E’ FORM NO. &
OF GOODS DATE
1.
2.
3.
TOTAL
DETAILS OF GOODS/PURCHASED:
SALE INVOICE SALES INVOICE COMPLETE PURCHASE PURCHASE VALUE (US$) QUANTITY
NO. DATE DESCRIPTION ORDER NO. ORDER DATED
OF GOODS
SIGNATURE OF SELLER SIGNATURE OF PURCHASER
FOR OFFICE USE
PERMISSION FOR SALES / TRANSFER OF GOODS IS GRANTED VIDE

RULE 235 OF S.R.O 450(1)/2001, Dated: 18th June, 2001 AFTER
RECORDING OF GOODS INTO KEPZ COMPUTER SYSTEM.
CASE NO. ________________________________
Dy. Manager (FAC) Manager (FAC) Dy. General Manager (FAC)
COPY TO:
1. AC Customs KEPZ.
2. Manager Security KEPZ.
180
D.O.No:1(13)/2000-INV.V
Ministry of industries &production
Islamabad
Islamabad, the 5th September,2000
Mr.Maqsood ISMAIL
Chairman,
Export processing zones authority,
Karachi
Subject:- EXPORT IN SAME STATE OF IMPORTED MERCHNDISE TO

TARIF AREA ON PAYMENT OF DUTIES AND TAXES
Dear Sir,
Kindly refer to your letter No.INV-091(A), dated 16th August,
2000 on the subject noted above.
The Minister for Commerce, Industries and Production has

been pleased to approve the following list of raw materials to be allowed to
tariff area as per decision of the ECC 14th July, 2000:-
i. Raw cotton
ii. Dyes
iii. Aluminum ingots
iv. Hides and skins
v. Iron sheet
vi. Aluminum foil
vii. Unblended tea
viii. Supari
ix. Newsprints
x. Spices in raw form
xi. Raw material for pesticide &insecticide
The export processing zones authority is required to kindly take

further necessary action in the matter ,under intimation to this ministry.
Yours faithfully
(Muhammad Hafiz)
Deputy chief
181
State Bank of Pakistan
Exchange Control Department
Karachi
F.E circular NO.13
1st February, 1984
All authorized dealers
in foreign exchange
Dear Sir,
CODE LIST NO.3 PROVIDING REGION
AND COUNTRY /TERRITORY CODES.
Attention is invited to the Code List No.3 circulated vide F.E

circular no.72 dated the 5th July, 1972 last amended vide F.E circular no.32
dated the 17th June 1980.
2. It is advised that country code no.2557 has been allotted to

―export processing zones authority ―which may please be added to the above
code list no.3.
Att:
EXPORT PROCESSING ZONE
KARACHI
Yours faithfully,
SD/-
(Muhammad Karim)
Senior Deputy Director
182
State Bank of Pakistan
Exchange Control Department
Karachi.
F.E. Circular No. 12 September 01, 2001
All Authorized Dealers

in Foreign Exchange.
Dear Sirs,
INVESTMENT ABROAD BY RESIDENTS OF PAKISTAN
In supersession of the instructions contained in F.E. Circular No.11 of 1995, it has

been decided to allow residents of Pakistan including firms and companies to make
equity based investment (other than portfolio investment) in companies (whether
incorporated or not)/Joint Ventures abroad on Repatriable basis, with prior
permission of State Bank of Pakistan and subject to the following guideline:
Criteria for Permission to Allow Investment Abroad by Residents.
i. Investment abroad is allowed only for those countries that allow repatriation of
profits, dividends and capital.
ii. Only companies incorporated in Pakistan including foreign controlled
companies and firms owned by Pakistani Nationals resident in Pakistan will be
allowed investment under the scheme.
iii. The business activity of the company, firm, joint venture in which investment is
desired to be made should ordinarily be of the same nature as that in which the
investor is already engaged in Pakistan, or in which the investor has the
potential to acquire sufficient expertise from the market for running the business.
iv. The investor should be financially sound as shown by its audited accounts for
the last three years. In the case of a company in the I.T. business, however, the
condition of three years may be reduced to one year.
v. The proposal should be economically viable as evidenced from a feasibility
report. It should have the potential for future earnings of foreign exchange
coupled with other advantages to the country such as employment opportunities
for Pakistani nationals and improvement in national human resources.
vi. The funds proposed for investment should be legitimate and tax paid, and the
investor should have a clean record of loan repayments.
vii. Funding for the proposed investment abroad would be allowed only from the
inter-bank market or from funds available in the foreign currency accounts of
investors opened in terms of FE 25 of 1998, or out of funds available in the
incremental deposits of frozen foreign currency accounts, or from Foreign
Currency accounts maintained by exporters in terms of Para 29 Chapter XII of
Foreign Exchange Manual/FE 25 of 2000 (net of amount paid to foreign
importers/agents).
viii. Small investments by individuals in a few shares of listed companies abroad
including participation by Pakistani employees of subsidiaries of foreign
companies in Pakistan in their share option plans would, however, be permitted
without the detailed scrutiny outlined above.
ix. The State Bank under the aforesaid guideline would also deal with the
proposals emanating from the Public Sector Organizations providing financial
services whereas the concerned ministry would deal with the investment
proposals from all other public sector organizations.
183
2. After making investment with the approval of State Bank of Pakistan, the
investor would be required to:
i. Make a return to State Bank on the prescribed form V-97 through their
banker within one month of making the investment;
ii. To provide a copy of Certificate of Incorporation and Certificate of
Commencement of Business in the country where investment will take place
to the Authorized Dealer along with copies of the share certificates so
invested and bonus issues, if any.
iii. To repatriate the dividend/disinvestments proceeds of the shares (including
capital gains) to Pakistan through normal banking channels. The amounts so
received would be converted to local currency by the bank concerned and a
Proceeds Realization Certificate in original evidencing the same shall be
filed by the owner with the State Bank. Such amounts shall not be allowed
for credit to a Foreign Currency Account or for purchase of Pakistani
securities on Repatriable basis.
Detailed applications for the purpose along with audited accounts, particulars of
Directors/Partners of the investor company/firm (not required in case of individuals),
name and address of the foreign company/firm in which investment is desired to be
made, it‘s line of business and particulars of it‘s Directors/Partners, should be
forwarded to Joint Director (Investment) Exchange Policy Department, State Bank of
Pakistan, Central Directorate, Karachi.
Please bring the above to the notice of your constituents concerned.
Yours faithfully,
(M.R. MEHKARI)
DIRECTOR
184
NOTIFICATION
Islamabad, the 13th September,1981
S.R.O.1018(I)/81:- In exercise of the powers conferred by clause(K) of

section 2 of the Export Processing Zones Authority Ordinance (IV of
1980),the Federal Government is pleased to declare the area of L and
measuring about three hundred acres situated near Landhi-4, Industrial Area,
Karachi, duly demarcated and fenced and bounded as under, to be a Zone
for the purposes of the said Ordinance:-
On the north Landhi Metroville Block-2.

On the south Sind Alkalis.
On the east Cattle Colony.
On the west Muzzafarabad Colony
HASINUDDIN AQUIL,
Deputy Secretary
185
Islamabad, the 23rd February, 1998
S.R.O.151(I)/98:- In exercise of the power conferred by clause (k) of section

2 of Export Processing Zones Authority Ordinance, 1980 (IV of 1980), the
Federal Government is please to declare the area measuring about two
hundred acres situated in Risalpur Tehsil and District Nowshera duly
demarcated, fenced and bounded as under to be a Zone for the purpose of
the said Ordinance:-
On the north Private Agricultural Land of village

Kutar Panr
On the South Special Industrial Zone/Nowshera
Industrial Estate.
On the East Nowshera Industrial Estate/Special
Industrial Zone
On the West Private Agricultural Land of village
Maira Kandan
MUHAMMAD BASHIR CHAUDHRY,

Deputy Secretary
186
NOTIFICATION
Islamabad, the 2nd April 2001
S.R.O.212(I)/2001:- In exercise of the power conferred by clause (k) of

section 2 of Export Processing Zones Authority Ordinance, 1980 (IV of
1980), the Federal Government is please to declare the area measuring
about one hundred and nine acres situated in Village Jathike, Tehsil
Daska, District Sialkot duly demarcated, fenced and bounded as under to be
a Zone for the purpose of the said Ordinance:-
On the north Private Agricultural Land of village Jathike

On the South Sialkot – Wazirabad Road
On the East WAPDA Grid Station, Sambrial
On the West Export Processing Zone, Sialkot, declared
under the Industries Division‘s Notification
No. S.R.O. 1239(1)/96, dated the
21st October, 1996
MUHAMMAD HAFIZ,
Deputy Secretary
187
NOTIFICATION
Islamabad, the 13th October 2001
S.R.O.718 (1)/2001:- In exercise of the powers conferred by clause (k) of

section 2 of the Export Processing Zones Authority Ordinance, 1980 (IV of
1980), the Federal Government is pleased to declare the Saindak Copper-
Gold Project , Saindak measuring about one thousand two hundred and
eighty four acres located within following coordinates in Survey of Pakistan
Toposheet Nos. 30 G/11 and 12 in Chagai District., Baluchistan, duly
demareated , fenced and bounded as under to be a Zone for the purposes of
the said Ordinance:-
Mining Area
Points Easting in Northing in

Meters Meters
A-1 2,124100 572,551

B-1 2,121898 572,551
C-1 2,121898 573,844
D-1 2,122093 573,844
E-1 2,122093 575,625
F-1 2,123233 575,625
G-1 2,123233 574,399
H-1 2,124100 573,445
[3918 (2001)/Ex. Gaz.]
188
NOTIFICATION
Islamabad, the 13th March 2002
S.R.O.43 (KE)/2002:
In exercise of the powers conferred by clause (k) of section 2 of the Export
Processing Zones Authority Ordinance, 1980 (IV of 1980), the Federal Government
is pleased to declare H4 Copper Project , Reko Diq, measuring about 15 sq.km,
located within the following co-ordinators in Survey of Pakistan Toposheet Nos. 30K
and 30-G in Chagai District, Baluchistan, duly demareated, fenced and bounded as
under to be a Zone for the purpose of the said Ordinance:
Mining and Processing Plants Area:

LAMBERT CO-ORDINATES
Points Easting in Meters Northing in Meters
I 2,168,039.87 555,366.40
II 2,173,039.87 555,366.40
III 2,173,039.87 555,366.40
IV 2,168,039.87 555,366.40
2434 THE GAZETTE OF PAKISTAN, EXTRA, OCT,19, 2001 [PART II]
Industrial Area
A 2,122,841 571,623
B 2,122,258 571,019
C 2,121,400 571,400
D 2,121,250 571,623
E 2,121,550 572,700
F 2,121,650 572,700
G 2,122,046 571,655
H 2,122,415 572,038
2. The subject project shall be an Export Processing Zone for the lease period of ten
years subject to the following conditions, namely:-
a. the mining and project area specified will be walled and fenced by the respective
company and will not be used for residential purposes;
b. the Export Processing Zone Authority will not provide any infrastructure facility in the
area declared as Export Processing Zone;
c. the Export Processing Zone Authority development surcharge and the presumptive tax
will be leviable on the exports from the mining areas at the prevailing rate and rules;
d. the Zone will be zero rated for the imports into the project as specified above;
e. all transactions in the Export Processing Zone will be in foreign exchange; and
f. all other rules and regulations of Export Processing Zone Authority shall also be
applicable.
[No. (20)/2001-INV-III.]
MUHAMMAD HAFIZ,
Deputy Secretary
189
NOTIFICATION
Islamabad, the 12th May 2004
S.R.O. 307(1)/2004:- In exercise of the powers conferred by clause (k) of section 2

of the Export Processing Zones Authority Ordinance, 1980 (IV of 1980), the Federal
Government is pleased to declare H4 Copper Project , Reko Diq, measuring about
fifteen hundred acres located within the following coordinates in Survey of Pakistan
Toposheet Nos. 353/16 in Lasbella District, Balochistan, dully demarcated, fenced
and bounded as under to be a Zone for the purpose of the said Ordinance, for the
lease period of ten years beside construction period of two years, namely :-
Points Easting Northing
A 2215750 Yards 1033665 Yards

2026081.800 Meters 945183.276 Meters
B 2218465 Yards 1033665 Yards

2028564.396 Meters 945183.276 Meters
C 2219325 Yards 1031000 Yards

2029350.780 Meters 942746.400 Meters
D 2216590 Yards 1031000 Yards

2026849.896 Meters 9242746.400 Meters
[No. 1(13)/2002-FAC]
[390 (2004)/Ex. Gaz]

IQBAL AHMED,
Section Officer
190
NOTIFICATION
Islamabad, the 12th May 2004
S.R.O. 308(1)/2004:- In exercise of the power conferred by clause (k) of section 2 of

the Export Processing Zones Authority Ordinance 1980 (IV of 1980) the Federal
Government is pleased to declare one hundred and thirteen acres of land of
Gujranwala Industrial Estate-II, located about three kilometers short of Gujranwal on
Lahore-Gujranwala main G.T. Road, duly demarcated, fenced and bounded as
under to be a Zone for the purposes of the said Ordinance namely:-
On the North Mouza Qila Chand

On the South Mouza Attawa
On the East G.T. Road, Lahore- Gujranwala
On the West Canal Upper Chanab
[No. 1(21)/2001-FAC]
IQBAL AHMED,
Section Officer
191
NOTIFICATION
S.R.O. 130 (KE)/2005:- In exercise of the power conferred by clause (k) of section 2
of the Export Processing Zones Authority Ordinance 1980 (IV of 1980) the Federal
Government is pleased to declare [ two hundred and twenty point two one (220.21)]
acres of land leased out by Pakistan Steel Mills Limited at Bin Qasim, Karachi, to
M/s. Tuwairqi Steel Mills Limited, demarcated, fenced and bounded as under to be a
zone for the purposes of the said Ordinance namely:-
i. On the North East, Seawater intake channel;

ii. On the North West, Seawater disposal channel;
iii. On the South West, 220 KV transmission line of Karachi Electric Supply
Corporation ; and
iv. On the West (tip of triangle) Railway track transmission line.
[No. 1(44)/2003-FAC]
JEHANZEB AHMED
Section Officer
192

EPZA Year Book 2010

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YEAR BOOK 2010

Presumptive Tax 14%

Investment Portfolio 11%

Capital Investment 60%

Export Processing Zones Authority was established on 28th

The first EPZ at Karachi was established / developed from the

The achievements and contributions of the EPZA to the economy

It gives me immense pleasure to know that Export

Investment plays a key role in country‘s overall

It is encouraging to learn that the efforts of Export

I am confident that this report will give deep insight of the

Mir Hazar Khan Bijarani

I am delighted to learn that Export Processing Zones

Export Processing Zones Authority has successfully

With active support of the Government, EPZA is showing a

I hope EPZA will continue its efforts to achieve the desired

Abdul Ghaffar Soomro

Aftab Ahmed Memon

development and management of the

zones and to provide for matters

connected therewith or ancillary thereto.

create enabling environment for them to

enhance export-led manufacturing, trade

and investment so as to achieve export of

USD one billion by 2015.

3. Corporate Information 18-19

5. Why Invest in EPZ 24-25

8. EPZs of Pakistan 29-43

9. Performance 2010 45-55

10. Monthwise Import & Export 2010 57-62

11. Financial Highlights 63-72

12. Key Visits 2010 73-76

13. Top Exporters 77-81

14. Future highlights 83-88

15. EPZA Ordinance 91-102

SROs & Standing Orders, Public Notices &

 EPZA was established in 1980 by Government of

 First EPZ at Karachi was completed in 1989. it is

 EPZ‘s established at different locations are as follows:

i. Risalpur EPZ 2002

 Exports increased by 14%.

 Tax revenues increased by 14%.

 Investment of surplus funds increased by 11%.

 Foreign Investment increased by 60%.

Design & Layout

Riaz Ahmed Shaikh

DESIGN & LAYOUT

The Board comprises of following members:

1. Mr. Aftab Ahmed Memon

2. Mr. Ahmed Bukhsh Lehri

3. Mr. Muhammad Niaz Butt

4. Syed Ghulam Ali Shah

6. Sheikh Muhammad Tanveer

9. Mr. Abdur Rauf

Aftab Ahmed Memon

Nusrat Iqbal Jamshed Muhammad Yusuf Soomro Shahid Ikram Hashmi

Zahoor Ahmed Riaz Ahmed Shaikh Mumtaz A. Memon

Salahuddin Soomro Asif Aftab Ghulam Umer Kazi

1. One window operation with simplified procedures.

3. Customs bonded area.

4. Uninterrupted power supply .

5. Gas provided by utility company on priority.

6. Continuous water supply by EPZA .