S.R.O. 776 (I)/2006 - In exercise of the powers conferred by sub-section (1) of section 3 of the Imports and Exports (Control)
Act, 1950 (XXXIX of 1950), the Federal Government is pleased to make the
following Order, namely:-
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| Pakistan Export Policy |
1.
Short title and commencement. -(1)This
Order may be called the Export Policy Order,
2006.
(2)
It shall come into force at once.
2
Definitions.-
In this Order, unless there is anything repugnant in the subject or
context,-
(a) “Act”
means the Imports and Exports (Control) Act 1950 (XXXIX of 1950);
(b) “Appendix”
means an Appendix to this Order;
(c)
“gift parcel” means goods being
sent abroad through post or courier service as gift;
(d)
“prescribed” means prescribed by
rules made under the Act or under this Order,
(e) “sample”
means goods in limited quantity clearly identifiable as such and of no
commercial value; and
(f) “Schedule”
means a Schedule to this Order.
3.
Basis of exports.- Exports from Pakistan shall be
made under the foreign exchange rules, regulations
and procedures notified by the State Bank of Pakistan from time to time and
upon submission of such documents as may be prescribed.
4.
Export of goods.-(1) Export of all goods shall be
allowed except those specified in Schedule
I. Export of goods specified in Schedule II to this Order shall be subject to
the conditions given therein.
(2) The
provisions of this Order shall not apply to, -
(a)
any goods constituting the stores or equipment or
machinery parts and
kitchenette of any outgoing
vessel, conveyance or airline or the bona fide accompanied baggage of the crew
or of the passengers in such vessel or conveyance or airline:
Provided that banned or
restricted items shall not be allowed unless otherwise authorized;
(b)
any goods trans-shipped at a port
in Pakistan after having been manifested for such trans-shipment at the time of
despatch from a port outside Pakistan;
(c)
any goods, stores or equipment
when sold abroad on Government to Government basis or exported under an export
authorization issued by any officer authorized by the Ministry of Defence in
this behalf;
(d)
export of samples subject to the following
conditions, namely:-
(i)
that the export of such goods is not banned,
(ii)
any number of samples subject to the condition that
their f.o.b. value does not exceed twenty five thousand US dollars (US$ 25,000)
or equivalent per exporter per annum,
(iii)
the above mentioned monetary
limit of US$ 25,000/- shall not be applicable if the samples are exported in a
mutilated form;
(e)
export of gift parcels of a value
not exceeding five thousand US dollars (US$ 5,000), or equivalent in Pak.
Rupees;
(f)
export of relief goods to any
part of the world by the Cabinet Division (Relief Cell), Government of
Pakistan;
(g)
Bona fide baggage of persons travelling outside
Pakistan; and
(h)
persons travelling outside
Pakistan who may take with them as accompanied baggage, goods without any
restriction of quantity, or any requirement of encashment certificates provided
that such goods do not include items listed in Schedule I and that in respect
of items of Schedule II, the prescribed conditions have been met.
(3) Transit
and Border Trade shall be allowed under the procedure prescribed therefor.
5.
Relaxation of prohibitions and restrictions.- (1) The Federal Government may, for
reasons to be recorded, allow export in relaxation of any prohibition or
restriction under this Order.
(2)
The Federal Government may issue
export authorization in respect of any item for which relaxation is made under
sub-paragraph (1) or for which export authorization is required under this
Order.
(3)
The Federal Government shall
issue the aforesaid condonation or authorization on its letter-head
consecutively numbered and duly embossed.
6.
Export authorization and its validity. - The Ministry of Commerce shall issue export, export – cum - import or
re-export authorization for any item under the special dispensation provision
of this Order which shall unless specified otherwise, be valid for a period of
six months.
7.
Re-export of frustrated cargo.- Re-export
of frustrated cargo shall be allowed by the
Customs authorities subject to the conditions contained in the Customs
Rules, 2001.
8.
Exports
to Afghanistan and through Afghanistan to Central Asian Republics.-
(1)
In Pak Rupees. - Subject to provisions of sub-paragraph (1) of paragraph 4, 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 or drawback of customs-duty.
(2)
In convertible currency.- Subject to provisions of sub-para (1) of paragraph 4 and Schedule
III, all items and commodities produced or manufactured in Pakistan exported, via land route or by air against
irrevocable letters of credit, confirmed orders on realization of export proceeds through banking channel 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 or drawback of customs-duty, subject to the following conditions,
namely:-
(a)
the proof that goods exported
from Pakistan have reached Afghanistan will be verified on the basis of copy of
import clearance documents by Afghan Customs Authorities across the border.
(b)
packages or retail packing shall
be 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, Chaman, Ghulam Khan (for
export of cement only) and Qamar Uddin Karez (when it becomes operational);
(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:
Provided that exports made to
ISAF may be made on deferred payment basis, without opening of Letter of
Credit, subject to the following conditions, namely:-
(i)
the waiver shall be applicable strictly to exports
made to ISAF;
(ii)
shipments to ISAF are made by their authorized
agents duly endorsed by the ISAF receiving agent in Afghanistan; and
(iii)
payment of foreign exchange is received within
sixty days of shipment.
(3)
Exports by international donor
agencies: Export of such goods as are made by or on behalf of UNHCR, 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 orders.
9.
Export-cum-import;-(1) Imported items may be exported for purposes of repairs, replacement, or refilling of cylinders
and ISO tanks subject to submission of indemnity bond to customs authorities
undertaking that goods being exported shall be re-imported after repairs,
replacement, or refilling.
(2)
Customs authorities shall allow
Pakistani exporters to replace the exported goods found defective as per terms
of sale contract subject to furnishing of-
(a) a copy of
contract; and
(b)
a communication form the buyer
detailing the goods that have been found to be defective.
(3)
Export-cum-import of vehicles shall be allowed for purposes of travelling
abroad, on the basis of carnet de passage
issued by Automobile Association of Pakistan, or a guarantee issued by
International Chamber of Commerce, Pakistan or on indemnity bond furnished by
the owner of the vehicle.
(4)
The temporary export and
re-import of locally manufactured or imported machinery or equipment for the
purpose of carrying out works awarded to construction, engineering and
electrical companies shall be allowed, on submission to the customs authorities
of undertaking along with evidence of contract that the machinery shall be
imported back upon conclusion of the contract. No refund of import duties or
levies, if paid at the time of import of machinery, shall be admissible in such
cases of export-cum-import.
(5)
The temporary
export-cum-re-import of products shall be allowed for participation in foreign
exhibitions or fairs and also for carrying out tests or certain processes for
which the facilities are not available in the country against submission of
indemnity bond or undertaking to Customs Authorities.
10.
Re-export of goods or items (except banned items as per Schedule-I and
items on the negative list of Afghan transit Trade);- Export of imported goods in their original and unprocessed form shall not be allowed except,-
(a) parts
obtained from ship breaking;
(b) scrapped
battery cells;
(c) waste
dental amalgam;
(d) waste
exposed X-ray films;
(e) old
machinery provided no refund of import levies or duty draw back shall be made;
(f) items
imported against back to back letter of credit for re-export subject to the
procedure and conditions notified by the State Bank of Pakistan; and
(g) imported
goods in their original and unprocessed form provided that re-export is made
against sight letter of credit, advance payment, usance letter of credit,
Documents Acceptance (DA) or Deferred Payment (DP). Such re-export will be
against “E” Form and subject to procedure prescribed by the CBR for re-export
of imported goods stored in Bonded Warehouses and of imported goods already
cleared for home consumption,
(h) the
manufacturer-cum-exporter imported goods with the condition that payment will
be made on quality approval and the quality of the goods is not approved;
(i)
the manufacturer-cum-exporter
imported goods which partially consumed in the manufacture of goods for export
and the balance remained un-utilized due to quality inspection and damage or
the balance goods could not be disposed of locally due to brand
conditionalities; and
(j)
goods imported under various duty
free schemes meant for exports and could not be consumed due to cancellation of
export order.
11.
Export of chemicals etc.- (1) Under
the Chemicals Weapons Convention, the chemicals which can be used for industrial sector as well as for production
of chemical weapons, have been defined as Scheduled Chemicals and listed as
Schedule 1, 2 and 3 chemicals there under.
(2)
Schedule 1 chemicals, listed in Appendix “A” have
least commercial use and hence cannot be exported to States not party to the
convention and hence export of these chemicals have been restricted under
Schedule 2 and Schedule 3 chemicals listed in Appendix “B” and “C,” of this
Order respectively, are widely used in the commercial sector and can be
exported to States not party to the Convention with the restriction that for
such transfers, importing country shall adopt the necessary measures to ensure
that the transferred chemicals shall only be used for purposes not prohibited,
under the Convention. Forms T20 and T30 attached as Appendices “D” and “E,”
respectively, shall be completed by the recipient State and by the end user
before importing these chemicals from Pakistan. Detailed instructions with
regard to filling and disposal of these forms are covered in Appendices “F” and
“G.”
12.
Export from Export Processing Zones.- The
units operating in Export Processing Zones
may export goods abroad as well as to the tariff area in accordance with the
rules and procedures prescribed by the Customs Export Processing Zones Rules,
1981.
13.
Exports from Gwadar Special Economic Zone. - Export of goods from Gwadar Special
Economic Zone to foreign countries and to the tariff area will be in accordance
with the rules and procedures to be notified by the Federal Government.
14.
Restrictions imposed under other Acts and laws.- Restrictions or conditionalities
imposed under relevant provisions of the following Acts, Ordinances and
Laws shall be treated to be restrictions and conditionalities under this Order,
namely:-
(a)
the Antiquities Act, 1975 (VII of 1976);
(b)
the Arms Act, 1878 (XI of 1878);
(c)
the Copyright Ordinance, 1962 (XXXIV of 1962);
(d)
the Customs Act, 1969 (IV of 1969)
(e)
the Drugs Act, 1976 (XXXI of 1976);
(f)
the Explosive Act, 1884 (IV of 1884);
(g)
the Foreign Exchange Regulation Act, (1947 (VII of
1947);
(h)
the Merchandize Marks Act, 1889 (IV of 1889);
(i)
the Pakistan Animals Quarantine (Import and Export
of Animal and Animal Products) Ordinance, 1979 (XLIX of 1979);
(j)
the Poisons Act, 1919 (XII of 1919);
(k)
the Petroleum Act, 1934 (XXX of 1934); and
(l)
any other law, rule or regulation
notified in the official Gazette by the Federal Government .
15.
Contravention of the Act.- Any
export made without compliance with the requirements of this Order or made on the basis of false or incorrect
particulars shall be deemed to have been made in contravention of the
provisions of the Act.
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