Take
note of the following regulations when exporting from Pakistan :
- For
size and weight maximums, an exporter must check with the
destination country's limits
- Dimensional
weight or actual weight, whichever is greater, determines the
shipment tariff
- Foreign
exchange rules and procedures apply to exports as determined by the
State Bank of Pakistan
Export Processing Zones Authority
(EPZA) Pakistan
The Export Processing Zones Authority (EPZA), Pakistan was established in
1980 with the mandate to plan, develop and operate Export Processing
Zones in Pakistan .
The objectives of the establishment of Export Processing Zones in
Pakistan are primarily to boost industrialization and augment the
country's exports by creating facilities for investors to enable them to
setup export-oriented units which would, as a consequence, create job
opportunities, bring in new technology and know-how, and attract foreign
investment.
Incentives for Investors to Set
Up a Unit in EPZS of Pakistan:
1. 100% ownership
rights
2. 100% repatriation
of capital & profits
3. No minimum or
maximum limit for investment
4. Duty free
imports of machinery, equipment & material
5. No sales tax on
input goods including electricity & gas bills
6. Obsolete/old
machinery can be sold in domestic market of Pakistan after payment of
applicable duties & taxes
7. No excise duty,
no Custom duty on cement, steel & any other material used in
construction of buildings
8. Freedom from
National import restrictions
9. Foreign
Exchange control regulations of Pakistan are not applicable
10. Defective
goods/waste can be sold in domestic market after payment of applicable
duties, maximum up to 3% of the total value of export
11. Duty free
vehicles allowed under certain conditions. After 5 years of use, vehicles
can be disposed off in domestic market on payment of duty
12. Domestic market
of Pakistan available on same conditions as for imports from other
countries
13. Units operating
in EPZ's can undertake sub-contracting for units of tariff area subject
to payment of duty and taxes on value addition only
14. Only EPZA is
authorized to collect Presumptive Tax at the time of export of goods
which would be final tax liability
15. EPZ units
allowed to supply goods to Custom manufacturing bonds
16. Production
oriented labour laws to be solely regulated by the Authority
17. EPZ
manufacturers be treated at par with bonded manufacturers in tariff area
for any future incentives to be announced for exporters
18. Relief from
double taxation subject to bilateral agreement
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