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Export
Procedures |
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Export Registration
All exporters (as well as importers) have to be registered with the Export
Promotion Bureau under the Registration (Importers and Exporters) Order
1993, notified as SRO-595(I)/93 dated 17.7.93. The renewal, cancellation
and suspension of registration, as well as the right of seeking review
or appeal, is also governed by the relevant provisions of the Registration
Order 1993.
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Application for Registration
An application for registration as exporter (or importer) has to be made
to the concerned office of the Export Promotion Bureau, in the prescribed
form. The prescribed documents required to be provided with the application
for registration are also listed at the end of the application form.
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Registration Fee
The registration fee (same for exporter and importer) of Rs. 1000/- only
once on registration, and Rs. 100/- yearly including the year of registration,
is deposited, using a treasury challan in quadruplicate, in the State
Bank or an authorized branch of National Bank of Pakistan under the following
head of account -
1300,000 = Misc. Receipts
1390,000 = Others
1391,000 = Other Receipts
1391,013 = Fees realized under the Imports and Exports (Control) Act 1950.
The first annual fee is payable alongwith registration fee, and the annual
fee for subsequent years, is payable by 31st December of the preceding
year. The original of the receipted treasury challan should reach the
Director General EPB concerned in 14 days after 31st December. The export
(or import) registration certificate is issued for a period of five years,
renewable for five years. For each renewal, a fee of Rs. 100/- per year
is payable in the same manner as for original registration.
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Membership of Trade Organization
An exporter (also importer) has to be a member of atleast one trade organization
recognized under the Trade Organizations Ordinance 1961. This can be
an All Pakistan Association of Trade and/or Industry for his specific
trade or industry or a Chamber of Commerce and Industry of his area and
affiliated with the Federation of Pakistan Chambers of Commerce & Industry.
Membership of one trade or industry association is sufficient. Exporters
of surgical goods, sports goods and gloves have to be members of both
the trade association and the local chamber.
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Exemption from Registration
The following categories are exempt from export registration:
- Federal and Provincial Governments and Departments and other authorized
public sector agencies.
- Exports by passengers as accompanied baggage under any Baggage Rules
or Transfer of Residence Rules.
- Any exporter or class of exporters specifically exempted from registration
in terms of para 10 of the Registration (Importers and Exporters)
Order 1993
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Sales Tax Registration
Unlike the importers, prior Sales Tax registration is not compulsory for
registration of exporters. However, it is highly advisable for exporters
also to get themselves registered under the Sales Tax Act 1990, to be
eligible for seeking refund of Sales Tax paid by them at any stage of
production for export, including the consumption of utilities like electricity,
gas, telephones. Similarly, exporters would be better advised to arrange
their supplies and services for export production within the country,
from such persons as are registered for Sales Tax. This allows the suppliers
and the service providers to charge Sales Tax at 15%, instead of 16.5%
applicable to those who are not registered for Sales Tax.
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Export of Cumin Seeds
Export of Cumin Seeds is regulated under the Cumin Seed (Grading & Marking)
Rules, 1999 notified as SRO-879(I)/99 dated 24.7.99. These rules provide
for grade designations to indicate the quality of cumin seeds, grade designation
marks to be affixed on each pack of Cumin seeds, methods of grading and
testing, packing, marking and specified conditions for certificate of
authorization in accordance with the General Grading and Marking Rules,
1937.
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Export of Exotic Birds
Exports of export of exotic birds are subject to mandatory checking by
the National Council of Conservation of Wildlife (NCCW) at Islamabad and
Provincial Wildlife Department at other exit points, production of CITES
export permit, NOC from NCCW and Quarantine Certificate about health.
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Export of Endemic Birds
Export of endemic birds is allowed subject to NOC from NCCW at Islamabad
and by Provincial Wildlife Department at other exit points.
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Export of Wild Boars
Export of wild boars, its meat and skin is permissible only by non-Muslim
registered exporters.
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Export of Pet Dogs and Cats
Export of pet dogs and cats is allowed against Quarantine Certificate
about health and caging by the Animal Plant Quarantine Department.
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Export of Urea
Export of Urea will be subject to export contract registration with the
Export Promotion Bureau.
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Export of Nuclear Substances and Equipment
Export of nuclear substances, radioactive material and equipment for nuclear
energy will be allowed in accordance with procedure notified by Pakistan
Atomic Energy Commission.
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Export of Antiquities
Export of antiquities is banned, but old vehicles and aircrafts not falling
with in the definition of antiquities, are excepted. Export of used copper
and brass utensils is allowed without NOC from the Department of Archaeology.
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Export of Chemicals
Under the Chemicals Weapons Conventions, various chemicals for industrial
use and those for production of chemical weapons have been identified
and listed in Schedules 1, 2 and 3 vide ‘Appendix A’ to the Export Policy
and Procedure Order 2000 (App:2.2). (Also See para 12 of Export Policy
and Procedures Order 2000-App:2.2)
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Export of Gems and Jewellery
Exports of precious and semi-precious stones and gold jewellery are governed
by special procedures notified by the Export Promotion Bureau vide SRO-131(KE)/96
dated 22.11.96 and are briefly described below. For details, the SRO
should be referred to General.
Export of indigenous precious/semi-precious stones, in rough, cut, uncut
and finished forms, and of gold jewellery is allowed by air/parcel post
and by sea (for gem stones), against all payment modes, also on self consignment
basis through authorized representatives. In the case of parcel posts,
the parcels have to be examined by Customs and then delivered to the postal
authorities under customs supervision. Prior approval of EPB with whom
the exporter is registered for jewellery/gem stones (in addition to the
normal export registration), is also required for shipments taken out
by authorized representatives.
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Sale Proceeds
Sales proceeds of gold (24 kt) used in the manufacture of gold jewellery
are to be repatriated in the form of gold or in foreign exchange equal
to 100% weight of gold content of jewellery including wastage, in addition
to prescribed minimum value addition (15% for plain jewellery, 5% for
gold bangles and 25% for embedded/studded jewellery). Export is subject
to normal Form “E” procedure under the Foreign Exchange Regulations of
the State Bank of Pakistan.
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Import of Gold/Gemstones
Against export of gold jewellery embedded/studded with gemstones, including
pearls, diamonds and corals, the exporter can import cut and polished
stones up to 70% of net FOB value of gemstones used in the manufacture
of jewellery. The same import entitlement applies to export of gemstones
without gold jewellery. These imports are outside normal import tariffs/regulations.
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Local Sale to Foreign Buyers
Foreign nationals and overseas Pakistanis visiting Pakistan can take out
as accompanied personal baggage gold jewellery and gemstones up to a value
of US$ 10,000/- against foreign exchange encashment certificates supported
with an invoice and a letter from the trade association concerned. Where
the value exceeds US$ 10,000/-, normal export procedure is followed.
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Import of Gold and Gem Stones against Export of
Gold Jewellery and Gem Stones
Import of gold and gem stones for re-export in the form of gems and jewellery
is allowed under two schemes, namely, (i) Entrustment Scheme, and (ii)
Import Against Export Performance:
(i) Entrustment Scheme
The Entrustment Scheme provides for export of gold jewellery
and articles against gold supplied free of cost, in advance, by the foreign
buyer. Export orders have to provide for supply of required quantity
of gold any time before the export. Payment for manufacturing and other
costs is required through L/C or cash on delivery or advance payment in
foreign exchange through an authorized dealer in foreign exchange. Each
export order should relate to a single buyer overseas, though it may cover
several shipments. The export of gold jewellery is to be made within 90
days or earlier from the date of import of gold. The EPB issues import
authorization for gold and monitors the export of jewellery. The foreign
buyer/exporter is allowed to bring/send gold into Pakistan personally
or through air cargo or authorized representatives and is similarly allowed
to take/carry/air freight the gold jewellery according to prescribed procedure.
Normal Form “E” and Customs procedures for exports are followed.
(ii)
Import against Export Performance
In case of exports of gold jewellery made from locally procured
gold/gem stones, against all payment modes, the sale proceeds must be
realized within 120 days from shipment and repatriated either in the shape
of gold of equal weight and remaining invoice value in foreign exchange
or the total value in foreign exchange. When sale proceeds are realized,
all in foreign exchange, the exporter is entitled to replenishment/import
of gold at 100% of the quantity used including wastage. The import authorization
for replenishment can be claimed from EPB within 180 days from realization
of sale proceeds, on prescribed forms in Annexure ‘E’ ‘F’ ‘G’ and ‘H’
to SRO-131(KE)/96. The import authorization from EPB is freely transferable.
On the basis of this import authorization, exporters have to contact their
bank for procurement of the specified quantity of gold (not less than
500 gram / 50 tola). Import of gemstones against such authorization is
made against LC or Contract. The import authorization can be used for
import of, besides gold/gemstones, also for jewellery manufacturing, cutting
and polishing equipment and machinery as well as raw materials. Gold/gemstone
manufacturing equipment and raw materials are listed in Customs SRO-592(I)/97
dated 7.8.97 for duty-free import, read with EPB Notification No: 2(5)/96-EDF
dated 5.5.98. Customs SRO-703(I)/94 dated 11.7.94(App:3.7) exempts from
Customs duty the import of pearls, gold, uncut precious/semi-precious
stones and polished semi-precious stones from payment of Customs duty,
if imported in accordance with EPB Notification cited above, provided
that the import is allowed only if no foreign exchange from the government
is involved and the importer-cum-exporter arranges the foreign exchange
on his own.
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Export of Gold Jewellery/Gemstones on Self-Consignment
Basis
Gold jewellery and gemstones made from locally procured gold/gemstones
can also be taken out by an authorized representative of the exporter
on self-consignment basis against firm order/contract or otherwise. EPB
issues export approval/import authorization for gold jewellery/gem stones,
against Form “E”. The exporter has to bring back, within 120 days from
the date of departure of the authorized representative, gold/rough and
uncut/cut gem stones, in lieu of export proceeds, and any unsold jewellery/gemstones.
On arrival in Pakistan, the repatriated gold is cleared immediately according
to prescribed procedure and the unsold jewellery /gemstones are deposited
with the Customs for clearance through a bill of entry. The value addition
is also to be repatriated through banking channels within 120 days.
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Value addition
Export of gold jewellery is allowed with minimum value addition of 15%
for plain gold jewellery and a minimum of 25% in case of gold jewellery
embedded/studded with gemstones. For valuation purposes of gold content,
the international price (London Closing) of the first prior working day
is taken into account. The value addition includes cost of gemstones,
labour, over-heads and profit.
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Gold Wastage
Gold Wastage or manufacturing loss in the manufacturing of gold jewellery
is allowed at 2% of gold content by weight in the case of plain gold jewellery
and at 10% of the gold content by weight in the case of embedded/studded
gold jewellery
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Hall Marking
The All Pakistan Gem Merchants and Jewelers Association is to ensure that
hall marking is a standard procedure for the export of gold jewellery.
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Duty-free Import of Gold
To promote the export of gold jewellery from Pakistan, the Ministry
of Commerce Public Notice No: 15(2)/98-Import-I dated 23.11.98 allows
import of gold by exporters of gems and jewellery, subject to the following
conditions:
- Exporters of gems and jewellery will be registered as importers
of gold on deposit of US$ 10,000 and will be allowed to import upto
400 ounces of gold without payment of import duty and other charges
for the exclusive purpose of export in the form of jewellery.
- Jewellery either studded or plain will be exported within 120 days
of import of gold.
- Imports will be allowed only against firm export orders.
- Exporters will be allowed refund of Sales Tax paid on the jewellery.
- Wastage and value-addition will be allowed for studded/plain jewellery
to the extent admissible in SRO-131(KE)/96 dated 22.11.96
- Import of gold will be tied to realization of proceeds of jewellery
exports. In case an exporter imports 400 ounces of gold and export
jewellery worth 200 ounces, he will be allowed to import gold equal
to 200 ounces after realization of export proceeds for the jewellery
of the 200 ounces weight already exported.
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Import of Machinery, Equipment and Tools
SRO-311(I)/89 dated 10.4.89 allows import of machinery, equipment and
tools, listed in the Table to the SRO, not manufactured locally, at a
reduced Customs duty rate of 20%, if imported for the manufacture of jewellery
by a manufacturer registered with the EPB as an exporter of jewellery.
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Export of Rice
Export of all varieties of rice is subject to registration of export contracts
with the Export Promotion Bureau (EPB), in the prescribed form and is
also subject to quality inspection. The Rice Exporters Association of
Pakistan (REAP) and EPB assist in the inspection of all consignments of
rice for all destinations. All rice exporters are required to be members
of REAP. A separate procedure applies to rice exports to the European
Union.
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Quality Review Committees
According to EPB as modified by Public Notice No: EPB-1(25)/98-99/PDD
dt: 21.4.99 , a Quality Related Benchmark System has been put in place
to ensure that all rice exports conform to standard specifications. The
quality control system is administered by Quality Review Committees (QRC),
one for the North Zone (Punjab) and one for the South Zone (Sindh/Baluchistan/NWFP).
The QRC is composed of members from the Managing Committee of REAP and
the EPB. There is a QRC Rice Inspection Cell headed by a Controller of
Inspections who is assisted by his two deputies in North and South Zones.
They also report directly to the QRC. All rice is inspected by the QRC
Rice Inspection Cell according to the contract, registered with EPB and
the exporters filed at the time of contract registration. In case of
any commercial inspection requirements by the buyers/sellers, that is
in addition to the statutory inspection by the QRC Rice Inspection Cell.
The quality related benchmark system covers all exports of rice by private/public
sector by land/sea/air to all destinations except the European Union.
All rice bags exported from Pakistan must bear the valid Export Registration
Number of the Exporter as ERN-…………., printed or stenciled on each retail
and master bag. Bulk shipments, losse in containers or ships hold, and
all brown rice shipments are exempt from this requirement.
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QRC (North Zone)
QRC (North Zone) establishes and announces quality related benchmark prices
for all rice varieties grown in the Punjab, except IRRI-6 and KS-282,
throughout the year every Saturday, in US$ per metric ton, on FOB basis.
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Contract Terms
The export contract should be valid for shipment within 90 days from registration
date after which the registration is automatically cancelled. The contracted
price has to be at or above the prevailing quality related benchmark for
the rice variety to be exported. Payment modes are sight/usance L/C upto
180 days, advance payment or cash against documents. Contracts with payment
terms on D/A (Documents against Acceptance) or consignment basis, are
not allowed.
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Contract Registration
The exporter need not present L/C at the time of contract registration,
nor is he required to disclose the name/address of the buyer. It is enough
to mention the destination of the shipment. Quality declaration is to
be done in the prescribed form .Copies of all contracts registered, alongwith
the quality declaration for each, are forwarded by EPB to the QRC.
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Quality Inspection
The QRC Inspection Cell monitors exports as per the quality declarations.
The QRC realizes inspection charges at the rate of Rs. 10 per Metric Ton
for non-basmati variety and Rs. 20 per Metric Ton for basmati variety.
Quality inspection is done inside the Customs area simultaneously with
the Customs examination. Initially, the inspection is done on a random
basis; say 5-6% of the consignment. For shipment of 500 metric tons or
more, the exporter has the option to request the QRC inspection at his
warehouse within the Karachi Metropolitan area besides normal final inspection
inside the Customs area. A Quality Inspection Certificate from QRC is
a necessary document for allowing export at Customs stage. The inspection
report is not disclosed to any person in REAP but only to Director General
EPB Lahore/Director EPB Karachi nominated for the purpose.
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Export of Rice to E. U. (Basmati)
EPB Public Notice dated 29th November 1999 regulates the sale of Super/Kernel
Basmati rice (both husked/brown) to European Union destinations, under
the Abatement Scheme covered by EC Regulation No: 2131/96. Export sale
contracts have to be registered with the Export Promotion Bureau (EPB),
in the prescribed format with the following terms and conditions:
The Abatement Scheme (EC Regulation No: 2131/96) covers only Super Basmati
Kernel Basmati rice (both husked and brown) as per Table I, Grade No:
1 (App: 3.18) of PSI specifications for rice (PS: 3342-1993).
Export must be fully covered by L/C or advance payment through bank, indicating
the contract no: and date and also that the export will be under the Abatement
Scheme (EC Regulation No: 2131/96.)
For registration of contract, a Performance Bank Guarantee (PBG) in the
prescribed form (App: 3.19), by any scheduled bank in Pakistan, in favour
of EPB, for 2% of the value of the contract. The PBG should be valid for
75 days from date of registration. If export is not affected within 45
days of registration, the PBG is forfeited. PBG is not required in the
case of full advance payment. On proof of shipment, with NOC from the
Rice Export Corporation of Pakistan (RECP) within 60 days of registration,
the PBG is cancelled.
A Quality Review Committee meets fortnightly in EPB Lahore and monitors
administrative controls to ensure that only the permissible quality of
rice is exported to the European Union. Quality control benchmarks are
established by QRC and revised periodically. These are put up on the
public notice board at EPB Lahore/Karachi. The QRC also determines the
minimum FOB/C&F export prices of Basmati Rice for the European Union.
RECP draws samples of consignments offered for export and certifies that
the export conforms to PSI specifications, as per Inspection Certificate.
RECP issues a Certificate of Authenticity, prominently stamped as “Valid
for Abatement”, and faxes the original certificate to the European Commission,
the Pakistan Mission in Brussels and the EPB, with simultaneous issuance
of the NOC to the exporter for release of PBG. On the basis of this Certificate,
the E.U. importer receives the benefit of abatement under the EU Abatement
Scheme.
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Export of Rice to E. U. (Brown rice)
According to a separate Public Notice of the Ministry of Commerce, also
dated 29th November 1999, export of brown rice is also subject to registration
procedures and other terms and conditions, as for export of basmati rice
to the EU vide para 3.13 above, with the following variations:
Husked /brown rice is exported to EU under Cumulative Recovery System
(CRS) scheme covered by EC Regulation No: 703/97
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The contracts are for Brown Rice
The Letter of Credit /Advance payment instrument/contract should state
that the shipment will be under EC Regulation No 703/97 (CRS). Contracts
must be performed within the validity of the contracts as registered with
EPB. Extension in shipment is allowed if the exporter agrees to Quality
Retail Market Price prevailing at the time of extension with proof of
required amendment in L.C./advance payment, as well as in the PBG, for
1% of the FOB value, for a period of 30 days beyond the extended last
date of shipment.
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Export of Cotton
In terms of para 5(1) of the Export Policy and Procedures Order 2000,
notified as SRO-482(I)/2000 dated 11.07.2000, export of cotton by the
private sector is allowed subject to registration of export contracts
with the Export Promotion Bureau (EPB). The application for contract
registration is made in the prescribed form(App:3.22), in five copies,
with copies of (i) L.C. or contract/fax/telex confirmation, (ii) export
registration and (iii) SBP certificate for security deposit at 2% of contract
value. EPB retains one copy and returns four copies to the shipper.
The original registration certificate is presented to the Customs, along
with shipping documents, at the time of export.
An irrevocable L/C is to be opened by the buyer within 35 days of the
registration of contract with the EPB and the shipment of contracted quantity
is to be completed within 180 days of the registration.
After receipt of L/C, the shipper approaches EPB with (i) four copies
of Registration Certificate, containing particulars of L/C verified by
the bank, (ii) photocopy of L/C, and (iii) original L/C. After verification,
EPB issues registration in quadruplicate and returns the original L/C
on the following day. Three copies are returned to the shipper for his
own use, for bank and customs purposes, and one copy is retained by the
EPB.
There is no restriction on export of cotton of any type/year/price, but
on the basis of Type or Grade, subject to grading certificate issued by
PCSI to be presented to the customs authorities by exporters for all cotton
export consignments. The requirement of grading and classification certificate
by PCSI is mandatory, with the only relaxation in case of consignments
where the cotton has been packed in export packing at the ginning stage
and the Customs are satisfied.
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Export of Cotton/Blended Yarns
With effect from 1st January 2000,the export of Cotton, Blended and Filament
Yarns is subject to contract Registration and Export Price Check with
the All Pakistan Textile Mills Association(APTMA), Principal Office, Karachi
in terms of EPB Public Notice No. 8(R.Y)EPB-99 dated 21.12.99.
Accordingly, export of Cotton, Blended and Filament Yarn is allowed only
on Export Contract Registration on the prescribed form with APTMA and
Export Price Check (EPC) Certificate issued by APTMA from its Principal
Office at Karachi w.e.f. 01-01-2000. These two documents have to be produced
to Customs at the time of export alongwith the Shipping Bill.
APTMA fixes the Minimum Export Prices (MEP) of yarns of various kinds,
types and counts from time to time and registers export contracts subject
to the MEP. The EPC certificates are valid for shipment within 30 days
of the certification. The validity of EPCs can be extended on request for
reasons found satisfactory. If the MEP is increased during the validity
or extended validity of an EPC, the export is allowed at the lower MEP
prevailing on the date of contract registration. If the MEP is decreased
after the EPC certificate, the exporter can seek cancellation of EPC certificate
and registration of a new export contract.
EPB monitors the registration of export contracts by APTMA for cotton,
blended and filament yarns. To that end, APTMA reports to EPB Karachi,
on monthly basis, the details of contracts registered with number of contracts,
quantity, unit price, FOB value, destination and MEP (if any).
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Registration of Other Export Contracts
In the new Export Policy 2000, the requirement of registration with Export
Promotion Bureau, of export contracts for other export items has been
done away with.
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Exports to Afghanistan and CARs
Exports of all commodities produced in Pakistan, excluding those manufactured
in manufacturing bond, are allowed via land route to Afghanistan against
Pak rupees, on filing of regular Shipping Bills but without Form “E”.
These exports are not entitled to duty drawbacks or zero-rating of Sales
Tax.
Exports to Afghanistan, and through Afghanistan to Cars, against advance
payment or irrevocable L/C by a recognized bank in foreign currency, are
allowed duty drawbacks subject to a maximum of 7.5% of fob value, without
zero rating of sales tax. However, exports to Cars by land route via Iran
are allowed duty drawbacks at normal rates.
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Export of Samples
Export of bonafide samples or articles is allowed by an exporter in Pakistan
subject to the conditions that (i) the FOB value does not exceed US$ 5000
per firm per annum, (ii) samples are supplied free of charge, (iii) the
shipper is a registered exporter or is exempt from registration, and (iv)
leather garment manufacturers can export 50 samples per year, irrespective
of value. The value/quantity limit is not applicable if the samples are
exported in a mutilated form.
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Export of Gift Parcels
Individual gift parcels are allowed for export up to a value of Rs. 10,000/-
each.
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Export of Personal Baggage
Export of bonafide personal baggage, accompanied or unaccompanied, is
permissible without any authorization from EPB and Ministry of Commerce.
Export of Carpets and other goods as personal baggage is allowed without
any restriction of quantity or any requirement of foreign exchange encashment
certificate, provided the goods are not listed in Schedules I & II and,
for those in Schedule III, the prescribed condition are met.
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Export-cum-Import
Pakistan Customs allow export-cum-import for repair or refilling of cylinders/ISO
tanks subject to the following conditions
The applicant gives an indemnity bond for re-import after repairs/refilling
Bill of entry is not required where the foreign supplier certifies that
the goods are imported by them for repairs.
For defective goods or parts for replacement, the supplier certifies that
the replacement is covered by warranty.
Temporary re-import of exported goods for removal of defects
Customs General Order (CGO) No: 26/99 dated 31.7.99, provides for duty-free re-importation
of previously exported goods produced or manufactured in Pakistan for
removal of defects and their subsequent re-exportation. The procedure
is as follows:
An application is made to the Collector of Customs with full particulars
of the goods, copies of original export documents (Bill of Export, Bill
of Lading, Form “E” etc.) and details of any duty drawbacks or tax refunds
already received by the exporter. The application has to state the specific
purpose alongwith proof that the foreign buyer has returned the goods
for removal of defects.
This procedure is available in respect of exports in the past one year,
counting from the date of filing of Bill of Entry for temporary re-import.
An undertaking is furnished to the Customs binding the importer to re-export
the goods within six months, extendable for three months by the Customs
in deserving cases.
A Bank Guarantee is furnished to the Customs equal to the amount of duty
drawbacks or tax refunds of any kind, binding the importer to re-export
within the prescribed six months.
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