Export Policy Order

Ministry of Commerce

Trade Policy

Exports

Export Policy Order defines the legal regimes for the export of goods from Pakistan, ranging from free exports to regulated imports to the prohibited ones. It consolidates all export trade controls into a single instrument, as enforced under various international conventions and national legislation. The importability status of goods is defined under a specific regime, each corresponding to a Schedule of the Export Policy Order.

Download

S.R.O. 192 (I)/2013. - 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: -

1. Short title and commencement. (1) This Order may be called the Export Policy Order, 2013.

(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, courier service or by air 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 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 dispatch from a port outside Pakistan:

provided that banned and restricted items or items given in the control list notified by the Ministry of Foreign Affairs shall not be allowed to be exported unless authorized:

(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 Defense in this behalf:

provided that banned and restricted items or items given in the control list notified by the Ministry of Foreign Affairs shall not be allowed to be exported unless authorized;

(d) export of samples subject to the following conditions, namely:-

(i) that the export of such goods is not banned; and

(ii) any number of samples subject to the condition that their f.o.b. value does not exceed twenty five thousand US dollars or equivalent per exporter per annum except automobile manufacturers who can export samples for f.o.b value not exceeding one hundred thousand US dollars and pharmaceutical exporting companies who are allowed to export free samples to the extent of ten per cent of the commercial exports quantity of preceding year. However, pharmaceutical exporting companies are allowed to export free samples to the extent of twenty per cent of the quantity of first consignment at the time of launch of a product:

(iii) Provided that the monetary limit of twenty-five thousand US dollars 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, 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 traveling outside Pakistan; and

(h) persons traveling outside Pakistan 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:

Provided that commodities mentioned in control list of Goods, Technologies, Material and Equipment related to Nuclear and Biological and weapons and their Delivery system notified by Ministry of Foreign Affairs shall not be allowed.

(3) Transit and Border Trade shall be allowed under the procedure prescribed thereof.

5. Relaxation of prohibitions and restrictions. - (1) The Federal Government may, for reasons to be recorded, allow export, export-cum-import or re-export in relaxation of any prohibition or restriction under this Order.

(2) The Federal Government may issue authorization for export, export-cum-import or re-export in respect of any item for which relaxation is made under sub-paragraph (1) or for which an authorization is required under this Order. The authorization so issued shall be on its letter head, consecutively numbered and duly embossed which shall be valid for a period of six months unless otherwise specified.

6. 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.

7. 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 and export oriented units, shall be allowed via land route, against Pak-rupee on filing of regular shipping bills without ‘E’ Form. 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 the provisions of sub-paragraph (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.-

(a) zero-rating of sales tax on taxable goods; (b) rebate of central excise duty; and

(c) repayment or drawback of customs-duty, subject to the conditions namely following the proviso below,

Provided that the above facility of duty and tax-exemption including refund of petroleum levy shall not be available to the export of petroleum products unless there is a Government to Government contract and export is done only through Oil Marketing Companies (OMCs) duly registered with the Oil and Gas Regulatory Authority (OGRA). Surplus of JP-8, as declared and decided in the product review meetings, shall also be allowed to be exported by the refineries or OMCs. If any of the OMC is of the intention to import and then export JP-8 to Afghanistan that specific volumes shall be allowed through foreign exchange remittance from the buyers without availing any exemption of duties and taxes,

(i) the proof that goods exported from Pakistan have reached Afghanistan shall be verified on the basis of copy of import clearance documents by Afghan Customs Authorities across the border:

Provided that this condition shall not apply to exports made to International Security Assistance Force (ISAF) and Defence Logistic Support Center (DLSC) in Afghanistan. To claim the facility of zero rating of sales tax or duty drawbacks as well as federal excise duty refund against goods exported to ISAF and DLSC, the customs authorities shall allow refunds on the basis of receipts issued by the Afghan offices of these agencies confirming that they have received the goods. The receipt shall be reconfirmed by the representatives of these agencies in Pakistan;

(ii) 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”;

(iii) 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);

(iv) export from Export Processing Zones, manufacturing bonds and export oriented units, 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 federal excise duty; and

(iii) repayment or drawback of customs-duty:

Provided that export made to International Security Assistance Force (ISAF) and Defence Energy Support Center (DESC) may be made on deferred payment basis, without opening of Letter of Credit, subject to the following conditions, namely:-

(a) the waiver shall be applicable strictly to exports made to ISAF and DESC;

(b) shipments to ISAF and DESC are made by their authorized agents duly endorsed by the ISAF and DESC receiving agent in Afghanistan; and

(c) payment of foreign exchange is received within sixty days of shipmen;

and

(v) zero rating of sales tax or duty drawbacks as well as federal excise duty refund against goods exported to ISAF and Defence Logistics Agency(DLA), may be allowed on production of receipts issued by ISAF and DLA confirming that they have received the goods. The receipts shall be reconfirmed by the representatives of these agencies located in Pakistan.

(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 or 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.

8. 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:

Provided that in cases where defective goods have to be exported for which replacement has already been received, the condition of indemnity bond shall not apply provided there is no revenue implication.

(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 from the buyer detailing the goods that have been found to be defective.

(3) Export-cum-import of vehicles shall be allowed for purposes of traveling 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 to the customs authorities.

(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:

Provided that local construction, engineering and electrical companies shall be allowed to retain abroad the exported machinery to carry out work on export cum import basis for using the same machinery in some other project, subject to submission of a fresh indemnity bond to the concerned Custom authority and issuance of NOC from the State Bank of Pakistan.

(5) The temporary export-cum-re-import of products shall be allowed for participation in foreign exhibitions and fairs and also for carrying out tests or certain other processes, for which the facilities are not available in the country against submission of indemnity bond or undertaking to Customs Authorities.

9. Re-export of Goods or items (except banned items as per Schedule-I and items on the negative list of Afghan Transit Trade as specified in Schedule III),- 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;

(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 shall be against ‘E’ Form and subject to procedure prescribed by the Federal Board of Revenue(FBR) for re-export of imported goods stored in bonded warehouses and of imported goods already cleared for home consumption;

(h) where the manufacturer-cum-exporter imported goods with the condition that payment shall be made on quality approval and the quality of the goods is not approved;

(i) where 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;

(j) where goods imported under various duty free schemes meant for exports and could not be consumed due to cancellation of export order; and.

(k) old vehicles and aircrafts not falling within the definition of antiquities.

10. Re-export of humanitarian food commodities. - All humanitarian food commodities are allowed to be re-exported by international humanitarian aid and relief agencies.

11. Export of chemicals, etc. – Schedule-I chemicals and Schedule-II chemicals, listed in Appendix-A and Appendix-B cannot be exported to States not party to Convention and hence export of these chemicals have been restricted. Schedule-III chemicals listed in Appendix-C 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 necessary measures to ensure that the transferred chemicals shall only be used for purpose not prohibited, under the Convention. Form T30 attached as Appendix-D 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 “E”. Prior permission shall be obtained in addition to Appendix-D, for export of any Schedule Chemical under Chemical Weapons Convention (CWC) from National Authority (CWC), Ministry of Foreign Affairs, 60 days in advance, (Handbook on Chemicals 2009, available at www.opcw.org should be consulted for the identification of chemicals).

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 Gawadar Special Economic Zone. - Export of goods from Gawadar Special Economic Zone to foreign countries and to the tariff area shall be in accordance with the rules and procedures to be notified by the Federal Government.

14. Items subject to minimum Export Price. – The items specified in Schedule-IV shall be subject to minimum export price restriction.

15. Export of Controlled List Commodities.- Export, Re-export, Transit and Transshipment of all the commodities notified in the Control List vide Notification No. SRO 699(I)/2011 dated the 6th July, 2011 shall be in accordance with the Export Control (Licensing and Enforcement) Rules, 2009, notified vide Notification No. SRO 450 (I)/2009 dated the 29th May 2009.

16. Restrictions imposed under other Acts and laws.- Restrictions or conditionalities imposed under relevant provisions of the following Acts, Ordinances and Laws and the rules made there under 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 Explosives 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 Export Control on Goods, Technologies, Material and Equipment related to Nuclear and Biological Weapons and their Delivery Systems Act, 2004 (V of 2004);

(l) the Petroleum Act, 1934 (XXX of 1934);

(m) the Control of Narcotic Substances Act, 1997(XXV of 1997);

(n) the Chemical Weapons Convention Implementation Ordinance, 2000 (LIV of 2000); and

(o) any other law notified in the official Gazette by the Federal Government.

17. 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 treated as contravention of the provisions of the Act.

18. Repeal. - The Export Policy Order, 2009 is hereby repealed.

top
How to use the grid?
x

You can explore the contents of the grid in many ways.

The grid has multiple search criteria. For a general search, input the 'search word' into the top column you want to search. Select 'contain' from the drop-down menu below, and hit 'enter' The search results will be automatcally populated. Please NOTE the table is Ajax-enabled, which means it won't refresh, and will display results in a seamless way, which can be seen usually in few seconds. Alternatively, you can press the 'sort buttons before the label in each column in the header to sort the records in ascending or descending order.

You can stretch the column size by clicking on the column grid to suit your requirements. 

(or press ESC or click the overlay)