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Import and Export policy orders (Act 1950) are two separate documents issued by
the Government every year which contain the instructions about how the imports
and exports can be made better. It also highlights the products which are completely
restricted to import and encouraged or discouraged to import and export with all
conditions. Mostly importers and exporters keep the points of these policies in mind
while they trade as most of them are mandatory to follow. This assignment would
discuss both the documents (Year 2009) in detail and highlight the major features of
them.

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Y Y
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In the beginning of this document it has been clearly defined that it would be called
Import Policy Order and it would be into force at once only. Some important
definitions regarding trade have been defined as follows:




g   Y

a.? |  It means the imports and exports act 1950. It means that the documents
have been designed by keeping this act in mind which has been passed by
national assembly and the president of Pakistan. None of the instructions
would violate the act.

b.? | It simply means an Annex to the order.

c.? |  It simply means Appendix to the order.

d.? ÷|    The products and commodities are stated in it which are
completely prohibited and not allowed to import in the country according to
the act.

e.?   |
  It means the establishment of an industry which would
import for its own use

f.? mY÷
Y  Different types of goods that are for sale as one lot. Normally the
quality of such goods is inferior which means not better.

g.?  Y 
Y  These goods remain in stocks because of changes in market
conditions and the tastes of people and are also presented such as one lot.

h.? 
|  Y Y It means the country which has manufactured and
supplied the products.

i.?      There is a bit difference in banned and restricted items.
As described above, banned items are not allowed to be import in the country
in any circumstances while the restricted items can be imported but with the
conditions mentioned in the order.

j.? |
These are the goods in limited quantity most of the time for testing
purposes and have no commercial value.

k.? ||| It means the area in Pakistan which is outside the limits of an
export processing zone.
g÷|YY 

I.? The imports can be made against any mode of payment such as cash, credit or
any instrument but it is mandatory to follow the procedure which has been
described by State Bank of Pakistan. No importer can go against that
procedure.

II.? Private importers are allowed to enter in commodity exchange arrangement


with the suppliers outside of Pakistan by following the procedure described by
State Bank of Pakistan.

III.? If any importer is importing the goods by acquiring loan or on credit, the
contract has to be approved by Economic Affairs Division or any other agency
of the Government. Besides that, it is mandatory to open letter of credit or
documentary credit with a bank designated by States Bank of Pakistan, within
the sixty days after registration of that contract.

IV.? All public sector agencies will open the letter of credit through the banks
designated by State Bank of Pakistan

gY YYY 



Import of all goods and commodities are allowed through the entire world but
banned, prohibited and restricted items stated by the act cannot be imported from
anywhere.

gY÷ Y|   Y



Goods specified in DzAppendix Adz are  to import. Some of the goods from
that appendix are as follows:

I.? Translation of Holly Quran without the Arabic text.

II.? Goods bearing any rude, offensive and shocking pictures, writings, inscriptions
or visible representations.

III.? Anti Islamic literature or Material


IV.? Any products or bi products containing the ingredients of such animals which
have been stated HARAM by Islam are not allowed like pork, swine, pig, hogs
and bores.

V.? Any product which is not good for human consumption or dangerous.

VI.? The goods, whose usage or disposal may injure the religious feelings of any
sector, class/group of people in Pakistan.

VII.? Cocoa leaves, Poppy Straw and Cannabis Herbs. Cocoa is a black powder which
is used to make chocolates and Poppy is a type of plant. Cannabis is a drug.

VIII.? Opium is also not allowed. It is also a type of Drug.

IX.? Alcoholic beverages and spirits.

X.? Fireworks or equipment of fireworks

XI.? Retreaded tyres. It means a new rubber surface on the outer part of any worn
tyre.

XII.? Any fighting vehicles including tanks.

XIII.? Military weapons, machine guns, bombs, sniper rifles, automatic rifles, pistols,
revolvers etc.

XIV.? Gambling Equipment

Goods specified in Appendix-C are banned for import in secondhand or used


condition except those specifically exempted. Some of the items are (broilers,
compressors, Air Conditioners, Refrigerators, Hand Tools, House hold type
machinery, Auto Parts etc.)

Imports from ISRAEL are completely banned in Pakistan.


Goods specified in DzAppendix Bdz are   but can be imported subject to the
conditions. Some of those goods are as follows:

I.? Live animals, animal semen and embryos.


(Importable subject to quarantine requirement of Marine and Fishery Department of
Ministry of Food, Agriculture and Livestock, Government of Pakistan.)

II.? Fish and fishery products.


(Importable subject to quarantine requirement of Marine and Fishery Department of
Ministry of Food, Agriculture and Livestock, Government of Pakistan.)

III.? Fresh and Dry fruits.


(The report saying that the consignment is free from any pests/diseases, to be certified by
Department of Plants Protection, Ministry of Food, Agriculture and Livestock.)

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(The report saying that the consignment is free from any pests/diseases, to be certified by
the Dept. of Plant Protection, MINFAL.)

V.? Wheat
(Importable subject to the specification notified by the Ministry of Food & Agriculture,
Government of Pakistan and subject to pre-shipment inspection by approved PSI agencies)

VI.? Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes


(Packets should carry the warning Ǯsmoking is injurious to health)

VII.? All edible (Safe to eat) products


(Must be fit for human consumption, free of any HARAM elements, at least 50% of shell life
from the date of import)

VIII.? All narcotic drugs and psychotropic substances, except items on banned list.
(Only pharmaceutical units having valid drug manufacturing license can import such items
but with authority from Ministry of Health)

IX.? Human blood and its fractions


(Consignment shall be released on production of AIDs and hepatitis B & C free certificate.)

X.? Passport printers, visa printers, laminators and laminate rolls


(Import of the following types of passport printers, visa printers, laminators and laminate
rolls shall be allowed only by Directorate General Immigration and Passports)


Import of goods from India or of Indian origin is restricted to the items in Appendix-
G. Import from India is not allowed by road unless so specified. (Some goods include
Buffalos, Bulls, Cows, Sheep, Goats, Milk in powder, Silk worm eggs, some vegetables
like tomatoes, onions, garlic etc.)

g  |÷Y Y  | 



Any dispute or clarification regarding import status of any item which cannot be
resolved by the Customs Authorities shall be referred to Ministry of Commerce for
final decision.

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The consignee of goods in Pakistan is allowed to get clearance on the goods sent by
overseas Pakistanis without any condition of sales tax registration. It will be allowed
by the concerned collectors of customs.

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The disable persons can import any car Dzwhose capacity is not exceeding 1350ccdz,
without any custom duty as it is subject to authorized by Federal Board of Disabled
Persons. It will be only for the purpose of personal use only

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It is mandatory for all the Banks and Customs to ensure that all requirements,
conditions and restrictions etc. specified in import and export act.

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To Pakistani citizens, Import of vehicles as defined in the relevant rules is allowed but
the procedure specified in DzAppendix Edz has to be followed. Some of the conditions
and regulations are as follows.
I.? Students (receiving remittances), Not earning members of families, those who
have imported, gifted or received a vehicle during the last two years are not
eligible for it.

II.? Vehicles more than three years old shall not be allowed to be imported under
gift, personal baggage and transfer of residence schemes.
III.? A vehicle may be gifted only to a family member normally resident in Pakistan.

? The cars with engine capacity of 1800 cc or more, and 4x4 vehicles in new
conditions can be imported under personal baggage or gift scheme but the
duty and taxes will be paid out in foreign exchange arranged by Pakistan
nationals themselves or local recipient supported by Bank encashment
certificate stating the conversion of foreign money to local currency.?
?
V.? Agricultural tractors, bulldozers, laser land levelers and combined harvesters
will also be allowed under gift, baggage and transfer of residence schemes
subject to the same conditions as applicable for import of vehicles. The import
thereof under gift scheme will be allowed once every year.

VI.? Vehicle imported by an overseas Pakistani shall be released to his/her legal


heirs in case of death.

g YY÷|YY 
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The Federal Government can suspend or ban the import of any goods from all or any
source for a specific period of time. Meanwhile that, no importer is allowed to import
such products.
"# $
The following things regarding export will be in practice after issuing the policy
order, and that the updated export policy order shall come into force at once.

g % &''
Act is the import and export act 1950. It is according to the law of Pakistan and each
and every trader would to abide by the practices of the law made by the parliament
of the respective country.

The policy clearly states those good (gifts and parcels) that are allowed or not
allowed to export from the country.

Prescribed are the points which are according to the rules and regulation of this act.

Sample is a very small part of something and if a sample is being exported it should
not be for the sale purpose and should not have value.

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The export from Pakistan shall be according to the rules and regulations of foreign
exchange and these should be noted by the state bank of Pakistan at different
intervals and complete documents should be submitted as stated in the export policy
order.

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(1)? All the goods can be exported from Pakistan except those which are in the
schedule 1 of the import order policy. Some of them are chemicals, wild
mammals and reptiles, pulses, wheat, sugar, gram flour, urea, wood and timer,
charcoal and firewood etc.

Some of the goods are subject to the condition; it means if they fulfill the
condition only then they can be exported otherwise not.
(2)?
A.? Goods consisting the equipments and machinery parts are allowed to
export, the provisions of the policy order does not apply to them unless
these items are banned or restricted.

B.? The policy does not apply to the goods which are trans-shipped and being
cleared at the port of the Pakistan and are dispatched at another port
outside Pakistan.

C.? This order policy does not apply to the goods which are being sold by one
government to another. And exports made by any authorized officer by
the ministry of defense.

D.? It doesnǯt apply to some samples subject to some conditions, means they
can be exported if they are not banned. The value of any sample should
not exceed 25 thousand us dollars. And in case of automobiles
manufacturers it should not exceed 50 thousand us dollars. And
pharmaceutical companies are allowed to export free samples to the
extent of 10% of the exports quantity of proceeding years. And at the
launch of a product these companies can export free samples to the
extent of 20% of the quantity of first consignment.

E.? The policy does not apply to the parcel which is not exceeding five
thousand us dollars and equivalent to the amount in Pak rupees.

F.? Export of relief good to any part of the world by government of Pakistan.

G.? Authentic (real) person who is travelling outside Pakistan.

H.? The person travelling outside Pakistan may take good with them without
any restriction provided that these goods are not restricted as in schedule1
and 2.

(3)? Transit and border trade shall be allowed under the procedure prescribed
thereof.
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The federal government may allow export, export cum import or re-export for any
prohibition or restriction under this order.

And they may issue authorization for such exports. It should be on proper letter
head, numbered and which shall be valid for period of six months unless the period is
specified.

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Re export of the frustrated cargo shall be allowed by the custom authorities subject
to the conditions contained in the custom rules 2001.

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| ')# 
. The 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 ǮEǯ
Form.
Such exports shall not be entitled to,
g? * '(& # "' " #(+
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 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.
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 $%'  ,& )%*)$!)- &##'( ''

 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 Defense Logistic Support Center (DLSC)
in Afghanistan.

 Packages or retail packing shall be prominently and indelibly be marked with the
expression DzFor Export Onlydz, and in case of international donor agencies DzFor
Export only Ȃ supply for aid to Afghanistan (insignia of the organization) Ȃ not for
sale in Pakistandz;

 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);

.. 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:

. 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 will be reconfirmed by the representatives of these agencies
located in Pakistan.

g"÷$'' ' # '|(' 


Export of such goods as are made by or on behalf of UNHCR, World Food
Programmed, 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.

g Normal duty drawback shall remain available on exports to the Central Asian
Republics  ?Iran.

g Export of acetic anhydride to Afghanistan shall not be allowed till further orders.


g " )%%
Imported items may be exported for the purpose of repairs, refilling of cylinders
subject to the customs authorities undertaking that goods being exported shall be re
imported after the purpose of their exporting is accomplished. And for the goods for
whom replacement is needed and they have to be replaced due to defectiveness, the
condition of indemnity bond shall not apply on them.

Customs authorities shall allow Pakistani exporters to replace the exported goods
found defective as per terms of sale contract subject to furnishing of.-
g  | $& ' + '
g| %%)' '&%)$ #'((  .'&)'
& .

Export-„ -import of vehicles shall be allowed for purposes of traveling abroad, on


the basis of „?? ?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.

g
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'( .#&|&( '  '    &' )#
Export of imported goods in their original and unprocessed form shall not be
allowed except,

g  Parts obtained from ship breaking;

g Scrapped battery cells;

g  Waste dental amalgam;

g Waste exposed X-ray films;

g Old machinery provided no refund of import levies or duty draw back shall be
made;

g& 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).

g Where 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;

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

g, Old vehicles and aircrafts not falling within the definition of antiques.

g *"&)% '  '& %%/


All humanitarian food commodities are allowed to be re exported by international
humanitarian aid and relief agencies.

g  "&%" '( '. Ȃ


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.

g ) "&%    # '%  '. Ȃ


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.

g ÷ &| *


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 breach of the
provisions of the Act.

g  #As the new export policy is issued, The Export Policy Order, 2008 is
hereby cancelled.
 YY | Y
 
Our democratic Govt announced Trade policy. It seems they didnǯt consider the
protest of textile units and other exporters while finalized it. Right after its
announcement Govt ministers started praising it though most of them donǯt know
what a trade policy is? Here we discuss its highlights:

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