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Furniture Industry in Rawalpindi

Prepared By: Ms Afsheen Siab Kayani, Assistant Secretary R&D

The Rawalpindi Chamber of Commerce and Industry


39-Civil Lines, Mayo Road, Rawalpindi Ph: 0092-51-5111049-54, Fax: 0092-51-5111055 Web Site: www.rcci.org.pk, E-mail: rcci@rcci.org.pk

Table of Contents 1. HISTORY---------------------------------------------------------------------------------------- 1 1.1. The Classical World----------------------------------------------------------------------------1 1.2. Early Modern Europe--------------------------------------------------------------------------2 1.3. 19th Century-------------------------------------------------------------------------------------2 1.4. Modernism3 1.5. Asian History------------------------------------------------------------------------------------3 1.6. Furniture Trends 2008-2009-------------------------------------------------------------------3 2. FURNITURE INDUSTRY OF PAKISTAN----------------------------------------------4 2.1. Furniture Trends in Pakistan-------------------------------------------------------------4 2.2. Sindh-------------------------------------------------------------------------------------------- 5 2.3. Punjab------------------------------------------------------------------------------------------ 5 2.4. NWFP------------------------------------------------------------------------------------------6 2.5. Balochistan------------------------------------------------------------------------------------6 3. RAWALPINDI---------------------------------------------------------------------------------6 3.1. Area and Population------------------------------------------------------------------------7 4. ECONOMY OF RAWALPINDI------------------------------------------------------------7 4.1. Total Number of Manufacturing Units (Furniture) ----------------------------------7 4.2. Types of units --------------------------------------------------------------------------------7 4.3. Employment Generation -------------------------------------------------------------------8 4.4. Total Production ----------------------------------------------------------------------------8 4.5. Capacity Utilization -------------------------------------------------------------------------9 4.6. Main Cluster Areas -------------------------------------------------------------------------9 4.7. Major Players---------------------------------------------------------------------------------9 5. Furniture Business Opportunities in Rawalpindi--------------------------------------10 5.1. Starting a Furniture Business in Rawalpindi:----------------------------------------10 5.2. Requirement to Start a Furniture Business-------------------------------------------11 6. TYPES OF WOOD WORK----------------------------------------------------------------11 6.1. Wood Carving-------------------------------------------------------------------------------11 6.2. Methods and Styles of Wood Carving--------------------------------------------------12 6.3. Wood Engraving----------------------------------------------------------------------------12 6.4. Different Web Sites for Latest Designs-------------------------------------------------12 7. DEFINING THE PRODUCT------------------------------------------------------------12 7.1. International Codes for Furniture------------------------------------------------------13 7.2. Raw Material--------------------------------------------------------------------------------13 7.2.1. Availability of Wood---------------------------------------------------------------------14 8. OTHER RAW MATERIAL----------------------------------------------------------------14 9. DESCRIPTION OF PRODUCT MIX --------------------------------------------------15 10. STANDARD MANUFACTURING PROCESS---------------------------------------15 11. HUMAN RESOURCE REQUIREMENT----------------------------------------------16 12. DISTRIBUTION / MARKETING CHANNELS-------------------------------------17 13. SWOT Analysis (Strength, Weaknesses, Opportunities & Threats)--------------17 13.1. Strengths------------------------------------------------------------------------------------17 13.2. Weaknesses---------------------------------------------------------------------------------17

13.3. Opportunities------------------------------------------------------------------------------18 13.4. Threats--------------------------------------------------------------------------------------18 13.5. THE FOLLOWING FACTS REQUIRED FOR IMPROVEMENT IN WOOD WORKING FIELDS ---------------------------------------------------------------------------18 14. TECHNOLOGY SETUP-----------------------------------------------------------------20 15. MACHINE AND TOOLING TECHNOLOGY--------------------------------------20 15.1. CNC Engraving Machine---------------------------------------------------------------20 15.2. Wood Carving Machine ---------------------------------------------------------------21 16. What is Quality?----------------------------------------------------------------------------- 22 16.1. Definition of Quality----------------------------------------------------------------------22 16.2. Substandard Quality Reasons----------------------------------------------------------23 16.3. Quality Control System or Quality Management ---------------------------------23 16.4. Quality Control in Furniture Manufacturing---------------------------------------25 17. INTERNATIONAL FURNITURE TRADE-------------------------------------------31 17.1. Marketing Strategies for Export-------------------------------------------------------31 17.1.1. Market Research Strategies----------------------------------------------------------32 17.1.2. Product Strategy for Export----------------------------------------------------------33 17.1.3. Product Package and Name checklist----------------------------------------------33 17.1.4. Pricing Strategy for Export-----------------------------------------------------------33 17.1.5. Checklist of Pricing Strategy for Export-------------------------------------------34 17.1.6. Checklist for Export Distribution Strategy----------------------------------------34 17.1.7. How to do Export Promotion?-------------------------------------------------------35 17.2. Export Statistics --------------------------------------------------------------------------37 17.3. Potential Areas ---------------------------------------------------------------------------- 38 17.4. World Market for Pakistans Furniture---------------------------------------------42 18. PROBLEMS IDENTIFIED---------------------------------------------------------------44 19. RECOMMONDATION--------------------------------------------------------------------45 12Annex I Annex II

Furniture Industry in Rawalpindi

R&D Department

1.

HISTORY

Furniture is the movable articles for use in a home or office (i.e. chairs desks, cabinets, closets, etc.). It may be made of wood, metal, plastics, stone, glass, fabrics, and related materials. It ranges from the simple pine chest or country chair to the gilded console table. It is usually movable, though it can be built-in, as are kitchen cabinets and bookcases. It can either reveal or hide how it was constructed, and it can be highly stylized. The design and building of furniture is related to both architecture and interior design. Throughout history the functional and decorative aspects of furniture have been influenced by economics and fashion. Real wood furniture is the most popular furniture in existence; it's been around for hundreds of years. Furniture in fashion has been a part of the human experience since the development of non-nomadic cultures. Evidence of furniture survives from the Neolithic Period and later in antiquity in the form of paintings, such as the wall Murals discovered at Pompeii, sculpture and examples have been excavated in Egypt and found in tombs in Ghiordes, in modern day Turkey.

1.1.

The Classical World

Early furniture has been excavated from the 8th-century B.C. Phrygian tumulus, the Midas Mound, in Gordion, Turkey. Pieces found here include tables and inlaid serving stands. There are also surviving works from the 9th-8th-century B.C. Assyrian palace of Nimrud..

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1.2.

Early Modern Europe

The furniture of the middle ages was usually heavy, oak, and ornamented with carved designs. Along with the other arts, the Italian Renaissance of the fourteenth and fifteenth century marked a rebirth in design, often inspired by the Greco-Roman tradition. A similar explosion of design and renaissance of culture in general, occurred in Northern Europe, starting in the fifteenth century.

1.3.

19th Century

The nineteenth century is usually defined by concurrent revival styles, including Gothic, Neoclassicism, Rococo, and the Eastlake Movement. The design reforms of the late century introduced the Aesthetic movement and the Arts and Crafts movement. Art Nouveau was influenced by both of these movements.

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1.4.

Modernism

The first three-quarters of the twentieth century are often seen as the march towards Modernism. Art Deco, De Stijl, Bauhaus, Wiener Werksttte, and Vienna Secession designers all worked to some degree within the Modernist idiom. Postmodern design, intersecting the Pop art movement, gained steam in the 1960s and 70s, promoted in the 80s by groups such as the Italy-based Memphis movement. Transitional furniture is intended to fill a place between Traditional and Modern tastes.

1.5.

Asian History

Asian furniture has a quite distinct history. The traditions out of Pakistan, China, India, Indonesia (Bali and Java) and Japan are some of the best known, but places such as Korea, Mongolia, and the countries of South East Asia have unique facets of their own. Chinese furniture is traditionally better known for more ornate pieces. The use of un carved wood and bamboo and the use of heavy lacquers are well known Chinese styles. It is worth noting that China has an incredibly rich and diverse history, and architecture, religion, furniture and culture in general can vary widely from one dynasty to the next.

1.6.

Furniture Trends 2008-2009

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Wooden furniture is probably always fashionable; they are also on top this year. Choose new wardrobe or commode decorated with patterns made of pieces of different wood. Plastic and metallic surfaces are replaced by wood, because it shows love of natural things. If you are looking for a new coffee table or a cupboard, shiny surfaces are things to pay attention to. Lacquered wood is trendy again and suitable to decorate dinning room or a rest room. Lacquered furniture requires more care, but they look subtle and refined. Dinning room is a place for the whole family together and enjoys meals. This room should be something in between formal style and comfortable cozy atmosphere. In dinning room furniture, counter high dinner table is a must-have this year. This type of table requires a set of high chairs that usually see in pubs. Counter high dinner table may sound a little official, but the image depends on other decorations as well.

2.

FURNITURE INDUSTRY OF PAKISTAN

Pakistan has a leading furniture manufacturing industry. In developed countries, furniture is being made on modern machineries, but in Pakistan it is usually made through manual methods and by hands. The furniture industry in Pakistan can be divided into two main types; cottage and small-scale industry. Furniture makers keep themselves well acquainted with the latest design kits. The fast growing furniture industry is aiming at developing a system designed to incorporate its tradition with modern functional demands, coupled with a feeling for the quality of the material and of aesthetic values.

2.1.

Furniture Trends in Pakistan

Today, a large quantity of wooden furniture is manufactured in Pakistan at the cottage level. The environment and conditions being favorable, the wooden furniture industry holds out a bright scope for further expansion.

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2.2.

Sindh

Furniture items produced in Sindh comprise of ordinary chairs, tables, and other items like doors and windows. Since most of the furniture product in this province is simple and heavy in weight, it is crude from the export point of view, and therefore it is usually sold locally, especially in areas close to the production centers. Tastefully designed furniture items, made of superior quality wood, which are light in weight and in knockeddown condition, are more suitable for export purposes, and for supply to the distant markets within the country. But, production of such furniture requires installation of modern machinery and plants. Jacquard work is a popular traditional craft of Sindh. The articles, such as table lamps, chairs, and sofa sets, produced by the lacquer industries of Hala in Hyderabad district and Kashmore in the Jacobabad district, are very popular.

2.3.

Punjab

A number of families in Khanewal and Dera Ghazi Khan have stuck to the traditional workmanship, despite sharp, fluctuations in the taste of customers. The wood carvers' skills are predominantly visible in furniture making, apart from carving wooden ceilings, wooden panels, doors and windows. Carved shisham tables come in numerous shapes; the tops may be rectangular, square, circular, and polygonal or palm shaped, which rest on four straight legs or on a single pillar. These are the specialities of the craftsmen of Chiniot (Punjab).

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2.4.

NWFP

Swati furniture has basically broad sets, heavy legs (chairs) and geometric floral designs, carved in various styles of woodwork. It has been developed in the Peshawar valley. The oldest single style evolved, has been evolved in the NWFP, where craftsmen design massive pieces, beds, desks, chairs, stands, lamps etc.

2.5.

Balochistan

Balochi furniture basically broad sets with traditional look. It has been developed in the Quetta.

3.

RAWALPINDI

Rawalpindi is a city in the Potwar Plateau near Pakistan's capital city of Islamabad, in the province of Punjab. The area was home to the pre-historic Soanian culture indigenous to The Rawalpindi Chamber of Commerce & Industry 6

Furniture Industry in Rawalpindi

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this region. Numerous and endless shopping bazaars, parks and a cosmopolitan population attract shoppers from all over Pakistan and abroad. The city is home to many industries and factories. Rawalpindi is located in the Punjab province, 275 km (171 miles) to the north-west of Lahore. It is the administrative seat of the Rawalpindi District. City is about 108 square kilometers (42 sq mi).

3.1.

Area and Population

According to 1998 Population and Housing Census, total population of Rawalpindi district is 3,039,550 persons.

4.

ECONOMY OF RAWALPINDI

Rawalpindi is one of the important cities of Pakistan. After the weakening of Mughal dynasty in India Sikhs grabbed the power and they settled the area in 1765 and invited the nearby traders to Rawalpindi. This proved to be a significant milestone in the history of the city and the city gradually became a trade hub due to its location between the Punjab and Kashmir. During the Raj days it became biggest cantonment in Sub-continent. It is a railroad junction and an important industrial and commercial center. The main industry of the city includes an oil refinery, industrial gas processing, steel re-rolling, iron mills, railroad yards, a brewery, sawmills, and factories making tents, textiles, hosiery, pottery, and leather goods. Rawalpindi industrial base is diverse and also includes flour mills, beverages and fruit preservation, cigarettes, pharmaceutical, furniture, glass products, marble processing, sewing machines etc.

4.1.

Total Number of Manufacturing Units (Furniture)

According to the estimates provided by industry sources, Rawalpindi furniture cluster is comprised of about 2000 units. These units can be categorized into micro, small and medium sized units. Following table indicates the industry size in various categories: Table 2: Industrial Structure Small 400 Micro 1600

4.2.

Types of units

The details of the different categories of the furniture manufacturing units are following:

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Micro Sized Units

According to the statistics provided by the industry, there are about 1600 micro sized units involved in the business of furniture manufacturing. This number includes all the units that are either directly or indirectly involved in the furniture manufacturing. These units are vertically integrated and are involved in the different stages of furniture manufacturing. The furniture manufacturing units are selling their products in semi finished and finished form in Rawalpindi as well in the other cities. Some of these units also have organized themselves in specialized products manufacturing, (e.g. a unit producing chairs will only produce chairs). The small-scaled units can be further divided into:

Saw Mills Furniture Manufacturers Upholstery Units Polishing & Finishing Units Small Sized Units

Rawalpindi furniture cluster consists of about 400 small sized units. These units manufacture furniture themselves as well as depend on the micro sized units for their manufacturing requirements. Small size units buy the semi finished furniture from micro sized units and then finish these products. These Units have their own show rooms to display their finished products. Most of their sales are domestic but few of them are also involved in the exports. These units have workers ranging from 15 to 50 in number depending upon the amount of work. These units sometimes also hire workers on contract basis in case of more orders.

4.3.

Employment Generation

The industry is labor intensive and concentrated in small, medium and micro size units generating almost 50,000 individuals ranging from 5-10 workers in small and micro size units. These 50,000 individuals are involved with Furniture Industry directly or indirectly. These persons can be divided into the categories of carpenters, polishers, upholstery workers and the general laborers. As far as the training of this work force is concerned, there is no specialized training institute for furniture workers in Rawalpindi.

4.4.

Total Production

The estimated annual wood consumption is around 150,000-300,000 cubic ft. The average cost of this wood is around Rs. 160 million calculating on the basis of 400 rupees per cubic foot on an average type of wood. Besides this around 100 million of manmade material is also used. Hardly, any source available to gather the anticipated growth rate. Estimated growth figure is around 10%. The Rawalpindi Chamber of Commerce & Industry 8

Furniture Industry in Rawalpindi

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4.5.

Capacity Utilization

Capacity utilization of the existing unit is not sufficient even to meet the demand of the domestic market. It is below 50%. None of the unit has the capability to produce goods at mass level. Even the medium sized units take minimum 3-4 months for an order. Sufficient gap exists and it is increasing day by day with the increase in the population of the country.

4.6.

Main Cluster Areas

As it is mentioned above furniture industry consider as the one of the major industry in Rawalpindi. In Rawalpindi different areas are the hub of the furniture there names are mentioned below.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Shamsabad Faizabad Kurry Road (Sadiq Abad) Kurry Road (Sultan Da Khoo) Khana Road Chakala Road Hazara Colony Mohan purrah Anayat Bazar Saddar

4.7.
Organization

Major Players
Contact Person Mr.Najam-Ul-Hassan Address 50-A,Aliabad,Peshawar Road, Rawalpindi. Ph#0300-5202551 913,Al-Khadim Chambers, Muree Road,Fiazabad, Rawalpindi Ph#051-4453044 Flat No.3,Al-Hafeez Plaza, PIA Colony,Main Range Road, Rawalpindi. Ph#051-5857712 150-A,Lane No.2, Peshawar Road, Rawalpindi Ph. # (92-51) 5563000

Living Heritage

Art land furniture

Mr.Maqsood Ahmed

Dynamic Impex Decent Furniture (Pvt.Ltd)

Mr.Gul Rehman

Mr.M.M.Riaz

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5.

Furniture Business Opportunities in Rawalpindi

Rawalpindi has many business and educational establishments, as well as residential areas. The. Furniture retailers have great business opportunities here, since all kinds of furniture, from office to lounge furniture, are in huge demand in the City. Furnishers in Rawalpindi equip homes, schools, hotels and restaurants. The establishments in the city need showcases, lockers, shelves, etc. that are manufactured by many big and small furniture-manufacturing units. The furniture businesses in Rawalpindi employ more than 25,000 people. Therefore, it is a good idea to look into the business opportunities offered by the furniture manufacturing business in Rawalpindi.

5.1.

Starting a Furniture Business in Rawalpindi:

While Rawalpindi offers many opportunities to start a furniture business, you also need to be creative and stock the kind of furniture that appeals to the eye and is comfortable as well. Your marketing strategies must be good, and you should take care to build good customer relations. Here are some things to consider when starting a Furniture Business in Rawalpindi. Creativity: The Furniture Business needs good, original ideas to survive the fiercely competitive market. You can consult books and attend workshops to get an idea of what the customer wants. Material: Choose what kind of material goes into the furniture you retail. You can sell wood or metal furniture. Polish affects the quality of the material, so that must be kept in mind. Design: The design of the furniture you retail depends on where the furniture will be used. Do you want to sell office or home furniture? Price: Decide on the price for selling your furniture. You can retail furniture for general or high-end markets. Website: Have a website where you can put up an online catalogue of the furniture you retail. Be sure to include photographs. Variety: Have a large variety of furniture in your showroom. You can sell anything from chairs to sofas, side tables and stools. Even couches, sofas, lampshades, lamps stands, consoles are in demand. Once your furniture business gets off, you need to provide good customer relation services to attract clientele. By stocking the best quality goods, and selling innovative products, you can make your furniture business a huge success in Rawalpindi.

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5.2.
List of item Workshop Outlet Manpower Machinery

Requirement to Start a Furniture Business


Quantity 1 1 12 Per required Cost

6.

TYPES OF WOOD WORK

In furniture industry there are many techniques are used to beautify the look of furniture,

6.1.

Wood Carving

Wood Carving is a form of working wood by means of a cutting tool held in the hand (this may be a power tool), resulting in a wooden figure or figurine (this may be abstract The Rawalpindi Chamber of Commerce & Industry 11

Furniture Industry in Rawalpindi

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in nature) or in the sculptural ornamentation of a wooden object. The phrase may also refer to the finished product, from individual sculptures, to hand-worked moldings composing part of a tracery.

6.2.

Methods and Styles of Wood Carving

Chip carving Relief carving Scandinavian flat-plane Caricature carving Love spoon Treen Whittling

6.3.

Wood Engraving

Wood engraving is a relief printing technique, where the end grain of wood is used as a medium for engraving, thus differing from the older technique of woodcut, where the softer side grain is used.

6.4.

Different Web Sites for Latest Designs


S.No. 1 2 3 Web Sites www.homeideas.com www.getdecorating.com www.woodbin.com

7.

DEFINING THE PRODUCT

There is a large number of products made by the wood. Few can be defined as under The Rawalpindi Chamber of Commerce & Industry 12

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Sofa: Sofa is an upholstered seat for more than one person. Bed: Bed is piece of furniture that provides a place to sleep. Chair: Chair is a seat for one person, with support from back. Cupboard: Cupboard is a cabinet used for storage

7.1.

International Codes for Furniture

For international trade different codes are used two of them are defined below. SITC CODE (Standard International Trade Classification)

SITC is a classification of goods used to classify the exports and imports of a country to enable comparing different countries and years. The classification system is maintained by the United Nations. HS CODE (Harmonized Commodity Description and Coding System)

The Harmonized Commodity Description and Coding System (HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products developed and maintained by the World Customs Organization (WCO) (formerly the Customs Co-operation Council), an independent intergovernmental organization with over 170 member countries based in Brussels, Belgium. The HS is a six-digit nomenclature. The first four digits are referred to as the heading. The first six digits are known as a subheading. TABLE 1: Product Codes PRODUCT Office Furniture Kitchen Furniture Bed Room Furniture Other Furniture SITC CODE 82151 82153 82155 85159 HS CODE 940330 940340 940350 940360

7.2.

Raw Material

The basic raw material for manufacturing of furniture is wood. Wood obtained from the forest is of prime quality. Generally dry wood is recommended for manufacturing of quality wooden furniture. Forest wood is easily available in the market. Furniture manufacturing units in Pakistan mostly use Sheesham wood. Other types of wood used in manufacturing furniture are: Teak wood Walnut wood Keekar wood 13

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Sheesham

7.2.1.
Chiniot Gujrat Multan: Bhakkar Chitral Dir Sahiwal

Availability of Wood

8.

OTHER RAW MATERIAL

Although particle board and medium density fiberboard are primary products used in the manufacturing of value-added wood products such as furniture, cabinets, and other, raw materials such as lumber and structural panels, cloth, foam, lumber, LVL, MDF, Plywood, structural panels, nails, screws, glue/solution, spirit, thinner, lacquer, sealer, hardener etc are used in manufacturing of furniture. These raw materials are easily available in the market. TABLE 2: Percent of raw materials used (by value) by the manufacturing sector . Type of Wood/Raw Material Hard wood lumber Hard wood plywood Particle board MDF Soft plywood Soft wood lumber LVL LSL TOTAL Kitchen Cabnet 24 27 16 6 11 6 1 1 100 House Hold Furniture 61 13 4 10 2 4 1 0 100 Office Furniture 36 19 12 18 6 6 1 0 100

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9.

DESCRIPTION OF PRODUCT MIX

Superior Quality Superior quality furniture are made of supreme quality pure wood furniture with elegant hand carved design. Superior quality had extra carving with complex and elegant design and extra fine polishing and finishing. While superior quality sofa set was manufactured form best available upholstery material for elegant design & extra comfort. Fine Quality Fine quality furniture is made of fine quality pure wood. Simple and appealing hand carving was done with fine quality polishing. While fine quality sofa set had a quality upholstered material & elegant design. Normal Quality Normal quality furniture is made of a mixture of pure wood and substitute material Lasani, Medium Density Fiber (MDF) and win board, etc). Lasani gave fine and even surface for finishing and paint. Smooth surface gave eye-catching effect. This finish of bed set & dinning set were assumed to be of paint due to the extra fine surface. The normal quality sofa set a simple design sofa set with good quality fabric material. TABLE 3: Product Mix % Bed Set Superior Fine Normal Dinning Set Superior Fine Normal Sofa Set Superior Fine Normal Office Furniture Superior Fine Normal 20% 30% 50% 20% 30% 50% 20% 30% 50% 20% 30% 50% price of different products 50,000 15000 8,000 40,000 30,000 10,000 30,000 20,000 10,000 15,000 30,000 50,000

10.

STANDARD MANUFACTURING PROCESS

Wood is cut into different sizes of blocks and slabs. If the wood purchased is not seasoned than these blocks/slices are seasoned through different processes, namely: Condensation

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Boiler System Vacuum System Seasoning through putting the wood slices under normal environmental temperature for considerable duration.

Before start of manufacturing of any furniture product a desired design is selected. Selection of elegant design is important to ensure attractive finished product. The seasoned wood blocks are cut into desired shape and slices according to the requirement of design. The slices of wood are molded into the desired shape according to the design. Carving means different elegant pattern carved in the wood. Quality of carving depends on the skills of the labor. Once the different pieces are carved & molded than these parts/pieces are assembled or fixed together to give the shape to the final product. Assembled product is grind to make the surface smooth. Once the surface is smooth, finishing material is applied to make the surface ready for paint or polish. After the base is prepared final finishing is applied depending on requirement in term of paint/polish. Upholstery of fabric is carried out according requirement of design.

11.

HUMAN RESOURCE REQUIREMENT

The labor required for manufacturing process is easily available on daily wages, per unit basis and permanently employed. It is recommended that selective highly skilled labor should be employed permanently and other labor should be hired as and when required. The Rawalpindi Chamber of Commerce & Industry 16

Furniture Industry in Rawalpindi

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Following permanent human resource is required TABLE 4: Factory Staff Requirement Details Description Production Supervisor Carpenter Machine Man Polish Man Carving No 1 5 1 3 2 Monthly Salary in PKR ( per person) 15,000 8,000 10,000 8,500 8,000

12.
i.

DISTRIBUTION / MARKETING CHANNELS


Though the demand for wooden furniture in domestic market is persistent throughout the year, but it significantly increases during the period of October to March because of the wedding season. The demand for the furniture almost doubles during this period. Hence, the primetime to enter into market is start of August. Billboards, Radio, F.M Channels, and Newspapers are the conventional mediums, which have been powerfully used for the promotion of products.

13. SWOT Analysis (Strength, Weaknesses, Opportunities & Threats) 13.1.


Strengths

Suppliers of raw material are available in the cluster. 2,500-3,000 furniture manufacturing units present in the cluster 30,000 people (approx) are directly and indirectly attached with this occupation Strong historical background of some craftsmen

13.2.

Weaknesses

High cost of production due to high rate of raw material, operational losses, inefficiency losses, wastage costs, etc. Lack of educated, certified and professionally trained work force. There was shortage of certified/skilled manpower in furniture cluster No availability of VTI (Vocational Training Institute). There was no proper vocational training institute to train these workers about latest designs & trends and

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Furniture Industry in Rawalpindi

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latest techniques to manufacturer furniture products as per local as well as export market requirements. Unawareness of Social compliance and Environmental issues Unawares of any quality control and standards. Inability to penetrate export market with weak furniture designs based on repeated, non standard copies from catalogs/broachers Unawareness of international trade trends, markets due to poor marketing skills Poor infrastructural facilities like, roads network in the city is very bad Poor power supply. Unavailability of proper place for the manufacturers. Low level of technology Low Mechanization Relatively small and Traditional Products range Low quality control of Product Lack of testing facilities Low Labour Productivity Poor Work preparation Lack of workshop organization

13.3.

Opportunities

International furniture exhibitions. Identify international manufacturers seeking to expand their business network. Combine manufacturers/retailers International warehouses. State Bank of Pakistan recently announced scheme for the furniture industrialist to get benefit of cheaper money availability, it include financing for a plant, machinery and equipment to be used by the furniture industries.

13.4.

Threats

Migration of trained work forces from the cluster because less profit margin especially for manufacturers to the big cities like Lahore, Karachi, Gujrat etc Raw material cost increased (Due to shortage in the stock of Sheesham wood at any stage because no further plantation as required) China and Indias low price article. Lack of space for workshops Most of the manufacturer works in the commercial areas where the community is getting disturbed by their work.

13.5. THE FOLLOWING FACTS REQUIRED FOR IMPROVEMENT IN WOOD WORKING FIELDS
In past few years our country start producing Electronic and Auto Mobil Product with the help of other countries like China, Japan, Korea etc and they establish industries in the

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country and getting value added un assembled parts and gives the final shape as complete products. Wood Sector always ignored to improve the performance of this sector where the most of a single person producing the complete furniture item with traditional tools and equipments which required improvement in quality and in productivity. However, the efficiency of this sector is hampered by following the factors. Low level of technology Low Mechanization Lack of Latest Technology Relatively small and Traditional Products range Low quality control of Product Lack of testing facilities Non-availability of standards Low Labour Productivity Poor Work preparation Lack of workshop organization Lack of knowledge regarding the proper use of Raw Material and fittings. Keeping view in the above factors the persons will be required proper Training to produce high skill persons for the country and to Export the high skilled.

QUALITY AND PRODUCTIVITY IMPROVEMENT IN FURNITURE MANUFACTURING


for design & markiting

One should know that Technologies produces the products, and there are categories of technologies as below: High Technology. Medium High Technology. Medium Low Technology. Low Technology. Wood and furniture classified in Low Technology

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14.

TECHNOLOGY SETUP

Except a few units technical standard of all others is of a very low level. The furniture manufacturers are using only four basic machines to cater their machining requirements. These machines include circular saw, thicknesser planner, spindle molder and the mortising machine. Although these machines can be used to fulfill the machining requirements but excellent quality can not be achieved without the proper machines and the machining techniques. Most of the manufacturers dont have the sanding machines that also affect the furniture quality. The second problem related to machinery is that most of the machinery used in manufacturing is Pakistan made. The final quality of products manufactured on this machinery can not be compared with the products made by foreign machinery. So there is a need to improve the design and the working of Pakistani machinery according to the requirements. By improving the local machinery, a huge quantity of foreign exchange can be saved and this will also help the light engineering sector. Non-availability of seasoning plants is another problem.

15.

MACHINE AND TOOLING TECHNOLOGY

Overwhelmingly, manufacturers cited CNC technology as the number one factor influencing woodworking production in the 1990s, followed by improvements in cutting tool technology and other machine advances. The most significant trend in the woodworking industry in the 1990s has been the development of computer numeric control (CNC).CNC-based machinery offers greatly reduced set-up times. The technology is now becoming affordable for small- to mediumsize shops. CNC machining systems from vhf are universally applicable. A stable construction made of aluminum profiles, precise steel linear guides, powerful High Torque driving motors these are features which apply to all vhf CAM systems. Thus you can use all systems for powerful milling works or precise engravings as well as for special tasks like cutting, embossing, dispensing, marking, screwing etc. Most recently used machines description is given below.

15.1.

CNC Engraving Machine

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Description It can make cutting, carving processing to wood, plastic and marble etc. Also used in manufacture industry for copper, iron and aluminum work piece processing. Artwork industry: Carving various characters and figures on gifts, furniture, wood articles, artworks and souvenirs. Matrix processing industry: Applied in carving of elaborate characters and patterns, processing of small matrix products. Building model industry: Carving some elaborate small windows, fences, wall decoration patterns etc. Seal industry: Carving various seals with cattle horn, plastic, wood and ink storage matt.

15.2.

Wood Carving Machine

Description High-speed processing: curved, straight line speed, speed 35 m / minutes. Good parts: The German production of ball screw and linear guide import, select outstanding Stepper System, import bearings, spindle motor power. Rational design: the use of advanced dual-axis rack gear transmission, high speed, strong strength.

TABLE 5: Contact Information The Rawalpindi Chamber of Commerce & Industry 21

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Company Name: Company Address: Company Phone: Company Fax: Contact Person: Contact Phone: Website:

Chengdu Dahua Shengyi Science & Technology Development CO., Ltd. B37, Nanhai road, Jiaolong Industrial Harbour, Qingyang district, Chengdu, China 86-28-87078556 86-28-87079099 Li Youduan (General manager) 13908014175 http://dhsy.diytrade.com

Company Contact Person Other Items Telephone Fax Address Web Site

Ajman Factories Equipment Trading Co. Mr. Bhagwan Swaroop More 3 Trade Leads 91-6-7472-141 91-6-7471-742 Ajaman Factories Equipment Trading Company, Post Box: 5538, Ajman, United Arab Emirates, Ajman, India 5538 www.graffpinkert.com, www.alibaba.com

16.

What is Quality?

Different people may have different views on what quality is? In general that the product should gives pleasant usual appearance, dimensional accuracy (proportion), good performance, long life service, good surface finish and reliability.

16.1.

Definition of Quality

Satisfy the Customer. Meet all needs, use or purpose. Comply with all standards and specifications. Comply with Statuary and other requirement of the society. Available at competitive Rates. Flexibility in Profit Gain. Need for Quality Control

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It is a general rule, if defects are eliminated, control or minimize through quality the cost of the quality will be decrease. It is simply common sense if the product produced substandard or if product required repair at any stage then off course extra cost will be incur and if produce goods with good quality and as per standard, naturally cost will decrease and the customer satisfaction will be improved which means the quality control is important factor in furniture manufacturing.

16.2.

Substandard Quality Reasons

Following reasons can be effect the product in substandard quality Poor Design Substandard Raw Material / Defective Use f impropriate Machine and tools Impropriate environment Human errors

16.3.

Quality Control System or Quality Management

Objectives for good quality; Maintain design standard To meet customers specification To determine department/Personal effectiveness To detect and correct effective product and parts Quality Control in Furniture Manufacturing Introduction. - Quality control is not only just a judgment concern - Improvement required the product quality throughout the manufacturing process In below chart two same color portions left and right represent those that fail to meet the requirement. Left side shows below standard shows the loss and the right also shows the loss because of above standard.
Lower Limit Upper Limit

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Below Standard

Acceptable

Above Standard

Total quality control system


The basic element of the total quality control system include: . Policy, planning and administration . Product design and design change control . Control of purchased material . Production quality control . User contact and field performance . Corrective action . Employee selection, training and motivation Introduction Machining Accuracy Moisture Content Machined Surface Quality

Introduction.
The practice of quality control, like any other aspect of production management requires a fair share of planning and commitment from the management. In the earlier chapters, the benefits of a good quality control Programme have been elaborated. However, these benefits can only be materialized provided that the quality Programme is systematically implemented. This will require, besides the quality control procedures, a thorough understanding of the raw materials and processing technologies, and sound management decisions. The Figure below is a schematic diagram that illustrates a good quality control system.

Quality Control Areas Lumber Yard Rough Mills Machine Shop

Acceptance sampling Process Control Process Control

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Assembly Sanding Finishing Shop Packing/Warehouses

Process Control / Acceptance Sampling Process Control Process Control Acceptance Sampling

16.4.

Quality Control in Furniture Manufacturing

In the manufacture of furniture, the real challenge lies in achieving products that are of a consistent quality level within acceptable standards and at competitive costs. The first being the defects that are associated with the raw materials. If these are not eliminated, they can be carried through the manufacturing processes. These defects generally affect the surface quality and, to a certain extent, the strength of the joints as well as the stability of the finished products. Defects in raw materials are difficult to correct. Inspection, either 100% or sampling inspection, must be conducted to detect all those unacceptable defects. Common raw material defects include natural defects such as knots, compression failures and brittle hearts, and drying defects such as splits, checks, spring and twists; and other defects such as stain and insect infestation. The rough milling or the stock preparation section of a furniture mill should there for e reject or correct most of these defects before the raw materials are fed into the mill. Defects of Raw Material Natural Handling damages Drying defects Defects Introduced By Manufacturing Processes Surface Quality Dimensional accuracy

Basic Sources of Defects


The second source of defects arises form manufacturing processes. Slight inaccuracy in machining of parts or components may be accumulated through the manufacturing processes and result in large variations in the quality of a piece of finished furniture. Although certain variations are inherent to the performance of machines, these variations should be monitored and controlled. This chapter will focus the discussion on the machining, moisture content control and some related quality requirements in wooden furniture manufacturing. The main sources of defects or quality discrepancies will be discussed, and appropriate corrective measures will be suggested. Other important aspects such as wood drying and the adhesive and finishing requirements will not be discussed as these subjects have been adequately covered in other ATTC publications. Whenever possible, quality control procedures will be suggested to assist manufacturers in the implementation of a proper quality management system. Quality Control in Furniture Manufacturing

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Machining Accuracy
Accuracy in the machining of parts and components is critical as inaccurate machining will pose problems in the assembling process and also the overall quality of the finished products. Poor accuracy will result in parts that cannot be assembled properly. In extreme cases such a loose joints and poor edges, the components may have to be totally rejected. Very often, machining accuracy problems arise because the machine has been continuously operating without checking for the need to re-set, resulting in some items of the output accurately machined but some are not. Many operators would assume that once a machine is properly set up, the machine would produce the same accuracy irrespective of whether the machine has been operation for an hour or ten hours. Therefore, proper set-up of the machine alone is not sufficient and the only way to ensure consistent accuracy is to monitor the performance of the machine and the accuracy of the output constantly. There are many machining processes involved in the manufacturing of furniture and it is essential to monitor each and every one of these processes. Figure below summarizes the accuracies in machining that need close control.

Overall Dimensional Accuracy Thickness Width Length Square ness

Accuracy of other measures Intervals Pitch Hole depth Inclination Groove depth Hole diameter

MANUFACTUREING ACCURACY IN PROCESSING


Inaccuracies in machining could be attributed to a combination of any of the following factors: Machine setting Wearing of jigs and fixtures Wearing of bearings, chucks, cuffer heads, or any other holding mechanism for the work piece, bit, knife, saw blade, etc. Machine setting generally involves the adjusting of the machine to produce the desired dimension, such as thickness, width, length, interval, pitch, etc. Special setting gauges are available, such as those for the setting of knives in cutter blocks. Precision instruments such as dial gauges or veneer calipers should be used for machine setting.

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A machine that has been properly and accurately set up will not consistently an continuously be producing the accuracy as indicated by the test runs. This is due to the existence of vibrations of the cutting tools, parts and components of the machine, and even the machine itself. This explains why test runs will only give a nominal measure of the required dimensions. Actual dimensions or measures will vary over a certain range depending on the general conditions of the machine. For example, it has been reported that, with bearings in good condition, most wood working machines will produce an accuracy of 0.05mm. Actual studies have indicated that the maximum accuracy is more likely to be between + 0.1 mm and + 0.3 mm. Therefore, it is not surprising to notice thickness variations of between 21.7 mm to 22.3 mm in boards produces by a thickness that has been set and checked through test runs to produce 22 mm thick work pieces. In addition, the accuracy of a machine will deteriorate through usage due to the wear and tear of the bearings, chucks or other moving parts and components of the machine. Similarly, wear and tear of jigs and fixtures can happen and this will result in excessive movement of the work piece during machining. This would induce large variations in the accuracy of the machining process.

Dimensional Tolerances
The existence of unavoidable Variations in the dimensions of work pieces explains the necessity of having tolerances. Tolerance is the amount of allowable deviations from the actual dimension required. This allowance will not affect the quality of the finished product. For example, if the nominal thickness of a required component is 25 mm with a tolerance of 0.5 mm, then all pieces having a thickness of between 24.5 mm and 25.5 mm can be accepted. It is important to note that a good knowledge of the machine accuracy will be required in determining the nominal dimension so that all the dimensional variations will be within the customers specified tolerance limits.

Moisture Content
The drying of wood is the first and perhaps the most important process in the manufacture of furniture. If the manufacturer does not have sufficiently and properly dried wood, he will not be able to manufacture quality wood products. This is because wood, in its natural state, contains a large amount of water. Wet Wood is heavy and unstable. It will not maintain its original size and shape no matter how carefully and accurately machined. It will not sand well, nor glue well and it cannot be finished properly. Therefore, it has to be properly dried before use. The technology in timber drying, including kiln drying, is not new and various literature are available on this subject. Instead of dealing with the principles of drying, this section will focus on the practical aspects of moisture content in relation to the performance of wooden furniture.

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Many of the problems associated with the use of wood for furniture manufacturing are caused by dimensional changes. The dimensional movements are due to changes in the moisture content of wood during prolonged exposure to different relative humidities. The application of a lacquer to all exposed surfaces slows down the rate of change of moisture content but it does not prevent changes occurring in furniture that is moved from one environment to another. If, for instance a chair frame assembled under normal factory conditions is exposed to a particularly dry conditions the wood will shrink as it dries out. This can result in the loosening and weakening of joints and in extreme cases, cause failure of the joint. To avoid such failures, furniture should be manufactured from wood which has moisture content about mid way between the extremes of moisture content expected expected in service. It is a well known fact that a piece of wood stored at constant relative humidity will eventually reach a characteristic equilibrium moisture content. If the relative humidity increases, the wood moisture content will also increase as it absorbs water vapour form the air and , conversely, if the humidity falls, the wood moisture content will fall as it releases water vapour into the drier air. Charts are available relating the equilibrium moisture content of wood to the relative humidity of the surrounding air. Such charts can be used to determine the optimum moisture content of the wood at the time of assembly into furniture intended for use in particular conditions. The modern production method is to process the kiln-dried wood, say at 06 08% moisture content through the rough mill and then machine the wood to final dimensions before any appreciable change in moisture content has occurred. Subsequently, the finished parts are placed in a parts store or are stacked in an assembly area where the humidity can be maintained to prevent moisture pick-up during prolonged storage periods. Once the furniture is properly finished and packed, the risk of excessive moisture movement will be minimized.

Machined surface Quality


In furniture manufacturing, Wood is surfaced or shaped by using various types of cutters and knives carried on blocks. Cutter knives play an important role in determining the quality of a machined surface. Depending on the species of wood to be machined, knife angles, knife types and other parameters have to be carefully considered. There are three types of knives that are commonly available, i.e., high speed steel (HSS) knives, satellite tipped knives and tungsten carbide tipped (TCT) knives. The resistance against abrasion (and therefore service life) is lowest for HSS knives, followed by the satellite tipped type and the TCT knives. HSS knives are suitable for most softwood and light density hardwood with little silica content. For high density hardwood and wood with high silica content, TCT knives will last longer. Knife Geometry

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The parts and angles of a typical knife are shown in figure below. The Face of the cutter, which generally has an insert of semi or high speed steel or a tip of tungsten carbide, is the surface which raises the wood fibres in the form of shavings or chips and bends them over until they fail in compression by the rotating action of the cutter. A bevel ground on the edge of the cutter face is called the face bevel or front bevel.

Parts and Angles of Typical Cutter The Back is the ground bevel surface of the knife next to the work piece. The thickness of the cutter varies with the particular cutter block used and the work it has to perform. It may vary from 3mm (1/8 in.) for knives used on circular blocks to 12mm (1/2in.) thick for square cutter blocks. The Grinding angle is the angle formed by the face and the back of the knife, or the angle between the front and the back bevels. It also provides the sharpness to the edge and is equivalent to the sharpness angle when the front and the back bevel angles are absent.

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The Sharpness angle is the same as the grinding angle unless the front or the back bevels have been ground on the knife. When these are ground, then the sharpness angle is increased by an amount equal to the front level angle and /or the back bevel angle. The Clearance angle is the angle between the grinding bevel (or the back bevel if there is one ) and the tangent to the cutting circle. The Value of this angle is related to the sharpness angle. The lack of a clearance angle increases the cutting friction and impact on the cutting edge. Actually, very little clearance angle is necessary this is determined by the required cutting and sharpness angles. The Cutting angle of a knife is the angle of the knife in relation to the cut or the angle formed by the face of the knife and a radial line drawn from the centre of the cutter block. The cutting angle of a knife exerts great influence on the finished product, the feed resistance and the power consumption. The angles to be selected for machining will depend on the density and the grain orientation of the timber. Standard cutter blocks generally come with a cutting angle of between 30 to 35. It is possible to very the cutting angle by varying the projection of the knife, or grinding a bevel on the face (front bevel). By varying the cutting angle, the quality of finish can be improved. Wear on the cutter is affected by the sharpness angle. It has been found that as the angle is reduced to below 30, wear increases rapidly. Hence, the sharpness angle should not be less than 30 for HSS type and not less than 40 for TCT type. In fact, a large angle gives strength and rigidity to the cutting edge.

The clearance angle is dependent on the cutting and sharpness angle. It is generally not less than 20 for HSS cutters and not less than 5 for TCT type. Table below given a general guideline on knife geometry for the machining of wood having various types of characteristics. Type of grain Cutting Angle Frontbevel Grinding angle H.S.S. T.C.T Type Type 30

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R&D Department

Non-interlocking, on-woolly Interlocking, on-woolly Woolly & fiber raising

30 20 15

0 10 15

40 40 40

55 45 40

When a piece of timber is fed through a rotating cutter block with accurately jointed knives, the cutting action is not continuous but intermittent i.e. one knife enters the timber to cut and lift off a shaving followed by the next knife in the block. In this manner, a series of ridges, known as cutter marks, is produced by these cutting actions. The distance between one ridge and the next, known as the pitch, corresponds to the distance between the start and finish of the cut by a single knife. The longer the pitch, the more visible the cutter marks and the less smooth is the planed surface. Consequently the surface finish can be gauged by the number of cutter marks per unit length, or the pitch which is equivalent to the reciprocal of the number of cutter marks per unit length.

17.

INTERNATIONAL FURNITURE TRADE

The international market for furniture increased significantly from the mid-1970s to 1988. Growth proceeded at a slower rate in the later 1980s and early 1990s due to a general economic downturn, particularly in Europe (West and Smith, 1992). The majority of the furniture trade involves member countries of the Organization of Economic Cooperation and Development (OECD) particularly import trade. Worldwide exports to OECD countries grew from $1.2 billion to $8 billion from 1972 to 1982 (Smith and Ma, 1990). In 1983 imports totaled $8.4 billion and increased further to $21.9 billion in 1989 (Anon, 1990). The total trade balance in furniture products for all OECD countries in 1986 recorded an overall deficit of $2.1 billion (Smith and Ma, 1990). Total furniture imports into the markets more than doubled between 1983 and 1987, increasing from $8.4 billion to almost $18.4 billion. The largest furniture importer is the United States and the second largest is Germany (Alabaladejo, 1989). Imports from developing countries, that is non-OECD members, have increased 168% between 1983 to 1987 (Alabaladejo, 1989).

17.1.

Marketing Strategies for Export

A strategy is just a sophisticated name for a plan. Exporter should have one basic plan for exporting; such a plan can be broken down into five basic steps: 1. Market Research

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Furniture Industry in Rawalpindi 2. Product design 3. Pricing 4. Distribution 5. Promotion

R&D Department

17.1.1.

Market Research Strategies

Market Research Strategies for Export the manufacturer should determine which foreign market to target first. In targeting likely foreign market, the exporter should use a "Checklist" of factors. In practice, market research through the participation in a trade fair, government sponsored export mission or personal visit to foreign countries. Once a preliminary survey has suggested one or a few countries for closer investigation, the exporter should find out: 1. The potential size of the market for its product 2. The types of customers, competitor's products and their prices 3. The most suitable channels of distribution 4. The best way of entering the market (agent, joint venture, etc) 5. The existence of any market opportunities that would provide a market "niche" and "competitive edge" Smaller exporter may wish to reduce the costs of any market survey by using government services available. Trade Commissioners stationed at embassies abroad are only too willing to help the exporter assess the foreign market and suggest likely distributors. So long as the export firm provides adequate product literature, samples and other necessary information. If the market research required, is beyond the scope of the Trade Commissioner, he will suggest the names of some suitable local market research firms. Some manufacturer may decide not to export them, but employ a trading house or export agent to act on its behalf in seeking market opportunities, promoting and securing orders. Checklist for Market Analysis Product Advantages? Sufficient Potential Volume? Adequate Plant Capacity? Adequate Export Financing? Sufficient Availability of Raw Goods? Compliance with all Export Market: Rules/Regulations/Labels? Ability to Provide Satisfactory Servicing in Export Market? Availability of suitable Banking Facilities in Export Market? Stability of Economic and Political Climate in Export Market? The Rawalpindi Chamber of Commerce & Industry 32

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Availability of Adequate Warehousing? Adequate Shipping/Transport Facilities in Export Market?

17.1.2.

Product Strategy for Export

The export firm may find a foreign market for its existing product without the need on any kind of redesign. Very often, some minor modifications may be necessary to capture a share of the foreign market. The modifications may be due to legal requirements, for example: product labeling regulations, weight and measures, language or may be dictated by the local culture or climate. From the export point of view, a firm's product can be divided into three aspects: 1. The physical product itself. 2. The package in which the product is sold and the name. 3. The service that is provided together with the product.

17.1.3.

Product Package and Name checklist

The package used to enclose the product for local market may not be suitable for export. Questions to be answered should include: Does the product need extra protection from rough handling, or climatic extremes? Is the product easily recognizable and appealing to the foreign customer? Does the label conform to local regulations? Does the label clearly indicate the contents, even to persons who may be illiterate? Does the label need to be in a foreign language? Does the logo or brand name have another, perhaps undesirable meaning in the local language? Does the package need to be larger or smaller than the one sold locally? Perhaps local consumers can only afford to buy smaller quantities of it. Have the brand name and trademark been registered in the foreign country?

17.1.4.

Pricing Strategy for Export

The price charged for the export product, should cover all the various costs involved in
producing and marketing it. Sometime, an exporter may be satisfied with just breaking even or even incurring a loss - with a view of getting established in a new market.

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It is tempting to sell products at a price that covers only the variable costs of each unit sold to make some contribution to the fixed costs or factory overhead. There is always the risk that the exporter can be accused of dumping its products abroad and are required to pay anti-dumping import duty. An exporter should calculate and determine all the costs involved in selling its product in the foreign market, including: Foreign agent's commission .It's own required profit, and then quote a price on that basis.

Any pricing strategy must be flexible to take advantage of: special discounts for quantity purchases or special introductory prices.

17.1.5.

Checklist of Pricing Strategy for Export

Pricing procedure - for costing and Export quotation Product cost Export cost Duty drawbacks Net Profit Foreign agent's commission Basic selling price Insurance cost C.I.F. price to foreign port Competitor's prices Local agent's commissions Warranties cost Credit terms - interest cost

17.1.6.

Checklist for Export Distribution Strategy

"There are many ways an export firm can get its products into the foreign markets." Direct Export, to sell the product yourself - this means that the manufacturer must have its own sales representative abroad or an import agent working on a commission basis or foreign distributor who buys the goods for resale. Indirect export, by selling the goods to another local firm (with lower profits) in its own country that re-exports them or engages the services of trading house or export agent on a commission basis.

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Furniture Industry in Rawalpindi Checklist for Export Distribution Strategy 1. Direct Export a. Export Organization b. Export section c. Export manager d. Export department 2. Representatives abroad a. Own employees b. Agent c. Marketing agreement 3. Export merchant 4. Export agent 6. Resident foreign buyer 7. Advantages of indirect exporting 8. Disadvantages of indirect exporting

R&D Department

9. Exporters should make full use of government promotion that is available, they may include the following: Export subsidiary Government trade missions, trade fairs, and incoming buyers Government export promotion services (for initial market research and to identify prospective customers and distributors) Consulates and Embassies abroad (also for initial market research and to identify prospective customers and distributors) Government financial and other export promotion assistance.

17.1.7.

How to do Export Promotion?

"Promotion is the term used to describe marketing activities - to persuade potential customers to buy your goods or services." What are the various ways to promote your products abroad?. The exporter must consider, if he plans to use agents or distributors to handle his product channels of distribution, his first task will then be to promote the product and his company to them.

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The next task is to consider, whether current brochures would be suitable for use with foreign agents, distributors or buyers. Does the promotional material needs to be translated into the local foreign language to make it acceptable. Promotion blend, in promoting the export of its product or products, the exporter will have to decide on an appropriate blend of advertising, selling and other sales activities. Promotion budget, in practice the amount of money available to be spent is often an arbitrary figure set by top management, varying according to its keenness to get into the export market. As a rule, the planned expenditure should be at a percentage of expected sales This budget could be divided in one of the following suggested ways: 1. For consumer goods 45% advertising 35% selling 10% other promotion 2. For industrial goods 55% selling 25% advertising 10% other promotion (including trade fairs) In the introduction stage of the exporter's product, emphasis must be on informing consumers, making the product easily available, and encouraging the foreign consumer to try it. In the market growth stage, the firm should concentrate on promoting brand loyalty. Later, in the market maturity stage, promotion can be placed on product differentiation trying to make the product as unique and differential as possible from competitive ones. Sales decline stage, if and when sales begin to slip, special promotion efforts will be required. The type of customers - Is the promotion aim at Industrial user or middlemen. Advertising and samples are often the most efficient way of persuading middlemen to try a new food product. Whereas, personal selling is essential in reaching wholesalers. Trade fairs and trade journals is an excellent way of reaching industrial users. Looking for sales leads, there should be some systematic way e.g. advertising in trade journals, direct mail to prospective buyers, participation in trade shows, etc. or aware of buyer's guides and trade directories for source of prospective agents, buyers, etc. Finally, in the area of export promotion, you should consider a systematic way to keep track of the company's promotional activities in that foreign market, customers, other contacts made and decide how often to follow-up and visit to the foreign market to develop personal contacts. The Rawalpindi Chamber of Commerce & Industry 36

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Conclusion, an analysis of the promotion blend should help the exporter decide in spreading its promotional effort in an optimum combination of advertising, selling, and other promotional activities such as credit, product warranties, training, special introductory offers, samples, contests, displays, sales aids and after-sales service etc.

17.2.

Export Statistics

Wooden furniture is manufactured in Pakistan by a large number of cottage industries, spread over rural areas, small towns and cities. Pakistan's tradition of wood-carving has been considerably enriched by the continuing addition of new furniture designs in vogue overseas. Furniture makers keep themselves well acquainted with the latest design kits. The fast growing furniture industry is aiming at developing a system designed to incorporate its tradition with modern functional demands, coupled with a feeling for the quality of the material and of aesthetic values. Today, a large quantity of wooden furniture is manufactured in Pakistan at the cottage level. The environment and conditions being favorable, the wooden furniture industry holds out a bright scope for further expansion. There is a need to further explore the international market for boosting exports, as there is a lot of potential for increasing the market for the Pakistani furniture. The wood furniture industry in Pakistan can be divided into two main types; cottages and small-scale industry. These units, which are not mechanized, use out-dated tools and employ manual labor for the production of furniture. The demand for furniture has been rising constantly for the domestic market, as well as for the export. TABLE 6: Export of Furniture from Pakistan Value In 000 USD Commodities Furniture & Mattress Furniture Furniture of Metal Furniture of wood Furniture of Other Materials Source : TDAP 2001-02 20,719 6,255 112 5,692 451 2002-03 17,499 8,782 165 8,409 208 2003-04 47,629 10,326 373 9,711 242 2004-05 176,365 13,135 830 11,708 597 2005-06 45,523 11,040 1,005 9,683 352

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TABLE 7: Export from Pakistan with Average Unit Price during 2007-08 Commodities Furniture Value Source TDAP June 2008 1,398 June 2007 818 % Chng. 70.90 JulyJuly-June June 20062007-08 07 11,236 % Chng.

10,562 6.38

17.3.

Potential Areas

The whole world is open for Pakistani furniture; the list of countries is given below. TABLE 8: Major Buyers S. No. 1 2 3 4 5 6 7 8 9 10 11 Source: TDAP USA The United States of America (commonly referred to as the United States, the U.S., the USA, or America) is a federal constitutional republic comprising fifty states and a federal district. The country accounts for approximately 50% of global military spending and is a leading economic, political, and cultural force in the world. The United States is the sole buyer of the Pakistani bedroom furniture, while the UK and Gulf countries import kitchen and office furniture from Pakistan. The Rawalpindi Chamber of Commerce & Industry 38 Countries Dubai Saudi Arabia Oman Kuwait USA SriLanka UK Germany Farance Canada Italy

Furniture Industry in Rawalpindi

R&D Department

The people of European countries like both types of furniture - i.e, wooden and metallic. The export of walnut woods furniture is in less quantity because this type of wood gets damaged during transportation. Table 9: Trade of furniture Period Office Furniture 2003 2004 2005 2006 2007 Kitchen Furniture 2003 2004 2005 2007 Bedroom Furniture 2003 2004 2005 2006 2007 Other Furniture 2003 2004 2005 2006 2007 Trade Flow Export Export Export Export Export Export Export Export Export Export Export Export Export Export Export Export Export Export Export Reporter Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Partner USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA Code 940330 940330 940330 940330 940330 940340 940340 940340 940340 940350 940350 940350 940350 940350 940360 940360 940360 940360 940360 Trade Value $12,505 $119,794 $76,439 $131,863 $320,035 $2,494 $768 $3,895 $13,515 $8,624 $155,735 $85,164 $164,715 $109,488 $1,476,376 $883,731 $1,807,953 $1,068,344 $782,290

Source: www.comtrade.un.org Italy: Italy is a country located on the Italian Peninsula in Southern Europe and on the two largest islands in the Mediterranean Sea, Sicily and Sardinia. Italy shares its northern, Alpine boundary with France, Switzerland, Austria and Slovenia. Italian Furniture Industry

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Italian furniture production is broken down by segment (office furniture, upholstered furniture, kitchen furniture, bedroom dining and living room furniture, other seating, other furniture and parts). Italian furniture consumption is broken down by segment as well, together with an analysis of home furniture sales by distribution channels (small scale independent retailers, specialized large furniture distribution, non specialized distribution, others). Italian furniture imports and exports are broken down by country and segment (office furniture, upholstered furniture, kitchen furniture, bedroom furniture, dining and living room furniture, non-upholstered seats, other furniture, furniture parts and seating parts). Profiles are provided for the major Italian furniture manufacturers, with data on turnover, product type, activity. 10: Trade of furniture Products Office Furniture Office Furniture Office Furniture Office Furniture Kitchen Furniture Kitchen Furniture Kitchen Furniture Kitchen Furniture Other Furniture Other Furniture Other Furniture Other Furniture Other Furniture Trade Value $6,987 $3,221 $209,858 $109,502 $1,965 $54,057 $36 $8,343 $118,416 $253,974 $799,160 $244,234 $194,805

Period 2004 2005 2006 2007 2004 2005 2006 2007 2003 2004 2005 2006 2007

Trade Flow Export Export Export Export Export Export Export Export Export Export Export Export Export

Reporter Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan

Partner Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy

Code 940330 940330 940330 940330 940350 940350 940350 940350 940360 940360 940360 940360 940360

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Source: www.comtrade.un.org

JAPAN Japan is an island country in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, People's Republic of China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south. Japan furniture industry Traditionally, Japan's furniture market has been heavily dependent on the so-called box furniture. This type of market, however, is gradually fading away. Instead, the focus of home-use furniture demand is shifting to furniture sets for reception rooms. The increasing adoption of western housing and interior designs will further accelerate this trend. Many single-family dwellings and condominiums come with built- in furniture such as walk-in closets. The Japanese consumers have a traditional attachment to wood. They dislike the presence of knots in the furniture surface, and expect manufacturers to perform careful finishing to all parts. Hence, products that emphasize the beauty of the wood grain will be an important key to success.

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Furniture Industry in Rawalpindi Table 11: Trade of furniture Period 2005 2006 2007 2004 2005 2006 2007 2003 2004 2005 2006 2007 Trade Flow Export Export Export Export Export Export Export Export Export Export Export Export Reporter Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Partner Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Code 940330 940330 940330 940350 940350 940350 940350 940360 940360 940360 940360 940360

R&D Department

Trade Value $9,814 $11,522 $15,872 $36,498 $7,462 $5,167 $43,679 $123,370 $77,845 $44,127 $70,421 $119,735

Office Furniture

Bed Room Furniture

Other Furniture

Source : www.comtrade.un.org

17.4.

World Market for Pakistans Furniture

The value of furniture export is very nominal, but a beginning has been made and with aggressive marketing strategy, the value of exports can further be increased in a short span. Pakistan's share in the total world market is quite negligible, and there are bright prospects for increasing this share. TABLE: 12 World Trade Volume Furniture Products World Trade Volume Furniture Products Code Description Value in 000 USD 940350 Bed Room Furniture 9,082,171 940330 Office Furniture 3,651,876 The Rawalpindi Chamber of Commerce & Industry 42

Furniture Industry in Rawalpindi

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940340 Kitchen Furniture 940360 Other Office Furniture (Seats etc) All Total Volume
Trade Volume Furniture Products

4,953,473 23,868,800 41,556,320

22%

Bed Room Furniture Office Furniture

57%

9%

Kitchen Furniture Other Office Furniture (Seats etc)

12%

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Furniture Industry in Rawalpindi

R&D Department

18.

PROBLEMS IDENTIFIED

The problems being faced by the cluster are as follows: i. Unorganized Nature Over the number of meetings that were held with the various craftsmen & retailers they had expressed the feelings that they were not organized properly in one way or the other. They were aware of the problems but were unable to find any solution for them. ii. Technology Issues Lack of modern & efficient wood processing & hand carving tools/equipments, This industry was faced with the issue of traditional tools & equipment for woodworking and wood carving. There was no concept of latest and modern computer numeric control (CNC) machinery in the cluster. Mostly craftsmen in the cluster were poor; they had no capacity to buy such costly machinery. iii. Marketing Issues 1. Unawares of international trade trend, markets due to poor marketing skills. 2. Stakeholders are unaware of any quality control and standards 3. Unawares of international certifications and non-tariff barriers 4. Currently most of the units supply furniture products to local market are in unpolished (kora) form. There were only 4-5 manufacturers in Rawalpindi who exported directly. iv. Human Resource Issues 1. Lack of educated, certified and professionally trained/skilled work force 2. No training of skills development centre/institute facilities. There is shortage of certified/skilled manpower in furniture cluster. Most of the craftsmen are uneducated. All the labor force and craftsmanship has been developed through the inherited system of Ustad and Chhota There is no proper vocational training institute to train these workers about latest designs & trends and latest techniques to manufacturer furniture products as per local as well as export market requirements. Financial Issues Inaccessibility to obtain formal financial support resulting in loan credits from informal sector at higher cost of capital Majority of the SMEs in cluster required finance for working capital and machinery/equipments. Most of the banks are reluctant in financing these SMEs because they do not have proper documentations as required. This is the actual reason in loan credits from informal sectors at high cost of capital.

v.

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Furniture Industry in Rawalpindi vi. Few Facilities of Vocational Training

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Presently there are limited facilities of vocational training furniture industry. There are furniture training institutes at Rawalpindi. Moreover, these institutions are not abreast with the latest developments across the globe. The curriculum is obsolete and has not been updated since ages. There is one Punjab Small Industries Institute in Rawalpindi.

PSIC WOOD WORKING CENTRE

Tipu Road,Moti Mahal Cinema Rawalpindi Ph. # (92-51) 9280759

vii.

Lack of Design Innovation

Innovative and good design can make a significant contribution towards improving productivity and competitiveness. The design component gains paramount importance in view of consumers becoming increasingly design conscious. Pakistani furniture industry lacks design innovation due to unavailability of latest information on new designs and absence of skill among the manpower to copy such designs.

19.

RECOMMONDATION
Establishment of Raw Material Bank that will ensure consistent supply of ready to use raw material. Provision of trade, marketing and business development services Establishment of training institution that will provide skilled & professional manpower. Financial institutions to provide and devise loaning schemes to facilitate and to meet financial requirements of the cluster. Capacity building of private/public institutions and associations Make the existing unregistered association a register association Separate industrial state is required.

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Annex 1

R&D Department

EXPORT POLICY ORDER, 2005


Islamabad, the 21st July, 2005 ORDER S.R.O.________(I)/2005 - 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, 2005. (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, Sample means goods in limited quantity clearly identifiable as such and of no commercial value; and 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 to this Order. 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:-

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(a)

any goods constituting the stores or equipment or machinery parts and kitchenette of any outgoing vessel, conveyance or airline or the bonafide 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; 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; export of samples subject to the following conditions, namely:that the export of such goods is not banned, the f.o.b. value does not exceed twenty five thousand US dollars (US$ 25,000) or equivalent per exporter per annum, and that the goods are supplied free of charge: Provided that leather garment manufacturers shall be entitled to export one hundred samples per annum, irrespective of monetary value. Provided further that the monetary and quantitative ceilings shall not be applicable if the samples are exported in a mutilated form;

(c)

(d)

(e) (f) (g) (h)

export of gift parcels of a value not exceeding five thousand US dollars (US$ 5,000), or equivalent in Pak. Rupees; export of relief goods to any part of the world by the Cabinet Division (Relief Cell), Government of Pakistan; bonafide baggage of persons traveling outside Pakistan; and 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 III, the prescribed conditions have been met.

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(3) Transit and Border Trade shall be allowed under the procedure prescribed therefore. 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 The Rawalpindi Chamber of Commerce & Industry 4

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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) zerorating 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) zerorating 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:the waiver shall be applicable strictly to exports made to ISAF; shipments to ISAF are made by their authorized agents duly endorsed by the ISAF receiving agent in Afghanistan; and The Rawalpindi Chamber of Commerce & Industry 5

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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 ofa copy of contract; and 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 traveling abroad, on the basis of carnet de passage issued by Automobile Association of Pakistan, or a guarantee issued by Pakistan Transport Mutual Assistance Co-operative Society Ltd., 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-cumimport. 10. Re-export of Goods or items (except banned items as per Schedule-I of this Order and items on the negative list Afghan Transit Trade);-Export of imported goods in their original and unprocessed form shall not be allowed except;Parts obtained from ship breaking; Scrapped battery cells; Waste dental amalgam; Waste exposed X-ray films; Old machinery provided no refund of import levies or duty draw back shall be made; The Rawalpindi Chamber of Commerce & Industry 6

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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 Imported goods in their original and unprocessed form provided that re-export is made against sight letter of credit or advance payment. 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; 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 conditional ties; and 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 conditionality imposed under relevant provisions of the following Acts, Ordinances and Laws shall be treated to be restrictions and conditional ties under this Order, namely:the Antiquities Act, 1975 (VII of 1976); The Rawalpindi Chamber of Commerce & Industry 7

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the Arms Act, 1878 (XI of 1878); the Copyright Ordinance, 1962 (xxxiv of 1962); the Customs Act, 1969 (IV of 1969) the Drugs Act, 1976 (XXXI of 1976); the Explosive Act, 1884 (IV of 1884); the Foreign Exchange Regulation Act, 1947 (VII of 1947); the Merchandize Marks Act, 1889 (IV of 1889); the Pakistan Animals Quarantine (Import and Export of Animal and Animal Products) Ordinance, 1979 (XLIX of 1979); the Poisons Act, 1919 (XII of 1919); the Petroleum Act, 1934 (XXX of 1934); and any other law 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. 16. Repeal. - The Export Policy Order, 2004 is hereby repealed.

Export Regulations by Pakistan Customs


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. 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; (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 The Rawalpindi Chamber of Commerce & Industry 8

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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 traveling outside Pakistan; and persons traveling 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 therefore 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.

The Rawalpindi Chamber of Commerce & Industry

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