000717

GOVERNMENT OF PAKISTAN MINISTRY OF COMMERCE
ORDER
Islamabad, the 17th July, 2000

S. R. O. 489 (1)/2000.---In exercise of the powers conferred under sub-section (1) of section 3 of the Imports and Exports (Control) Act, 1950, (XXXIX of 1950), and in supersession of the Import Policy Order; 1999, Import and Export Procedure Order 1999, and the Import Trade Order 1998, the Federal Government is, pleased to make the following Order, namely:

1. Short title, commencement.- (1) This Order may be called the Import Trade and Procedures Order, 2000.

(2) It shall come into force at once.

2. Definitions.- In this Order, unless the context requires otherwise.-
(a) "Act" means the Imports and Exports Control) Act, 1950 (XXXIX of 1950);
(b) "actual user" means a firm, institution, body or person, not registered as an importer who wishes to import for own use;
(c) "Appendix" means an Appendix to this Order;
(d) "Authority" means the Secretary to the Government of Pakistan in the Ministry of Commerce or any other officer authorized by the Federal Government to perform the functions of the Authority under this Order;
(e) "banned item" means a product whose import is not allowed except with special authorization;
(f) "edible product" means a product listed at Appendix F;
(g) "exporter" means any person with valid registration as an exporter under Registration (Importers and Exporters) Order, 1993;
(h) "fiscal year" means the period commencing on 1st July and ending on the 30th June of the succeeding year;
(i) "importer" means 'any person with valid registration as an importer under the Registration (Importers and Exporters) Order, 1993;
(j) "industrial user" 'means an industrial establishment that .imports for its own use or consumption, and is registered as such under the Registration (Importers and Exporters) Order 1993.
(k) "Place of Origin" or "Origin" means the country of supply where goods are produced or manufactured.
(1) "prescribed" means prescribed by rules or orders under the Act;
(m) "restricted item" means a product whose import is subject to conditions specified in this Order;
(n) "samples" means goods in limited quantity of no commercial value that are either clearly recognizable as such or certified by the supplier to be samples.

3. Contravention of the Act.- (1) Any imports that do not comply with the requirements of this Order, or are made on the basis of any false or incorrect particulars, shall be deemed to have been made in contravention of the Act.

Provided that the Federal Government may condone such contravention upon payment of surcharge or such conditions as may be prescribed.

(2) Counterfeit products shall be dealt with under the provisions of the relevant laws,

4. Eligibility.- The following are eligible to import under this Order, namely:-

(a) importers and exporters;
(b) Federal, Provincial' and local Governments, and such public sector agencies as have been allocated foreign exchange by the Ministry of Finance for the purpose;
(c) actual users;.
(d) recipients of gifts;
(e) those covered by Personal Baggage and Transfer of Residence Schemes;
(f) diplomatic missions; and
(g) those exempted in terms of para 10 of Registration (Importers and Exporters) Order 1993.

5. Basis of imports.- (1) Imports shall be made against such modes of payment as are governed by the rules and procedures prescribed by the State Bank of Pakistan from time to time.

Provided that for the purpose of opening of Letter of Credit (L/C) as per procedure notified by State Bank of Pakistan from time to time, classification and interpretation of this order, Schedule-I of the Customs Act,
1969, (IV of 1969), shall be referred to.

Provided also that samples, gifts, or other items that are not banned and where no remittance is made from Pakistan, may also be imported:

Provided further that private sector concerns can enter into Commodity Exchange Arrangements subject to the procedure notified by the State Bank of Pakistan:

Provided further that edible oil imported in bulk quantity shall be on landed weight and quality basis.

(2) Imports under loans, credits or bilateral assistance that require the contract to be approved by Economic Affairs Division, or some other agency of Government of Pakistan, L.C. shall have to be established within sixty days of registration. of contract with a bank designated by the State Bank of Pakistan:

(3) Public sector agencies shall open Letter of Credit through a bank designated by the State Bank of Pakistan.

6. Restrictions.- (1) Import of items specified in Appendix 'A' shall not be allowed except where specifically authorized by the Federal Government:

Provided that the licensee, export houses, manufacturing bonds and exporters operating under Manufacturing in Bond Rules, 1997, and No Duty No Drawback Rules, 1998, temporary import of goods for re-export after further processing and imports in common bonded manufacturing Warehouses Scheme, as amended from time to time, shall be allowed to import items mentioned at Serial No. 18, 19, 21, 23, 24(cotton gloves only), 25(parts of garments only) and 31 at Appendix 'A', actually required for production of export items.

(2) Import of goods of Israeli origin shall not be allowed.

(3) Import 0fgoods from India, or of Indian origin, shall not be allowed except items specified at Appendix 'B'.

(4) Machinery specified at Appendix 'C' shall not be allowed to be imported in used condition.

(5) Machinery. more than five years old shall not be allowed for import except with special authorization given by the Authority. Import of such machinery by commercial importers shall be subject to pre-shipment inspection.

(6) Goods specified in Appendix 'D' shall be importable only subject to the condition laid down therein. Banks and Customs authorities shall ensure fulfilment of these conditions at the time of establishment of LC's and clearance of goods.

(7) Machinery specified 'in Appendix 'E' shall be allowed to be imported by only such industrial units as have been duly sanctioned by the competent authority.

(8) Any limitations or conditions imposed on import of pharmaceutical products under the Drugs Act, 1976 (XXXI of 1976), shall apply.

(9) Imports under Border Trade Agreements and Pakistan-Afghanistan Trade Agreement shall be made in accordance with procedure notified by the Ministry of Commerce from time to time.

(10) Imports shall be made at most competitive prices.

(11) Except where it is not possible to do so (e.g. bulk items or where products are marketed under generic names) the invoice shall give the brand name of the product being imported.

(12) In case of goods imported into Pakistan from Kenya, a fee at the rate of fifty dollar (US) per document or one percent of the invoice value of goods, whichever is higher, shall be charged by the Pakistan High Commission, Nairobi, Kenya,. for attestation of the Certificate of the Origin and invoice related to such goods

(13) Import of gold and silver shall be as per policy and conditions laid down by the Federal Government.

(14) (a) Edible products shall have at least six months or 50% of the shelf life, whichever is the lesser, calculated from the date of filing of Import General Manifest (IGM). They shall also be free of any 'haram' elements or ingredients; and

(b) where conditions at (a) above are not printed on the packing certificate issued by the Manufacturers or Principals in respect of these conditions shall be accepted by Customs.

(15) Import of Ozone Depleting Substances specified at Appendix 'H' shall be subject to the policy laid down by the Ministry of Commerce in consultation with the Environment Division.

7. Suspension and ban of imports.- Federal Government may, where it deems it to be in public interest, suspend for a specified period or ban the import of any goods from any source.

8. Special dispensation.- Federal Government may, for the reasons to be recorded, allow imports in relaxation of the provisions of this Order:

Provided that the Federal Government may import any goods for Defence purposes.

9. Actual users.- Subject to the restrictions .specified at paragraph 6 Actual users may import any item or items provided the total value does not exceed five thousand (5,000) US Dollars in one fiscal year.

10. Advance payment.- Subject to the restrictions specified at paragraph 6 imports through foreign currency demand draft etc; may be made subject to a ceiling of five thousand (5,000) US Dollars in one fiscal year:

Provided that industrial users may import spare parts and machinery worth US$ 15,000 per fiscal year against foreign currency demand draft if such import is made by air or courier.

11. Frustrated cargo.- (1) Re-export of frustrated cargo shall be allowed by the Customs authorities subject to the conditions notified vide SRO 3(1)/70, dated the 2nd January, 1970.
(2) Import of frustrated cargo by an entity other than the original consignee, if otherwise importable in terms of this Order, shall be allowed by the Customs authorities upon payment of surcharge of one percent CIF value of goods.

12. Re-export of imported goods.- (1) Except in case of transhipment, frustrated cargo, as provided in paragraph 13, or under the Export Policy and Procedures Order, 2000, re-export of imported goods shall be allowed only upon special authorization of Ministry of Commerce.
(2) Import-cum-Export on temporary basis in respect of the following shall be allowed provided that an indemnity bond or a bank guarantee as envisaged under relevant Custom's notification is submitted to the satisfaction of Custom Authorities for the re-export of these items within a specified period, namely: -

(i) goods imported by oil and gas companies, oil exploration and production companies, their contractors and sub-contractors, refineries and mining companies;
(ii) foreign airlines and shipping lines:
(iii) goods imported by construction companies or contracting firms for various projects in Pakistan; and
(iv) any goods manifested for a country outside Pakistan that are bonded. in Pakistan for re-export to that country:

Provided that the Federal Government may, in exceptional circumstances, relax the requirement of re-export on such conditions as it may deem fit.

13. Import authorization.- (1) Ministry of Commerce shall issue import authorization in respect of the following, namely:-
(i) motor cars imported by disabled persons as per recommendations of the Board constituted by the Government;
(ii) arms and ammunition; and
(iii) any other item for which authorization for import or import-cum-re-export (including for test and trial or demonstration purposes) or export-cum-re-import is required.

(2) Authorization of the Ministry of Commerce shall be issued on letter-head of Ministry of Commerce consecutively numbered and embossed.

14. Export-cure-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 during warranty period subject to furnishing of--
a) a copy of contract; and
b) a communication from the buyer detailing the goods that have been found to be defective.

15. Import of vehicles under personal baggage and gift scheme.- Import of such vehicles shall be allowed as per rules and procedure prescribed in Appendix 'G'.

16. Export-cum-import of vehicles.- Export-cum-import of vehicles shall be allowed for purposes of travelling 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.

17. Export Processing Zone.- Units in the export processing zone shall be allowed to sell to the tariff area defective goods, waste, used packing material, empty drums and cartons, not exceeding 3% of total value of their exports during the year upon the payment of prevalent duties and taxes:

Provided that Export Processing Zone Units shall also be allowed to sell imported goods to tariff area in same state upon payment of usual duties and taxes subject to the provisions of this Order.

18. ITC classification.- Any dispute or clarification regarding importability of an item that cannot be resolved by the Customs Authorities shall be referred to Ministry of Commerce for final decision.

19. General.- Any import related matter not covered by this Order shall be referred to Ministry of Commerce for advice, clarification, or decision.

APPENDIX-A-
[See paragraph. 6(1)]

BANNED ITEMS
(NEGATIVE LIST)

Import of following items, including those specified in the table A-1 below, shall not be allowed:.
A. Translation of the Holy Quran without Arabic text.
B. Goods .(including their containers) bearing any words or inscription of a religious connotation, the use or disposal of which may injure the religious feelings of any sect, class or group in Pakistan
C. Goods (including their containers) bearing any obscene pictures, writings, inscriptions or visible representations.
D. Anti-Islamic, obscene or subversive literature.
E. Any goods containing ingredients or parts which may be repugnant to the Injunctions of Islam as laid down in the Holy Quran and Sunnah of the Holy Prophet (peace be upon him), including pigs, hogs, boars or swine, and their products and by-products.
F. Dyes based on benzidine or containing it.
G. Hazardous wastes as defined and classified in Basle Convention.
H. Alcoholic beverages and spirits, including brewing and distilling dregs and waste, and wine lees and argol,
I. Factory rejects and goods of job lot, stock lot or sub-standard quality except those mentioned below:-

1. Job lot and stock 10t of items where the customs duty is zero percent.
2. waste, seconds and cutting of-
i. iron and steel (excluding stainless steel) sheets and plates in cut length or coils minimum width 50.8 cm (20 inch). and minimum length 121.9 cm (48. inch);
ii. tin sheets and plates of one side not less than 45.7 cm (18 inch); and
iii. stainless steel sheets and plates of AISI-300 and or AISI-400 series only.

3. Rerollable scrap.- The scrap having a width not exceeding 100 mm and a length not exceeding five metres, consisting of mill rejects and crop ends of ingots, billets, slabs, blooms and include cuttings of sheets and plates whether in pieces or in rolled strips from cuttings of ships plates. Used girders,

APPENDIX "B"
[See paragraph .6(3)]
LIST OF ITEMS IMPORTABLE FROM INDIA

Appendix-'C'
(See paragraph 6(4)

LIST OF MACHINERY AND PARTS
NOT IMPORTABLE IN SECOND HAND CONDITION

APPENDIX-D
[(See paragraph 6(6)]

RESTRICTED ITEMS

The import of the following items, unless specifically authorized, s. hall be allowed only upon meeting the conditions stipulated in Col. 4 below:-

SECTION-II
PROCEDURAL REQUIREMENTS

Annex D-1
(See serial No. 6 of Appendix D)

All compounds of above mentioned radioisotopes/elements.

RADIATION APPARATUS
1. X-Ray machines used for >-
(a) Medical and dental diagnosis or treatment.
(b) Industrial radiography.
(c) Screening purposes at airports.
(d) Research purposes etc.
2. Linear accelerator.
3. Betatron.
4. Cyclotron.
5. Neutron generator.
6. Van de-graff generator.
7. Any other equipment or apparatus which emits ionizing radiation.

ANNEX D-2
(See S. No. 21 and 22 of Appendix D)
LIST OF FOOD COLOURS AND FOOD COLOURS LAKES.

APPENDIX 'E'
[See paragraph 6(7)]
LIST OF SPECIFIED INDUSTRIES

1. Arms and ammunitions.
2. High explosives.
3. Radioactive substances.
4. Security printing, currency and mint.

APPENDIX-F
(See paragraph 2(f)
LIST OF EDIBLE PRODUCTS

APPENDIX-G
(See paragraph 15)
THE PERSONAL BAGGAGE AND GIFT SCHEMES (IMPORT OF VEHICLES) RULES, 2000.

1. Definitions.--In this Appendix, unless the subject or context signifies otherwise;

(a) "vehicle" means passenger car, bus, van, trucks and pick ups including 4X4 vehicles;

(b) "Earning Certificate" means a certificate issued by an authorized officer of Pakistan Embassy, Consulate or Mission abroad (including Honorary Consulate) in the form at Annex-I;

(c) "family" means parents, husband, wife and children whether married or not, but excluding children under eighteen years of age;

(d) "Gift Undertaking" means a certificate issued by an authorized officer of Pakistan Embassy, Consulate or Mission abroad (including Honorary Consulate) in the form at Annex-II;

(e) "Last Two years" for the purpose of eligibility to import or gift another car, means a period of seven hundred days from the date on which Bill of Entry for the last import under this Order was filed; and

(f) "Pakistan National" means a citizen of Pakistan residing abroad and includes a person having dual nationality and a foreign national of Indo-Pakistan origin; but does not include minors.

2. Eligibility:- (1) Subject to the conditions stipulated here-under Pakistan Nationals are eligible
to import or gift a vehicle.

Provided that students receiving remittance from Pakistan; non-earning members of families of the Pakistan national and those who have imported, gifted or received a vehicle during the last two years are not eligible.

(2). Vehicles may be imported as personal baggage or on Transfer of Residence or gifted.

3. CONDITIONS OF IMPORT
(1) Vehicles more than two years old shall not be allowed to be imported except under Transfer of Residence.

(2) Minimum stay abroad for import as personal baggage shall be 180 days within the last seven months preceding the date of application.

(3) Minimum stay abroad requirement for gifting a vehicle or importing under transfer residence shall be seven hundred days of which at least the last six months preceding the date of application were spent continuously abroad.

(4) In the case of personal baggage imports vehicles must be registered in the name of the applicant at least sixty days prior to his departure for Pakistan and in case of transfer of residence at least two years prior to his departure for Pakistan.

(5) A vehicle may be gifted only to a family member normally resident in Pakistan.

(6) In case of transfer of residence, the applicant shall upon his arrival submit written declaration in duplicate to the Customs who shall return one copy, duly acknowledged, to the applicant.

(7) In case or Cars with engine capacity of 1800 cc and above and 4x4 vehicle in new condition to be imported either under personal baggage or under gift scheme, the duty and taxes will be paid out of foreign exchange arranged by Pakistan nationals themselves or local recipient supported by bank encashment certificate showing conversion of foreign remittance to local currency.

(8) A motorcycle or scooter shall be allowed to be imported upon transfer of residence provided that there shall be no entitlement to import a vehicle and the same conditions shall apply mutatis mutandis, as are applicable to import of a vehcile.

Procedure for import:-
6(1) Personal baggage: Application as per form CR-PB/G (Annex. Ill) accompanied with the following documents:-

a) Purchase receipt;
b) Bill of Lading (dated not later than 120 days from the date of arrival in Pakistan of the applicant; and
c) attested photocopy of passport (original passport may be required .to be checked by customs at the time of clearance).

(2) Gift Scheme: Application as per form CR-PB/G, accompanied will the following documents:-

a) gift undertaking, not more than six months old;
b) NIC of giftee;
c) purchase receipt;
d) Bill of Lading (showing name and address of consignee);
e) attested photocopy of passport; and
f) earning certificate.

(3) Transfer of residence: Application as per form CR-TR(Annex-IV), accompanied with the following documents:

a) registration documents of the vehicle duly attested and stamp by the concerned Pakistan Embassy or Pakistan Consulate;
b) purchase receipt;
c) attested photocopy of passport (original passport may be required to be checked by the customs at the time of clearance);
d) valid driving licence;
e) Bill of Lading (dated not later than 120 days from the date of arrival of applicant, and
f) declaration given to the Customs upon arrival.

5. Import of cars by non-privileged foreign nationals and restrictions on sale of such cars.-- (1) A non privileged foreign national who comes to Pakistan on a specific contract of service with any local or foreign firm or with a Government or semi-Government authority in Pakistan can bring a car as personal baggage.

6. Permission to re-export the vehicles brought in contravention of this Order.-- Where a vehicle is brought into Pakistan by a Pakistani national in contravention of this Order, he may be permitted to re-export such vehicle:

Provided that where the importer brings such vehicle against fake of forged documents, he shall, in addition to the confiscation of the vehicle, be liable to such other penalty as may be imposed under any law for the time being in force.

7. Special Dispensation:- The Authority, or an officer duly authorized by him, may in cases of hardship provide such relaxation may be warranted by the circumstances of the case.

Annex-I
[See paragraph 1 (c) of Appendix

8. Particulars of motor vehicle to be imported into Pakistan:
(i) Make ......................... Year and Mode ....................................
(ii) Value (C&F) ...........................................

9. Proof of payment:
(i) Company's or Dealer's original receipt ..........................................
(ii) Whether paid in cash or by cheque .............................................

Date ..........................Signature .................................

GIFT UNDERTAKING
Annex-II
[See paragraph 1 (d) Appendix 'G' ]