LEGAL ADVICE ON THE EXPORT REGULATIONS OF PAKISTAN

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We have successfully dealt with numerous companies who specialize in the exportation of of the following items from Pakistan, and our impressive list is growing all the time;

• Textiles, yarns & fabrics

• Articles of clothing and accessories

• Footwear

• Leather and leather products

• Guar meal, Guar gum and Guar protein extracts

• Surgical instruments

• Fruit

• Arts resins and plastic materials

• Chemical materials

• Refractory cements

• Mortars

• Electric machinery and appliances

• Refractory blocks and tiles

• Viscose Fiber (Rayon Fiber)

• Sports goods

The clearance process for the export of goods from Pakistan

When shipping from Pakistan, easy clearance through customs very much depends on whether you’re shipping:

• Documents with no commercial value

• Dutiable goods (goods with a commercial value)

Export prohibitions

Certain items are forbidden and controlled for export from Pakistan by customs. These items are in addition to any that are prohibited by the IATA. Senders are responsible for making sure that the destination country will accept the goods they are shipping.

Items that are forbidden for export from Pakistan include;

• Dangerous goods as defined by IATA

• Live animals

• Human body parts

• Explosives

• Money

• Liquor

• Passports

• Antiques

• Gold

• Counterfeit products

• Used goods

Pakistan Export Regulations

Please take note of the following regulations when exporting from Pakistan :

•For size and weight maximums, an exporter must check with the destination country’s limits

•Dimensional weight or actual weight, whichever is greater, determines the shipment tariff

•Foreign exchange rules and procedures apply to exports as determined by the State Bank of Pakistan

Law in Pakistan

Export Processing Zones Authority (EPZA) Pakistan

The Export Processing Zones Authority (EPZA), Pakistan was established in 1980 with the mandate of planning, developing and operating the Export Processing Zones in Pakistan. The objectives of the establishment of the Export Processing Zones in Pakistan are primarily to boost industrialization and augment the country’s exports by creating facilities for investors to enable them to setup export-oriented units which would, as a consequence, create job opportunities, bring in new technology and know-how and attract foreign investment.

Incentives for investors to set up a unit in EPZA of Pakistan:

1. 100% ownership rights

2. 100% repatriation of capital & profits

3. No minimum or maximum limit for investment

4. Duty free imports of machinery, equipment & material

5. No sales tax on input goods including electricity & gas bills

6. Obsolete/old machinery can be sold in domestic market of Pakistan after payment of applicable duties & taxes

7. No excise duty, no customs duty on cement, steel & any other material used in construction of buildings

8. Freedom from national import restrictions

9. Foreign exchange control regulations of Pakistan are not applicable

10. Defective goods/waste can be sold on the domestic market after the payment of applicable duties, up to a maximum of 3% of the total value of the export

11. Duty free vehicles are allowed under certain conditions. After 5 years of use, vehicles can be disposed off in domestic markets on payment of duty

12. The domestic market of Pakistan is available on the same conditions as for imports from other countries

13. Units operating in EPZA can undertake sub-contracting for units of tariff areas subject to payment of duty and taxes on value additions only

14. Only EPZA is authorized to collect presumptive tax at the time of export of goods which would be the final tax liability

15. EPZA units are allowed to supply goods to custom manufacturing bonds

16. Production oriented labor laws are solely regulated by the Authority

17. EPZA manufacturers are treated on a par with bonded manufacturers in tariff areas for any future incentives to be announced for exporters

18. Relief from double taxation subject to bilateral agreement

Eligibility for investment in EPZA

All investments made in the zone comes from convertible foreign currencies. A foreign investor and a non-resident Pakistani can invest up to 100% of the equity. A joint venture between a foreigner or foreign company and a non-resident or resident Pakistani is possible in any proportion. However, the State Bank of Pakistan wouldn’t cover more than 40% of the equity of a resident Pakistani for providing the foreign exchange.

Please contact Josh and Mak International today if you have any queries regarding any aspect of the import/export laws which apply in Pakistan. One of our experts will be happy to help you.

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