S.R.O. 776 (I)/2006 – 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, 2006.

(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,

(e) “sample” means goods in limited quantity clearly identifiable as such and of no commercial value; and

(f) “Schedule” means a Schedule to this Order.

3. Basis of exports.- Exports from Pakistan shall be made under the foreign exchange rules, regulations and procedures notified by the State Bank of Pakistan from time to time and upon submission of such documents as may be prescribed.

4. Export of goods.-(1) Export of all goods shall be allowed except those specified in Schedule I. Export of goods specified in Schedule II to this Order shall be subject to the conditions given therein.

(2) The provisions of this Order shall not apply to, –

(a) any goods constituting the stores or equipment or machinery parts and
(b) 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;
i) 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;
ii) 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:

(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,

(d) 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 travelling outside Pakistan; and
(h) 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 II, the prescribed conditions have been met.

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

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 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) zero-rating of sales tax on taxable goods, (ii) rebate of central excise duty; and (iii) repayment or drawback of customs-duty.

(2) In convertible currency.- Subject to 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:

i) 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.
ii) packages or retail packing shall be prominently and indelibly be marked with the expression “For Export Only”, and in case of international donor agencies “For Export only – supply for aid to Afghanistan (insignia of the organization) – not for sale in Pakistan’;
iii) export shall be allowed only through authorized export land routes i.e. Torkham, Chaman, Ghulam Khan (for export of cement only) and Qamar Uddin Karez (when it becomes operational);
iv) export from Export Processing Zones and manufacturing bonds, except vegetable ghee and cooking oil, shall be allowed but these exports shall not be entitled to (i) zero-rating of sales tax on taxable goods, (ii) rebate of 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
payment of foreign exchange is received within sixty days of shipment.

(3) (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) (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 of

(a) a copy of contract; and
(b) 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 travelling abroad, on the basis of carnet de passage issued by Automobile Association of Pakistan, or a guarantee issued by International Chamber of Commerce, Pakistan or on indemnity bond furnished by the owner of the vehicle.

(4) The temporary export and re-import of locally manufactured or imported machinery or equipment for the purpose of carrying out works awarded to construction, engineering and electrical companies shall be allowed, on submission to the customs authorities of undertaking along with evidence of contract that the machinery shall be imported back upon conclusion of the contract. No refund of import duties or levies, if paid at the time of import of machinery, shall be admissible in such cases of export-cum-import.

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

10. Re-export of goods or items (except banned items as per Schedule-I and items on the negative list of Afghan transit Trade);- Export of imported goods in their original and unprocessed form shall not be allowed except,

(a) parts obtained from ship breaking;

(b) scrapped battery cells;

(c) waste dental amalgam;

(d) waste exposed X-ray films;

(e) old machinery provided no refund of import levies or duty draw back shall be made;

(f) items imported against back to back letter of credit for re-export subject to the procedure and conditions notified by the State Bank of Pakistan; and

(g) imported goods in their original and unprocessed form provided that re-export is made against sight letter of credit, advance payment, issuance letter of credit, Documents Acceptance (DA) or Deferred Payment (DP). Such re-export will be against “E” Form and subject to procedure prescribed by the CBR for re-export of imported goods stored in Bonded Warehouses and of imported goods already cleared for home consumption,

(h) 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;

(i) the manufacturer-cum-exporter imported goods which partially consumed in the manufacture of goods for export and the balance remained un-utilized due to quality inspection and damage or the balance goods could not be disposed of locally due to brand conditionalities; and

(j) 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 conditionalities imposed under relevant provisions of the following Acts, Ordinances and Laws shall be treated to be restrictions and conditionalities under this Order, namely:

a. the Antiquities Act, 1975 (VII of 1976);

b. the Arms Act, 1878 (XI of 1878);

c. the Copyright Ordinance, 1962 (XXXIV of 1962);

d. the Customs Act, 1969 (IV of 1969)

e. the Drugs Act, 1976 (XXXI of 1976);

f. the Explosive Act, 1884 (IV of 1884);

g. the Foreign Exchange Regulation Act, (1947 (VII of 1947);

h. the Merchandize Marks Act, 1889 (IV of 1889);

i. the Pakistan Animals Quarantine (Import and Export of Animal and Animal Products) Ordinance, 1979 (XLIX of 1979);

j. the Poisons Act, 1919 (XII of 1919);

k. the Petroleum Act, 1934 (XXX of 1934); and

l. any other law, rule or regulation 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, 2005 is hereby repealed.

SCHEDULE-I
[See paragraph 4(1)]

S.No. HS Code Description Exceptions
(1) (2) (3) (4)
1. 1211.4000, Intoxicants and intoxicating Export of any intoxicant or article containing
22.03 to liquors defined in the intoxicating liquor under the licences for bona
22.06, Prohibition. (Enforcement of fide medicinals or other purposes issued
22.09, 29.39 Hadd) Order, 1979 (P.O. 4 of under the Prohibition. (Enforcement of Hadd)
1979). Order, 1979 (P.O. 4 of 1979).
2. Respective
Headings Appendix I and II wildlife
species of the Convention of
International Trade in
Endangered Species of Wild
Fauna and Flora (CITES)
and all animals, mammals,
reptiles and endemic birds
protected under any
Provincial Wildlife Act. (a). National Council for Conservation of
Wildlife (NCCW) is authorized to issue NOC
for export for the following purposes,
namely:
(i) Research; and
(ii) Trophies from community managed
conservation areas
(b). Exotic/endemic captive bred birds
subject to production of NOC and
mandatory checking by the Provincial
Wildlife Department at the airports or
exit points.
3. Respective
Headings Appendix III wildlife species
of the Convention of
International Trade in
Endangered Species of Wild
Fauna and Flora (CITES). NOC from National Council for Conservation
of Wildlife (NCCW).
4. 44.01 Charcoal and firewood. –
44.02
5. 44.01 Wood and Timber. –
44.03
44.04
44.07
6. 28.44 Fissionable material. –
2 8.45
7. 9306.9000 Anti Personnel Landmines
(APLS) –
8. 9706.0000 Antiquities. Old vehicles and aircrafts not falling within
the definition of antiquities.
9. Respective
Headings Chemicals (as per details in
Appendix ‘A’ to this Order). Export to States or countries, which have
ratified the Chemical Weapons Convention as
per procedure given in paragraph 11 of Order.
10. 15.16 Vegetable ghee and cooking The export of vegetable ghee and cooking
15.18 oil shall be allowed (excluding that manufactured
in manufacturing bonds in case of exports to
Afghanistan only) provided there is value
addition of fifteen percent for edible uses in
packs up to sixteen litres for cooking oil and
sixteen kilograms for vegetable ghee and fifty
percent value addition in non-edible uses in
packs up to ½ litre or half kilogram.
11. Respective
Headings Counterfeit products. –
12. 53.02 Sann Hemp –
13. Respective
Headings Wild Mammals and Reptiles

SCHEDULE-II

[See paragraph 4(1)]

S.NO. ITEM/GOODS CONDITIONS/PROCEDURE/FORMALITIES
(1) (2) (3)
1.
2. Wheat
Cotton. Except wheat imported by UN or other relief agencies
for re-export to Afghanistan as relief goods.
1. Export contract registration with EPB against
security deposit of 1% of the contract value and
presentation of the same before customs
authorities with shipping documents alongwith
cotton grading and classification certificate issued
by the Pakistan Cotton Standards Institute.
2. An irrevocable letter of credit shall be opened by
the buyers within thirty-five (35) days and the
shipment of contracted quantity shall be completed
within one hundred and eighty (180) days of the
registration of contract. In case letter of credit is
not opened within the stipulated time or non
performance of the contract the security deposit
shall be forfeited by the State Bank of Pakistan
proportionate to the quantity not-shipped.
3. The export of cotton shall be allowed on the
basis of types as well as grades. The exporters shall,
however, mention the grade equivalence on the
shipping documents if they opt to export the cotton on
type basis and the requirement of classification and
grading certificate in such cases, shall be dispensed
with, if the ginned cotton is packed in export packings.
3. Basmati Rice Quality check under such procedure as prescribed by
the Export Promotion Bureau.
4. Metals Export of metals by foreign enterprises will be
governed by a special mechanism identified by
Ministry of Petroleum & Natural Resources for
checking the prices etc.

5. Arms, ammunition, explosives
and ingredients thereof. NOC from Ministry of Defence (Defence Production
Division).
6. Complete Rocket and
Unmanned Air Vehicle (UAV)
systems and their parts. NOC from Ministry of Defence (Defence Production
Division).
.
7. Nuclear substances,
radioactive materials and any
other substance or item
covered by the Pakistan
Nuclear Regulatory Authority
Ordinance, 2001 (III of 2001). As per procedure notified by the Pakistan Nuclear
Regulatory Authority.
8. Equipment used for
production, use or application
of nuclear energy or activity
including generation of
electricity and spares related to
these. do
9 Precious and semi-precious
stones and gold jewellery. As per special procedure notified vide S.R.O. 266(I)/
2001, dated 7-5-2001.
10. Poppy Seeds. Export of imported Poppy seeds shall be allowed if
imported from the countries where Opium Poppy is
grown licitly in accordance with the provisions of
Single Convention.
11. Urea Subject to the approval of ECC of the Cabinet on case
to case basis.
12. Pet dogs and cats. Export of pet dogs and cats shall be allowed on
issuance of Quarantine Certificate about health and
caging by the Animal Plant Quarantine Department.
13. Wild Boars its meat and skin. Export of wild boars, its meat and skin shall be
permissible only by the non-Muslim exporters.
14. Surgical Instruments The export of surgical instruments shall be subject to
certificate/test report to be issued by the Sialkot
Material Testing Laboratory, to all destinations.
15. Livestock. As per procedure and conditions laid down vide
Ministry of Food, Agriculture and Livestock.
16. Fruits in retail packing Gross weight to be indicated.
17. DAP, NP and other Fertilizers Except re-export of fertilizer by UNDP and other UN
agencies.

SCHEDULE-III

[See paragraph 8(2)]

Negative List of items for exports to Afghanistan under Duty Drawback Scheme.
Cigars, cheroots, cigarillos and cigarettes of tobacco or of tobacco substitutes.
Dyes and chemicals.
Yarn all types.
PVC and PMC materials.
Polyester metalized film.
Ball bearings.
Vegetable ghee and cooking oil (if exported from Export Processing Zones or manufacturing bonds).

Appendix ‘A’
[See paragraph 11 (2)]
SCHEDULE 1 CHEMICALS

A. Toxic Chemicals
1. O-Alkyl (