8th October, 2007
S.R.O. 1021 (I)/2007 – 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, 2007.
(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 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:
(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 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 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,
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; Bonafide 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.
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:-
(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:
Provided that this condition shall not apply to exports made to International Security Assistance Force (ISAF) and Defence Logistic Support Center (DLSC) in Afghanistan. To claim the facility of zero rating of sales tax or duty drawbacks as well as federal excise duty refund against goods exported to ISAF and DLSC, the customs authorities will allow refunds on the basis of receipts issued by the Afghan offices of these agencies confirming that they have received the goods. The receipt will be reconfirmed by the representatives of these agencies in Pakistan. 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’;
Export shall be allowed only through authorized export land routes i.e. Torkham, Chaman, Ghulam Khan (for export of cement only) and Qamar Uddin Karez (when it becomes operational);
Export from Export Processing Zones 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 export made to International Security Assistance Force (ISAF) and Defence Energy Support Center (DESC) 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 and DESC; Shipments to ISAF and DESC are made by their authorized agents duly endorsed by the ISAF and DESC receiving agent in Afghanistan; and Payment of foreign exchange is received within sixty days of shipment.
( ) Zero rating of sales tax or duty drawbacks as well as federal excise duty refund against goods exported to ISAF and Defence Logistics Agency, may be allowed on production of receipts issued by the aforementioned agencies confirming that they have received the goods. The receipts will be reconfirmed by the representatives of these agencies located in Pakistan.
(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.
(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:
Provided that in cases where defective goods have to be exported for which replacement has
already been received, the condition of indemnity bond shall not apply provided there is no
(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 traveling 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 / fairs and also for carrying out tests / certain processes, for which the facilities are not available in the country against submission of indemnity bond / undertaking to Customs Authorities.
10. Re-export of Goods or items (except banned items as per Schedule-I of this Order 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:
The Antiquities Act, 1975 (VII of 1976);
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 Export Control on Goods, Technologies, Material and Equipment related to Nuclear and Biological Weapons and their Delivery Systems Act, 2004 (V of 2004); 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, 2006 is hereby repealed.
[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
2203.0000 liquors defined in the intoxicating liquor under the licences for bona fide
2204.1000 Prohibition. (Enforcement of medicinals or other purposes issued under the
2204.2100 Hadd) Order, 1979 (P.O. 4 of Prohibition. (Enforcement of Hadd) Order, 1979
1979). (P.O. 4 of 1979).
2. Respective Appendix I and II wildlife (a). National Council for Conservation of Wildlife
Headings 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. (NCCW) is authorized to issue NOC for export for
the following purposes, namely:
(i) Research; and
(ii) Trophies from community managed
(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.
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
4. 4401.1000 Charcoal and firewood. –
5. 4401.1000 Wood and Timber. –
6. 2844.1000 Fissionable material. –
7. 9306.9000 Anti Personnel Landmines
8. 9706.0000 Antiquities. Old vehicles and aircrafts not falling within the
definition of antiquities.
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. 151 6.1000 Vegetable ghee and cooking oil i. The export of vegetable ghee and
1516.2010 cooking shall be allowed (excluding
1516.2020 that manufactured in manufacturing
bonds in case of exports to
1518.0000 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
ii. The containers / packages of
vegetable ghee and cooking oil
exported to Afghanistan will contain
ingredient information printed on them
in ‘Dari’ and ‘Pushto’ languages.
Headings Counterfeit products. –
12. 5302.9000 Sann Hemp –
Headings Wild Mammals and Reptiles –
14. 0713.2000 Gram –
15. 071 3.1000 Pulses all sorts –
16. 1102.9000 Gram Flour –
17. 1101.0010 Wheat Products (such as atta, Export of these products to Afghanistan
1101 .0020 maida, suji etc.) by sea and
[See paragraph 4(1)]
S.NO. ITEM/GOODS CON DITIONS/PROCEDU RE/FORMALITI ES
(1) (2) (3)
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
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 packing.
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
6. Complete Rocket and Unmanned
Air Vehicle (UAV) systems and NOC from Ministry of Defence.
7. Nuclear substances, radioactive
materials and any other
substance or item covered by the
Pakistan Nuclear Regulatory
Authority Ordinance, 2001 (III of
2001). i. As per procedure notified by the Pakistan Nuclear
ii. As per provisions of the “Export Control on Goods,
Technologies, Material and Equipment related
to Nuclear and Biological Weapons and their
Delivery Systems Act, 2004 (V of 2004)”.
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,
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
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
18. Mango (i). The export of mangoes to Europe and
Canada by air shall be in
standardized packaging of 2, 3, 4, 5
and 7 kilograms with 5% variation in
weight on either side.
(ii). Date of export would be fixed every year. For the year, 2007, date of mango export shall not be fixed prior to the 20th May.
(iii). The Pakistan Customs authorities shall enforce the weight standards and date of export.”
Page 14 of 29
[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.
Vegetable ghee and cooking oil (if exported from Export Processing Zones or manufacturing bonds).
Page 15 of 29
[See paragraph 11(2)]
SCHEDULE 1 CHEMICALS
A. Toxic Chemicals Cas Registry
1. O-Alkyl (