000711

GOVERNMENT OF PAKISTAN MINISTRY OF COMMERCE
Statutory Notification (S.R.O.)

ORDER
Islamabad, the 11th July, 2000

S.R.O. 482(I)/2000.-- In exercise of the power conferred by sub-section (1) of section 3 of the Import and Export (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 and Procedures Order 2000.

(2) It shall come in force at once.

2. Definitions.-- In this Order, unless there is anything repugnant to the subject or context,

a) "Act" means the Import and Export (Control) Act 1950 (XXXIX of 1950);
b) "Appendix" means and Appendix to this Order;
c) "exporter" means a person or entity holding valid registration as exporter under the Registration (Importers and Exporters) Order, 1993
d) "gift parcel" means goods being sent abroad through post or courier service as gift;
e) "prescribed" means prescribed by rules under the Act or under this Order;
f) "sample" means goods in limited quantity clearly identifiable as such and of no commercial value.

3.Eligibility.-- The following are eligible to export under this Order, namely:-

(a) exporters;
(b) Federal, Provincial and local Government and public sector agencies;
(c) those exempted in terms of paragraph 10 of Registration (Importers and Exporters) Order 1993;
(d) individuals or entities sending gifts; and
(c) such other persons or bodies as may be authorised by the Ministry of Commerce.

4. 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 submission of such documents as may be prescribed.

5. Export of goods.-- (1) Export of all goods shall be allowed except those specified in Schedule-I too this Order. Export of goods specified in Schedules Ii and III to this Order shall be subject to the conditions given therein.

(2) The provisions of this Order shall not be 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 or the crew or the passengers in such vessel or conveyance or airline;
Provide that banned or restricted items shall not be allowed unless otherwise authorised;

(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;

(c) any goods, stores or equipment when sold abroad on Government to Government basis or exported under an export authorization issued by the Director General of Defence Purchase or by any other 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) the f.o.b. value does not exceed US$ 5000 or equivalent ceilings shall not be applicable if the samples are export in a mutilated form;

(e) export or gift parcels of a value not exceeding ten thousand rupees;

(f) export of relief goods to any part of the world by the Cabinet Division (Relief Cell), Government of Pakistan;

(g) bonafide baggage or person travelling outside Pakistan;

(h) persons travelling outside Pakistan who may take with them as accompanied baggage, goods with out any restriction of quantity, or any requirement of encashment certificates provided that such goods do not include items listed at Schedules I & II and that in respect of items of Schedule III the prescribed conditions have been met.

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

6. Special dispensation.-- Federal Government may, for the reasons to be recorded in writing, allow exports in relaxation of the provisions of this Order.

7. Export authorization and its validity.-- The Ministry of Commerce shall issued export, export cum 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.

8.Exports to Afghanistan.-- Export of all commodities produced or manufactured in Pakistan. excluding those manufactured in manufacturing bonds, shall be allowed via land route to Afghanistan against Pak-rupees on filing of regular shipping bills without Form 'E'. These exports shall not be entitled to any duty drawback and zero rating of sales tax. Exports to Afghanistan and via Afghanistan to the Central Asian Republics effected against advance payment or an irrevocable letter of credit issued by some recognized bank in foreign currency shall be allowed duty drawback as per prevailing schedule subject to a maximum of 7.5% of the F.O.B value without zero rating of sales tax. Normal duty drawback shall remain available on exports to Central Asian Republics via Iran.

9. Export-cum-import.-- (1) Imported items may be exported for purposes of repairs, or refilling of cylinders/ISO tanks subject to submission of indemnity bond to Customs Authorities assuring that goods being exported shall be re-imported after repairs or refilling. Production of bill of entry shall not be required in cases where there is certification from the foreign supplier or manufacturing that the goods or parts specified in the certificate are being imported by them for purposes of repairs.

(2) Export-cum-import of defective goods or parts for replacement shall be allowed upon production of certificate from the supplier manufacturer that the goods or parts being replaced are covered by the terms of warranty.

(3) Export-cum-import of vehicles shall be allowed for purpose of travelling abroad, on the basis of carnet de passage issued by Automobile Association of Pakistan, or a guarantee issued by Pakistan Traspost Mutual Assistance Co-operative Society Ltd., or on indeminity bond furnished by the owner of the vehicle.

10. Re-export of Goods or items (except banned items as per Schedule-I of this Order).-- Export of imported goods in their original and unprocessed form shall not be allowed except.--

(1) parts obtained from ship breaking;
(2) scrapped battery cells;
(3) waste dental amalgam;
(4) waste exposed X-ray films;
(5) old machinery provided no refund of import levies or duty draw back shall be made;
(6) 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;
(7) imported goods in their original and unprocessed form provided that-

(a) their re-export F.O.B. price is higher at least by 2.5% (in case of re-export to Central Asian Republics by at least 3%) than the imported C&F price and the condition of value addition will not b applicable in the following cases, namely:-

(i) the manufacturer-cum-exporter imported goods with the condition that payment will be made on quality approval and the quality of goods is not approved;


(ii) 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 r the balance goods could not be disposed of locally due to brand conditionalities; and

(iii) goods imported under various duty free schemes meant for exports and could not be consumed due to cancellation of export order;

(b) re-export is made against sight letter of credit or advance payment; and
(c) payment of full duties if re-exported through land routes.

11 Replacement of exported goods.-- Customs authorities shall allow Pakistani exporters to replace the exported goods found defective during warranty period subject to the following, namely;-

(a) copy of contract showing warranty period.
(b) any communication from foreign importer to the effect that certain goods from the exported consignment have been found defective.

12. 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 Chemical and listed as Schedule-1,2, and 3 chemicals thereunder.

(2 ) Schedule I chemicals, listed in Appendix "A" have least commercials use and hence cannot be exported to States not party to the convention and hence export of these chemicals has been restricted under the Export Policy and Procedures Order, 2000. Schedule 2 and Schedule 3 chemicals listed in Appendix "B" and "C" respectively, are widely used in the commercial sector and can be exported to State not party to the Convention with the following restriction, namely:-

(a) Chemical specified in schedule 2 and Schedule 3 shall be exported to States not party to the Convention after the 29th April, 2002, respectively; and

(b) during the interim period, export of chemicals specified in Schedule 2 and Schedule 3 to State not party to the Convention shall be subject to production of end-us certificate by the recipient State stating therein the following particulars in relation to the transferred chemicals namely:-

(i) that they shall only be used for purpose not prohibited under the Convention;
(ii) these shall no be re-transferred;
(iii) their types and quantities; and
(iv) the name(s) and address (es) of the end-user (s); and

(3) For such transfers, importing country shall adopt the necessary measures to ensure that the transferred chemicals shall only be used for purpose 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(S) before importing these chemicals from Pakistan. Detailed instructions with regard to filling and disposal of these forms are covered in Appendices "F" & "G"

13. 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.

14. Repeal.-- The Export Policy Order, 1999 and the Import-Export Procedure Order, 1999

Appendix 'A'
(See paragraph 12 (2)

Appendix 'B'
(See paragraph 12)

Appendix 'C'
(See paragraph 12)

Appendix 'D'
(See paragraph 12)

Form T20

END USE CERTIFICATE*
(For transfer of Schedule 2 chemicals to States not party to the Convention)

A. CHEMICAL TO BE TRANSFERRED

C. END USER(S)
I (We) certify that I (We) am (are) the end user(s) of the chemical referred to under A above. I (We) will not export, resell or otherwise dispose of any amount thereof (1) outside the recipient State on whose territory the end user(s) listed below is (are) located, or (2) to any other person, natural or legal. I (we) further certify that to the best of my (our) knowledge and belief, all facts contained in this certificate are true, and that I (we) do not know of any additional facts that are inconsistent with this certificate.

D. CERTIFICATION ON BEHALF OF THE RECIPIENT STATE:
It is hereby certified that the transferred chemical referred to above will be used only for purpose not prohibited under the Convention of the Prohibition of the Development. Stock piling and Use of Chemical Weapons and on Their Destruction, and that it will not be re-transferred.

*Schedule 2 chemicals may be transferred to State not party to the Convention only up to and including 29 April 2000.

Appendix 'E'
(See paragraph 12)

A. CHEMICAL TO BE TRANSFERRED

C. END USER(S)
I (We) certify that I (We) am (are) the end user(s) of the chemical referred to under A above. I (We) will not export, resell or otherwise dispose of any amount thereof (1) outside the recipient State on whose territory the end user(s) listed below is (are) located, or (2) to any other person, natural or legal. I (we) further certify that to the best of my (our) knowledge and belief, all facts contained in this certificate are true, and that I (we) do not know of any additional facts that are inconsistent with this certificate.

D. CERTIFICATION ON BEHALF OF THE RECIPIENT STATE:
It is hereby certified that the transferred chemical referred to above will be used only for purpose not prohibited under the Convention of the Prohibition of the Development. Stock piling and Use of Chemical Weapons and on Their Destruction, and that it will not be re-transferred.

*After 29 April 2002, the transfer of Schedule 3 chemical to States not party to the Convention shall be subject to any restrictions which may be determined by the Conference of the States Parties of the OPCW.

Appendix 'F'
(See paragraph 12)

INSTRUCTIONS ON HOW ENDED-USE CERTIFICATES ARE TO BE COMPLETED, ANY BY WHOM

1. Each end-use certificate will be initiated by the exporter, importer or end user. It should be certified by the end user(s) and by a responsible official of the recipient State in a government agency which is appropriate to the end-use for each Schedule 2 or Schedule 3 chemicals to be exported to a State not party to the Convention.

2. Form T20 should be completed prior to transfer of Schedule 2 chemical to State not parity to he Convention, while Form T30 should be completed prior to transfer of Schedule 3 chemical to State not party to the Convention.

3. It is important for end users in States not party to the Convention to note that end-use certificates appropriately certificates appropriately certified by a responsible official of the recipient State in a government agency which is appropriate to the end-use should be in the safekeeping with the Pakistan's Ministry of Commerce before the Schedule 2 or Schedule 3 chemical in question is exported from Pakistan.

4. The "exporter transfer identification" at the beginning or Form T20 and T30 will be furnished by the Ministry of Commerce, which is responsible for export control, as under:--

(a) the "country code" to be provided is that of the exporting country and it will be 'PAK' for Pakistan;
(b) "Year" refers to the calendar year in which it is anticipated that the transfer of the Schedule 2 or Schedule 3 chemical in question will actually take place; and
(c) the "Transfer number" refers to a sequential number that will be uniquely assigned to each transfer to a Schedule 2 or Schedule 3 chemical by the Ministry of Commerce.

5. Each Schedule 2 or Schedule 3 chemical to be transferred should be identified by its IUPAC Chemical name and by its CAS registry number which are given against each chemical listed in Appendixes and

6. The total quantity (in kilograms) of each Schedule 2 or Schedule 3 chemical to be transferred should be specified.

7. The end use (s) of each Schedule 2 Schedule 3 chemical to be transferred should be specified using the product group codes listed in Appendix.

8. For each end user which is to process or consume the Schedule 2 or Schedule 3 chemical in question, the following information should be provided namely:--

(a) name of authorised representative of end user;
(b) position of authorised representative of end user;
(c) up-to-date and complete organization title or end user;
(d) up-to-date and complete address of end user including, and if applicable: postal cod, PO box number, fax number, and e-mail address; and
(e) quantity (in kilograms) of the Schedule 2 Schedule 3 chemical to be transferred to the end-user.

9. If more than three end-use or more than three end users are to be involved in a single export transaction, additional forms should be completed using the same transfer identification number.

10. The Ministry of Commerce will forward a copy of the end-use certificates, as soon as it is completed, to the National Authority C/O disarmament Cell, Ministry of Foreign Affair, for information and inclusion of export data in the annual declaration made to the Organisation for the Prohibition of Chemical Weapons (OPCW), The Hague, Netherlands.

NEELAM S. ALI,
Deputy Secretary.