ISLAMABAD: The ministry of commerce has unveiled Export Policy Order 2020 and explained export of goods allowed against Pakistan currency to Afghanistan against Central Asian Republics.
The ministry issued SRO 901(I)/2020 dated September 25, 2020, and stated regarding ‘exports to Afghanistan and through Afghanistan to Central Asian Republics’ that:
(1) subject to the provisions of sub-paragraph (1) of paragraph 4, export of following perishable goods shall be allowed against Pakistan currency on filing of regular shipping bills without the requirement of E form, namely:
(a) fruits;
(b) vegetables;
(c) dairy products; and
(d) meat.
(2) Export of the items in sub-paragraph (1) shall not be entitled to –
(a) zero rating of sales tax on taxable goods;
(b) rebate of central excise duty; and
(c) payment of drawback of customs duty.
(3) Subject to the provisions of sub-paragraph (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-
(a) zero-rating of sales tax on taxable goods;
(b) rebate of Federal excise duty; and
(c) repayment or drawback of customs-duty:
Provided that the above facility of duty and tax-exemption including refund of petroleum levy shall not be available to the export of petroleum products unless there is a Government-to-Government contract and export is done only through oil marketing companies (OMCs) duly registered with the Oil and Gas Regulatory Authority (OGRA).
Surplus of JP-8, as declared and decided in the product review meetings, shall also be allowed to be exported by the refineries or OMCs.
If any of the OMC is of the intention to import and then export JP-8 to Afghanistan, that specific volumes shall be allowed through foreign exchange remittance from the buyers without availing any exemption of duties and taxes.
The proof that goods exported from Pakistan have reached Afghanistan shall be verified on the basis of copy of import clearance documents by Afghan Customs Authorities across the border:
Provided further that this condition shall not apply to exports made to International Security Assistance Force (ISAF) and Defense 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 shall allow refunds on the basis of receipts issued by the Afghan offices of these agencies confirming that they have received the goods. The receipt shall be reconfirmed by the representatives of these agencies in Pakistan;
(4) Packages or retail packing shall 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”;
(5) Export shall be allowed only through authorized export land routes i.e. Torkham, Chaman and Ghulam Khan and Qamar Uddin Karez.
(6) Export from Export Processing Zones, manufacturing bonds and export-oriented units, except vegetable ghee and cooking oil, shall be allowed but these exports shall not be entitled to-
(a) zero-rating of sales tax on taxable goods;
(b) rebate of federal excise duty; and
(c) repayment or drawback of customs-duty:
Provided that the export of PVC and PMC (HS Code 3901-3914) materials from the Export Processing Zones, manufacturing bonds and export-oriented units shall be eligible for zero rating of sales tax:
Provided further that export made to International Security Assistance Force (ISAF) and Defense Energy Support Center (DESC) may be made on deferred payment basis, without opening of letter of credit, subject to the following conditions, namely: –
(a) the waiver shall be applicable strictly to exports made to ISAF and DESC;
(b) shipments to ISAF and DESC are made by their authorized agents duly endorsed by the ISAF and DESC receiving agent in Afghanistan; and
(c) payment of foreign exchange is received within sixty days of shipment.
(7) Zero rating of sales tax or duty drawbacks as well as Federal excise duty refund against goods exported to ISAF and Defense Logistics Agency (DLA), may be allowed on production of receipts issued by ISAF and DLA confirming that they have received the goods. The receipts shall be reconfirmed by the representatives of these agencies located in Pakistan.
(8) Export of such goods as are made by or on behalf of United Nations High Commissioner for Refugees, World Food Programme, United Nation Development Programme, United Nations Population Fund, International Committee of the Red Cross, World Health Organization, Food and Agriculture Organization, United Nations International Children’s Emergency Fund 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 documents acceptance (DA) or deferred payment basis (DP).
(9) Normal duty drawback shall remain available on exports to the Central Asian Republics via Iran.
(10) Export of acetic anhydride to Afghanistan shall not be allowed till further orders.
