Export Policy Order, 2016

Muhammad Saqif Saeed

Additional Collector
MCC Export,
Custom House, Karachi
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Scheme of Presentation

Introduction to Export Policy Order

Salient features and Provisions of EPO
Schedules of EPO
Certificate Requirement
Export under WeBOC v/s One-Customs
Major Exports
Regulatory Duty on Exports
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Introduction
Export Policy Order (EPO) is issued under section 3(1) of
the Imports and Exports (Control) Act, 1950 from time to
time by the Federal Government (Ministry of Commerce)
Latest EPO in field now was issued by the Federal
Government in 2016 vide S.R.O. 344(I)/2016 dated 8th
April, 2016.
It encompasses provisions regarding export of goods
from Pakistan to other countries.
Lays down various limitations, restrictions and conditions
for export
Also lays down procedure for export of various goods
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Salient Features/ Provisions

Short Title and Commencement
Called Export Policy Order, 2016 and came into force at once on the
date of commencement; i.e. 8th April, 2016
Definitions
Act Imports & Exports (Control) Act, 1950
Appendix Appendix to this Order
Gift Parcel Goods being sent abroad through
post, courier service or by air as gift
Prescribed Prescribed by rules made under the
Act or under this Order
Sample Goods in limited quantity clearly
identifiable as such of no commercial value
Schedule Schedule to this Order
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Salient Features/ Provisions (Contd.)

Basis of Export
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
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Salient Features/ Provisions (Contd.)

Export of goods: Export of all goods is allowed except
Those specified in Schedule I
Those specified in Schedule II shall be subject to conditions
given therein
Explanation:
Export of goods mentioned in Schedule I is not allowed.
Schedule I contains a list of goods which are Banned
Export of goods mentioned in Schedule II is allowed only
upon fulfillment of certain conditions. Schedule II contains
a list of goods which are Restricted.
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Salient Features/ Provisions (Contd.)

Exceptions: The provisions of EPO do not apply in
the following cases:
Goods constituting stores, equipment, machinery parts,
kitchenette of any outgoing vessel, conveyance or
airline and their crews bona fide baggage (Except
banned & restricted items unless duly authorized)
Goods trans-shipped at a port in Pakistan after being
manifested as such at the time of dispatch from a port
outside Pakistan (Except banned & restricted items
unless duly authorized)
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Salient Features/ Provisions (Contd.)

Goods, stores or equipment sold abroad on Govt. to Govt.
basis or under authorization by the Ministry of Defense
Export of samples subject to following conditions:
Export of such goods is not banned
FOB value does not exceed US$ 25,000 or equivalent per
exporter per annum
FOB value does not exceed US$ 100,000 in case of automobile
manufacturers
Pharmaceutical companies may export up to 10% of the exports
of preceding year
Up to 20% of the quantity of first consignment at the time of
launch
Limit of US$ 25,000 not applied if exported in mutilated form
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Salient Features/ Provisions (Contd.)

Export of gift parcels
Value not exceeding US$ 5,000 or equivalent in Pak Rs.
Relief goods anywhere in the world by the Cabinet
Division (Relief Cell) of Govt. of Pakistan
Bona fide baggage of persons travelling outside Pakistan
Federal Govt. may allow any relaxation to the
prohibitions and restrictions and also issue such
authorizations.
Frustrated cargo can be re-exported under the provisions
of Customs Rules, 2001.
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Export to Afghanistan and through

Afghanistan to Central Asian Republics
Exports of all goods produced or manufactured in
Pakistan subject to paragraph 4(1) and Schedule III of
the Order
Through authorized land route or by air
Against irrevocable LC, confirmed orders, advance
payments in convertible currency
Zero-rating of sales tax on taxable goods
Rebate of FED
Repayment or drawback of Customs Duty
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Export to Afghanistan and through
Afghanistan to Central Asian Republics
(Contd.)
Exceptions:
No refunds available on export of petroleum products
unless there is a Govt. to Govt. contract and export
done by OMC registered with OGRA
Surplus JP-8 as decided in product review meetings
may be exported
Export of imported JP-8 to Afghanistan may be
allowed in specific volumes through foreign exchange
remittance and without any exemption of duty and
taxes
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Export to Afghanistan and through
Afghanistan to Central Asian Republics
(Contd.)
Conditions:
Proof that goods exported from Pakistan have actually
reached Afghanistan
Documents of Afghan Customs
In case of ISAF, DLSC; their offices in Afghanistan to verify
For Export Only prominently marked on retail packages
Export through authorized land routes (Torkham, Chaman,
Ghulam Khan)
No refund/drawback on exports from EPZ, manufacturing
bonds and EOUs
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Export-cum-Import
Temporary export and subsequent import the same goods
is allowed for;
Repair
Replacement
Refilling of ISO tanks and cylinders
Subject to:
Furnishing of Indemnity Bond
No indemnity bond in case of advance replacements
Conditions:
As per terms of sale contract
Copy of contract
Communication between buyer and seller
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Export-cum-Import (Contd.)
Export-cum-import of vehicles for travelling abroad
on the basis of carnet de passage
Temporary export of machinery for works on the
basis of undertaking and evidence of contract
Temporary export for participation in foreign
exhibitions, carrying out tests etc against furnishing
of indemnity bond.
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Re-export of Goods or items

Export of imported goods in their original and unprocessed form (is
not allowed except
Parts obtained from ship breaking
Scrapped battery cells
Waste dental amalgam
Waste exposed X-ray films
Old machinery (no refund)
Items imported against back-to-back LC
Re-export against sight LC, DA or DP subject to E-Form
Rejected consignments
Unutilized raw materials imported under duty free schemes
Old vehicles and aircrafts not falling within the definition of antiquities

Restrictions under other Laws
(a) the Antiquities Act, 1975
(b) the Arms Act, 1878
(c) the Copyright Ordinance, 1962
(d) the Customs Act, 1969
(e) the Drugs Act, 1976
(f) the Explosives Act, 1884
(g) the Foreign Exchange Regulation
Act, 1947
(h) the Merchandize Marks Act, 1889
(i) the Pakistan Animals Quarantine
(Import and Export of Animal and
Animal Products) Ordinance, 1979
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(j) the Poisons Act, 1919
(k) the Export Control on Goods,
Technologies, Material and Equipment
related to Nuclear and Biological
Weapons and their Delivery Systems Act,
2004
(l) the Petroleum Act, 1934
(m) the Control of Narcotic Substances
Act, 1997
(n) the Chemical Weapons Convention
Implementation Ordinance, 2000
(o) Pakistan Nuclear Regulatory
Authority Ordinance, 2001 (III of 2001);
and any other law notified in the official
Gazette by the Federal Government;
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SCHEDULE I
ENDANGERED SPECIES INTOXICANTS &
CHEMICALS(Appendix A) INTOXICATING LIQUORS
COUNTERFEIT PRODUCTS UREA, DAP
WILD MAMMALS,REPTILES FIREWOOD, WOOD &
PULSES, GRAM, GRAM TIMBER
FLOUR ANTI PERSONNEL
SUGAR LANDMINES
FISSIONABLE MATERIAL ANTIQUITIES
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SCHEDULE II
LIVE STOCK VEGETABLE GHEE and
WILD BOARS, PET DOGS and cooking oil(15%)
CATS ARMS AND AMMUNITION
ONIONS STONES AND JEWELLERY
MANGO SURGICAL INSTRUMENTS
KINOW (ORANGE)
RICE
POPPY SEEDS
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SCHEDULE III
NEGATIVE LIST OF ITEMS FOR EXPORTS TO
AFGHANISTAN UNDER DUTY DRAWBACK SCHEME
CIGARETTES
DYES AND CHEMICALS
YARN
PVC
BALL BEARINGS
VEGETABLE GHEE AND COOKING OIL
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SCHEDULE IV
COMMODITIES SUBJECT TO MINIMUM
EXPORT PRICE (MEP) RESTRICTION

SURGICAL ITEMS
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Appendices
Appendix A (Schedule-I Chemicals)
Appendix B (Schedule-II Chemicals)
Appendix C (Schedule-III Chemicals)
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Certificate and N.O.C Requirement

Animal Products including Live Animal Quarantine Certificate
Animals
Yarn: APTMA certificate
Raw Cotton: TDAP Certificate
Edible Products including Live Plants: Phyto-sanitary Certificate
Pharmaceuticals: NOC of D.G health
Fish Products: Marine & Fisheries Deptt. Certificate
Tobacco: NOC from PTB
Gems & jewelry: PGJA Certificate
Surgical Goods: Sialkot Material Testing Laboratory
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Export under WeBOC v/s One-Customs

WeBOC One-Customs
All exports except those Frustrated cargo
in One-Customs Export-cum-Import
Re-Export
Bulk Cargo
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MAJOR EXPORTS
Textile (around 56% share in total exports)
Food Stuff (rice, mangoes & kino)
Sports goods
Leather
Cement
Sugar
Animal / Meat / Sea food
Surgical Products
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Regulatory Duty on Export

25% RD : Lead products/ingots/billets

20% RD: Wet-blue leather and hides

15% RD: Molasses

Questions??
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