Trade Development Authority of Pakistan (TDAP)

Frequently Asked Questions

The Trade Development Authority of Pakistan (TDAP) is a body corporate established on 8 November, 2006, under a Presidential Ordinance. The Ordinance will be tabled in the Parliament as an Act for approval. The TDAP is the successor organization to the Export Promotion Bureau (EPB) and is mandated to become a dedicated, effective and empowered organization that is professionally managed. TDAP, as part of its trade ‘development’ mandate, as opposed to ‘export promotion’ only, will be dedicated to the ‘holistic’ development and promotion of goods and services for exports globally. TDAP in this enhanced responsibility and role will create direct linkages with stakeholders, local and abroad, aiming for a ‘Quantum Leap’ in exports. The administrative ministry of the TDAP will be the Ministry of Commerce, with the objective of promotion of sustainable growth in the quantum and value of export of goods and services.
Functions of TDAP


Market research
Fairs and exhibitions – local and international
Trade delegation for exploring International Market
Overseas publicity to create brand / country /product awareness
Participation in trade related events
Facilitation through Commercial Counselors abroad
Expo centre- holding if international / local exhibitions
Seminar / conferences/ workshops to create awareness about export related issues.


Face to face counseling
Export Facilitation committee – to resolve related problems
Standardization and simplification of procedures
Establish buyer- seller contacts
Information dissemination through website/Fax-on-Demand/Pakistan Export information


To assist Government in formulation of export policies and setting of export targets
To monitor export and implementation of export strategy
To recommend establishment of export oriented industries
Issuance if GSP certificates

Enhancement of Competitive Edge of Export Sector

Skill development Council
Establishment of training institutes for capacity development in sectors like Textile, Leather, Surgical, Jewellery, etc.

Seminars on export related issues
ISO-9000 and 14000 – helping industry to adopt the standards
What to Export?

Every product/service has a market. Even then, one has to be on the lookout for overseas importer. Nevertheless, export control is to be imposed at times, but its scope is very limited. There are also a few basic requisites for selling overseas. Determination land planning and planning are the basic requirements. Overseas selling begins with a state of mind.

Any commodity and/or product including services produced, processed and manufactured in a country can be exported, as there is hardly anything in the world that is not internationally traded. There is a market abroad for all types of products and services as no nation can itself produce everything to satisfy its needs in the modern world even if one chooses to sacrifice the principle of comparative cost advantage. Every country is continuously on the lookout to locate overseas suppliers of one commodity or another, thereby, creating every-increasing scope for export of other countries.

To take advantage of the situation, all nations make every possible effort to sell their products and services abroad. After all, exports are a vehicle of growth and development. They help not only in the procurement of the latest machinery, equipment and technology but also the goods and services not available indigenously, Expansion of export earning is as crucial for financing development plans as the mobilization of domestic resources. It leads to national self-reliance and reduces dependence on external assistance, which, howsoever liberal, may not be available without strings.

Where to Export?

The whole world can be a potential market for your products. Individual and specialized approach is needed to ensure that each country’s import requirements are met. In addition to the various publications there are a number of agencies that provide help to locate your markets overseas. Potential Market

Potential Market

Having made the planning and determination to sell abroad, the next step is to know the markets where one can export. Though the whole world can be a potential market for one’s product(s), it may not be possible and/or worthwhile to export to the world as a whole. Each country has its own peculiarities, thereby, necessitating individual and specialized approach. Moreover, one cannot sell every product to every country. It is better to specialize in your products first before you start to export/market them.

The way refrigerators cannot be sold to Iceland, it may likewise be difficult, if not impossible, to export watches to Switzerland. At the same time, it may be wrong to assume on the basis of sketchy information that certain markets have no potential at all. For example, a Canadian manufacturer of heating equipment discovered to his surprise that he could sell his products in Jordan because, although days are hot there, the nights are cool; He is also selling them in Venezuela, where his equipment is used not to heat houses, but to dry coffee beans.

What is therefore, important is proper and judicious selection of markets where one’s product(s) could sell best. Alternative usage, if devised and marketed, always helps.


In the selection of potential markets, the primary task is to identify the areas where products(s) similar to those of the prospective exporter, are currently sold either by Pakistan or other countries. A number of organizations have been set up to help the exporters in this task of identification. These include the Ministry of Commerce, Export Promotion Bureau, and Federation of Pakistan Chamber of Commerce & Industry. Besides these, there are number of Trade Associations/Chambers of Commerce which provide information on potential market(s) for different product(s). The exporter should establish a contact with the nearest organization. In addition, a little exercise at his desk and nearest export promotion organization’s library and/or any other good library is advisable to identify the market(s).

Whom to Export?

To find prospective customers and that too in overseas markets is the most arduous task. But a little experience and contact with different agencies backed by a concerted follow up action on the information provided by them will help the exporter in locating overseas customers. But selective approach will prove to be advantageous.

Prospective Customers

The location of prospective customers or importers is the next important and perhaps arduous task faced by the exporter after the identification and selection of markets. It usually takes a long time in finding a serious and right customer who is interested in the exporter’s product(s). His competitors in the country are naturally tight-lipped and would not like to reveal the name s of their importers. Similarly, institutions like banks, shipping companies and custom houses are supposed to keep secret the names of parties to whom exports are currently affected by other firms.

However, the exporter(s) should not feel disheartened on account of this problem. These problems are not peculiar to international markets and apply equally to the domestic selling. There are a number of published sources of information and Organizations/institutions, which provide information on prospective customers in overseas countries. It just requires a little exercise and contact with different agencies and contact with different agencies and follow-up action on the information provide by them.

How to Export?

The choice between the two basic methods of selling – direct & indirect – depends primarily on the amount of money and effort you want to put in. To export directly, you need to organize yourself in a suitable manner, with regard to staff and personnel, backed by skill and knowledge of both product & market.

Export Selling

Basically, there are two methods of export selling – direct and indirect. For direct exporting, the firm makes its own arrangements either within the existing selling apparatus or by setting up a separate and different department/ company to handle export transactions. In case of indirect exporting, the firm sells through an intermediary like merchant – exporters, Export Houses, Export Consortia/Marketing Groups, and Trading Corporations – Central and State.

Though the choice between the two methods of selling depends upon different considerations, the most important being the amount of money and the effort one wants to put in. It may some times be advisable to operate through agencies.
Registration for importer / exporter is no longer required.
Ministry of Commerce announced Trade Policy in 2018, which is available for perusal on the website of Ministry of Commerce.
Incoterms is an abbreviation of International Commercial terms. This is an International rule for the interpretation of the most commonly used trade terms in international trade prepared by ICC (International Chamber of Commerce), which is based in Paris. The purpose of Incoterms is to avoid disputes between trading parties arising from different interpretation of such trade terms in different countries.

Today, most of the business of international trade in the world is conducted using incoterms as a general business custom. In order to avoid this misunderstanding and confusion between a seller and buyer, it is advisable for the exporter to add to the contract a clause to the effect that interpretation of trade terms are based on incoterms.

Most commonly, they stipulate the wording in the general terms to fulfill condition of the contract. Trade terms such as FOB, CIF and other terms that may be used in this contract shall have the meaning defined and interpreted by incoterms 2000, ICC, as amended. Unless otherwise specifically provided in the contract, there are 13 commonly used incoterms as follows:

EXW : Ex Works
FCA : Free Career
FAS : Free Along-side Ship
FOB : Free on Board
CFR : Cost and Freight (Formally C&F)
CIF : Cost, Insurance and Freight
CPT : Carriage Paid To
CIP : Carriage and Insurance Paid To
DAF : Delivered at Frontier
DES : Delivered Ex Ship
DEQ : Delivered Exquay (Duty Paid)
DDU : Delivered Duty Unpaid
DDP : Delivered Duty Paid
For a precise understanding of Incoterms, the exporters should keep at hand a copy of the “Incoterms 200” published by ICC Publishing S.A. Among the Incoterms, the most frequently used Trade Terms are FIOB, CFR (Former C&F) and CIF. Summarized definition “Incoterms 2000” are as follows:

FOB – Free On Board (————– Named Port of Shipment)

The seller delivers when the goods pass the ship’s rail at the named port of shipment
The seller has to arrange clearance of goods for exports.
The buyer has to bear all cost and risks of loss or damage to the goods from the port.
Applicable only to sea or inland waterway transports.
CFR – Cost of Freight (————– Named Port of Destination)
The seller delivers when the goods pass the ship’s rail in the port of shipment.
The seller must pay cost and freeing necessary to bring the goods to the named port of destination.
The seller has to arrange clearance of goods for export.
Risk of loss and damage to the goods, as any additional cost due to events occurring after the time of delivery are transferred from the seller to the buyer.
The terms can be used only for sea and inland waterway.
CIF – Cost, Insurance & Freight (————–Named Port)
The seller delivers when the goods cleared for export pass the ship rail in the port of shipment.
The seller must pay the cost, freight and marine insurance (for minimum cover) necessary to bring the goods to the named port of destination.
Risk of loss, or damage to the goods, as well as any additional cost due to event occurring after the delivery, are transferred from the seller to the buyer.
The term can be used only for sea and inland waterway.
The following terms are normally used in obtaining payments against exports:

LC (Letter of Credit)
Sight L/C
Acceptance L/C
Cash L/C
Irrevocable L/C
Confirmed L/C
Non-Transferable L/C
Restricted L/C
Documents Against Payment
Documents Against Acceptance

D/P Terms
D/A Terms
Usance Bill
Trust receipt Function
Letter of Credit

When it comes to doing business with overseas buyers, the exporter bear the risk when the importers fails to pay for the consignment he has made, since there is no means to enforce the payment from the importer under the different sovereignty with different rules and regulations, and business customs. However, if a bank can guarantee the payment from the importer, the exporter can be assured of getting payment for his goods. Letter of Credit (L/C) is the bank’s guarantee that they will pay exporter in the event of the importer becoming insolvent. The bank’s guarantee is provided by issuing an L/C to the importer.

A Letter of Credit serves to facilitate smooth transaction in international trade. Therefore, it is extensively used around the world. Exporters are recommended to do business on L/C particularly when doing business with foreigners of whose financial standing they have little knowledge.

The Mechanism for opening an L/C is as follows:

When a sales contract is made between the exporter and the importer, both sides agree to do business on an L/C basis
The importer requests the issuing bank to issue an L/C.
If the issuing bank determines that the importer’s financial standing is acceptable, the bank will issue the L/C to the exporter (beneficiary of L/C). The bank may request the importer to make a deposit (security) in order to guarantee them.
The issuing bank notifies the exporter through the correspondent bank (notifying bank) by telegram first and then sends the original L/C to the exporter.
The exporter executes the shipment according to the conditions of the L/C.
The exporter presents the Bill of Exchange (Draft) based on the condition of the L/C together with a full set of the shipping documents and applies for negotiation of the documentary bill at the exporter’s bank (negotiating bank).
The negotiating bank checks the conditions of L/C and shipping documents. If the conditions of L/C are found to be consistent with the shipping documents, the bank pays the exporter. However, the exporter has to be very careful, as the bank is not able to honour the Bill of Exchange, if there is any discrepancy between the condition of L/C and the documents attached. If a discrepancy occurs, the exporter has to inform the importer and have him request the issuing bank for an amendment to the L/C accordingly.
Sight L/C, Acceptance L/C and Cash L/C
If the L/C terms demand that the Bill of Exchange drawn by the exporter is the type, which requires the importer to pay at sight, i.e. when the reimbursing bank presents the bill to him, L/C with such terms is called Sight L/C. On the other hand, the L/C, which has terms allowing the importer a deferred payment, is called Acceptance L/C. If the L/C terms require the importer to pre-arrange the amount of money for the import to be transferred from his bank to either the branch or correspondent bank in the exporter’s country, so that the money can be paid from that account when the exporter presents the documents to the bank, such L/C is called Cash L/C.

Irrevocable L/C
Under Irrevocable L/C terms, the L/C cannot be cancelled or withdrawn after it has been opened and notified to the exporter (who is the beneficiary of L/C) as long as there is no arrangement on cancellation or withdrawal among the applicant of L/C, opening bank and the beneficiary. However, in the case of Revocable L/C, it can be cancelled anytime upon the applicant’s request. Therefore, L/C should be irrevocable from the exporter’s point of view. The exporter has to be aware that any L/C received which does not specify either, as being revocable or irrevocable, will be regarded as being revocable.

Confirmed L/C

The confirmed L/C is the one, which is confirmed and guaranteed by a third party bank for payment in the event that the opening bank becomes bankrupt. The exporter can be assured of a safe transaction if the L/C is confirmed by a leading bank.

Non-Transferable L/C

The beneficiary (exporter) can transfer the Transferable L/C to a third party, but he is unable to do this with the Non-transferable L/C.

Restricted L/C

Under the term s of a restricted L/C (sometimes called special L/C), only a specific bank, which is usually the notifying bank, can purchase a Bill of Exchange from the exporter. However, under the terms of a General L/C, the purchasing bank is not specified, hence the exporter can present the Bill of Exchange to any bank and receive payment.

Document Against Payment & Document Against Acceptance

There are cases when traders do business without L/C terms. For instance, a buyer may not be able to obtain an L/C from his bank due to tight regulations. Another reason is when the buyer resides in a country where banks do not issue L/C at all. There are also cases when the exporter does not need an L/C since the buyer is a credible leading company or the import’s good financial standing is very well known to the exporter from the long standing business relationship. Generally speaking, exporting to an unknown overseas importer without L/C terms is rather risky, as there is no guarantee against non-payment by the importer. Nevertheless, there are two terms of settlement through documentary collection without using L/C. They are commonly called D/P (Documents against Payment) terms and D/A (Documents against Acceptance) terms.

D/P Terms

Under D/P terms, the exporter ships the goods and presents the Bill of Exchange to his negotiating bank together with B/L and other shipping documents. Then, the bank may pay the exporter against the documents, provided that there is a previous arrangement between the bank and the exporter to do so.

However, in most cases, the bank does not pay the exporter immediately, but mails the documents to its correspondent bank (reimbursing bank/collecting bank) in the importer’s country. The reimbursing bank then notifies the importer on the arrival of the documents. When the importer pays the Bill of Exchange at the reimbursing bank, the bank notifies the negotiating bank in the exporter’s country to confirm payment from the importer.

On the receipt of this notice, the negotiating bank pays the exporter and the settlement is complete. This method of settlement is called “Collection of Documentary Bill of Exchange”.

It should be noted that this method of settlement entails certain risks for the exporter. For instance, if the importer des not pay the bill of Exchange and refuses to accept delivery of the goods, the exporter has to dispose off the goods in a foreign country. Therefore, the exporter may have to find another buyer either in the designated country or elsewhere. Even if he does find another buyer, he may have to sell his goods at a lower price. In addition, the exporter has to bear the cost of insurance and storage of the goods until they are disposed.

D/A Term

Using D/A term, the exporter gives a grant of deferred payment to the importer. If the exporter is assured of the importer’s integrity, he may grant him a credit facility. The process for D/A up to arrival of the documents at the reimbursing bank in the importer’ country is the same as that of D/P. After the reimbursing bank notifies the importer on the arrival of the documents, the importer checks the documents and agrees on payment (promise to pay at the later date), then the bank hands over the document to the importer.

Usance Bill

Under D/A terms, the exporter draws the Bill of Exchange with grant of credit term called “Usance Bill” on the importer. “Usance” means the time limit for the drawee to honor the bill. With this arrangement, the importer is allowed a grace period for the payment (from 30 to 180 days after sight). This method poses a great advantage for the importer because he can sell the goods during the credit period and pay later. However, for exporter, this is even more risky then D/P terms due to obvious reasons.

Trust Receipt Function

In the case of settlement on D/A terms (Usance term), the importer is allow to delay the payment for such a period of 30, 60, 90 or 180 days after seeing the documents including B/L. Theoretically, during this grace period, he is allowed not be execute payment at the reimbursing bank (collecting bank), though he cannot receive the documents from the bank, for as a rule, the documents are handed over to the importer in return for payment. This means that the importer can not receive the goods from the shipping company as goods are only released upon submission of the documents.

Under such circumstances, the bank will release the documents to the importer on condition that he submits the T/R (Trust Receipt) to the bank. The T/R is a document that certifies that the importer recognizes that the goods are the bank property until the bank is paid. In this way, he can take possession of the goods from the shipping in exchange for the documents, and sell the goods to the buyer, and eventually pay to the bank within the said grace period.
To price your product for export, you would normally start with cost of production. Allow for special designs, special runs, modification and costs necessary to produce a marketable product. Rather than using your normal administrative cost, it is much better to add a direct export administrative cost, which may include representative’s commissions, direct cost for attorneys, freight forwarders, accounting, telephoning, mail, labor, etc. Some costs for exporting will be less than for domestics sales and some will be more. When you quote a price to your customer, you want to be sure there is reasonable profit margin left for you. Price can be quoted several ways. Here are some examples:

Price of goods at seller’s factory: Ex Factory
PLUS exporter packing if any: Free On Board (at named point of departure) e.g F.O.B KARACHI.
PLUS export packing, if nay, and inland freight, per delivery and other port charges: Free Along-side Ship (F.A.S.)
PLUS loading costs , if any : Free On Board Vessel
PLUS ocean freight: Cost and Freight (CFR)
PLUS insurance charges: Cost, Insurance and Freight (C.I.F)
PLUS wharfage, landing charges, taxes, customs entry, duty: Ex Dock Port
You may have a better opportunity to sell to any foreign customers if you can quote them a price C.I.F. In order to do this, determine your direct packaging and crating costs for export; this may be different from domestic sale. Add domestic shipping costs to the port of exit, together with documentation costs (a freight forwarder can help you with this). Include the freight forwarder’s fee, any applicable port charges, air or ocean freight, and insurance to quote the Costs, Insurance, freight (C.I.F) price delivered to the buyer’s nearest port of entry. Any duty and further inland charges are at buyer’s expense.
Some exporters have made the mistake of quoting their domestic price without figuring the actual cost and have later discovered that they had not made the profit they estimated. Consider the Fair Trade Practice Laws also when pricing your product. To avoid possible “Dumping” allegation, normally, a firm should make on export sales at least the profit that it makes on domestic sales, and possibly more, if costs have been accurately calculated. The challenge is to make your price high enough to return a profit, but low enough to be competitive in foreign markets. If domestic sales are not utilizing full production capacity, export sales could bring production close to capacity, therefore reducing unit costs and raising overall profits. Nearly always the exporter’s responsibility ends upon arrival of the goods at buyer’s port. Import charges should only be calculated and included in price quotations when specifically requested by the buyer.
Export Price Elements:

Ex Factory

Factory Cost
Export Packing, Marketing & Strapping
Export Credit Insurance
Interest on Credit to Importer
Advertising and Promotion Paid by Exporter
Agent’s Commission

Inland Freight to Port/ Rail/Airport
Handling Charges and Fees
Cold Storage’s Charges
Cost of Documents (Bill of Lading, Airway Bill)
Consular Invoices. Certificate of Origin Charges

Freight (sea/Air/Rail)
Insurance Premium And Cost of Policy
Handling Charges (Sea/Air/Rail)
Landed Cost

Import Duty and Taxes
Unloading Charges
Clearing Agent’s Fee
Whole Sale Price

Inland Transport to Warehouse
Advertising and Promotion Paid by Wholesaler or Importers
Retail Price

Retail Mark-up
Federal Tax VAT, Commodity Tax
Sales Tax
Custom Duty, Sales Tax and Excise Duty etc. paid on raw materials required for production are refundable on export of manufactured goods. This is called Duty Drawback or rebate. Please regularly visit FBR website for drawback rates and latest news on procedures and other related issues.
Following are some important factors, in connection with the export procedure.

Selection of a product
Opening of an Office
Registration for export
Selection of market
Quoting a price
Signing of a contract
Terms of delivery
Terms of payment
Financing for export
Transport and Insurance etc.

The Following documents are normally used in exports:

E –Form (Through authorized Commercial Bank)
Shipping Bill (Through authorized clearing agents)
B/L or AWB (Through clearing agents)
Commercial Invoice
Packing list
Certificate Country of Origin (Through Chamber) or 6 (a) GSP (Through EPB)
Export Contract registration.
Port Shipment Documents

4th copy of shipping (through customs) bill to be used for rebates on bank/sales tax refund/textile quota.
BCA (Bank Credit Advice) to be received from Commercial banks after foreign exchange is received. The BCA is considered proof for the purpose of rebates, refinance scheme etc.
In order to improve and enhance exports from Pakistan, the exporters have been provided numerous incentives as well facilities. The objective of these facilities/incentives is to make the exports Zero-rated, which means that the exporter does not pay any tax on the sales abroad. Major facilities/incentives available to exporters at present are:

Export Financing at below market mark-up under the Export Finance Scheme of the State Bank of Pakistan.
Export financing under Foreign Currency Export Finance facility (FCEF/$. Window) for purchase of Inputs domestically or for imports of foreign inputs for exportable goods.
Income Tax @ 0.75% to 1.25% for different commodities under the income tax ordinance 1979.
Facilities under temporary importation Scheme.
Facilities under common bonded warehouse Scheme.
Facilities under the Pioneering Export Marketing & Product Upgradation fund (PEMPUF) (Facility is in development phase )
Duty Drawback Scheme.
Export House Scheme.
Payment of commission to agents abroad.
Opening of offices abroad.
Protocol Passes to leading exporter for access to lounges at National Airport etc.
Following is the procedure for participating in Trade Fairs and Exhibition abroad, organized by Trade Development Authority of Pakistan:

Application on the prescribed forms available at all TDAP offices, along with participation fee (Pay Order/Bank Draft), in favour of Accounts Officer, TDAP, Karachi. In case of non-selection, Pay Order/Bank Draft is returned.
Once an applicant’s selection is confirmed, participation fee is not refunded.
Participants are required to provide top quality products in appropriate packing, which is subject to final selection by TDAP. Brochures/Catalogues and company profile must also be provided.
TDAP provides such facilities as display space, decoration and management of stands/booths, dispatch and return of exhibits with clearing and forwarding facilities.
Quantity and weight of exhibits is also decided by TDAP.
Applicants who have already participated thrice in the fairs are considered on payment of full participation cost without any financial subsidy from TDAP.
The procedure for participation in the local fairs organized by TDAP is, more or less, the same as mentioned above.

Mentioned below is the procedure for participation of exporters, in private capacity, in trade fairs/exhibitions abroad.
Authorized Dealers may extend, subject to fulfillment of drill prescribed herein for each category, the following facilities to Pakistan registered exporters for participation in the International Trade Fairs/Exhibitions in their private capacity as and when approached:

Category ‘A’ where sample goods are taken for display:

Remittance of space rent direct to Fairs/Exhibition authorities against their debt note and undertaking from the exporter’s firm/company on the form as marked ‘A’ attached here to. Remittance will be reported on Form ‘M’.
Release of exchange for construction of pavilion against estimate subject to rendition of account for expenses incurred, and undertaking as marked ‘A’ Remittance will be reported on Form ‘M’.
Issue of an authority letter to the airline/travel agents for issue of ticket to and from the country where the Trade Fair/Exhibition is being held, for the representative of the firm/company on whose behalf foreign exchange for space rent and constructions of pavilion already released, not exceeding two persons, on the format attached hereto as marked ‘B’ on production of documents showing confirmation for booking of space and credit note/receipt for foreign exchange already released. This authority letter will be retained by the airline for submission to State Bank through passage statements. Release of foreign exchange on production of return ticket purchased against authorized dealer’s authority mentioned in Sub-para (iii) above at the rate not exceeding Business Travel Quota for number of days of the fair plus another seven days for setting up stall and winding up of affairs but not exceeding 30 days. Release of exchange will be reported on T-1 Form under this authority.
Payment for the cost of ticket and foreign exchange to be released for payment of rent for stalls, booking of space, construction of pavilion, advance deposits etc. and for the expenses of the representative(s) of the firm/company participating in international trade fairs/exhibition will be received by the Airlines/Travel Agents/Shipping Companies and Authorized Dealers through cheques drawn on the bank account of the firm/company concerned.
Category ‘B’ –Trade Fairs/Exhibitions organized by the Chambers of Commerce and Industries (of Pakistan) or where exporter is participating in individual capacity where goods are taken for sale under Form ‘E’ procedure.

Remittance of Advance space rent by the Chamber of Commerce and Industry direct to fair authorities against Debit Note supported by (a) list of participating members with their share of space rent an (b) undertaking in the form as marked ‘A’ from each member participating in the fair, Remittance will be reported to State Bank on Form ‘M’. Certification of Form “E” on self-consignment basis or otherwise as recommended by the organizing chamber of Commerce and Industry.
Issue of authority letter to airline/travel agent for the issue of ticket to and from the country where the fair being held, for not more than two person of the participating firm on whose behalf form “E” has already been certified, in the form as marked “B” (This authority letter will be retained by the airline for submission to state Bank of Pakistan through passage statement).
Issue of authority letter to airline/travel agent for issue of tickets to the pavilion officer(s) nominated by the organizing Chamber on the format as marked “B” This authority letter will be retained by the airline for submission to State Bank of Pakistan through passage statements.
Release of foreign exchange for Duty/sales Tax to the participating members on repatriateable basis as per undertaking furnished on form “A” This will be reported on T-I Form with Business Travel Quota.
Release of foreign exchange to the representative (s) of the participating firm/pavilion officer (s) on production of return air tickets purchased against authorized Dealer’s authority mentioned in Sub- paras (111) and (7) above, at a rate not exceeding the Business Travel Quota for plus 7 days extra for setting up stall and winding up of affairs but a fair not exceeding 30 days. This will be reported on T-I form under this authority. Issue of authority letter for re import of unsold goods exported under Form ‘E’ procedure as per sub-para (ii) above on freight to pay basis. The Airline/Shipping Company will retain original and photocopy will be produced to Customs for release of the goods. Payment for the cost of ticket and foreign exchange to be released for payment of rent for stalls. Booking of space, construction of pavilion, advance deposit etc, and for the expenses of the representative(s) of the firm /company participating in international trade fairs/exhibitions will be received by the Airlines Travel Agents/ Shipping. Companies and Authorized Dealers through cheque draw on the bank account of the firm/company concerned.
Authorized Dealers should carefully note that in case of failure of the participants to submit evidence of any brought back the sample goods take for display or encashment certificate of the samples sold and for failure to repatriate the foreign exchange released for space rent/ duty etc., along with the sale proceeds (category B) the authorized dealers will report the matter to the area Exchange Control of the State Bank for suitable action. The authorize dealers will also report the outstanding sale proceeds including the amount release on account of space rent, duty etc. in their monthly overdue statement prescribed in app.V-16 of the Exchange Control manual (volume II) with specific remarks “Exhibition case”.
Following is the procedure for participating in Trade Delegations, Organization by TDAP:

TDAP, from time to time organizes trade delegations abroad, the program of which is advertised in the leading newspapers.
A normal package of incentives is given to the members of delegations.
Application on prescribed form for joining in the trade delegation are invited along with complete company profiles and statement showing export of respective items for the last three years, duly verified by the bank and other necessary details latest by the specific date.
Along with the application following material are required from the interested delegates:

Covering letter on company’s letterhead requesting inclusion in delegation.
Products/Brochures/ Catalogues.
Company Brochures/Catalogues.
Price list of the products.
Wrong and incomplete information could result in disqualification.

NOTE: If any of the above is not provided, it is assumed by TDAP that the applicant is unable to provide the same and this may have a negative effect on selection of the applicant.
The export packaging requirement vary from product to product but the primary function of packaging is to protect the product from any damage due to contamination, crushing, breakage, climatic conditions and theft before, during or after its transportation from the place of its manufacturing to its destination. In order to avoid damage to the product, the exporter must take into account all possible factors that can prove to be hazardous to the product safety during its handling and storage at different points of its shipment to the final destination.

The factors that should be considered when deciding best type of packaging include fragility, durability, mode of transportation, resistance to abrasion, value, and susceptibility to moisture, chemical reaction like oxidation and corrosion, chemical stability and shelf life.

Normally, it is the market where the product is being sent that determines the requirement of the packing to be done, because these differ from country to country and importer to importer. The consumer also influences the type of packaging demanded by the importers in different countries. It is essential to get an idea of packing required by the importers in order to customize the packaging with the behavior and needs of consumers in their countries because it is an essential tool of marketing and remains with the products till the product is used or consumed. It also helps the exporter find out any restriction imposed by the importing country on the packaging of certain product or accommodation. For example, most countries, particularly the developed nations, will not allow import of fruit, vegetable and meat in packs that do not completely eliminate the chances of contamination.

The packaging requirements are also influenced by international guideline such as ISO standard as well as by national health, safety, environmental and consumer protection measures and regulation affecting the product and packaging concerned. Most developed, and some developing nations have their own standard-setting bodies to serve their domestic needs, focusing primarily on the requirement of their industries and the needs of their consumers.

General Packaging Guidelines

Use a rigid carton with flaps intact. For best results use a new box large enough to allow room for adequate cushioning material on all sides of the contents. Never exceed the maximum gross weight for the box, printed on the bottom flap.

Use adequate cushioning material. For this wrap each item separately. Fragile items need to be protected from each other and separated from the corner and sides of the box to prevent damage, Use air-encapsulated plastic or expanded polystyrene “peanuts” (for lightweight products), foam-in-place (foam sprayed into boxes to form a protective mould around contents), corrugated dividers or crumpled newspapers or Kraft paper as cushioning material.

Use adequate sealing material. Use strong, pressure-sensitive or nylon reinforced or water-activated tape designed for shipping. Do not use strng.

Use a single address label that has a clear, complete delivery and return address. Place duplicate label inside the carton.

Always print the characteristics such as fragile, abrasive, breakable, etc. of the product on the cartons for their proper handling and storage.

The list of national standards applicable to packaging is pretty long. It is enough to mention that they deal with matters as varied as static and dynamic performance tests, size requirements types of packages, closure techniques and compatibility with the ISO freight containers and agricultural packaging.

The standard-setting organizations of most countries are, with very few exceptions, associate members of the International Standards Organization (ISO), which means that new ISO standards, by and large, represent their technical views. Thus in the presence of ISO standards published over the last 20 years or so (available at means that there is less need to refer to or rely on national standards. As an exporter involved in international trade, the exporter should try to adopt ISO standards and apply them in accordance with the needs and requirements of the buyers and the importing countries.

The Packaging Standards are Classified as under

Dimensional Standard: They ensure the inter-changeability of packaging components and accessories and assist modular packaging. Such standards help to curb proliferation of package dimensions and thus assist consumers in making objective comparison of the package contents and price.

Standards Concerning Quality of Resistance to Wear: They guarantee that the product will meet the purpose for which it has been designed.

Standard Test Method: These methods are used to compare materials and products intended to be used for the same purpose. They determine, for example, the breaking point of the corrugated board used in the containers for transport by sea. A test method must be developed before any standards relating to the aspects of use can be established.

Standardized Technical Terms & Symbols: These terms and symbols are adopted throughout a country by every industry as a common technical language to be readily understood within the sector.

Codes of Standard Practice: In general, these codes recommend method concerning the technical procedures for packing for use in specified industries. The packaging industries in some highly industrialized countries have already adopted such codes. Other lesser-developed countries often use the code as operational guidelines and in reference manuals.

The packaging requirements vary from product to product and an example of standards for Kino export packaging from Pakistan are given below:

Crates must be packed with 9 kg net Kino in them
Crates must be printed with brand name and Net weight
External size of crate for 9 kg fruit is 16 * 10 ¼ * 1/4inches
Crates must be made with white clean wood
Kino must be washed and waxed and properly graded
Transporation to overseas markets only by reefer containers.

What is eco labeling?
The eco label was intended to encourage sustainable production and consumption by creating awareness among consumers of the environmental effects of everyday products. Its objectives are:
To promote the design, production, marketing and use of products which have a reduced environmental impact during their entire life cycle.
And to provide consumer with better information on the environmental impact of the products.
The purpose of eco-labels is to assist the consumer who wants to choose environmentally preferred products. They are particularly prevalent in Northern Europe where there are currently a number of eco-label schemes up and running.
Environmental labeling or “eco-labeling” plays a very important part at present, especially with the increased awareness on the need to protect the environment. Consumer, industrialists, technologists, and the society as a whole are not only making their purchasing decisions based, more and more, on the key aspects associated to the products itself; but also the environment effects before, during and after manufacturing of the products. Thus “eco-labelling” presents a judgement of one’s product’s relative environment qualities compared to another functionally and competitively equivalent product. It also provides the message that a product is environmentally friendly at all stages of its life cycle and that it satisfies both voluntary and mandatory requirements. Environmental labeling makes a positive statement that identifies products and services as less harmful to the environment than similar products or services. Eco-labeling programs can be export sector driven or state mandated.
If appears as though the prevalence of eco-label schemes, in particular those involving rapidly consumed household goods, will increase. However, for more durable goods such as personal computers, eco-labels are unlikely to be a factor in the purchasing decisions of the vast majority of consumers. For manufacturers of such durable goods, the more important question concerns the professional user and in particular the public procurement market.

How it Works?
The eco-label scheme is voluntary and open to manufacturer or from both EU and non-EU countries. Manufacturers are under no obligation to apply for the eco-label. The definition of criteria for the award of the eco-label is based on the study of product life-cycles. The commission is responsible for adopting and revising the criteria. Either the commission or a competent body can propose a new product group.

The award of labels of products is a matter for national authorities (Competent-Bodies). These bodies are independent and neutral. Manufacturers or importers applying for an eco-label must address the competent body in the country where the product is manufactured or into which it is imported from the third country. Currently, 28 eco-labeling programs exist world-wide including Brazils Department de Certifi caoca, Gerente; Ccnada’s Environmental choice program; European Union’s eco-label Award, Germany’s Blue Angle Program, Japan’s Eco-mark Program; Norway and Sweden’s Nordic Swan Program; Thailand’s Green Label; and the United States Green Seal Program.
It is important that the exporter knows the export market before starting any export business. The exporter should know in advance, the distribution channel, the market segment, the governing regulations and the price at which his goods can be sold in the new market. This information will be useful for him when drawing up his own marketing plan and negotiating with the importer.

He has to develop his own strategy to match his products with the local needs and preferences of consumers. There is a slim chance that his product will fit the target market without some modification. He may have to change the size, color, specification, etc. in order to meet the consumer’s preferences and the rules and regulations concerning the distribution of the product. Therefore it is helpful for the exporter to know the following points regarding his target market before he commences his export business:

Local production figures.
Export by destination & Import by Country of origin.
Market size in terms of value and quantity.
Profile of local major manufacturers.
Distribution channel and mark-up at each of the distribution channel.
Competition among local products and imported brands. Evaluation of products by consumers. Retailers, wholesalers and importers in terms of price, quality and design.
Import system and related rules including special certification and necessary documentation. It is advisable for the exporter to be aware of his responsibilities concerning import rules well in advance.
Local rules and regulation related to the marketing of the intended product for sale. It would benefit the exporter if he knew earlier if the time consuming and elaborate modification, testing and labeling of his product to meet local rules and regulations are necessary.
For those who do not have any financial or organizational capability to engage marketing companies to conduct the research, there are some other ways to know more about the target market. Listed below are some ways to find information on overseas market:

Visit the TDAP website to get commodity / country info. Visit Information Advisory Centre of Trade Development Authority of Pakistan (TDAP), which is open to the Public. It provides information on custom tariff schedules, company directories, trade statistics etc. free of cost.
Collect catalogues, magazines and newspapers concerning the products that he intends to sell through his business associates.
Participate in overseas trade fairs and exhibitions or trade mission sponsored by TDAP. The participants may have a chance to associate with people related to the business concerned.
Visit trade promotional organization or Commercial Section of Foreign Embassies stationed in Pakistan.
Visit trade association in Pakistan or over target country, if this is feasible, and make it a point to drop in at out concerned sections abroad.
During the course of international trade, commercial disputes between the exporters and the importers may arise because of a variety of factors, ranging from non-payment of commission or short supply and inferior quality of goods to non-shipment of the ordered goods or cancellation of the order.

Such disputes between the two parties in international trade contract can be resolved by employing one of the following methods and means:

Conciliation between the disputing parties through direct negotiations.
Litigation in a national court in either party’s country.
It is seen that the disputing parties generally fail to settle their dispute through direct negotiations. Lawsuits are avoided because of costs, delays and other factors. To avoid expenses of legal action or arbitration, the TDAP in liaison with Pakistan’s trade officer abroad, provides mediation services free of costs for amicable settlement of the dispute arising out of export trade, if an exporter approaches it with a complaint against and importer or vice versa.

The following procedure is adopted by the TDAP to settle the trade disputes when an exporter approaches it with his or her complaint against the buyer:

The contract is examined to ascertain and substantiate the allegation by the terms and conditions of the contract and request is made to the importer for solving the dispute through the TDAP mediation.
If the importer does not accept the request, the exporter is advised to resort to the method of settlement as specified in the contract.
If the contract does not specify any method of settling these disputes, the complaint is asked to avail the arbitration facilities available with the International Chamber of Commerce (ICC) or the local chamber of commerce or any other local or foreign arbitration institution.
If, because of costs involved or some other consideration, the parties concerned are not willing to refer the dispute in an arbitration tribunal, they are asked to authorize the TDAP or the Pakistan’s trade officers to arbitrate in the dispute. Both the parties are requested to submit in wiring that they will accept the decision of the arbitrator(s) as binding and final. If the exporter does not accept the decision, the TDAP can recommend cancellation of his or her export registration.
Function of Commercial Courts
Commercial courts have been provided for in the Imports and Exports Control Act. 1950., which empowers the Federal Government to establish as many Commercial Courts as it considers necessary. In terms of powers vested in the Federal Governments two Commercial Courts, one each at Lahore and Karachi, have been set up to adjudicate on trade disputes. Th e commercial courts take cognizance of trade dispute on complaints in writing made by an officer of the TDAP. The decision of the Commercial Courts is final and can not be questioned in any courts of law.

1. The role of Pakistani Trade Officer stationed abroad is to increase the foreign exchange earning of Pakistan through promoting and facilitating the expansion of Pakistan’s visible and invisible exports to the territory to which he is assigned. His principal responsibilities are therefore:

To enhance Pakistan’s reputation as reliable trading partner
To develop favourable commercial relation between trading enterprises in Pakistan and his post territory
To ensure that relevant Government bodies, commercial organization and the Pakistani export community have up-to-date knowledge of trading conditions and export prospects and opportunities in his territory.

2. Through fulfillment of this role, the Trade officer will not only contribute to his Government’s economic and trade related objectives, but also assist in the strengthening of Pakistan’s general bilateral relations with the countries of his Post territory.

II. Functions

3. To perform this role effectively, the trade officer will be expected to:

Seek out and create opportunities for Pakistan’s exportable goods and service and to ensure that concerned parties in Pakistan are quickly informed of the opportunities identified;
Assist Pakistan exporters to exploit these opportunities fully through the provision of advice and support to specific export initiatives;
To contribute, through a systemic reporting programme, to the evolution of Pakistan’s trade policy and export strategy.
4. Particular duties relating to the above functions which the Trade Officer will be expected to perform include:

To collection and interpretation of economic, commercial and trade information relevant to trade policy and export strategy and the dissemination of such information to appropriate organization and enterprises in Pakistan;

The processing of trade inquiries originating in the both Pakistan and post territory and the provision of assistance to the private sector, and to semi-government export enterprises in Pakistan, in establishing contacts in the post territory in appointing local agents/representative and in following up export opportunities and prospect;
The organization of a suitable publicity programme to support Pakistan’s export drive and the provision of advice and assistance in Pakistan participation in fairs and exhibitions; Through representational activities, the maintenance of cordial relations with government official and members of business community of the post territory;
The provision assistance in the settlement of trade dispute;
The provision of assistance in the procurement of imported supplies.

5. In addition, the Trade Officer should seek to attract foreign investment into Pakistan, to encourage Pakistan’s participation in major project abroad, and to simulate tourist interest in Pakistan:

6. Form time to time, the Trade officer may also be required to: • Negotiate and sign sales and purchase contracts on behalf of Government and Semi-government agencies; • Participate in bilateral and multilateral meeting convened in the post territory; • Provide assistance on the securing and implementation of economic assistance programme.

7. In certain posts, the Trade Officer may, in addition, be responsible for servicing Pakistani residents in post territory with respect to provisions for imports into Pakistan against their foreign exchange earning under the Gift Scheme and the Baggage Scheme. For this activity he should be guided by instructions issued by the FBR, as amended from time to time.
The Generalized System of preference (GSP) is a system whereby preferential treatment by way of a reduced or duty free tariff is granted by developed countries known as preference giving or donor countries, to eligible products imported from the development countries. This preferential treatment is granted without any reciprocal obligation on the part of the developing countries.

The main purpose of the above tariff concession scheme is that the exporters in the preference receiving countries should be able to increase their export earning contributing to the foreign exchange earnings of their country, both through obtaining better export prices for their products (importers will pay a reduced rate of duty or often no duty at all) and by increasing the volume of sales (importers will be more interested to import the products from beneficiary countries than from any where else, in order to benefit form the margins of preferences provided).

It is believed that the main objectives of Generalized System of Preferences will be met by the ways given below:

To increase the export earnings of the preference receiving countries;
To promote their industrialization; and To accelerate their role of economic growth.

Scheme in Operation

Generalized System of Preferences is at present in the form of following different schemes operated by preferences giving countries:

Countries that accept form ‘A’ for the purpose of the Generalized System of preferences (GSP)

Australia, Canada, Japan, New Zealand, Norway, Switzerland, United States of American, Republic of Belarus, Republic of Bulgaria, Czech Republic, Republic, Republic of Hungary, Republic of Poland, Russian Federation, Slovakia.

How to Export under GSP Scheme

To establish the tariff classification

If an exporter wished to benefit from Generalized System of Preferences he has to establish classification of his products within the Customs Tariff Schedule of the country where he has an export interest. Normally this will be the CCCN (Customs Co-operation Council Nomenclature) heading is used in most preference giving countries. It is believed that harmonized commodity description, and coding system has been introduced by most of the countries.

Check the product coverage

Many exporters think that all products are covered by all the GSP Scheme but this not true. The exporters should first determine whether is products are covered in the GSP Scheme of the markets where he has an export interest. He must examine the products lists of GSP Scheme by reference to the precise tariff classification and products description on his goods.

Calculate the preferential margin

When the exporter becomes ascertained that his products are eligible for GSP, he should have calculated the preferential margin of his product which will enjoy preferential treatment in a particular market, so that he can calculate the prices for offering to the importer. For finding the margin he has to refer to the customs tariff schedule of the market country in both, the fall rate of duty and the GSP rate of duty. The deference between these two is the preferential margin. In some cases the preferential margin may be quite larger and the exporter would be able to include a relatively larger profit, in comparison to his price offered to the countries, other than GSP Scheme. When preferential margin is small exporter cannot derive immediate financial benefit form this tariff cut. However, in the long run he may be able to gain financial benefit by obtaining a new or a larger market for his product. If the exporter can continue to sell his products to the importer he will be able diversify and expand his export.

To check graduation lists

The exporter must determine if his product(s) subject to any quantitative lamination or graduated for any particular country. For example textile, leather and carpets are graduated since 1997-98, in European markets.

To study rules of origin

An exporter has to be sure that his product are fulfill the origin requirements of the particular GSP Scheme, in which he is interested and he must be satisfied that he is getting preferential treatment for his products.

The main objective of GSP Scheme is to encourage manufacturing activity. Awareness or rules of origin is necessary and it should be assured that the benefit of the GSP goes to the preference receiving country.

Prepare the documentary evidence

The application for GSP treatment is supported by appropriate documentary evidence regarding origin and details of the consignment of the products. GSP from ‘A’ is a certificate that is accepted by all preference giving countries. It must be certified and signed by a Government authority in preference receiving country. TDAP, in Pakistan is the authority to certify/sign and issue this document.

Where to seed advice

Exports who wish to know more about GSP Scheme in general, or who wish to obtain more detailed information bout the products covered by preferential margin, rules of origin, tariff classification for their products in various schemes or have problems in the administration of the scheme by the preference giving countries may seek assistance from TDAP and its regional offices in Pakistan.

Origin criteria for GSP

To qualify for preferential treatment under the GSP the products must be either:

Wholly obtained (wholly grown or produced) in the beneficiary country. Manufactured, wholly or partly from materials, parts of components imported into country of unknown origin. Products which have undergone minimal process will not qualify for GSP treatment.

There are six GSP Schemes, operated, at present in Pakistan. The details of which are given as under:

1. General System of Preferences

Certificate of origin (Combined Declaration ^ certificate) Form “A”.

Countries that accept the form of above scheme “A” for the purpose of Generalized System of Preferences (GSP)

Australia, Canada, Japan, New Zealand, Norway, Switzerland, United States of America, Republic of Belarus, Republic of Bulgaria, Czech Republic, Republic of Hungary, Republic of Poland, Russian Federation, Slovakia.

European Union: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain Sweden, United Kingdom.

2. SAARC Preferential Trading Arrangement (SAPTA)

(Combined Declaration & Certificate) This form of the Scheme is acceptable among SAARC countries, which are: India, Pakistan Bangladesh, Sri Lanka, Maldives, Bhutan and Nepal

3. Preferential arrangement among developing countries negotiated in GATT certificate or origin.

(Combined Declaration & Certificate) Following are the signatories to preferential arrangement among developing countries in connection with above scheme form: Bangladesh, Mexico, Turkey, Brazil, Pakistan, Tunisia, Chile, Peru, Uruguay, Egypt, Republic of Korea, Yugoslavia & Romania.

4. Global system of trade preferences

Certificate of origin (Combined Declaration & Certificate) This form of the scheme is acceptable by Romania & Korea.

5. Certificate in regard to certain handicraft products (HANDICRAFT)

Issued with a view to obtaining the benefit of the preferential tariff regime in the European Community.
Export Houses

An Export House in Pakistan means a Trading Company registered as an Export House by the competent authority with its secretariat in TDAP.

Conditions of Eligibility for Registration

An application for registration shall:

Be a trading company registered under the Companies Ordinance 1984 (XLVII of 1984); Be registered as an exporter under the Registration (Importers and Exporters) Order, 1993;

Have, or undertake to establish with in a specified period, an office abroad; and Except as otherwise provided, have had an export of not less then US$ one Million with export performance in at least one products groups during the year immediately preceding the year in which the application is made.

Fruits and vegetable exports would be eligible for 10% wastage allowance.

Any two or more exporters who, having together had during the year preceding to registration, an export performance of not less than $ two million, have formed a consortium and get themselves registered as a trading company under the companies ordinance 1984 (XL VII of 1984) and as an exporter under the Importers and Exporters (Registration) Order 1993, shall also be eligible to apply for registration as an export House.

Earnings in foreign exchange on the following accounts shall also be taken into account for ascertaining export performance for the purposes of sub-paragraph (1), (2) and (3) namely:

Net earnings from erection charges, consultancy fee and collaborations fees; Royalties for books;
Net earnings from re-export or off-shore trading;

Such other items as the competent authority may notify from time to time.
Application Form and Fee, etc.
an application for registration as an Export House shall be made to the competent authority in the prescribed form.
The application shall be accompanied by a bank draft for fifty thousand rupees drawn in favour of the President of the Islam Republic of Pakistan on account of registration fee and by the following documents in triplicate, namely:

A statement showing direct exports make in the preceding year duly supported by Bank Certificate or export made and export proceeds realized in the name of the applicant company or, in the case of a company such as is referred to in sub-paragraph (3) of paragraph 4, in the name of the constituent units.

Export orders or export contracts received or made during the preceding year in the name of the applicant company or, in the case of a company such as is referred to in sub-paragraph (3) of paragraph 4, in the name of all constituent units.

Copies of arrangements made, if any, with manufacturing units for the purpose of effecting exports on their behalf.

The competent authority shall deposit the bank draft received by it under sub-paragraph (2) with the State Bank of Pakistan for credit to the Federal Revenues under the appropriate head of account.

Grant of Registration and its Validity
The competent authority may grant the application for registration made by an eligible applicant if it is satisfied that, having regard to the following matters, the applicant deserves to the registered as an Export House, namely:

Managerial capacity, technical, financial and services resources, testing facilities and quality control arrangements available with the applicant; and Operational plant of the applicant and its ability to provide assistance to supporting manufactures in availability of imported inputs and by way of technical aid. The registration of Export House shall be valid for a period of one year and may, on application be renewed from year, to year with payment of annual renewal fee of twenty-five thousand rupees subject to satisfactory export performance.
Export by Export House

After the expiry of the first year of its registration every Export House shall export one or two of its products under the brand name and within five years of registration shall export all its products under its brand name.

Facilities available to Export Houses

To import against BMR facilities on behalf of individual importers or a group of importers; To retain 5% of their FOB foreign exchange earnings for the use of establishment and maintenance of offices abroad, publicity, product development, participation in trade fairs abroad, collection of commercial intelligence, market studies, adaptation of existing products to new markets, cost of air tickets provided to foreign buyers who are invited to visit Pakistan and other promotional efforts;
Provided that retention of 5% of FOB earning for purpose listed above shall be subject to the condition that export performance of such export houses includes 15% of the net foreign exchange earnings from the products of supporting manufacturing units which are not owned or controlled by the controlling interest of the export house;
Provided further in that case of export house whose net foreign exchange earnings do not include 15% realization from the products supporting manufacture for only 3% of their foreign earnings for purpose mentioned in this sub-clause.
The Federal Government may allow the export houses to establish their own cargo plan facilities or charter private cargo planes;
The Federal Government may grant subsidy from Export Market Development Fund in freight for the export of non-traditional items like fruits, vegetables and cut flowers; and The Federal Government may allow issuance of distinctive passports, having up to 200 pages, to the Chairman and Managing Director of an Export House. The holder of such passport will be entitled to use VIP Lounges at national airports.
The competent authority may permit an export house desiring to set up display centers already including warehouses where necessary, and may allow reasonable foreign exchange for the purpose.

Accounts and Return to be maintained and submitted
An Export House shall maintain proper accounts of imports and exports and submit to the competent authority a pre-audit annual return and a statement of exports which shall, inter-alia, the exports made on behalf of each supporting manufacture.

Cancellation or Suspension of Registration

The registration of and Export House shall be liable to be cancelled or suspended for a specific period under the orders of the competent authority if:

The competent authority is satisfied that the registration has been obtained by misrepresentation of facts;
The competent authority, on the complaint of the foreign buyer, finds the Export House to have committed a breach of contract or indulged in unfair trade practices;
The Export House is found by the competent authority to have committed a violation of the import and export policy orders or exchange control regulations; or The Export House in found by the competent authority to have failed to discharge an export obligation undertaken by it or to furnish to the competent authority any return or information required by or under this order.
No order shall be made under sub paragraph (1) unless the concerned company has been given an opportunity to show cause against the proposed action.
A company aggrieved by the decision of the competent authority under this order may, within fifteen days of the receipt of the decision, prefer an appeal to the Secretary, Ministry of Commerce, Government of Pakistan.
The Details of the Custom Export Tariff and Development Surcharge on Exportation of goods, are contained in the following Statement:

Levy of 0.25% Development Surcharge on Exportation of Goods Under No. XIII of 1991
Development surcharge on exportation of good:

There shall be levied and collected a special customs duty as Export Development Surcharge on the exportation of all goods at the rate of .025 per cent of the value of the said goods as determined under section 25 or, as the case may be, fixed under section 25B of the customs Act, 1969 (IV of 1969).
The Special Customs duty levied under sub-section (1) shall be in addition to any duty imposed under section 18 of the Customs Act, 1969 (IV of 1969), or under any other law for the time being in force.
The Federal Government, subject to such conditions, limitations or restrictions, if any, as it thinks fit to impose, may by notification in the official Gazette, exempt any goods from the whole or any part of the special customs duty leviable under sub-section (1), and no exemption from payment of customs duty under the Custom Act, 1969 (IV of 1969), or any other law for the time being in force shall apply to the special customs duty leviable under the said sub-section.
Notwithstanding anything contained in any other law for the time being in force or any court, the rate of special customs duty leviable under sub-section (1) applicable to any goods shall include the amount of such duty that may have become payable in consequence of the withdrawal of the whole or any part of the exemption from such special customs duty whether before or after the conclusion of a contract or agreement for the sale of such goods or opening of a letter of credit in respect thereof.

Government of Pakistan
Ministry of Finance
Islamabad, 1st July, 1991
S.R.O604(I)/9: In exercise of the powers conferred by section II of the Finance Act, 1991 (XII of 1991), the Federal Government is pleased to exempt the Goods specified in the table below from the whole of the Export Development Surcharge leviable thereon, namely:

S.No. Description of goods
1. Bona Fide baggage of the crew or the passengers of any out-going vessel or conveyance.
2. Goods constituting the stores or equipment of any outgoing vessel or conveyance.
3. Any goods transshipped at a port in Pakistan after having been manifested for such transshipment at the time of dispatch from a port outside Pakistan.
4. Goods consigned under a procedure prescribed for regulating transit traffic.
5. Goods exported under a procedure prescribed for regulating trade between border areas for Pakistan and those of the adjacent territories.
6. Any stores or equipment when sold abroad on Government to Government basis and exported under an export license issued by the Director of Pakistan (Army) or by any other officer authorized by the Ministry of Defense.
7. Bona Fide samples provided that:
a. The FOB value of such samples does not exceed the limit prescribed by the Ministry of Commerce. b. The samples are supplied free of charge; and
c. The consignor is a registered exporter under the Registration (Importers and Exporters) Order, 1992, or has been exempted from registration there under.
8. Gift parcels of value not exceeding Rs. 500 each.
9. Goods exported to and from the Export Processing Zone.
10. Relief goods sent as aid for those affected by natural disaster or catastrophe.
11. Goods sent abroad for repair and renovation or calibration.
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