Customs duties are levied at the C.I.F. Value of goods in conjunction with the Customs Valuation Code of the WTO.

12

Essential foodstuffs, raw materials, capital goods and machinery are granted duty-free entry equally for auto coners, certain industrial machinery and equipment, computer parts and accessories, and imported refrigerated trucks and vans.  The following goods are also subject to duty free-entry: printed advertising matters as posters, pamphlets, trade catalogues, advertising catalogues other than commercial catalogues.  Additionally, duty drawbacks apply to temporarily imported but re-exported goods e.g. commercial samples if accompanied by a bank guarantee or indemnity bond equivalent to the value of goods.

Pakistan as a member of the Economic Cooperation Organization (ECO) founded in 1985 together with Turkey and Iran, grants each other a 10% tariff preference on statutory rates for certain imports.  In 1993 the following countries Afghanistan, Azerbaijan, Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan reinforced the ECO as new members.

On 17 July 2003 Pakistan signed with other ECO member states, a trade agreement known as ECOTA, i.e. Economic Cooperation Organization Trade Agreement, establishing a mechanism to promote and sustain intra-regional trade and economic cooperation through mutually agreed concessions.

Pakistan and Sri Lanka signed a free trade agreement framework on 9 February 2005.  The agreement calls for reciprocal and gradual tariff elimination for imported goods with the exception of goods listed in the negative or sensitive list.

Pakistan and the USA signed on 29 June 2003, a trade and Investment Agreement to monitor relations between the two countries, identify opportunities for expanding trade, and work towards the removal of impediments to trade.  The two countries signed also a Science and Technology Cooperation Agreement to facilitate bilateral cooperation in science, technology and engineering.

Pakistan-Britain Trade and investment Forum was launched on 8 May 2003 with the expected view to boosting trade and investment relations between the two countries, providing guidance and support to business from Pakistan and the United Kingdom, in entering into bilateral commercial relations, with the Asia House in London as the Secretariat of the Forum.

22.9

A  1% handling charge is levied on all imports.  And an additional 1% is also levied on goods for failure of statement of actual cost of insurance in a memo by an insurance company.

A general sales tax at the rate of 15% is levied on both locally and imported items, on the duty paid value of goods including branded food products, electricity, fertilizers, fruits, gas, petroleum products and selected machines.

34

Imports of goods into Pakistan valued at prices lesser than in the country of origin and sold in the Pakistani market for a continuous period of six months, are subject to antidumping measures, as laid in a law passed in December 2000.

Electrolyte tin plate import from South Africa has been imposed a definitive anti dumping duty of 27.33% as of 26 of November 2002 for 5 years.

Definitive antidumping duties are in force for a period of 5 years against the following products: sorbitol 70% solution as of 19 November 2003, from France and Indonesia; glacial acetic acid as of 18 June 2004 from Chinese Taipei; and acrylic tow as of 10 December from Uzbekistan.

41.1

An import deposit of 35% is required for import transactions not dealing with industrial new materials, machinery and spare parts, petroleum, edible oil, wheat, and a few other products.

Under the State Bank authorities, specific banks and financial institutions are eligible for activities such as dealing in all foreign currencies, supervising surrender requirements, and selling exchanges within limits set by the State Bank.

Payment of imported goods is secured through a compulsory letter of credit, unless and exemption is obtained; any other term of payment requires the approval of the State Bank of Pakistan.

Imports of goods under loans or credit requiring contracts might be subject to the opening of a letter of credit within 60 days as of the approval date by the Pakistani government agencies.

61.1

All importers of goods must be registered with the Export Promotion Bureau.

The following goods are importable only by relevant Government agencies: machinery for arms and import shall be allowed to ammunition, high explosives, radioactive substances, security printing, currency and mint.

Transmission apparatus whether or not incorporating reception apparatus excluding fax machines and mobile phones, T.V. transmission antenna system, field pick-units STL equipment, VHF set, TV modulator, video projection systems and video switching system, can be imported only by PTV, concerned public sector agencies and other licensed by the Federal Government Companies.

Armoured security vans whether new or second hand are imported by banks and security companies.

Non-sterilized surgical needles and syringes are importable by industrial units engaged in the further processing of these goods into value added final and finished products.

Active ingredient for formulation/manufacturing of pesticides is importable by industrial users only.

Pharmaceuticals importers require recommendation from the Ministry of Health for the importation of the following drugs: Phenylacetene (1-phenyl-2), acetic anhydride, Ethylidene Diacetate, N-Acetylanthranilic acid, 3,4-Methylene di-oyxphenyl-2-propane, Isosafrole, Ephedrine/Norephedrine, Ergometrine, Ergotamine, and Lysergic Acid.

A prior approval from Pakistan Nuclear Regulatory Authority is necessary to import radioactive material and radiation apparatus.  As for importation of asbestos, only tariff line 2524.0000 is authorized.

63.74

Import prohibition is set on goods for religious, health, environmental, or security reasons.  Import ban is also set in order to discourage consumption of luxury items or in accordance with provisions related to international agreements.

81.11

Certificate of cleanliness issued in the country of origin, endorsed by a practicing physician, with the letters "MD" appearing after the signature, is required for importation of used clothing.

Registration requirement of pharmaceutical products with the Ministry of Health is obligatory.

Imports of human blood and its fraction must be accompanied by and AIDS and hepatitis B and C free certificate.

The importation of food colours as specified in Annex B-2 to the Gazette of Pakistan 22 of July 2004, and food colour lakes, prepared from colours of heading No. 3204.9000, is subject to the production of certificate from the Government of the exporting country that goods are in use or registered in that country, and carry fair true labelling.

Imports of dyes must be accompanied by a certificate stating that they are neither  based on benzidine, nor contain, any content thereof.

Dioxin freedom certificate is required with the consignments of livestock products imported from Belgium.

A health certificate must accompany imports of meat and poultry products.

81.12

Dioxin freedom certificate is required with the consignments of livestock products imported from Belgium.

81.13

Imports of plants and plant products must be accompanied by a sanitary certificate; in addition, imported cotton sanitary certificate must state that "the cotton is free of the cotton boll weevil anthonomus grandis".  Equally, packing material such as straw or hay should be guaranteed by an official in the country of origin, as being free of insects and diseases.

A phytosanitary certificate is required for the importation of all species of plants and parts thereof, sugarcane seeds, banana and suckers vegetable seeds, seed potatoes, flower seeds and other field crop seeds including tubers, rhizomes, roots cuttings, fresh and dry fruits, betel nuts (areca), red chillies in whole, and wheat.

Straw or hay used as packing material of imported goods, must be certified as free of insects and diseases.

Registration requirement under the Drugs Act, 1976 (XXXI) and the rules made there under, of insecticides, rodenticides, fungicides, herbicides, anti-sprouting products, disinfectants and similar products excluding plant growth regulators, put up in forms or packing for retail sale or as preparation or articles for example sulphur, treated bands, wicks and candles and fly papers.

A certificate stating that the imports of scrap being exported does not include, hazardous waste as defined in the Basel convention, is required for importation of waste, parings and scraps of polymers of styrene, vinyl chloride and other plastics excluding polypropylene.

Imported goods must bear an indelible indication on their labels or wrappers the name of country of origin, e.g. "Made in USA" otherwise goods or articles are subject to, confiscation, and, or imposition of fines.

Foodstuffs labels must not bear any obscene writing, inscriptions, visible representations or inscriptions of a religious connotation, they should display date of manufacture and expiration on each retail pack, and accurate quantity, weight, measure, trade descriptions, and component materials.

Imported prepackaged food products must bear the name of the product, name and address of the manufacturer, percentage of dye content if applicable and normal storage stability.  Furthermore, food product labels must indicate that they do not contain pork, and that meat and poultry derived from animals slaughtered according to Islamic ritual, and that the product is fit for human consumption.

Packages of powdered milk intended to baby consumption must be labeled in English and Urdu to indicate instruction of preparation, and health and hygiene of bottle feeding use.

Packaging of pharmaceuticals must be labeled to display generic names, substances and products with at least equal prominence that of the brand name.  Labels must show registered number of the drug assigned by the Ministry of Health, the list of active ingredients, batch number, manufacture and expiration dates; specific cautionary statements such as: "poison", "for external use only" are required for certain drugs.

The following warning "Smoking is injurious to health" must be displayed on each packet of cigars, cheroots, cigarillos and cigarettes or cigars of tobacco or of tobacco substitutes, in English and Urdu.

Labeling of pesticides such as insecticides, rodenticides, fungicides, herbicides, anti-sprouting products, plant growth regulators, disinfectants, paper, sulphur-treated bands, wicks and candles must provide information as name of the product, its manufacturer or registered importer, its formulation, net contents, dates of manufacture and test, normal storage stability, the following warning statements: "keep out of reach of children", "Danger", "Warning", "Caution", displayed on the front panel of highly toxic pesticides.  In addition, the following data must appear on the labels: name and percentage by weight of active ingredients and total percentage by weight of other ingredients, antidotes, all these, together with the correct technical name.  As a rule, labels of goods indicating place of origin or name and address of manufacturer must be in Urdu or English with letters of labels as big as the name of the product.

Waterproof, zinc or tin-lined packaging are recommended for shipments of goods to Pakistan.

Imports of live animals, animal semen and embryos are subject to requirement of Animal Quarantine Department of Ministry of Food, Agriculture and Livestock.  And fish and fishery product imports are subject to requirement of Marine and Fishery Department of Ministry of Food, Agriculture and Livestock.

Requirement such as drawing of samples and testing quality by Department of Plant protection and Federal Seed Certification Agency, applies to imports of all species of plants and parts thereof.