The government of Pakistan is providing various incentives regarding exports to Afghanistan.
In Pak Rupee, Export of all commodities produced or manufactured in Pakistan, excluding those manufactured in manufacturing bonds, would be allowed via land route, against Pak rupee on filing of regular shipping bills without Form “E”. Such exports shall not be entitled to;
- Zero rating of Sales Tax on Taxable goods
- Rebate of central excise duty
- Repayment of drawback of customs duty
In Convertible Currency, all items and commodities produced or manufactured in Pakistan exported, via land route or by air against irrevocable letters of credit, or advance payment, in convertible foreign currency, shall be allowed;
- Zero-rating of sales tax on taxable goods
- Rebate of central excise duty
- Repayment for drawback of customs-duty
Exports shall be subject to the following conditions:
The Pakistan Embassy or consulate in Kabul, Kandhar and Jalalabad would verify the arrival of export consignments from Pakistan. This condition of verification from Pakistan missions would remain suspended until these Missions or Sub-Missions become fully functional
The Federal Board of Revenue would strictly monitor the exports to Afghanistan and in case of any misuse of the facility the item involved would be taken out of the permissible list by the Ministry of Commerce.
Packages or retail packing would be clearly marked with the expression “For Export Only”, provided that:
- Only duty drawback rates or rebates would be available
- Export would be allowed only through authorized export routes i.e. Torkhum and Chaman
Export of goods which are made by or on behalf of International Relief Organizations against International Tenders as relief goods to Afghanistan would be allowed the facility of normal duty drawback, subject to the following conditions:
- The Export proceeds are realized in foreign currency.
- Each individual packing of consignment bears indelible and prominent marking “For Export Only – supply for aid to Afghanistan (insignia of the organization) not for sale in Pakistan
Exporting Meat & Livestock to Afghanistan
- There is now a banking system in place in Afghanistan. Habib Bank Limited has opened a branch in Kabul and the National Bank of Pakistan has opened two branches one in Jalalabad and the other in Kabul. Fund transfer facilities are available however LC facilities have not yet been started. The systems of Hundi or Hawala are still being used alongside new commercial banking facilities.
- All exports to Afghanistan are mostly undertaken against advance cash payment. However, some buyers are also using Dubai banking channel for remitting Foreign Currency as advance payments.
- The importer contacts the local authorized dealer/bank of the exporter and deposits advance money in the account of the exporter. He also fills out a form V 19 which is an undertaking on part of the importer and exporter of the transaction to be made.
- The authorized dealer/bank, after verifying the documents pays the exporter in Pak Rupees (against dollars as deposited by the importer).
- The exporter fills out another form V 18 which includes details of the exporter, his contact address, goods to be exported etc. This form is reported by Authorised Dealer (A.D) to The State Bank of Pakistan for Exchange Return purposes.
- A certificate of origin, verified from the relevant Chamber of Commerce and Industry is required that ensures that the exporter is a listed exporter and can undertake the transaction.
- Once the payment has been received, in advance, the Form E is certified and endorsement of advance payment is made by the bank. The shipping documents i.e commercial invoice of Live Stock is prepared by the exporter
- After completion of documentary requirements, the Live Stock are loaded in trucks and transported to the Pakistani border at Torkhum and Chaman. The Afghan authorities usually do not allow any transport company to operate its trucks in Afghanistan.
- Once the goods reach the Pak border, the Shipping Bill/Bill of Exports/Pakistan Good Declaration (PGD) of the consignment is submitted to the Deputy Superintendent (DS) customs for clearing. 10. After clearance from DS customs, the consignment is marked to the Inspector Customs who after examination gives his report on the shipping bill and marks the case again to DS.
- After approval from Deputy Superintendent (DS) custom the shipping bill is then again forwarded to the relevant authority for further verification.
- Once the Live Stock have been cleared by officials at the Pakistan border, they are allowed to cross over into Afghanistan.
- As the goods cross Pakistan’s border, all documents i.e Copy of Truck Receipt, Shipping Bill, Commercial Invoice, Duplicate & Triplicate Form E are sent to the authorized dealer/bank by the exporter within 21 days from the date of Form E certification or 14 days from the date of shipment/dispatch of goods which ever is earlier. The A.C is to verify that the export of goods has been made and the entire export transaction is completed. Finally the A.C issues EPRC (Export Proceeds Realization Certificate) to Exporter and also sends a copy of shipping documents to the State Bank of Pakistan so that they can close their books of account and the entire export process is documented there.