Trade Policy 2011-12 envisions liberalised regional trade regime besides focusing on better market access by resolving tariff and non-tariff issues. Prime Minister Yousuf Raza Gilani has already approved the ministry of commerce’s proposals, which will now be presented to the economic coordination committee (ECC) of the cabinet for final approval.
Official documents made available to Profit indicate the federal government has decided to liberalise trade with India as a number of items including empty aluminum alloy milk cans; accessories for leather bags and footwear; fungicides and other chemicals (Ucer G-50) for leather industry; jigs and dies for vehicles; textile spinning machines; power looms; cone/bobbin winding machines; cotton linters; sewing, darning or embroidery needles; other polymers of ethylene in primary form; reeling machines; Lufenuron (chemical name – dichloro-4-hexa fluoro – propoxy phenyl/urea); fly ash for cement industry only; thermo plastic rubber sole; traction motors and their spare parts; plastic strip and printed books of all kind, have been proposed to be included in the positive list after consultation with the ministry of industries and production (MoIP) and different stakeholders. In addition, the ministry of commerce has also proposed to allow land route import of polypropylene, polyethylene and pure terephthalic acid, frozen vegetables and newsprint through Wagha Border, though these products are already importable from India.
Official documents reveal that the ministry of commerce has also proposed a blanket ban on re-export of imported pulses. It has been pointed out that though the export of all kind of pulses is banned from Pakistan, but re-export of imported pulses is allowed that has created an anomaly, which is providing opportunity to export of locally produce pulses under the garb of imported pulses.
Documents highlight that the ministry of commerce has suggested to remove the computer and IT equipment such as routers, hubs, servers, etc. from the Appendix-C (items banned for import in second hand/used condition to protect domestic industry) as these products are not being manufacture in the country and used IT equipment is move around frequently by companies nowadays.
Units registered under duty and tax remission on export (DTRE) are unable to import input items listed in Appendix-B (restricted items – importable after fulfilling certain conditions) whereas other importers can do so after fulfilling the conditions mentioned therein. The ministry has proposed to extend the same facility DTRE users with identical conditions.
The ministry of commerce has pointed out that oil and gas regulatory authority (OGRA) has proposed that import of automotive lubricants should only be allowed to importers, having valid registration with the authority. Thus the ministry has recommended amendment in the import policy order (IPO) to incorporate the prescribed procedure. Currently, the trade policy allows the import of automotive engine oils of quality level (API) SC/CC and above and automotive gear oils of (API) GL-4 and above by commercial importers, lubricants blending companies, lube/oil marketing companies and refineries.
Though the ministry of commerce has indicated the import of auto scrap is banned, but there are evidences that under the garb of steel scrap used auto parts or scrap is being imported. The ministry has proposed to change the present description, that is, ‘auto scrap’ (appearing in the list of second hand/used condition banned for import may be amended to read) as ‘auto parts’ (including serviceable auto parts imported as steel scrap). It will help in discouraging the illegitimate import of used auto parts on the name of steel scrap.
Official documents show that the import of secondhand or used ambulances is allowed when donated by some organisation or individual to a charitable or non-profit organisation, trust or hospital, provided they fulfill certifiable standards and have minimum 10 years useful life. The ministry has proposed a condition – “disposal before 10 years from the date of import will be subject to payment of duty / taxes as payable at the time of import” – that may be added in the para to avoid misuse of the ambulances as commercial vehicles after import.
The ministry of commerce has pointed out that the changes brought in the IPO from time to time have made prospective effect. There are numerous judgments of the superior courts whereby it has been propounded that the amended IPO cannot be applied on such imports where goods were shipped prior to the amendment. The import policy, however, does not mention the same and resultantly, disputes arise. In order to avoid such situation and ensure transparency, the ministry proposed that “the changes/amendments brought in the Import Policy Order from time to time will not be applicable to such imports where bill of landing (B/L) and letter of credit (L/C) has been issued or established prior to the date of amending notification.”
