KARACHI: The Federal Government has notified Business-to-Business (B2B) Barter Trade Mechanism 2023, which allows export and import of goods under B2B barter trade.
The barter trade facility under this Order may be admissible to the following:
(1) State owned enterprises; and (2) private entities on active taxpayers’ list of Federal Board of Revenue; subscribed to Pakistan Single Window (PSW) System; and it possesses a valid import and export contract registered by Customs authorities in the Customs computerized system (WeBOC).
Ministry of Commerce may impose country or commodity specific conditions or restrictions for imports and exports of goods under this B2B barter trade mechanism.
Trade of goods under a B2B BT arrangement shall be allowed on the principle of “import followed by export”. The export would be made to the extent of value of imported goods, subject to the tolerance mechanism provided hereinafter for any exigency. However, a Pakistani trader shall be responsible to net-off value of goods on quarterly basis, i.e. within 90 days after issuance of authorization.
Upon import and export of goods, the importer shall submit single declaration in the PSW system. The importer and exporter shall tag the relevant approval number to allow for waiver of the financial instrument required for regular imports and exports. Import and export of goods under a B2B BT arrangement shall be subject to the provisions of Import and Export Policy Orders for the time being in force and shall comply with all relevant regulatory requirements including permits, licences, certificates, quotas, etc. as specified in the IPO and EPO.
The import and export of goods shall be subject to applicable duties, taxes, fee and other charges, etc. Imports and exports under the B2B barter trade facility shall be admissible to benefits offered under various concessionary and export facilitation schemes, etc.
The ‘assessed value’ of goods shall be taken for the purpose of calculation of the monetary limit of the authorization. The value of the goods to be imported and exported under this facility shall not exceed the monetary value of the authorization as entered in the WeBOC system for automatic debiting of the monetary value of imported and exported goods.
All imports under an authorization issued under this Order shall be accompanied by a certificate of origin issued by the relevant authority of the exporting country for which the barter trade facility has been allowed.
Accordingly, export of following products shall be allowed to Afghanistan, Iran and Russia:
Milk, Cream, Eggs and Cereals, Meat and Fish products, Rice, Confectionary and Bakery items, Salt, Pharmaceutical products, Fruits and Vegetables, Essential Oils, Perfumes, Cosmetics, Toiletries, Soaps, Lubricants, Waxes and Matches, Tanning, Dying Extracts and Misc. Chemicals products, Plastics and Rubber Articles, Finished Leather & Leather Apparel, Articles of Wood, Articles of Paper & Paper Board, Textiles, Readymade Garments, Textile’s Made-ups and Carpets, Footwear, Iron and Steel, Aluminum products, Copper and Articles thereof, Tool and Cutlery, Electric Fans and Home Appliances, Electrical equipment, Motorcycles and Tractors- excluding components, Surgical Instruments, Furniture items, Sports Goods.
Import of following products shall be allowed from Afghanistan:
Fruits and Nuts, Vegetables and Pulses, Spices, Oil Seeds, Minerals and Metals. Coal and products, Raw Rubber, Raw Hides and Skins, Cotton, Iron & Steel.
Import of following products shall be allowed from Iran:
Fruits, Nuts and Vegetables, Spices, Minerals & Metals, Coal and its Products, Petroleum Crude Oil, LNG and LPG, Coal and its products, Misc. Chemical Products and Fertilizers, Article of Plastics and Rubber, Raw Hides and Skins, Raw Wool, Articles of Iron & Steel.
Import of following products shall be allowed from Russia:
Pulses, Wheat, Coal & its Products, Petroleum Oils (including Crude), LNG and LPG, Tanning and Dying Extracts, Article of Plastics and Rubber, Minerals and Metals, Articles of Wood & Paper, Chemicals Products, Articles of Iron and Steel, items of Textile Industrial Machinery.