ISLAMABAD, July 18: The commerce ministry has issued new procedures for regulating and facilitating export of goods. These procedures were announced through the trade policy here on Wednesday.

Under the new procedures, it has been decided that in case of export of defective goods where replacement has been received, the condition of indemnity bond will be done away with provided there is no revenue implication.

It was also decided that vegetable oils being exported to Afghanistan will have ingredients information printed in ‘Dari’ and ‘Pushto’ languages.

Exporters of footwear are allowed to import duty-free footwear samples to meet their export commitments. This facility will be extended to manufacturers as well. The equity fund for acquisition of overseas brands and/or the brand holding companies will be available in the following manner:

-- If the acquirer is a wholly owned Pakistani company or a wholly owned subsidiary of a Pakistani company, up to 50 per cent of equity capital. If the acquirer is a joint venture involving a Pakistani and a foreign company, up to 50 per cent of the equity capital of the share of Pakistani company.

Equity capital participation from the fund will not exceed US$5 million per proposal.

It has been decided that the equity fund will also be used for participation in investment in such facilities.

The first year allowance (FYA) will have the following rates:

Exporting units or value-added or hi-tech industries at the rate of 90 per cent of the cost of the plant, machinery and equipment.

Priority/developmental categories and agro-based industry at the rate of 75 per cent of the cost of the plant, machinery and equipment. Other industries at the rate of 50 per cent of the cost of the plant, machinery and equipment.

To introduce best practices, it has been decided to hire international consultants for selected companies on cost sharing basis. The consultants would benchmark the firm characteristics, including production technology, skills, accounting procedures, marketing and business practices relative to international levels; identify the deficiencies and assist the firms in removing them.

The scheme will initially include textiles and apparels, surgical instruments, leather products and sports goods.

The companies, which do not follow the advice of the consultants, will be required to refund the money contributed by the government.

For each sector, there will a list of the approved consultants.

Criteria for selection of companies will be prescribed.

The agri-marketing integrated centres (AMIC) will be established.

It will establish close linkages with selected and enlightened farmers to obtain their produce for storage and sales on their behalf, provide common facilities, such as grading, packaging, fumigation, testing, certification, etc.

Export linkages will be established with international and local buyers. TDAP will establish a private limited company to be managed by specialists in this field.

Under the National Trade Corridor Improvement Programme (NTCIP), the ministry of commerce, in consultation with horticulture export board, prepare proposals for enhancing annual export of fruit and vegetables, and floriculture from existing $150 million to $400 million in the next five years.

For this purpose, it was envisaged to establish a cold chain system, including pack houses, cold stores, and refrigerated containers.

The following initiatives will be taken: 39 modern pack houses, completely automated and equipped with advanced electronic devices for packing/grading and storage plants will be set up at 31 fruits and vegetable growing areas throughout the country; 23 facilities for cold storage and controlled atmosphere storage will be established at the fruit production areas, airports and seaports in the country.

Two container yards in Karachi and Lahore with a pool of 200 refrigerated containers and 50 controlled atmosphere refrigerated containers at each location will be established.

Karachi pool will serve the requirements of Sindh and Balochistan while Lahore pool will serve the requirement of Punjab and NWFP.

Trade Competitiveness Institute of Pakistan will be established, initiatives to be taken as part of national trade corridor improvement programme for increasing share in international trade and increasing exports.

http://www.dawn.com/2007/07/19/ebr2.htm