Imports/Exports Procedures

Import procedure:
Customs Clearance / Introduction:

It is a common belief by the importers in Pakistan that custom clearance is very difficult, time consuming
and cumbersome procedure. As a result it has become a common practice to engage a clearing agency
in fulfilling the requirements and procedures of the customs departments, as well as clearance of
consignments. However a part of the negative perception relates to the low awareness level about the
compliance requirements for import procedure. It can be divided into two major segments. First,
appraisal, where the goods are physically verified and customs duty is calculated and second appraisal
where the actual or final duty is calculated and levied upon the importer. This document covers all the
necessary aspects, which is the fundamental part in clearance of goods/shipment and the process of
assessment of customs duty and taxes. Shipments may be received at either the Sea, Airport or Dry
port declared by the customs authorities as customs ports, customs airport and land customs station;
the procedure for clearance is same for every customs station.

Arrival of the Goods at Customs Ports:

The Federal Board of Revenue off and on declares the customs ports comprising of sea, land and air
ports for the purposes of clearance of goods. The customs clearance process starts with the arrival of
cargo ship, plane or other carrier of goods in the country on the designated sea, land and air ports.
Upon arrival of the goods at the customs port, the port authorities issue the Import General Manifest
(IGM) to each shipment. It is a number indicating the serial of the shipment arrived during the year.
Upon receipt of the IGM the consignment is further indexed to allow for a systematic reference of all
goods received. After issuing this number, the shipment is off loaded and sent back to port warehouse.
In the case of land customs station i.e. dry port etc. the IGM is issued not at the time the goods reach
the land customs station but at the time the goods are off loaded at the sea or airport. Upon arrival of the
off loaded goods, the clearance process starts. Normally at this point a clearing agency is engaged by
the importer to facilitate the process of customs clearance and to reduce interface with the customs
officials.

Clearance Procedure for Imports:

Following documents are required and provided to the clearing agent for processing:

Invoice of shipment
Packing list
Bill of lading
Copy of the Letter of Credit or Contract
Copy of the Sales Tax Registration Certificate as an importer
Copy of the National Tax Number
Copy of the most recent sales tax return
Note: There is no import/export license

Checklist of Documents for Import:

Process phases Documents/information Required

Purchase order

First phase (ordering)

Order Acknowledgment
 Performa invoice

Letter of credit

Shipment Advice & Plan

Commercial invoices

Packing list

Bill of Lading/Airway bill

Weight Note

Second phase (Documentation) Health certificate

Halal Certificate

Certificate of analysis

Sanitary certificate

Insurance cover note or Marine insurance

Bill of entry(Goods Declaration)

Duty receipt

Third Phase (Clearance)

Excise duty Receipt

Transportation if any

Submission of documents

Fourth phase (Remittance)

Remittance telex
 Payment done

Note: Bill of Lading/Airway Bill is most important document without this consignment cannot be released
by bank.

Export Procedures:
Register your business name and get NTN, Sales Tax number/certificate
Open a bank account
Register business with relevant Chamber of Commerce & Industry
Select a product for export
Identify potential market
Do market specific research including size of the potential market, product preference, unit price,
import regulations, certifications required, etc
Quote a price including packing cost, processing cost, insurance, credit, agents commission, octroi
duties, documentation fee, marking charges, transportation charges, export duties, etc
Packaging should be strong and as per clients requirements
Select a mode of transport keeping in view the perishability of the product
For financing pre-shipment or post-shipment credits are also available
Insurance to recover cost in case of loss (optional)
Sign a contract with the prospective Buyer including names of exporter/importer, unit price, total
quantity, terms of delivery (FOB, C&F etc), currency and terms of payment (Cash Against
Documents or through Letter of Credit), mode of shipment, etc
Select a suitable clearing & forwarding agent
Prepare shipping documents
Transport the consignment
Documentation Checklist:

Following documents vary according to consignment:

E-Form (through authorized Commercial Bank).

B/L or AWB (through clearing agents)
Commercial Invoice
Packing List
Certificate Country of origin (through Chamber)
Phytosanitary inspection certificate (through Plant Protection Dept)
Pre-shipment certificate (if required)
Non GMO certificate (for selected countries like China)