Imports/Exports Procedures

Prepared by 陈成
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
Process phases Documents/information Required
Purchase order
Order Acknowledgment
First phase (ordering) 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
 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, agent’s commission, octroi duties, documentation fee,
marking charges, transportation charges, export duties, etc
• Packaging should be strong and as per client’s 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)