Prime Minister may approve new Trade Policy on August 27

Prime Minister Yousaf Raza Gilani is likely to approve the much awaited Trade Policy 2011 at a meeting scheduled for August 27, 2011, official sources told Business Recorder. "As Prime Minister clears the Trade Policy, we will submit it to the federal cabinet for approval before its announcement by Commerce Minister Amin Fahim," sources said.
According to sources, the government will expand the positive list with India. The Commerce Minister is scheduled to visit India on September 26, 2011 along with a large business delegation. According to the presentation being finalised for the Prime Minister, the Commerce Ministry will amend Import Policy Order to ensure that any amendment in the policy will not affect consignments which are shipped before the notification duly issued by the government.
According to official documents prepared for the forthcoming proposed Trade Policy 2010-11, changes made in the import policy order from time to time would have prospective effect. There are numerous judgements of the superior courts wherein it has been propounded that the amended import policy order cannot be applied on such imports where goods were shipped prior to the amendment in IPO.
The import policy, however, does not contain such clarifications. Resultantly, disputes arise, and to avoid such disputes and to ensure transparency, the Commerce Ministry has proposed that a new para be added to the preamble of import policy order notification as follows: "The changes amendments brought in the import policy order from time to time are not applicable to such imports where B/L and L/C has been issued prior to the date of amending notification".
Import of second-hand ambulances is allowed at serial number 18 of part-II of import policy order when donated by any organisation/individual to a charitable or non-profit organisation, trust or hospital provided they fulfil certifiable standards and have minimum ten years useful life.
The Commerce Ministry has proposed that a condition "disposal before ten years from the date of import will be subject to payment of duty/taxes as payable at the time of import" may be added in the para to avoid misuse of the ambulance as commercial vehicles after import.
Local battery manufacturers import waste/exhausted batteries of automobiles to retrieve lead, which forms 55 percent of a battery. This lead is re-used in the manufacture of batteries after going through re-melting process. Plastic container of the waste batteries is also recycled which forms 15 percent of the battery. Remaining 30 percent is total waste, disposal of which needs treatment otherwise it could be hazardous for biotech environment.
For eliminating these discrepancies, following regulations have been proposed: "importable by industrial consumers only for their own use subject to the condition that importer shall furnish to custom authorities : (i) A certificate from Environment Protection Agency (EPA) that he has adequate manufacturing facility capable of handling hazardous wastes in accordance with the provision of Basel Convention; and; (ii) permission/authorisation specifying quantitative entitlement for the import of waste and scrap of electric accumulators issued by the Ministry of Environment/EPA."
Import of 'raw materials' is allowed under S.No 1934 of appendix-G (imports from India) under temporary importation scheme for manufacturer of export item. Temporary importation scheme under SRO 492(I)/ 2009 of June 13, 2009 also allows import of accessories for export-oriented textile/leather sectors like button, zipper, hangers, etc, which are finished items. The word "raw materials" therefore, creates confusion. The Commerce Ministry has proposed that the word 'raw materials' be replaced with the word "raw materials and accessories".
The procedure issued by the Ministry of Commerce for import of arms and ammunition of non-prohibited bores provides for import of these weapons on the basis of import authorisation in terms of value which creates room for mis-declaration as importers tend to import more by mis-declaration of value. The Commerce Ministry has proposed that the import of these weapons may be allowed on the basis of quantity to the commercial importers as allowed to privileged individual importers.
The Ministry of Industries has proposed that freight subsidy/R&D allowance may be revived on motorcycle/rickshaw export and also extended to various other engineering products like refrigerator, deep freezers, split AC and washing machines which have already attained export surplus. The Commerce Ministry has agreed to discuss the proposal with other subsidy proposals. Continuation of subsidy on inland freight to light engineering sector and provision of grant to the surgical and cutlery industry will also be discussed with other subsidy proposals.
The machinery parts in old/used condition falling under different PCT headings of customs tariff in chapter No 84 and 85, which are to be particularly used in machinery, are expected to be imported without any restriction. The Commerce Ministry has opposed abolishment of cotton cess, which, according to the Karachi Cotton Association (KCA), is a major hurdle in textile industry's development. Commerce Ministry has agreed to formulate a proposal for the Trade Policy 2011-12 to credit Export Development Fund (EDF) directly to the account of the Ministry.