Prime Minister to clear ''Trade Policy 2011'' today

Prime Minister Yousaf Raza Gilani is to clear ''Trade Policy 2011'' on Saturday, before presenting it to the Cabinet for formal approval, official sources told Business Recorder. Commerce Ministry''s concerned officials on Friday gave final touches to the policy, after consultation with Commerce Secretary Zafar Mahmood.
Sources said that the Commerce Secretary wants announcement of Trade Policy 2011 prior to the three-day official visit of a big business delegation to India from September 26, 2011. The delegation would be led by Commerce Minister Amin Faheem, and will have film actresses Noor, Sanghita and others. Sources said that the government would expand the positive list with India and would project it as a major development in trade ties between the two countries. Pakistan''s business community is urging the government to give ''Most Favoured Nation'' (MFN) status to India, and explore the possibility of signing a Preferential Trade Agreement (PTA).
The Commerce Ministry will request the Prime Minister to ensure release of EDF funds as Finance Ministry is creating hurdles instead of facilitating the Commerce Ministry. According to the proposed Trade Policy, the government 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 a 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 are 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 misdeclaration as importers tend to import more by misdeclaration 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.