Take note of the following regulations when exporting from Pakistan :
- For size and weight maximums, an exporter must check with the destination country's limits
- Dimensional weight or actual weight, whichever is greater, determines the shipment tariff
- Foreign exchange rules and procedures apply to exports as determined by the State Bank of Pakistan
Export Processing Zones Authority (EPZA) Pakistan
The Export Processing Zones Authority (EPZA), Pakistan was established in 1980 with the mandate to plan, develop and operate Export Processing Zones in Pakistan .
The objectives of the establishment of Export Processing Zones in Pakistan are primarily to boost industrialization and augment the country's exports by creating facilities for investors to enable them to setup export-oriented units which would, as a consequence, create job opportunities, bring in new technology and know-how, and attract foreign investment.
Incentives for Investors to Set Up a Unit in EPZS of Pakistan:
- 100% ownership rights
- 100% repatriation of capital & profits
- No minimum or maximum limit for investment
- Duty free imports of machinery, equipment & material
- No sales tax on input goods including electricity & gas bills
- Obsolete/old machinery can be sold in domestic market of Pakistan after payment of applicable duties & taxes
- No excise duty, no Custom duty on cement, steel & any other material used in construction of buildings
- Freedom from National import restrictions
- Foreign Exchange control regulations of Pakistan are not applicable
- Defective goods/waste can be sold in domestic market after payment of applicable duties, maximum up to 3% of the total value of export
- Duty free vehicles allowed under certain conditions. After 5 years of use, vehicles can be disposed off in domestic market on payment of duty
- Domestic market of Pakistan available on same conditions as for imports from other countries
- Units operating in EPZ's can undertake sub-contracting for units of tariff area subject to payment of duty and taxes on value addition only
- Only EPZA is authorized to collect Presumptive Tax at the time of export of goods which would be final tax liability
- EPZ units allowed to supply goods to Custom manufacturing bonds
- Production oriented labour laws to be solely regulated by the Authority
- EPZ manufacturers be treated at par with bonded manufacturers in tariff area for any future incentives to be announced for exporters
- Relief from double taxation subject to bilateral agreement