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Custom clearance procedure for export
1. Regulatory Procedures
Customs Clearance Procedure for Exports
Prepared By: Policy Planning & Strategy (Revised on July 15, 2002)
Small and Medium Enterprise Development Authority
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
Waheed Trade Complex, 1st
Floor , 36-Commercial Zone, Phase III, Sector XX, Khayaban-e-Iqbal, DHA Lahore
Tel: (042) 111-111-456, Fax: (042) 5896619, 5899756
Helpdesk@smeda.org.pk
REGIONAL OFFICE
PUNJAB
REGIONAL OFFICE
SINDH
REGIONAL OFFICE
NWFP
REGIONAL OFFICE
BALOCHISTAN
Waheed Trade Complex,
1st
Floor, 36-Commercial Zone,
Phase III, Sector XX,
Khayaban-e-Iqbal, DHA Lahore.
Tel: (042) 111-111-456
Fax: (042) 5896619, 5899756
helpdesk@smeda.org.pk
5TH
Floor, Bahria
Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 5610572
helpdesk-khi@smeda.org.pk
Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 9213046-47
Fax: (091) 286908
helpdesk-pew@smeda.org.pk
Bungalow No. 15-A
Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 831623, 831702
Fax: (081) 831922
helpdesk-qta@smeda.org.pk
2. Customs Clearing Procedure for Export Policy, Planning & Strategy
1
TABLE OF CONTENTS
1. Introduction to SMEDA 02
2. Role of Policy Planning and Strategy Group 02
3. Custom Clearing Process for Exports 03
4. Flow Chart Custom Clearing Process of Exports 05
5. Annexes: Sample Forms & Certificates 06
3. Customs Clearing Procedure for Export Policy, Planning & Strategy
2
Introduction of SMEDA
The Small and Medium Enterprise Development Authority (SMEDA) was established
with the objective to provide fresh impetus to the economy through the launch of an
aggressive SME development strategy.
Since its inception in October 1998, SMEDA has adopted a sectoral SME development
approach. A few priority sectors were selected on the criterion of SME presence. In
depth research was conducted and comprehensive development plans were formulated
after identification of impediments and retardants. The all-encompassing sectoral
development strategy involved overhauling of the regulatory environment by taking into
consideration other important aspects including finance, marketing, technology and
human resource development.
SMEDA has so far successfully formulated strategies for sectors, including fruits and
vegetables, marble and granite, gems and jewellery, marine fisheries, leather and
footwear, textiles, surgical instruments, transport and dairy. Whereas the task of SME
development at a broader scale still requires more coverage and enhanced reach in
terms of SMEDA’s areas of operation.
Along with the sectoral focus a broad spectrum of services are now being offered to the
SMEs by SMEDA, which are driven by factors like enhanced interaction amongst the
stakeholders, need based sectoral research, over the counter support systems,
exclusive business development facilities, training and development for SMEs and
information dissemination through wide range of publications.
Role of Policy Planning and Strategy Group
The Policy, Planning and Strategy Group (PPSG) of SMEDA plays a key role in
providing an overall policy direction to SMEDA, under which SMEDA provides support to
SMEs. The PPSG provides guidance based on field realities pertaining to SMEs in
Pakistan and other parts of the world.
PPSG believes that information dissemination among the SMEs on the existing
regulatory environment is of paramount importance and it can play a pivotal role in their
sustainable development.
In order to facilitate SMEs at the Micro Level PPSG has developed user-friendly
systems, which provide them detailed description of the Laws, and Regulations including
the process and steps required for compliance.
The purpose of this document is to disseminate information amongst the SMEs about
the regulatory compliance requirements for exports. The document is accompanied with
sample forms to give the reader a fair understanding of numerous procedural details.
4. Customs Clearing Procedure for Export Policy, Planning & Strategy
3
Custom Procedure for Exports
Exports play a vital role in the development of any economy. One of the initiatives taken
by the Government of Pakistan to enhance & boost exports, is to provide various export
incentives as well as streamlining export processes. Among other steps taken by
Government, the simplification of the export clearance procedure is considered to be a
vital step in the facilitation of the exporter. The following procedure has been explained
in terms of various stages of inspection, clearance and documentation required:
Clearing Procedure
Once the consignment to be exported arrives at the port, usually a clearing agent’s
services are sought so as to facilitate the procedure of clearing the consignments. The
documents to be provided by an exporter to the clearing agent are as follows:
a) Packing list
b) Invoice
c) Form ‘E’ 1
(State Bank form)
d) Letter of Credit or Contract
e) Certificate of Origin
However if the exporter is exporting for the first time, then the following documents have
to be provided in addition to those mentioned above:
a) Sales Tax Registration Certificate (copy)
b) NTN Number (certificate)
c) Export Registration Certificate (No longer required according to SRO 490(I)/2002
dated 5th
August, 2002)
Provided the above mentioned documents are complete, the clearing agent prepares the
shipping bill and files the documents with Custom department. A “machine number” is
allotted to the Shipping Bill, and the case is forwarded to the Port Gate. The
consignment is allowed to enter the port vicinity, and is registered at the gate according
to the allotted number. The Deputy Superintendent (D.S.) marks the consignment for
examination to the inspector of the examination hall. Once the inspector has examined
the consignment, the case is marked to the D.S. for approval. 2% Export Development
Surcharge (EDS) of the invoice value shall be deducted through receiving banks upon
remittance of export proceeds against the Export Development Fund (EDF). However,
EDS has been waived off for small exporters and those who exceeded their exports
more than 10%. Provided the D.S. approves the case, it is forwarded to the
Superintendent with the examination report for final approval. The case if approved by
the Superintendent is marked to the D.S. for “Out of Charge”. The container is given a
final physical check and is sealed by the bonded carriers or the port customs authority.
The loading programme is obtained from the shipping firm/cargo carrier for the country
to which the consignment is being exported. Loading programme lists the schedule of
various ships leaving port for the export destination along with the availability and
1
4 copies of Form E are issued by the intermediary, one copy is handed to the exporter and one copy is
retained by the bank. The remaining two copies are required to be sent to the State Bank of Pakistan and
the Customs department respectively.
5. Customs Clearing Procedure for Export Policy, Planning & Strategy
4
reservation of space for shipment. Exporters of goods in large quantities generally use
the services of shipping companies of their own choice.
The flow chart on the following page shows the customs clearance process for exports:
CUSTOM CLEARANCE PROCESS FOR EXPORT
Consignment to be shipped arrives
at the port
The clearing agent is engaged
Following documents
provided:
a) Packing List
b) Invoice
c) Form ‘E’
d) Letter of credit (Contract)
e) Certificate of Origin
If exporting for the first time:
a) Sales tax registration
b) NTN number
c) Export Registration
(Copy)
Preparation of shipping bill
• Machine Number allotted
• Case marked to the gate
• Case number entered
Consignment is allowed to enter the port vicinity
Case is marked by D.S. to inspector for examination
Upon inspection case marked to D.S. for approval
Payment of 2% of invoice value made for export development fund
(EDF) through recieving banks upon remittance of export proceeds
Case marked to Superintendent for approval
Case marked to the D.S. for “Out of Charge”
The container is sealed for shipment
Loading program is obtained and space is secured on
the next available ship for desired port.
