Pakistan agreed to suspend its restriction on imports
Pakistan agreed to suspend its
restriction on imports on Thursday, with the exception of Completely Built
Units (CBU) of cars, cell phones, and household appliances.
Due to substantial concerns
expressed by significant trading partners on the imposition of the ban and
taking into account how it has affected supply chains and the local retail
industry, a review meeting was held to discuss the ban after two months.
The Economic Coordination
Committee of the Cabinet (ECC) agreed to suspend the restriction on imported
items, with the exception of auto, mobile, and home appliances CBU, in view of
the fact that imports significantly decreased as a result of the government's
persistent efforts.
The committee also determined
that all delayed shipments (apart from those that still fall under the banned
category) that arrived at the ports after July 1, 2022, might be cleared with
the payment of a 25% surcharge.
A overview of the import
prohibition and total quantitative limits on luxury and non-essential items was
provided by the Ministry of Commerce.
According to the argument, the
Cabinet approved the ban on the import of approximately 33 classes/categories
of products in order to reduce the growing current account deficit (CAD). The
ruling has resulted in a decrease in imports of the banned products of over
69%, or from $ 399.4 million to $ 123.9 million.
Recently, the ministry of
commerce imposed a surcharge of up to 15% for the clearance of shipments that
were stopped at ports in order to conserve foreign exchange.
In response to the federal
cabinet's decision to release the consignments of banned items, the ministry of
commerce issued an office memo on July 22, 2022. The government put a total ban
on the import of luxury and non-essential items through SRO 598(I)/2022, dated
May 19, 2022.
The following items list which
are banned through SRO 598(I)/2022, dated May 19, 2022
***Import of mobile phones CBU,
***Home Appliances CBU,
***Cosmetics,
***Crockery,
***Pet Food (dog & cat)
***Private weapons and ammunition,
***Shoes, footwear
***Chandeliers and lighting (except energy
savers),
***Headphones and loudspeakers,
***Doors and window frames,
***Travelling bags and suitcases,
***Sanitary ware,
***Carpets (except from Afghanistan),
***Confectionery items
***Corn flakes etc.
***Fish
***Fruits and dry fruits
***Ice Cream
***Jams, jellies and preserved fruits
***Tissue paper,
***Furniture,
***Shampoos,
***Automobiles (CBU),
***Luxury mattresses and sleeping bags,
***Bathroom ware/toiletries,
***Heaters/blowers,
***Sunglasses,
***Kitchenware,
***Cigarettes,
***Shaving goods,
***Luxury leather jackets apparel,
***Frozen or processed meat
***Tomato ketchup and sauces
***Pasta etc.
***Musical instruments,
***Saloon items like hairdryers and
decoration/ornamental articles.
However, many cargoes that
arrived at ports after the ban was imposed were backed up.
On July 15, 2022, the Federal
Cabinet authorised the release of all shipments and consignments that had been
brought into the country in violation of SRO 598(I)/2022, dated May 19, 2022,
and were awaiting customs clearance.
This clearance was, however,
contingent upon consignments having arrived at any port in the country, be it
by sea, air, or dry port, on or before June 30, 2022, and subject to payment of
a surcharge that would be applied to the cost and freight value of the goods.
According to the ministry of
commerce, a 5% surcharge was applied to shipments that arrived within two weeks
of the SRO 598(I)/2022 being issued.
Additionally, until June 30,
2022, a 15% surcharge has been applied to shipments that arrived after two
weeks had passed since the issuance of SRO 598(I)/2022.
A thousand cargo or so stacked up
as a result of the ban, clogging the ports. Due to the fact that many of the
consignments were delivered before May 19, 2022, but landed after that date,
the stakeholders asked the government to allow the release of such
consignments.
Prior to this, the Economic
Coordination Committee (ECC) of the Cabinet authorised the one-time release of
consignments containing prohibited items that arrived on or before June 30,
2022 during its meeting on Tuesday, July 5, 2022.
The Ministry of Commerce
submitted a summary to request authorization for the one-time release of
consignments of goods that would otherwise be prohibited on May 19, 2022, but
have already arrived in Pakistan or are on their way there.
The ECC granted a one-time
special permission for the release of shipments stuck at the ports due to
contraventions framed under SRO 598(I)/2022 dated May 19, 2022, only for
shipments that had landed at ports or airports in Pakistan on or before June
30, 2022, in order to resolve the hardship cases.
