July 18, 2006	Tuesday	Jumadi-ul-Sani 21, 1427

ISLAMABAD, July 17: The government has allowed 6pc R&D subsidy for the footwear sector and extended further the freight subsidy to increase exports of selected products to new markets.

According to the trade policy 2006-07 announced here on Monday, the research and development subsidy has been allowed for increasing the exports of footwear to European Union member countries.

The government has modified the freight subsidy scheme, which might be allowed for goods exported between August 1, 2006 and July 31, 2007. However, it would be allowed on export of all items (except those on the negative list) to Africa, Eastern Europe, Pacific Islands and CAR’s might be given 25pc freight subsidy.

It would be permissible in case of export of developmental products to top 20 export destinations and any individual exporter, firm, company will not be entitled to this subsidy if exports exceeding Rs5m in a year.

Under the policy, the government allowed 6pc mark-up rate on loans to export and non-export-oriented horticulture companies, which would be picked up by Export Development Fund (EDF).

The commerce ministry through EDF would pick up the first 6pc of the markup rate for establishment of meat cool chain and subsidise reefer transportation cost meant for export. The assisting training of skilled manpower in textile garment sectors has been extended to terry towels and bed Linen.

For increasing SME export, it was proposed to explore establishing a specialised SME export-house as a corporate entity with a public/private partnership run by professional management, to act as a catalyst to boost SME exports.

To promote Pakistan as trading hub, it has been decided to allow re-export against issuance letter of credit, Document Acceptance (DA) or Deferred Payment (DP), which was earlier subject to full payment of duty and taxes. The government has extended 50pc subsidy as assistance for Quality Standards Certification, which includes CE (Conformity Europea), Eco-Labelling, ISO 22000 and Certification for Organic food products.

It was proposed that a ‘single country exhibition may be held in pre-identified countries with export prospects for Pakistan to coincide with the visits and small business delegations of core exporters may accompany VVIPs on such visits. To facilitate temporary export-cum-import of products for participation in foreign exhibitions/fairs and also for carrying out tests/certain processes, for which facilities are not available in the country, it was decided to allow such export-cum-re-import against submission of indemnity bond/undertaking to customs without recourse to ministry of commerce.