ISLAMABAD, July 17: The government on Monday allowed import of used industrial machinery and its parts, used and new aeroplanes by the private sector and to restrict manufacturing of automobiles to units registered with the ministry of industry.

Commerce Minister Humayun Akhtar Khan while announcing the trade policy here said that to facilitate the construction and petroleum sector companies, it was decided to allow the import of used machinery for these projects subject to the condition that it was not older than 10 years. Similarly, construction, mining and petroleum sector companies were allowed to import second-hand parts and accessories for their machinery.

To facilitate airlines operating in Pakistan, airport authorities, approved ground handling agencies, seaport authorities, dry port authorities, agencies operating border crossing infrastructure at customs stations and operators of inland container terminals, it has been decided that they may be allowed to import used ground handling equipment subject to the condition that they were not older than 10 years.

According to the policy, the government also decided that industrial units be allowed to import electro-plating, electrolysis or electrophoresis machines in used/second hand condition provided they are not more than 10 years old. It was also proposed that these industrial units may be allowed to import mobile cranes in used/second-hand condition not more than 10 years old. To facilitate industrial units operating used machinery, it was decided to allow such units to import used spare parts for increasing their production.

To overcome the shortage of refrigerated vans, it was decided that their import in used/second-hand condition may be allowed up to a maximum of [1500 units] during 2006-07, subject to the condition that these are not more than 10 years old.

It was proposed that ministries, divisions, provincial governments, their departments and other government agencies may import any item, irrespective of its import status, to meet their requirements, without recourse to ministry of commerce, subject to the condition that they have foreign exchange allocated by the ministry of finance for that purpose and import directly as was allowed to them prior to 2000.

On the introduction of TRIMS compliant Tariff Based System (TBS) implemented through the budget 2006-07, the import of CKD kits will be free and open to all and sundry. It may, however, lead to manufacturing of sub-standard vehicles/motorcycles and tractors.

It is decided that the import of CKD kits may still be regulated by the ministry of industries and restricted to those assemblers which are registered with the ministry of industries.

It was decided that public and private limited companies may also be allowed to import used as well as new aircraft and its parts subject to the condition that they have a valid license from the competent authority.

In order to impart training for participation in national and international shooting events, it was decided that import of air gun/air pistol, their parts and slugs may be allowed to Pakistan Sport Board, provincial sport boards, National Rifle Association, Army Rifle Association, rifle associations of other armed forces and recognised/specialised sporting clubs, subject to procedure to be notified by the ministry of commerce.

It is decided that public and private limited companies may also be allowed to import used as well as new aircraft and its parts subject to the condition that they have a valid license from competent authority.

In the existing policy import of acetone, hydrochloric acid, sulphuric acid etc was allowed only to industrial concerns on NOC from ministry of narcotics control. Research laboratories and educational institutions in need of these materials for their own use were not allowed to import the same. It is proposed that research laboratories both in public or private sector and educational institutions may also be allowed to import acetone, hydrochloric acid, sulphuric acid on NOC from the ministry of narcotics control.

All pharmaceutical raw materials (allopathic) grade are importable if they are in accordance with the provisions of drugs (Imports and Exports) Rule, 1976. It is proposed to reflect this condition in the Import Policy Order 2006-07 for uniformity.

Ministry of commerce, in consultation with the stakeholders, ministry of science and technology and CBR proposes the import of palm stearin in the following manner:

— “Import of palm stearin be allowed in distinct fat soluble colour to conform to the lovibond colour range of 10 red minimum on tintometer 5 Cell (this testing facility is now available with Pakistan Customs).

It is also decided that cement and clinker terminal will be established in Karachi.

— Port Qasim is planning to set up a coal, clinker and cement terminal in Karachi. Pakistan's total cement capacity will be around 42-43 million tons per annum by end 2007-08.