ISLAMABAD, July 22: The government has announced around 35 new measures in the trade policy of 2004-05 for increasing the volume and base of the country's export.

Through the trade policy unveiled here on Thursday by Commerce Minister, Humayun Akhtar Khan, also announced 23 new measures for further liberalizing the import regime of the country.

He said the government would collaborate with the provincial, district/city governments and private sector stakeholders in rehabilitating the infrastructure of existing industrial estates. For this, the government will contribute up to 50 per cent of the cost of such rehabilitation. This will be conditional with the provinces contributing 25 per cent, district government 10 per cent and users 15 per cent.

He said the government would contribute up to 75 per cent of the cost of establishment of combined effluent treatment plants provided the remaining 25 per cent was shared by the provincial and district governments and stakeholders.

Furthermore, mark up cost of loans obtained by existing exporting units for establishment of effluent treatment plants would be picked up by export development fund (EDF) up to a maximum of 6 per cent.

Leading exporters and producers of garment sector would be assisted in improving their productivity and the range, specially in high fashion. They would be provided technical, commercial and marketing support at export promotion bureau (EPB's) cost for this purpose.

Measures will be taken to reduce capital cost of infrastructure of non-traditional export sectors-leisure equipment, fisheries including shrimp-farming, horticulture, furniture, gem & jewellry, footwear and medical equipments. And qualified consultants will be hired to improve quality and volume of these products. The cost of hiring these consultants would be met through the EDF. Regional conferences of Pakistani missions will be held in Africa, Central Asian Republics and East European countries to increase export to these countries.

EPB officers would be attached to exporters in various sectors to assist them in Export Management aspects. To encourage women entrepreneurs, their participation in international exhibitions and exploratory delegations will be fully funded by EPB.

To facilitate re-export of imported goods, the condition of value-addition has been waived. Furthermore, in case of re-export through land route, the requirement of payment of full duty has also been waived. Such re-exports will be entitled to a refund of the 1 per cent warehousing surcharge.

The working of the Commercial Courts would be further improved in consultation with the law division. A software has been developed which can help our exporters in becoming compliant and hence competitive. The EPB will subsidize 25 per cent of the cost of acquiring the software.

Hundred per cent cost of consultancy services will be provided to private sector parties for development of accredited testing facilities of international standards within the country. For new capital investment in quality testing and research & development equipment, the first 6 per cent of the mark-up cost will picked up by the EDF.

To encourage exporters to address concerns of foreign buyers, all exporters who obtain the following certificates, will be considered for grant of subsidy from EDF: ISO-14000, ISO-17025, HACCP Certification, WRAP Certification, Eco Labelling.

In large markets where Pakistan's exports are declining, a country specific programme will be prepared which will identify the causes of decline and propose remedies. This year a beginning will be with Japan where collaboration, on cost sharing basis, will be undertaken with Japanese Trading Houses for market research, product identification and subsequent joint marketing in Japan.

The Foreign Trade Institute of Pakistan (FTIP) will be strengthened by enhancing the capacity of the institute faculty.

It has been decided that all the schemes of the previous trade policy will continue in the fiscal year 2004-05. At present, exporters can send samples of non-restricted items valuing $10,000 FOB per annum. This limit is being increasedto $25,000. Presently, gift parcels upto a maximum value of $1,000 can be sent through post/courier service. This limit is being increased to $5,000.

As practical support to develop export business, EPB will initiate a project to extend facilities of internet-connectivity, computers and printers to SMEs.

To enhance labour productivity in the country, existing training facilities would be improved through provision of latest machinery to the training institutes in the public/private sector.

The State Bank of Pakistan long-term Fixed Rate Financing Scheme announced as a result of last year's trade policy would be expanded to cover the initiatives in the trade policy 2004-05, which involves financing from the Banking Sector.

Under the import measures announced in the trade policy, if overseas Pakistanis want to import vehicles under the Transfer of Residence or Gift Schemes they would now only require to stay abroad for at least 700 days during the past three years before their date of departure.

Furthermore, in order to encourage the agriculture sector tractors, bulldozers, laser land levellers and combined harvesters are being added to the gift, baggage and TR Schemes. The rules for gift scheme regarding such equipment will be relaxed to allow their import once every year.

The units operating in Export Processing Zones may import goods from abroad as well as from the tariff area in accordance with the EPZA rules and procedures. Import of such animal fur, which is not prohibited by an international agreement, is being allowed to facilitate the export sector, especially the leather garments industry. Ban on import of cotton waste is being lifted.

Ban on commercial import of non-prohibited bore arms andammunition will be lifted subject to the approval of commercial importers by ministry of interior and their maintaining category pass books with the banks opening letters of credit.

In order to reduce health hazards, import of betel nuts will require an official certificate from the health authorities of the country of export.

Relocation of projects from abroad is presently allowed only for a few industrial sectors. This scheme is now being liberalized to cover all industrial sectors. Spare parts on the regular inventory list of such projects will also be importable.

Import of project machinery and equipment under relocation scheme will be permissible even if it is locally manufactured in the country. However, such machinery and equipment will need to be certified by a prescribed and internationally recognized pre-shipment inspection company (PSI) that it is in good working condition and has a remaining life of at least 10 years. The facility however will not be available for controlled sectors i.e. arms and ammunition, radioactive substances, high explosives, currency and mint, security printing and alcoholic beverages.

Import of used hand plant, machinery and equipment excluding passenger transport vehicles, trucks, static road rollers up to 12 ton capacity, will be allowed to the construction, mining, oil and gas and the petroleum exploration and production sectors.

Presently, 5-year-old boilers are importable. Now boilers will be importable subject to certification by one of the prescribed PSI Companies with respect to safety and remaining life of at least 10 years. Ban on the imports of the following used equipment is being lifted: industrial dry cleaning machines; automatic goods vending machines for postage stamps, food and beverages, and money changing machines; electromagnets, permanent magnets and articles intended to become permanent magnets after magnetization; laboratory specific lenses, prisms, mirrors and other optical elements; optical telescopes and other similar astronomical instruments; balances of sensitivity of 5 cg or better, with or without weights; hydrometer and similar floating instruments, pyrometers, barometers, hygrometers and psychometers.

Import of scrap of stainless steel waste, seconds and cuttings in the form of coils/circles of AISI-200, AISI-300 and AISI-400 series will be allowed for purposes of re-melting by local industry.

Import of non-sterilized surgical needles and syringes will be made only by those industrial units which are engaged in further processing of these goods into value added, final and finished products.

On the recommendation of the ministry of health, import of HIV, hepatitis or other virus contaminated blood samples for local laboratory tests and quality control purposes, will be allowed subject to the laid down conditions of ministry of health. Import of live animals, semen and embryos will be subjected to requirements of the marine fishery department of the ministry of food and agriculture.

Similarly, import of chillis, apples, citrus and other fresh and dry fruits will be allowed after an aflatoxin content report and freedom from pests/diseases certificate of the plant protection department of the ministry of food and agriculture.

Import of all species of plants will be required to comply with the phyto-sanitary requirements.

The requirement of NOC by the Ministry of Health for import of precursor chemicals by companies other than the licensed pharmaceutical industries will be done away with.