4,852 items from India to be imported at reduced rates
January 03, 2008
ISLAMABAD: Palm oil from Malaysia and 4,852 items from India and other SAARC countries would be imported at reduced duties and taxes from January 2008. To this effect, two separate notifications have been issued, one saying that Pakistan and Malaysia have signed a comprehensive Free Trade Agreement for closer economic partnership.
This agreement is meant for improved trade between the two countries relating to a large number of products. The Malaysian market has good potential for Pakistani exports and can also serve as a gateway for the entire ASEAN region.
This Free Trade Agreement (FTA) with Malaysia will ensure that Pakistani products have an edge over products of other countries in the Malaysian market. Tariff on palm oil has been reduced by 10 per cent on a margin of preference which will be reduced by a further 5 per cent on January 1, 2010.
Other notification says that some of the items are exempt from import duty from SAARC member states from so much of the customs duty specified in the First Schedule of the said Act as is in excess of the rates specified in the notification under the Agreement on SAFTA and the Operational Certification Procedures For South Asian Free Trade Area (SAFTA), Rules of Origin and further subject to the Import Policy Order notified by the Ministry of Commerce.
The items exempted have been listed in the SRO specifying lesser exemption amount for India and greater for other SAARC countries, as they have been declared as Least Developed Countries and need tariff benefit.
This agreement is meant for improved trade between the two countries relating to a large number of products. The Malaysian market has good potential for Pakistani exports and can also serve as a gateway for the entire ASEAN region.
This Free Trade Agreement (FTA) with Malaysia will ensure that Pakistani products have an edge over products of other countries in the Malaysian market. Tariff on palm oil has been reduced by 10 per cent on a margin of preference which will be reduced by a further 5 per cent on January 1, 2010.
Other notification says that some of the items are exempt from import duty from SAARC member states from so much of the customs duty specified in the First Schedule of the said Act as is in excess of the rates specified in the notification under the Agreement on SAFTA and the Operational Certification Procedures For South Asian Free Trade Area (SAFTA), Rules of Origin and further subject to the Import Policy Order notified by the Ministry of Commerce.
The items exempted have been listed in the SRO specifying lesser exemption amount for India and greater for other SAARC countries, as they have been declared as Least Developed Countries and need tariff benefit.
