Govt unveils action plan for barter trade with Iran

ISLAMABAD: Government notified procedure to launch barter trade with Iran on Friday, announcing that the trade would be settled on net-off basis.

Customs would introduce a Special Goods Declaration (GD) code namely ‘BT’ for barter trade in WeBoC to record transactions and keep accounts, Ministry of Commerce (MoC) said.

The ministry disclosed the action plan for barter trade between Pakistan and Iran for a first through Quetta Chamber of Commerce & Industry (QCCI) and Zahidan Chamber of Commerce & Industry (ZCCI) in Iran.

The notification said QCCI would establish a barter trade cell for documentation and monitoring, and open a bank account for domestic payments in Pakistani rupees against bartered goods. It will also register exporters and importers for barter trader.

Export would be done on a permission letter by QCCI with quantum and value of goods. A confirmation that sufficient funds equivalent to value of export are available in QCCI bank account for barter trade will also be required. According to the notification, QCCI will make payment to Pakistani exporters in local currency on confirmation from ZCCI of receiving goods.

Similarly, import would be allowed on a QCCI permission letter with quantum and value of goods. Copies of export and import permissions would be shared by QCCI with concerned collector of customs, the notification said.

Value of goods bartered would be settled and declared in Pak rupees. QCCI would mention “Declared Value” in WeBoC data, and Customs would share BT Data on monthly basis with QCCI, it added.

Business chambers from both sides would reconcile barter trade stats and volume on quarterly basis to determine any outstanding amount, which could be netted off through import/export of goods or any other means.

QCCI would also formulate a barter trade dispute resolution mechanism in consultation with ZCCI.

The notification stated that the government would have no liability from barter trade and QCCI could charge a minimum fee for services provided.