Better transportation systems and new communication technologies have dropped the trade barriers globally. These emerging secure ways of trading have made import export business in Pakistan more eye catching.
Step by Step Learn How to Start Import Export Business in Pakistan
- Register Your Company
- Get NTN and Sale Tax Number
- Selection of Product
- Opening of an Office
- Registration for Exports
- Selection of Market
- Quoting a Price
- Signing of the Contract
- Terms of Delivery
- Financing for Exports
- Post Shipment Documents
- Claim Duty Drawbacks
This article is a complete guide for the peoples who are interested to start an import export business in Pakistan. There are many important things that investors need to know before starting an import export business in Pakistan. To start an import export business in Pakistan you have to make a clear business plan to succeed. Do some deep research on market trends and try to find out opportunities to achieve your set goals. The reason I’m emphasizing on research and planning to start an import export business in Pakistan is wanting to save your money & time. Planning before starting any business will automatically lead you to catch your desire set goal expand business.
So if you have the capability of running a business, then go ahead and start your own import export business in Pakistan. The International Trade is governed by rules made by (WTO) World Trade Organization. Check out the steps to start an import export business in Pakistan.
Register your company to start import export business in Pakistan. It can be a Firm, Private Limited or any other form but the main thing is it should have to be registered. For this purpose you can hire a lawyer or you can do it by yourself. For Registration of your company in Pakistan Visit SECP.
You will not receive any payment and custom clearness until you don’t have NTN (National Tax Number) & Sales Tax Number. It seems very difficult in the beginning of your business to get NTN and Sales Tax Number. But these numbers are mandatory for your shipment clearness for import export business in Pakistan.
To start an import export business in Pakistan select products in which you intend to trade imports and exports. You should have very good knowledge of all products and sources of supplies to start an import export business in Pakistan.
After final selection of your product or products to import export business in Pakistan, you may open an office to represent your business officially. Select a good suitable name for your business after opening an office to start import export business in Pakistan. Display a signboard on your business premises, Print letterheads, Install Phone, Internet connection, computers and other necessary things related to handling your business tasks effectively.
Previously it was mandatory to register your company before starting your export business. Register your company for five years at nearest office of EPB against a nominal fee to start an import export business in Pakistan. However, now registration is not required for either to do import export business in Pakistan.
If you are doing import export business in Pakistan select very carefully target market to boost up your business.
To select the best suitable market for your business growth, here are some tips for you
- Review Economic Position of the Country
- Review Size of the Market whether it is expanding or shrinking
- Check growth of the product in the Market.
- Unit Price of your selected product or products, whether it is more or less than other countries in your country.
- Location of the market, etc.
Quoting a price of your product is a very simple thing all you have to do is calculation. Simply calculate the production cost with packing, transportation charges and add profit. Quoting a price in import export business in Pakistan include
- Agent’s commission
- Documentation fee
- Marking charges
- Transportation charges
- Export Duties etc.
To secure good price one can check up the price of the same product in other abroad countries.
When you accept prices, then both buyer and seller signed a contract which binds the firm to supply goods. The contract is always signed before starting an import export business in Pakistan. The import export contract is a document signed between two parties which usually contains
- Name of the Exporter
- Name of the Importer
- Items or Product of Sale
- Unit Price of the Product
- Term of Delivering
- Term of Payment
- Mode of Shipment Use (SEA, Air, Road)
- Currency in which Transaction Amount will be paid
- Delivery Period of the Product
- Contract Validity Period
- Shipping Marks if any
- Arbitration clause if any
To export products exporter quotes the price of its merchandise. If anyone like your mention price and decided to buy your product then a contract is signed between importer and exporter. The contract held terms and conditions under which goods are delivered.
The main purpose of terms and delivery contract in import export business in Pakistan is not only quoting a price. Terms and delivery contract also clear this that who is responsible for the products if anything goes wrong.
Import export business in Pakistan and all over the globe is a very sensitive business. The Exporter should accept only those orders which he can fulfill easily on time. He should have backup of necessary finances or access to finance for effecting shipment. To help investors of import export business in Pakistan financially pre shipment and post shipment credits is available from the Government on concessionaire rate. The importer and exporters can take credit benefits from the Government on concessionary rate equally without any discrimination.
Packing of your export products must have to be accordingly set standards of the SEA, AIR and Road transportation. In this regard (PPI) Pakistan Packing Institute can help those who are doing import export business in Pakistan.
Peoples related to import export business in Pakistan already know that light and costly items normally send by air transportation. While heavy items are shipped by using sea or road transportation. In each case business owner always try to use most economical ways of trading to reduce his shipping cost.
Insurance is also possible in case you want to save yourself from any loss. But usually exporters don’t insure consignment where chances of losses is minimum. In case if the buyer is firm and insist insurance, then it must be done.
The following documentation is normally used to do import export business in Pakistan.
- E-Form (Through Authorized Commercial Bank)
- Shipping Bill (Through Authorized Clearing Agents)
- B/L or AWB (Through Clearing Agents)
- Commercial Invoice
- Packing List of the Products
- Certificate Country of Origin (Through Chamber)
- GSP (Through EPB)
- Textile Quota Export License/Visa Documentation Required for Textile Quota Restraint
- Pre-Shipment Certificate through EPB to manage certain textile items
- Export Contract Registration details
To do import export business in Pakistan Textile Quota Export License is required. B.C.A (Bank Credit Advice) to be received from commercial banks after foreign exchange is received. The B.C.A is considered as proof for the purpose of rebates and refine scheme etc.
Claim duty drawback is the most commonly availed incentive by exporters in Pakistan. Custom duty collected at the time of import is refunded by the Government to compensate with exporters. The following documents must be in order when an exporter submit file to custom rebate section to claim export rebate.
- Bank Credit Advice (B.C.A)
- Bill of Landing (Original)
- Railway Slip (Attested by Railways)
- Custom Sign Invoice (Two Photocopies)
- Packing List
- Exchange Rate Certificate
- Shipping Bill (Copy)
- E-Form (Copy)
- Laboratory Test Report (If Required)
- Photocopy of SRO (Relevant to Exporters Items)
- Cross Boarder Certificate Copy (In case of export through Land Route)
- Sales Tax Return of Clearing Agents of Previous Month