Import

Group EaglesAkhwand SubhanFarrukh ShahabSyed Muhammad Ali Shakir (Group Leader)Majid AliMuhammad Sheeraz

Overview of Pakistan’s Imports• Decline of 1.02% from last two year 14% average increase in

import.• Economic survey of Pakistan reported major import as under:

Food Group

Machinery group

Petroleum Group

Consumer durables

Raw material

Telecom

Milk & Milk Food

Power gen. machines

Petroleum products

Electric mach. & App.

Raw cotton

Wheat unmilled

Office machines

Petroleum crude

Road motor vehicles

Synthetic fibre

Tea Textile machinery

Silk Yarn

Major source of Import

• Kuwait 8.7%• Saudi Arabia 7.7%• Japan 4.4%• USA 3.6%• GERMANY 2.5%• UK 1.7%• Other countries 28.6%

Prior Import formalities• Once buyer had identified the supplier then they

place order to supplier.• Supplier sends pro forma invoice to buyer.• Buyer accepts the pro forma or ask for

amendments if required.• Buyer opens the LC or pay the supplier according

agreed terms. • Agreed terms are set as per international

commercial terms (Inco-terms) • Supplier makes the goods available

Inco-terms in Import Scenario• Inco-terms (international commercial terms) basically describes the responsibility

of shipper (supplier) and consignee (buyer)

Incase of Ex-works

• Buyer pays for goods only to shipper.

• Importer/buyer nominate the carrier/freight forwarder who picks up the goods from supplier’s warehouse.

• Carrier/freight forwarder books the shipment.

• Carrier/freight forwarder Issues the bill of lading/airway bill to shipper

• Shipper sends the bill of lading/Airway bill to buyer.

Ex-works Continues• After goods arrival carrier sends notification of freight arrival

advice to importer.

• Importer or its clearing agent files Goods declaration in customs

• After customs clearance importer gets the goods from port of discharge.

• Truck delivers the goods in warehouse of importer.

• All the cost involved under ex-works term from pick up from warehouse of shipper to delivery in warehouse of importer is borne by importer.

Inco-terms in Import Scenario

Incase of FOB shipment• Here importer nominates the carrier

• Steps will be same from point # 3 mentioned under ex-works.

• Shipper just made goods available at port of loading.

• All the cost involved under FOB term from port of loading to delivery in warehouse of importer is borne by importer.

Inco-terms in Import Scenario

Incase of C&F/CIF shipment

• Here supplier nominates the carrier

• Steps will be same from point # 3 mentioned under ex-works.

• Shipper is to bear the cost of freight charges till destination port.

• All the cost involved under CIF/C&f term from port of discharge to delivery in warehouse of importer is borne by importer.

Mode of Transport

By Air: Weight and measurement

By SeaFCL • For in-gauge cargo: 20ft/40ft/40ftHC /45ft• For out of gauge: FLAT RACK/OPEN TOP/COLLABSIBLELCLBreak BulkRO/RO

Customs clearance• For customs clearance of import shipment, the importer

must have following: • Must have NTN/STR (National Tax Number/Sales tax

registration)

• Importer must be registered in WeBoc systems.

 Documents need in process of customs clearance

• Goods Declaration• Bill of lading for sea shipments• Airway bill for air shipments• Delivery order• Commercial Invoice• Packing List• Copy of L/C documents (If applicable)• Certificate such as origin of goods, inspection certificate,

PSQCA and etc (If applicable)

For delivery from Air Port/Sea port/Dry Port:

• Importer must have delivery order from concerned airline/freight forwarder/carrier and GD released copy.

• In Air shipments delivery order is required during customs clearance process.

Steps after arrival of goods at Port

• Carrier notifies the consignee/importer it is usually called Freight Arrival Advice.

• GD (Goods declaration filing)

• Duty and taxes payment

• Customs assess the good declaration.

• If any document or mis-declaration found then customs calls for the justification otherwise shipment is released.

• Shipment release by customs.

Cont.

• DO payment to carrier and DO obtained.

• Port charges payment at time of delivery.

• Goods released from port.

• Loading on truck.

• Goods Received/Unloading in warehouse.

• Inspection of goods. Incase any problem in goods, supplier is notified or insurance company depending on situation.

THANK YOU