Business Opportunities in - Trade Development Authority Of Pakistan
Business Opportunities in - Trade Development Authority Of Pakistan
Business Opportunities in - Trade Development Authority Of Pakistan
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Phase-II (2008-2016)<br />
Export News 23 & 24-2006<br />
Tariff to be reduced to 0-5% with<strong>in</strong> 8 years.<br />
Annexes: (Detailed Annexes/Lists have been publish<strong>in</strong>g <strong>in</strong> Export News Bullet<strong>in</strong>)<br />
Annex 'I' Sensitive Lists:<br />
Annex I relates to the Sensitive Lists of Member States. No reduction of tariff on<br />
these tariff l<strong>in</strong>es:<br />
Summary of Sensitive Lists<br />
Countries No of tariff l<strong>in</strong>es Percentage of total l<strong>in</strong>es<br />
Bangladesh 1254 24%<br />
Bhutan 157 3%<br />
India 884 16.9%<br />
Maldives 671 12.8%<br />
Nepal 1310 25.5%<br />
<strong>Pakistan</strong> 1183 22.6%<br />
Sri Lanka 1065 20.3%<br />
Annex 'II' Technical Assistance for LDCs:<br />
Annex II relates Technical Assistance for LDCs, Areas of Technical Assistance<br />
<strong>in</strong>clude:-<br />
� Advisory services for identify<strong>in</strong>g export niches for the products of LDCs.<br />
� Capacity build<strong>in</strong>g <strong>in</strong> metallurgy, standards, test<strong>in</strong>g and quality control.<br />
� Tra<strong>in</strong><strong>in</strong>g of <strong>Trade</strong> <strong>Of</strong>ficers.<br />
� Tra<strong>in</strong><strong>in</strong>g <strong>in</strong> sanitary and phyto-sanitary measures; technical barriers to trade and<br />
export proceed on agro based products.<br />
Annex 'III' Mechanism for Compensation of Revenue Loss for LDCs (MCRL):<br />
Annex III def<strong>in</strong>es mechanism and its rules and regulations to compensate the Least<br />
Developed member countries for their loss of customs revenue due to the implementation of<br />
the <strong>Trade</strong> Liberalisation Programme (TLP) under this Agreement. Ma<strong>in</strong> Feature are as under:<br />
� To be enforced one year after implementation of tariff reduction (i.e. after July<br />
2007).<br />
Shall rema<strong>in</strong> operative for 4 years.<br />
� Compensation only on revenue loss on import of products where tariff reduction is<br />
made by LDCs.<br />
The extent of compensation shall be as follows:<br />
o First year and second year<br />
- Not more than 1% of customs duty collected.<br />
o Third year<br />
- Not more than 5% of customs duty collected.<br />
o Fourth year<br />
- Not more than 3% of customs duty collected.<br />
Annex 'IV' - SAFTA Rules of Orig<strong>in</strong>:<br />
Annex IV def<strong>in</strong>es mechanism and its rules and regulations to compensate the Least<br />
Developed member countries for their loss of customs revenue due to the implementation of<br />
the <strong>Trade</strong> Liberalisation Programme (TLP) under this Agreement. Ma<strong>in</strong> Feature are as under:<br />
Annex IV deals with the rules of orig<strong>in</strong> under the SAFTA required to qualify products<br />
for preferential duty benefits. Rules of Orig<strong>in</strong> – to be operative on 01.07.2006. Basic Criteria<br />
is as under:<br />
� For non-LDCs<br />
40% value addition + change <strong>in</strong> tariff head<strong>in</strong>g at 4 digits (CTH).<br />
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