Government of Pakistan

Ministry of Commerce
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ORDER
Islamabad, the lst June, 2023

s.ruO. ( 4& . U)12023.- In exercise of the powers conferred by sub-section (l)

of section 3 of the Imports and Exports (Control) Act, 1950 (XXXX of 1950), the Federal
Govemment is pleased to make following Order, namely:-

1. Short title and commencement. (1) This Order shall be called the Business-
-
to-Business (B2B) Barter Trade Mechanism, 2023.

(2) It shall come into force at once.

2. Definitions. In this Order, unless there is anything repugnant in

-
the subject or context,-

(a) "Act" means the Imports and Exports (Control) Act, 1950 (XXXIX of
19s0);
(b) "Annex" means an Annex to this Order;
(c) "Appendix" means an Appendix to this Order;
(d) "banned item" means a commodity whose import or export is prohibited
under the Import Policy Order (IPO) or Export Policy Order (EPO) in
vogue, respectively;
(e) "barter trade" means exchange of goods by way of import and export
without involvement of any cunencies for the purpose ofthis Order;
(0 "place of origin" or "origin" means the country of supply where goods
,9 are produced or manufactured;
(g) "regulatory Collector" means the Collector of Customs in whose
jurisdiction the place ofbusiness or manufacturing unit or head office of
N the applicant, duly registered under the Sales Tax Act, 1990, is located;
and
(h) "restricted items" means a commodity whose import or export is subject
to compliance with conditions as contained in IPO or EPO in vogue,
respectively.

3. Powers to allow export and import of goods under B2B barter trade.
-
The regulatory Collector having territorial jurisdiction may allow export and import of goods
against an authorization, subject to the conditions stipulated under this Order.

4. Eligibility criteria. The barter trade facility under this Order may be
admissible to thefollowing:- -
(1) state owned enterprises; and
(2) private entities, subject to following conditions, namely:-
(i) its name appears on active taxpayers' list ofFederal Board ofRevenue;
(iD it is subscribed to Pakistan Singte Window (PSW) System; and
(iiD it possesses a valid import and export contract registered by Customs
authorities in the Customs computerized system (WeBOC).

5. Authorization process.- (1) Application for authorization of import and

export of goods under the B2B barter trade facility shall be submitted online by the trader or

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 their authorized agent through the online BT Module in WeBOC system to the regulatory
Collector. The application shall contain the following information:-
(i) name and address of importer;
(ii) name and address of exporter;
(iii) description, quantity and value of goods to be imported;
(iv) description, quantity and value of goods to be exported;
(v) validity and expiry dates of the contract; and
(vi) declaration that the goods shall originate from the respective countries
for which the Barter Trade facility has been allowed.

(2) Copy of the contract duly verified by the Pakistani Mission in the country for
which barter trade facility has been authorized, certifying the facts that the subject foreign
company, individuals and proposed goods for BT are 'Non-Sanctioned', as notified by Ministry
ofForeign Affairs fiom time to time, shall be uploaded in support ofthe application.

(3) The application shall be reviewed and examined under the provisions of IPO
and EPO in vogue and the conditions set out in this Order. If the application is found in order,
an approval (authorization) may be accorded by the regulatory Collectorate of Customs and an
approval number shall be generated by the system against the NTN ofthe applicant.

(4) Ministry of Commerce may impose country or commodity specific conditions

or restrictions for imports and exports of goods under this B2B ba(er trade mechanism.
Export and import under this Order shall be allowed in respect of the commodities and
from the countries as specified in Appendix-A to this Order.

6, Customs procedure.
-
(1) Trade ofgoods under a B2B BT arrangement shall
be allowed on the principle of "import followed by export". The export would be made to the
extent ofvalue of imported goods, subject to the tolerance mechanism provided hereinafter for
any exigency. However, a Pakistani trader shall be responsible to net-off value of goods on
quarterly basis, i.e. within 90 days after issuance of authorization.

(2) Upon import and export of goods, the importer shall submit single declaration
in the PSW system.

(3) The importer and exporter shall tag the relevant approval number to allow for
waiver of the financial instrument required for regular imports and exports.

J (4) Import and export ofgoods under a B2B BT arrangement shall be subject to the
provisions of Import and Export Policy Orders for the time being in force and shall comply
with all relevant regulatory requirements including permits, licences, certificates, quotas, etc.
as specified in the IPO and EPO.

(5) The import and export ofgoods shall be subject to applicable duties, taxes, fee
and other charges, etc.

(6) Imports and exports under the B2B barter trade facility shall be admissible to
benefits offered under various concessionary and export facilitation schemes, etc.

(7) The 'assessed value' of goods shall be taken for the purpose of calculation of
the monetary limit of the authorization.

(8) The value ofthe goods to be imported and exported under this facility shall not
exceed the monetary value of the authorization as entered in the WeBOC system for automatic
debiting of the monetary value of imported and exported goods.

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 (9) A tolerance of twenty percent shal[ be allowed for assessed import value
exceeding the authorization and, in case of further breach of limit, clearance of goods shall be
stopped and the regulatory Collectorate may initiate further action under the applicable laws
and procedures including the Customs Act, 1969 (IV of 1969).

(10) A tolerance of twenty percent shall be allowed for export value exceeding the
imporl value on a one-offbasis, in accordance \^rith the procedure to be notified by FBR.

(11) All imports under an authorization issued under this Order shall be accompanied
by a certificate oforigin issued by the relevant authority ofthe exporting country for which the
barter trade facility has been allowed.

7. Reconciliation. (1)
The Customs computerized system shall reconcile
-
import and export values automatically against each authorization.

(2) The data for all imports, exports under the barter trade facility shall be available
to the regulatory Collectorate for audit purposes.

(3) FBR shall submit a report to Commerce Division on quarterly basis regarding
the total number of applications received, authorizations issued and the position of trade
balance viz. imports and exports under B2B barter trade authorizations so issued.

8. Other terms and conditions.{l) An authorization shall be valid for one year
from the date of issuance and there shall be no extension or carry forward for the authorized
value.

(2) The regulatory Collector reserves the right to curtail the authorized limit or to
stop further fansactions in case of unsatisfactory performance of non-reconciliation of trade
balance.

(3) For the acts or omissions of the parties arising out of a B2B barter trade
transaction, there shall be no liability on the Government of Pakistan.

(4) Commerce Division reserves the right to amend, modify, rescind or withdraw
whole or any part ofthis B2B barter trade mechanism through a notification.

(5) Any dispute or clarification regarding any provision ofthis mechanism or any
transaction held under this mechanism shall be referred to Commerce Division for final
decision.

9. Penalties. Subject to provisions of the Act, failue to comply with any of the
-
conditions laid down in this mechanism or the conditions contained in an authorization issued
under this Order shall lead to cancelation of authorization, award of penalty or blacklisting of
the applicant company for future business under relevant provisions of the law.

10. Provisions to be in addition and not in derogation. The provisions ofthis Order
shall be in addition to and not in derogation of the provisions -ofthe Export Policy Order and
Import Policy Order made under the Act.
[F. No. 2(4)i2021-Imp-III]

uhammad Naeem Tariq)

Section Officer (Imports-Ill)
oL. 06.7oLl
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 Appendix- A
[See para -5(4)]
List of Commodities for Barter Trade with Afghanistan. Iran and Russia

Part-I
Export of following products shall be allowed to Afghanistan, Iran and Russia:

Sr. No Commodity Description PCT Codes

(I ) (2) (3)
1 Milk, Cream, Eggs and Cereals 0401,0407, 1103, 1104, & 1108
2 Meat and Fish products Ch. 02,03 and 16
J Fruits and Vegetable Ch. 07 (except 0713), 08
4 Rice 1006
1702, 17 03, r7 04, t806, 190 l, 1902,
5 Confectionary and Bakery items
1904, t905
6 Salt 2s01
7 Pharmaceutical products ch. 30
Essential Oils, Perfumes, Cosmetics, Toiletries,
8 Ch. 33. 34 and 3605
Soaps, Lubricants, Waxes and Matches
Tanning, Dying Extracts and Misc. Chemicals
9 Ch. 32 and 38
products
10 Plastics and Rubber Articles Ch. 39, and 4011 - 4015

11 Finished Leather & Leather Apparel 4112, 4113, 4114, 4115 ar,d Ch. 42

12 Articles of Wood 4 409 -20, 4 60 1, 4 602,47 03

13 Articles of Paper & Paper Board 4703,4707, and Ch. 48 and 49

s208, 5209, 5210, 5212,53l0, 5407,
14 Textiles (Intermediates)
5513, 5514, 5903, 5910, & 6006
Readymade Garments, Textile's Made-ups and
15 ch.61,62,63 &s7
Carpets
16 Footwear ch. 64
17 Iron and Steel Ch. 72 and,73
18 Copper and Articles thereof ch.74
19 Aluminium and articles thereof 1612 & 7615
20 Tool and Cutlery 8205-15
21 Electric Fans and Home Appliances 8414, 8415, 8418, 8422, 8450
22 Electrical equipment ch. 8s d
Motorcycles and Tractors- excluding
23
components.
8711 & 8701
)l
24 Surgical Instruments lsora -l-r,^.{
tt\o
25 Fumiture Items 94ot,g4o3
26 Sports Goods 9506, 9507

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 Part-II

Import of following products shall be allowed from Afghanistan:

Sr. No Commodity Description PCT Codes

(r) {2) (-t )
I Fruits and Nuts ch.08
2 Vegetables and Pulses Ch. 07 & 2009 (except 07139090)
J Spices 0904 & 0909
Ch. 12 (except 1209.2900, 1214.9000,
4 Oil Seeds
121 1.3000,1211.4000, 121 1.9000)
2503 0000, 2526t0 1 0, 25 1 5 1 1 00, 25 1 5 t200, 25292 | 00,
253 09090, 2522t 000, 25 1 69000, 25 1 1 1 000, 25 1 6 1 1 00,
5 Minerals and Metals 25171000, 2529t000,26100000, 26080000, 26070000,
26190000, 26180000, 2601 1 100, 74040010,74040090,
76011000, 76020090
6 Coal and its products 2701
7 Raw Rubber Items 4001, 4002, 4003, 4004, 4005
8 Raw Hides and Skins 4101, 4102, 4103, 4104, 4105
9 Cotton 5201

l0 Iron & Steel 7 2043000, 7 2044100, 7 20449 l0 72044990

Part-III

Import of following products shall be allowed from Iran:

Sr. No Commodity Description PCT Codes

(1) (2) (3)

1 Fruits, Nuts and Vegetables Ch.07 & 08 (except 07139090)

2 Spices 0909
25030000, 25070000, 25081000, 2513i000,
25 1 5 1 I 00, 25t51200, 2523 1000, 25232100,
J Minerals & Metals
25232900, 7 4091100, 7 4092100, 7 4092900,
7 6042100, 76061 1 00, 7901 1 I 00
Coal and its Products, Petroleum 27 0t, 27 02, 27 03, 27 04, 27 05, 2706, 27 07, 2709,
4
Crude Oil, LNG and LPG 2'7rt,2713
28030010, 28141000, 28151 100, 282tt010,
2827 1000, 28299000, 2830 1 010, 2833 I 1 00,
28362000, 28363000, 28369930, 2839191 0,
28421000, 2905 1 100, 29053100, 29t59000,
5 Misc. Chemical Products
291 61 400, 2917 I 400, 29 17 3 500, 29232000,
29336100 , 29336990 , 33012990 , 3 3 029090,
35079000, 38099300, 38160000, 38170000,
382 1 0000, 38231990, 38249980, 38249999

6 Fertilizers 3102

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 Article of Plastics and Rubber 3901, 3902, 3903, 3904, 3905, 3905, 3906, 3907,
7
ln Drl form 3912,4001, 4002, 4003, 4004,
8 Raw Hides and Skins 4101,4t02, 4103, 4104
9 Raw Wool 5101,5102,5103
7201 1 000, 72022900, 72041010, 72044100,
10 Articles of Iron & Steel
720449 10, 7 2044990, 89080000

Part-IV
Import of following products shall be allowed from Russia:

Sr, No Commodity Description PCT Codes

(I) (2) (3)
I Pulses 0713 (except 07139090)
2 Wheat 100 r
27 01, 27 02, 27 03, 2704, 27 05, 27 06, 2707, 27 09, 27 10,
Coal & its Products, 2711,2713, (except used Oils under 27 i 0.1951,
J Petroleum Oils (including 27 10.1953, 27 10.1994, 27 10.1997, 27 10.1999,
Crude), LNG and LPG I
27 1 0.9 1 00, 27 1 0.1 9 52 27 1 0. 199 1 27 | 0.1 99 6 27 1 0.t99
2710.2000 27t0.9900)
4 Fertilizers 3101, 3102, 3103, 3104, 3105
5 Tanning and Dying Extracts 3202
Article of Plastics and Rubber 3901, 3902, 3903, 3904, 390s, 390s, 3906, 3907, 39 12,
6
(In primary form) 4001, 4002, 4003, 4004,
25030000, 25081000, 2515 1 100, 25199010,25199090,
7 Minerals and Metals 25249000, 7 6042990, 7 6052900, 76 109000, 780 1 1 000,
79011100, 79039000
4 4039900, 4 407 1 | 00, 4 407 t200, 4 407 1 900, 4 407 2900,
8 Articles ol Wood & Paper
4407 95001, 4407 9900, 44t 19390, 44123300, 44t29900
280 t 3000, 280300 I 0, 28t52000, 28 1 9 1 000, 28252000,
2827 5900, 2827 6000, 28332500, 28341 0 10, 28353 1 00,
28364000, 2841 3000, 28415090, 28444000, 28459000,
28469000, 2903 1200, 2903 1 300, 290s 1 300, 290s 1 400,
o Chemicals Products 2907 I 100, 2907 1900, 291 41 100, 291 6t 1 00, 29 | 61200,
29173500, 291 8 1 300, 2921 4200, 29313999, 29336990,
29339990, 33012990, 3 802 1 000, 3 8040000, 3 8089400,
38 1 I 1 900, 38 I 1 2 100, 38 1 19000, 38 140000, 38244000,
38249999
7201, 7202, 7023, 7204, 7208 1 01 0, 72081090,
7 2082610, 7 20827 90,',l 208361 0, 7 2083 690, 7 20837 10,

72083790, 720838 1 0, 72083890, 72083910,'12083990,

10 Articles of Iron and Steel 72085 1 1 0,'t 2089010, 72089090, 7209 1 5 10, 72091 6t0,
72091690, 7209t7 10, 720917 90, 72099010, 721012t0,
721049 10, 7 2t24090, 7 225 1 100, 72286000, 7 3042900,
73045900, 7 3049000, 7 3 1 43900, 89080000
Items of Textile Industrial
l1 8443 19 r0, 8443 1 990, 84439990, 84452000, 84463000,
Machinery
Note: - In case of any discrepancy between EPO/IPO in vogue and above listed
commodities, the provisions of the EPO/IPO shall prevail. *

ot o
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