The question how to start export business in Pakistan is in demand in 2023. Trade of goods on an international level started centuries ago. It changed and grew from time to time. In 1924 the first passport was designed, and first-time international trading was only allowed to those businessmen with visa permission to enter any country. It was challenging to find out the market gap or needs of the customers from other countries. The country’s government established its departments in other countries to facilitate their traders to point out the specific goods needed in the country.
Moreover, developed countries always took advantage and assisted their traders better than developing countries. But now the world has changed and become a global village after the invention of the internet. You can find out the products in demand in any country.
A company’s success always lies in the planning phase, and creating an export business from any country requires more planning than any other business. Now we will discuss the steps for how to start export business in Pakistan.
Table of Contents
Toggle Table of ContentEstablish an export organization
First, you must register an export organization with Pakistan’s securities and exchange commission (SECP). You can register your industry with three significant categories: sole proprietorship, limited public liability, or limited private liability. Moreover, you will have the following registrations before starting an export business in Pakistan.
- National tax number (NTN)
- Membership from the chamber of commerce & association
- WEBOC Registration (web-based one customs)
- Bank account in the name of your registered organization
Most foreign investors register their organization as a limited liability under Pakistan’s 1984 corporate law.
You can also export products using an organization’s franchise system or a joint venture with a company for export purposes.
To read more about single member company registration in Pakistan, click on the below link.
How to start export business in Pakistan
You need the following documents for exporting your product.
- Goods Declaration (GD) Form
- Weboc (Web-Based One Customs)
- Packing List (PL)
- Certificate of Origin
- Country Specific Certificate
- Bill of Lading
- Transportation/ Shipping
Goods Declaration (GD) Form
Using this specialized online declaration form, we may provide the precise specifications (unit price, quantity, payment terms, etc.) of the goods we want to export from Pakistan.
Weboc (Web-Based One Customs)
Weboc (Web Based One Customs) is Pakistan’s modern method for clearing imports and exports via customs. Once the declaration form has been successfully filled out in the customs system (Weboc), your clearing agent has successfully cleared your cargo from customs inspection. The customs department will let you load your container and issue your GD. This GD will be used for the issuance of the bill of landing.
Packing list
You will produce a packing list to be compensated using a letter of credit.
The packing list details what is being sent, and its net and gross weights and dimensions. It recognizes any marks on the shipments and any particular directions for ensuring the smooth transportation of the products to their end location.
Pakistani and final destination country customs officers may utilize the packing list to determine the exact position of specific packaged products they wish to inspect. It would be much more efficient if they knew which package to unpack or which crate to uncover instead of searching for the cargo themselves.
Certificate of Origin
Sometimes countries need an origin certificate to be included with their exports to verify that the items have been produced in the country specified on the certificate. The Chamber of Commerce in your region is the one that issues the certificate of origin. However, even if you indicate the country of origin on the business invoice, you may still need a certificate of origin.
It is expected for the Chamber of Commerce to charge a fee for signing a certificate or ask you to become a member of the chamber of commerce.
A certificate of origin is needed for import clearance to determine the applicable tariff rates for the items. In most cases, these certificates of origin need a seal issued by the Trade Development Authority of Pakistan (TDAP) or an approved chamber of commerce in Pakistan.
Furthermore, an eCO is suggested over a paper because of the time and money it saves on manual applications. An electronic certificate of origin (eCO) may be obtained in less time and at a lower cost. It can be sent electronically to the importer and has more significance with many customs administrations since it is registered with the Trade Document Accreditation and Processing System (TDAP).
Country Specific Certificate
There is the standard Certificate of Origin form, then the country-specific versions. Pakistan has signed 4 free trade agreements and 3 Preferential Trade Agreements and is eligible for 10 generalized systems of preferences programs, all of which provide for lower or nil tax rates on imports from Pakistan.
Bill of Lading
Standard bills of lading fall into three categories.
- Inland
- Ocean
- Airways
Inland
A bill of lading for domestic shipment is the first transportation document created for most exports. Both the inland carrier and the customer can prepare the bill of landing. It’s a receipt for the products and an agreement of transport between the exporters and the transporter detailing the destination of the shipments.
The inland bill of lading is not usually committed to the recipient of international cargo. Instead, it is sent to the company responsible for transporting your products overseas or, if that company isn’t yet ready, to the warehouse, a forwarder, or other third parties that would, in turn, send your items to the carrier.
Ocean
You must have an ocean shipping bill of lading if your shipment will be transported by ship. The contract of transport and the title to the cargo may be recorded on an ocean bill of lading. They may be divided into two categories:
- There is no opportunity for negotiation on a straight bill of lading since the goods have been designated for a particular consignee. Consignees must show the carrier an original signed bill of lading to claim their shipment.
- It is common practice for a shipper to sign a negotiable bill of lading and then have it shipped to a bank in the purchaser’s country in the form of a “to order” or “to order of shipper” letter. The Bank retains the original bill of lading until the conditions of a documented collection or a letter of credit have been completed.
Airways
When sending packages by airplane, you’ll need an airway bill. The shipper and the carrier are bound by the terms of this contract of carriage, which cannot be changed under any circumstances.
We discussed How to start export business in Pakistan, and now we will share some additional information for support.
Transportation
Depending on the delivery conditions, you may engage a logistics company agency to handle transport concerns after those mentioned above have been resolved. It is possible to engage a transporter to organize and transport products to the port (from upcountry if that is appropriate), as well as to procure the container for loading the goods (which may be done by the buyer or the seller depending on the TOT). A container’s registration and unique identification code are handled at the port. Examiners, Appraisal Officers, and Principal Appraisers review papers (such as weight, price, detention, grade, invoicing, and so on) after registering. When the chief officer is satisfied, shipments may proceed. When the bill of lading has been signed and stamped by the carrier, it is sent to the freight forwarder, who then notifies the customer and receives payment.
Communicate and Build Relationship
Export business always starts by identifying the target market and target audience. After that, you need to market your product which you will do by making relations or hiring 3rd party to market your product. Most important, For a better response from the international market for your product, you must focus on the quality management system and take an ISO-9001 certificate from a third party. This certificate will help you communicate with your customer that you are giving a quality product to them. Both parties should remain careful on financial matters and investigate each other before making a deal. For this purpose, you can also hire a third party who will provide consultation on the following matters: accounting rules, Business laws, Legal document laws, and Export licenses.
Significant Pakistani products for export
First, we will discuss the viable products for how to start export business in Pakistan. We share a product list that can be exported from Pakistan with their statistics.
Level 1
- Textile ( 61.26% of the total export of Pakistan worth 9999.77 million US dollars from July to Feb 2020 to 2022)
- Fruits ( Total export worth in fiscal year of July 2020 to Feb 2022 is 340 million US dollars)
- Rice ( Total export worth in fiscal year of July 2020 to Feb 2022 is 1337 million US dollars)
- Cement ( Total export worth in fiscal year of July 2020 to Feb 2022 is 183.2 million US dollars)
- Footwear ( Total export worth in fiscal year of July 2020 to Feb 2022 is 88 million US dollars)
- Sports goods (Football, gloves, and others. Total export worth in fiscal year of July 2020 to Feb 2022 is 168.59 million US dollars )
- Furniture ( Total export worth in fiscal year of July 2020 to Feb 2022 is 2.75 million US dollars)
- Guar and guar products ( Total export worth in fiscal year of July 2020 to Feb 2022 is 22.69 million US dollars)
- Cutlery ( Total export worth in fiscal year of July 2020 to Feb 2022 is 80.95 million US dollars)
- Livestock meet ( Total export worth in fiscal year of July 2020 to Feb 2022 is 216 million US dollars)
- Spices ( Total export worth in fiscal year of July 2020 to Feb 2022 is 61.5 million US dollars)
- Vegetables ( Total export worth in fiscal year of July 2020 to Feb 2022 is 199 million US dollars)
- Oilseeds, nuts, and kernels ( Total export worth in fiscal year of July 2020 to Feb 2022 is 60 million US dollars)
Level 2
- Seafood ( Total export worth in fiscal year of July 2020 to Feb 2022 is 250.72 million US dollars)
- Electric fans and other electric machinery ( Total export worth in fiscal year of July 2020 to Feb 2022 is 45 million US dollars)
- Plastic materials ( Total export worth in fiscal year of July 2020 to Feb 2022 is 209.5 million US dollars)
- Carpet, rugs, and mats ( Total export worth in fiscal year of July 2020 to Feb 2022 is 47.55 million US dollars)
- Tobacco mats ( Total export worth in fiscal year of July 2020 to Feb 2022 is 22.27 million US dollars)
- Surgical instruments ( Total export worth in fiscal year of July 2020 to Feb 2022 is 265 million US dollars)
- Leather goods ( Total export worth in fiscal year of July 2020 to Feb 2022 is 382 million US dollars)
- Engineering equipment ( Total export worth in fiscal year of July 2020 to Feb 2022 is 94 million US dollars)
- Jewelry ( Total export worth in fiscal year of July 2020 to Feb 2022 is 6 million US dollars)
This section explored the potential products for export from Pakistan and we have already discussed How to start export business in Pakistan.
Major export markets for Pakistani exporters
Currently, Pakistan is exporting products to the following countries.
- United States of America
- China
- Germany
- India
- Saudi Arabia
- United Arab Emirates
- Qatar
- Sri Lanka
- United Kingdom
- Afghanistan
This article described the process of how to start export business in Pakistan.
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