The European Union grants duty free access to 75 items for Pakistan

October 19, 2012 | By More

In February 2012, WTO allowed waiver to EU for granting Autonomous Trade Preference Scheme to help Pakistani economy recover from the devastating flood in 2010. Subsequently, the EU parliament ratified the resolution in September 2012, spelling out the implementation date, procedures and TRQ administration methods in line with existing laws and regulations. The said Regulation will be announced in the next few days and is expected to be implemented from 1st of November 2012 and will be operational till 31st December 2013.

The Package envisages temporary suspension of import duties on 75 items for a period of; 2 months of calendar year 2012 and complete calendar year of 2013 and, extendable for one more year. However; it subjects 26 products to Tariff Rate Quota (TRQ).

The European Union grants duty free access to 75 items to Pakistan at the HS Code 8 digit level, of which 26 items are under quantity based Tariff Rate Quotas (TRQ) and 49 items are under a 25 per cent quantity increase cap based on average of last 3 years exports.

The package includes 33 products of non-value added textiles, 23 products of textile garments, 8 products of home textiles, 4 products of value added leather, 3 products of footwear, 2 products of raw leather, 1 product of ethanol and 1 product of vegetables. The existing tariff on products included in ATPs for concessions varies from 19.2 Euros/ hector litres on Ethyl Alcohol to 2.5 per cent on raw leather.

Quota management will be done entirely by the European Commission. The basic role of Pakistani authorities relates to issuance of certificate of origin confirming that the exported products are of Pakistani origin so that they can qualify for ATP concessions.

The WTO Cell of the TDAP had conducted a thorough analysis of the 75 tariff lines on which preferential access is expected as well as of the 26 “Tariff Rated Quota” tariff lines, with the view; to identify and highlight the tariff lines with the most gain potential as well as to quantify overall increase in exports.

The WTO Cell has also initiated a plan for a technological revamping of Trade Development Authority of Pakistan’s GSP Section in order to facilitate the issuance of Country of Origin Certificates required for availing the zero rated tariffs under the ATP regime and also to monitor the Tariff Rated Quota in order to ensure full utilization of the said quotas. The new system would link all the regional and sub- regional offices of the TDAP with the Head Quarters through an online intra-net for optimal efficiency.

Synoptic analysis of all commodities coming under EU Autonomous Trade Preference Scheme can be downloaded here. Also click to download list of 75 items on which concessions have been granted by EU.

Posted by: Majid Shabbir
Official Moderator: BSO Forum


Category: Trade & Economy

Comments (2)

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  1. nadeem shaikh says:




    • Faizan Amiwala says:

      Dear Mr Nadeem

      We are manufacturers and exporters of Knitted and Woven Garments based in Karachi, our factory is located in Landhi and Korangi.

      We produce T Shirts, Hoodies, Track Pants, Zip Jackets, Poloshirts, Denim Jeans, Shorts, Twill & Canvas Trousers, Jersey Fitted Sheets, Men and Women Briefs, Underwears etc

      Let us know what products to you, we will be happy to assist you.

      We currently export to Sweden, Finland, Italy & UK


      Faizan Amiwala
      Cell: 923218220125