SRO 843(I)/1990

GOVERNMENT OF PAKISTAN MINISTRY OF COMMERCE NOTIFICATION Islamabad, the 13th August, 1990. THE REGISTRATION OF EXPORT HOUSES ORDER, 1990. S.R.O. 843(I)/90.- In exercise of the powers conferred by sub-section (1) of section 3 of the Imports and Exports (Control) Act, 1950 (XXXIX of 1950), the Federal Goverment is pleased to make the following Order, namely:- 1. Short title and commencement.- (1) This Order may be called the Registration of Export Houses Order, 1990. (2) It shall come into force at once. 2. Definitions.- In this Order, unless there is anything repugnant in the subject or context,- (a) "competent authority" means the committee referred to in paragraph 3; (b) "display centre" means premises which are maintained for the purpose of exhibiting products of Pakistan with a view to promoting their sale but are not used as a regular retail outlet; (c) "Export House" means a trading company registered as an Export House; and (d) "Registered" means registered under this Order. 3. Authority competent to register Export Houses.- (1) For the purposes of this Order, there shall be constituted a committee consisting of the Vice-Chairman of the Export Promotion Bureau who shall be its Chairman, the Joint Secretary (External Finance) Ministry of Finance, Government of Pakistan and the Director, Exchange Control Department, State Bank of Pakistan. (2) The Export Promotion Bureau shall function as the Secretariat of the aforesaid committee. 4. Conditions of eligibility for registration.- (1) An applicant for registration as an Export House shall- (a) be a trading company registered under the Companies Ordinance, 1984 (XLVII of 1984); (b) be registered as an exporter under the Registration (Importers and Exporters) Order, 1993; (c) have, or undertake to establish within a specific period, an office abroad; and (d) except as otherwise provided, have had an export of not less than one million US dollars with export performance in at least one product group during the year immediately preceding the year in which the application is made;; Explanation.- Omitted. (2) Fruits and vegetables exports shall be eligible for ten per cent wastage allowance. (3) Any two or more exporters who having together had during the year preceding to registration an export performance of not less than $ 2 million, have formed a consortium and get them salves registered as a trading company under the Companies Ordinance, 1984 (XLVII of 1984), and as an exporter under the Importers and Exporter (Registration) Order, 1993, shall also be eligible to apply for registration as an Export House. (4) Earnings in foreign exchange on the following accounts shall also be taken into account for ascertaining export performance for the purposes of sub-paragraphs (1), (2) and (3), namely:- (a) net earnings from erection charges, consultancy fees and collaboration fees; (b) royalties for books; (c) net earnings from re-export or off-shore trading; and (d) such other items as the competent authority may notify from time to time. 5. Application form and fee, etc.- (1) An application for registration as an Export House shall be made to the competent authority in the form annexed to this Order. (2) The application shall be accompanied by a bank draft for fifty thousand rupees drawn in favour of the President of the Islamic Republic of Pakistan on account of registration fee and by the following documents in triplicate, namely:- (a) a statement showing direct exports made in the preceding year duly supported by Bank Certificate of exports made and export proceeds realized in the name of the applicant company or, in the case of a company such as is referred to in sub-paragraph (3) of paragraph 4, in the name of the constituent units; (b) export orders or export contracts received or made during the preceding year in the name of the applicant company or, in the case of a company such as is referred to in sub-paragraph (3) of paragraph4, in the name of the constituent units; and (c) copies of arrangements made, if any, with manufacturing units for the purpose of effecting exports on their behalf. (3) The competent authority shall deposit the bank draft received by it under sub-paragraph (2) with the State Bank of Pakistan for credit to the Federal Revenues under the appropriate Head of Account. 6. Grant of registration and its validity.- (1) The competent authority may grant the application for registration made by an eligible applicant if it is satisfied that, having regard to the following matters, the applicant deserves to be registered as an Export House, namely:- (a) managerial capacity, technical, financial and service resources, testing facilities and quality control arrangements available with the applicant; and (b) operational plant of the applicatn and its ability to provide assistance to supporting manufacturers in availability of imported inputs and by way of technical aid. (2) The registration of Export House shall be valid for a period of one year and may, on appplication be renewed from year to year, with payment of annual renewal fee of twenty-five thousand rupees subject to satisfactory export-performance. 7. Export by Export Houses.- After the expiry of the first year of its registration every Export House shall export one or two of its products under its brand name and five years of registration shall export all its products under its brand name. 8. Facilities available to Export Houses.- (1) In addition to the normal facilities available for exports, an Export House shall be entitled:- (a) to import against BMR facilites on behalf of individual importers or a group of importers; (b) to retain 5 per cent of their FOB foreign exchange earnings for the use for establishment and maintenance of offices abroad, publicity, product development, participation in trade fairs abroad, collection of commercial intelligence, market studies, adaptation of existing products to new markets cost of air tickets provided to foreign buyers who are invited to visit Pakistan and other promotional efforts; Provided that retention of 5 per cent of FOB earnings for purposes listed above shall be subject to the condition that export performance of such export house includes 15 per cent of the net foreign exchange earnings from the products of supporting manufacturing units wich are not owned or controlled by the controlling interest of the export houses: Provided further that in case of export houses whose net foreign exchange earnings do not include 15 per cent realisation from the products of supporting manufacturing units, they shall be eligible for retaining only 3 per cent of their foreign earnings for purposes mentioned in this sub-clause. (c) the Federal Government may allow the export houses to establish their own cargo plane facilities or charter private cargo planes; (d) the Federal Government may grant subsidy from Export Market Development Fund in freight for the export of non-traditional items like fruits, vegetables and cut flowers; and (e) the Federal Government may allow issuance of distinctive passports, having up to 200 pages, to the Chairman and Managing Director of an Export House. The holder of such passport will be entitled to use VIP lounges at national airports. (2) The competent authority may permit an Export House desiring to do so to set up display centres abroad, including warehouses where necessary, and may allow reasonable foreign exchange for the purpose. 9. Accounts and return to be maintained and submitted.- An Export House shall maintain proper accounts of imports and exports and submit to the competent authority a pre-audit annual return and a statement of exports which shall specify, inter-alia, the exports made on behalf of each supporting manufacturer. 10. Cancellation or suspension of registration.- (1) The registration of an Export House shall be liable to be cancelled or suspended for a specific period under the orders of the competent authority if- (a) the competent authority is satisfied that the registration has been obtained by misrepresentation of facts; (b) the competent authority, on the complaint of a foreign buyer, finds the Export House to have committed a breach of contract or indulged in unfair trade practices; (c) the Export House is found by the competent authority to have committed a violation of the import and export policy orders or exchange control regulations; or (d) the Export House is found by the competent authority to have failed to discharge an export obligation undertaken by it or to fuirnish to the competent authority any return or information required by or under this order. (2) No order shall be made under sub-paragraph (1) unless the concerned company has been given an opportunity to show cause against the proposed action. 11. Appeal.- An company aggrived by the decision of the competent authority under this Order may, within fifteen days of the receipt of the decision, prefer an appeal to the Secretary, Ministry of Commerce, Government of Pakistan. 12. Repeal.- The Registration of Export House Order, 1981 (S.R.O. 1019(I)/81, dated the 14th September, 1981) is hereby repealed. M. NASEEM QURESHI Joint Secretary As amended S.R.O._____(I)/96, - dated 26.05.1996 FORM OF APPLICATION FOR GRANT/RENEWAL OF EXPORT HOUSE CERTIFICATE 1. Name and address of the applicant. 2. Date of establishment of business under present name. 3. Nature of the concern, whether public limited or private limited (A copy of the Memorandum and article of Association shall be attached). 4. Name of the Directors. 5. Details of Head Office, branches of associate companies (Name and location) (a) In Pakistan. (b) Abroad. 6. No. and date of Certificate of Registration as registered exporter. 7. G.I.R. No. 8. Whether merchant exporter or manufacturer exporter. 9. If manufacturer exporter, Industrial Licence No. and date. 10. Name and address of applicant's bankers. 11. Names and addresses of supporting manufacturers (if such arrangement have been arrived at). 12. In case of renewal, No. and date of the last Export House Certificate. STATEMENT OF EXPORTS DURING LAST THREE YEARS (TO BE CERTIFIED BY THE BANK) _____________________________________________________________________________________________________ Year Description of Names and address Relationship Destination FOB Date of realisation items exported of manufacturers of with manufac- of exports value goods exported turing Co. _____________________________________________________________________________________________________ DECLARATION I/we hereby declare that the particulars and statement made in the application are true to the best of my/our knowledge and nothing has been concealed. I/we further declare that the FOB value of exports on the basis of which export house certificates has been claimed in this statement are our direct exports. The export/order the bank certificate, letter of credit and the invoice were in our name. (If the invoice also mentions the name of the manufacturer of the goods exported, this may be indicated). The FOB value shown in the statement is exclusive of commission paid or payable. Signature.......................................... Name................................................. Designation...................................... Address--------------------------------- Dated________________ -------------------