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Import & Export Basics from Pakistan

If you're a Pakistani business looking to start importing or exporting internationally, this guide covers the fundamentals. From understanding Incoterms to navigating SBP (State Bank of Pakistan) procedures, we explain the essentials of international trade logistics.

What Is Import and Export?

Export is selling goods from Pakistan to an international buyer. Import is buying goods from an international supplier into Pakistan. Both require documentation, customs clearance, and international freight. Haideri International Cargo handles both import and export shipping, making international trade accessible for Pakistani businesses of all sizes.

Understanding Incoterms

Incoterms (International Commercial Terms) define who is responsible for shipping, insurance, and customs at each stage. Common Incoterms: EXW (Ex Works) — buyer handles everything from seller's warehouse. FOB (Free on Board) — seller handles origin costs, buyer handles freight and destination. CIF (Cost, Insurance, Freight) — seller handles freight and insurance to destination port. DDP (Delivered Duty Paid) — seller handles everything including destination customs. We advise on the best Incoterms for your transaction.

Export Process from Pakistan

The export process involves: 1) Receiving an export order from an international buyer. 2) Agreeing on Incoterms and payment terms. 3) Preparing goods and export documentation. 4) SBP (State Bank of Pakistan) EPR filing (for formal exports). 5) WeBOC (Web-Based One Customs) filing and GD (Goods Declaration). 6) Export customs clearance. 7) International shipping. 8) Destination customs clearance. 9) Delivery to buyer. We handle steps 3-9.

Import Process into Pakistan

The import process involves: 1) Placing an order with an international supplier. 2) Arranging payment (L/C, advance, open account). 3) Supplier ships goods with documentation. 4) Goods arrive at Pakistani port/airport. 5) WeBOC filing and GD (Goods Declaration) for import. 6) Import customs clearance and duty payment. 7) Delivery to your location. We handle steps 5-7 and coordinate with your supplier on documentation.

Payment Methods in International Trade

Common payment methods: Advance Payment — buyer pays before shipping (risky for buyer). Letter of Credit (L/C) — bank guarantees payment when documents are presented (safest for both). Documentary Collection — bank acts as intermediary but doesn't guarantee payment. Open Account — buyer pays after receiving goods (risky for seller). For new trade relationships, L/C is recommended. We support all payment methods with appropriate documentation.

SBP (State Bank of Pakistan) Compliance

For formal exports from Pakistan, SBP requires: EPR (Export Proceeds Realization) — export proceeds must be received in Pakistan within 120 days. E Form — for exports, issued by the bank. Form E — for imports, issued by the bank. We handle all SBP documentation as part of our export service, ensuring compliance with foreign exchange regulations.

HS Code Classification

The Harmonized System (HS) code is a standardized product classification used worldwide. The first 6 digits are international; Pakistan adds additional digits. Your HS code determines: export/import duty rates, whether you need an export/import license, and whether preferential tariffs (GSP+, FTA) apply. Correct classification is essential. We classify your products with the correct HS codes.

Preferential Trade Agreements

Pakistan has preferential trade agreements that can reduce or eliminate import duty: GSP+ (EU and UK) — reduced/zero duty on many products including textiles, garments, and leather. China-Pakistan FTA — reduced/zero duty on many products. Pakistan-Sri Lanka FTA. SAFTA (South Asian FTA). To claim preferential rates, you need a certificate of origin (Form A for GSP+, Form E for China-Pakistan FTA). We handle all preferential trade documentation.

Getting Started with Import/Export

To start importing or exporting: 1) Register your business and obtain NTN (National Tax Number). 2) For exporters, register with SBP and your bank for E Form processing. 3) For certain categories, register with EPB (Export Promotion Bureau). 4) Identify your products and target markets. 5) Find international buyers/suppliers. 6) Agree on terms (Incoterms, payment). 7) Contact us for shipping and documentation. We guide first-time importers/exporters through every step.

Frequently Asked Questions

Do I need to be a registered business to export?

For formal commercial exports, you need a business registration (NTN) and bank account for E Form processing. For personal shipments, you can ship as an individual with your CNIC. We advise on the right approach for your situation.

What is an L/C (Letter of Credit)?

A Letter of Credit is a bank guarantee that the buyer will pay the seller when shipping documents are presented. It's the safest payment method for new trade relationships. Your bank issues the L/C, and we ensure your shipping documents meet L/C requirements.

How long do export proceeds take to realize?

SBP requires export proceeds to be received in Pakistan within 120 days of shipment. We handle all SBP documentation to ensure compliance. If you need more time, an extension can be requested through your bank.

Can Haideri help me start exporting?

Yes. We guide first-time exporters through documentation, SBP compliance, customs procedures, and shipping. We also advise on GSP+ and FTA documentation to help you claim preferential tariffs. Contact us at 03719226245.

Need help with your shipment?

Contact Haideri International Cargo for a free quote and expert assistance.