IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 19 Jan 2017 | Removal date: 31 Jul 2017

Export quota

On 28 December 2016, the Economic Coordination Committee of Pakistan approved an export quota of 225,000 tons of sugar. The exports under the quota have to be fulfilled until 31 March 2017.

A quota of 500,000 tonnes was last announced in December 2015 and was valid until 31 March 2016. No export quota for sugar was announced since 1 April 2016 until this intervention. Exports of sugar otherwise are prohibited under Pakistan's export policy.

The export quota of 225,000 metric tons of sugar is subject to several conditions as specified by the Circular of the State Bank of Pakistan. These include:

  • Only mills who have cleared their outstanding farmer dues up to the last season and have started crushing at full capacity are allowed to export
  • Further, exports by sugar mills are allowed only out of their surplus stocks for the current season, as approved by the Cane Commissioner
  • A minimum 15% advance payment is required from the buyer, to be deposited with the Authorized Dealer banks
  • All exports require receipts through bank wire transfers only
  • Exporters have to ship the allocated quota within 45 days of approval or 31 March 2017, whichever is earlier
  • On account of non-performance of allocated export quota, a 15% penalty of the contract value will be imposed on the exporter

On 7 April 2017, the deadline for shipment under this export quota was extended until 30 April 2017, i.e. exporters must ship the order within 45 days of approval or 30 April 2017, whichever is earlier. However, exports to Afghanistan or the Commonwealth of Independent States via land route must be shipped within 79 days of the approval or 30 April 2017, whichever is earlier. On June 2017, Pakistan's Ministry of Commerce extended the deadline until 31 July 2017. 

An export quota of 300,000 tonnes was announced on 18 July 2017 (see related State Act).

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

235 Sugar & molasses
1701 Cane or beet sugar and chemically pure sucrose, in solid form.
170113 Cane sugar specified in Subheading Note 2 to this Chapter

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