Commerce minister empowered to grant one-time import, export waivers – Business

ISLAMABAD: The government has amended two parliamentary acts, transferring the power of approval from the federal cabinet to the commerce minister to grant one-time exemptions on importing and exporting goods, especially vehicles.

Initially passed in 2023 by the parliament, President Dr Arif Alvi did not sign these bills on the plea that the commerce minister cannot exercise cabinet power. However, these bills were now signed by President Asif Ali Zardari making it an act of parliament.

The Imports and Exports (Control) Amendment Act 2023 introduced further amendments to the Import and Exports (Control) Act 1950 by extending the cabinet power to the minister in charge of the commerce ministry.

The decision will take effect immediately.

According to the amendment, the commerce minister can now issue one-time permission to import, re-import, export, or re-export goods. This will be done via an official notification, with reasons documented in writing. The permission will be granted in specific cases to benefit Pakistan’s trade and commerce, relaxing any current prohibitions or restrictions.

Ex-president Alvi didn’t sign the two bills, saying it was cabinet’s domain

The commerce ministry has defended the amendment, arguing that it will streamline the process for individuals seeking one-time exemptions to import or export goods. Previously, the ministry had to forward such requests to the federal cabinet for approval. This was particularly common with vehicle import requests that violated the Import Policy Order, requiring cabinet condonations.

Under the new amendment, the government has empowered the commerce minister to grant exemptions for goods that violate certain laws or prescribed limits. This power was previously transferred to the federal cabinet from the commerce minister to prevent misuse of the exemption facility and ensure it was used for genuine cases.

The Import and Exports (Control) Act of 1950 is the key legal framework governing international trade in Pakistan. The regulation of goods imports and exports is carried out through the Import Policy Order (IPO) and Export Policy Order (EPO), issued under Section 3(1) of the Act.

Another amendment introduced through the Trade Organisations (Amendment) Act 2023, the government shifted power from the federal cabinet to the commerce division to look after the affairs of chambers of commerce and industries.

In the first place, the government amended the Trade Organisation Act 2013 to transfer power from the federal cabinet to the secretary of commerce Division to exercise all powers related to trade organisations. Additionally, the Director General of Trade Organisations has been entrusted with powers previously held by the federal cabinet.

The Act now empowers the commerce secretary and director general of trade organisations to regulate operational matters of the trade organisations.

This sweeping change allows the commerce division to implement decisions concerning chambers of commerce and industries nationwide.

Furthermore, the amendment has extended the tenure of the elected officer bearers of chambers of commerce and industries, doubling their terms from one year to two years. It was clarified that after the enactment of this Act, all trade organisations, including chambers of commerce and industries, will hold fresh elections.

Published in Dawn, January 25th, 2025

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