Stephanie Duong

A phytosanitary license is a license for import of plants and plant products – including vegetables, plants, seeds, fruits and products made from these. A phytosanitary license stipulates the requirements for import of a determined product – for example, freedom from disease, not originating from a specific region etc.

A composite product is defined in legislation as a foodstuff intended for human consumption that contains both processed products of animal origin and products of plant origin, examples of composite products include cheese and ham pizza, salmon and broccoli quiche, mayonnaise (made with pasteurised egg). If the animal product ingredient is not processed (e.g. raw meat in a pie, honey with nuts), then the food is not a composite product but is a food of animal origin.

The registration of and Export House shall be liable to be cancelled or suspended for a specific period under the orders of the competent authority if:

• The competent authority is satisfied that the registration has been obtained by misrepresentation of facts;
• The competent authority, on the complaint of the foreign buyer, finds the Export House to have committed a breach of contract or indulged in unfair trade practices;
• 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
• The Export House in found by the competent authority to have failed to discharge an export obligation undertaken by it or to furnish to the competent authority any return or information required by or under this order.

Commercial courts have been provided for in the Imports and Exports Control Act. 1950., which empowers the Federal Government to establish as many Commercial Courts as it considers necessary. In terms of powers vested in the Federal Governments two Commercial Courts, one each at Lahore and Karachi, have been set up to adjudicate on trade disputes. The commercial courts take cognizance of trade dispute on complaints in writing made by an officer of the TDAP (Trade Development Authority of Pakistan ). The decision of the Commercial Courts is final and can not be questioned in any courts of law.

The following terms are normally used in obtaining payments against exports:

LC (Letter of Credit)

• Sight L/C
• Acceptance L/C
• Cash L/C
• Irrevocable L/C
• Confirmed L/C
• Non-Transferable L/C
• Restricted L/C

Documents Against Payment

Documents Against Acceptance

• D/P Terms
• D/A Terms
• Usance Bill
• Trust receipt Function