RESTRICTED
WORLD TRADE G/TRIMS/N/1/PAK/1
7April 1995
ORGANIZATION(95-0866)
Original: English Committee onTrade-Related Investment Measures
NOTIFICATION UNDER ARTICLE 5.1OFTHE AGREEMENT
ONTRADE-RELATED INVESTMENT MEASURES
Pakistan
Thefollowing communication, dated 30March 1995, hasbeenreceived fromthePermanent
Mission ofPakistan.1
_______________
(i) Description oftheMeasure andofitsMain Features
1. Thecategory intheillustrative listunder which themeasure falls
Pakistan 'sprogramme generally named astheIndigenization/Deletion Policy mayappear to
fallunder paragraph 1(a)oftheIllustrative ListintheAnnex totheAgreement onTRIMs.
Theprogrammeisdesignedasaframeworkforprovidingincentivestopromotetheestablishment
anddevelopment ofindustries inthecountry. Itisaimed atfacilitating theexploitation ofavailable
resources andtransfer oftechnology; atpromoting linkages between large-, medium- andsmall-scale
industries; andatsafeguarding theexternal financial position oftheeconomy.
Industrial enterprises which electtooptforthedeletion programme areentitled toimport
prescribed components andparts, fortheassembly andmanufacture ofspecific items, atconcessionary
ratesofimport tariff. Enterprises which donotoptforthescheme havetopaythenormal ratesof
tariff. Under theprogramme, specific timeschedules arelaiddown forvarious industrial sectors during
which theconcerned enterprises should progressively increase theuseofdomestically produced
components andparts. Theschedules areestablished inconsultation withtheenterprises concerned
andtherelated vendor industries, andtakeintoaccount thepotential ofthelocalindustrial base, the
availability oftechnical know-how inthecountry, andthefacility withwhich thetransfer oftechnology
could bearranged from abroad.
There isnocompulsion foranenterprise tofollow thedeletion programme. Incaseitdoes
optfortheprogramme, itisentitled totheconcessionary tariff rates.
1Thereplies inthisnotification follow theorder oftheagreed format fornotifications under Article 5.1,contained in
document G/TRIMS/1.G/TRIMS/N/1/PAK/1
Page2
2. Whether theTRIM isapplied bythegovernment oftheMember under discretionary
authority ofmandatory legislation. Intheformer case,eachspecific application shall
benotified andenterprises subject tothemeasure identified
Thedeletion programme isimplemented under thestatutory authority vested intheFederal
Government under theCustoms ActandtheSales TaxAct.
3. Where theTRIM isgeneral innature, thecriteria fordetermining towhich enterprises
itapplies insufficient detail toenable those enterprises tobeidentified
Asstated under (1)above.
4. Where theTRIM isapplied pursuant tomandatory legislation, whether thelegislation
requires themeasure tobeapplied tonewenterprises ornewinvestments ofexisting
enterprises
Asstated under (2)above, theprogramme isimplemented under thestatutory authority vested
intheFederal Government under theCustoms ActandtheSales TaxAct. Thenewaswellasthe
existing enterprises cantakeadvantage oftheprogramme.
5. Whether compliance withthemeasure bytheenterprise is(a)mandatory orenforceable
under domestic laworadministrative rulings or(b)necessary toobtain anadvantage.
Inthelatter case, thenature oftheadvantage should bedescribed
Compliance withtheprogramme isrequired toavailoftheconcessionary ratesoftariff for
theimport ofspecified components andparts.
6. When theTRIM relates tospecific products, sufficient detail ontheseproducts todefine
thescope ofthemeasure
Theprogramme encompasses theengineering, electrical goods andautomobiles industries.
7. Thedateofimplementation oftheTRIM andthenature ofanymodification ofthe
TRIM effected within 180daysprior totheentry intoforce oftheWTO Agreement
Theprogramme isineffect since August 1987 without anysubstantial modification.
8. Whether theTRIM, asapplied under domestic law,includes provision foritsphasing-
down and/or elimination. Ifso,details should begiven
Theprogramme doesnotspecify aphasing-down provision.
9. Thedomestic law,regulation oradministrative guideline under which theTRIM is
applied; acopyshould besubmitted totheSecretariat tobeavailable forinspection
byinterested members
Theregulations relating totheprogramme arefreely available totheinterested enterprises.G/TRIMS/N/1/PAK/1
Page3
10. Thelevelofgovernment applying theTRIM, thename oftheimplementing agency
andanyinformation ontheprocedures governing itsapplication necessary toenable
itsnature andscope tobeunderstood
TheMinistry ofIndustries andProduction oftheFederal Government isresponsible for
overseeing itsimplementation. AnIndigenization Committee consisting ofrepresentatives from the
Ministries ofIndustries andProduction, Commerce, Finance/Central Board ofRevenue andDefence
Production, andoftherelevant vendor associations andtheenterprises concerned, isresponsible for
formulating theprogramme.
(ii) General Information ontheProgramme inQuestion
TheprogrammefacilitatestheGovernment'seffortsaimedatraisingstandardsofliving,ensuring
increased employment opportunities, andasteadily growing volume ofrealincomes.