Qudsia Bano

The federal government has proposed a return and refund framework for temporary gemstone exports under the National Policy to Realize Pakistan’s Gemstone Potential 2026–30 to address procedural barriers faced by exporters and encourage the use of formal trade channels.

According to the policy document prepared by the Ministry of Industries and Production, gemstone exporters frequently need to send consignments abroad on a temporary basis for purposes such as certification, exhibition, buyer inspection and sampling. However, the absence of a clear regulatory framework has exposed exporters to risks of duties, taxes and delays when such consignments are returned.

The policy notes that returned gemstones are often treated as fresh imports, triggering customs duties and taxes despite having originated from Pakistan. In addition, exporters face difficulties in refunding export proceeds to buyers through banking channels due to a lack of standardized documentation.

To address these issues, the policy proposes an explicit framework covering temporary exports, duty-free re-import of returned gemstones and the refund of export proceeds. The framework will be administered in coordination with the National Warranty Office, Pakistan Customs and authorized banks.

Under the proposed system, gemstone consignments sent on temporary export will be issued batch identities and certification at the time of export. In the event of return, the National Warranty Office will verify consignments against export records to confirm authenticity and prevent substitution.

The policy outlines a structured process for return verification, the issuance of re-entry certificates and the reconciliation of export proceeds. Authorized banks will accept verified documentation to process refunds, while exporters will be eligible to reclaim duties and taxes if re-import occurs within a specified timeframe.

According to the document, the framework will be compliant with World Trade Organization and GATT provisions and will rely primarily on electronic proof of return to ensure transparency and efficiency.

The policy states that the adoption of a return and refund framework will reduce exporter risk, improve buyer confidence and discourage informal re-routing of consignments. A dedicated return and refund cell will be established under the statutory authority to manage records and coordination.

Credit: INP-WealthPk