Furniture Industry in Rawalpindi

Prepared By: Ms Afsheen Siab Kayani, Assistant Secretary R&D

The Rawalpindi Chamber of Commerce and Industry
39-Civil Lines, Mayo Road, Rawalpindi Ph: 0092-51-5111049-54, Fax: 0092-51-5111055 Web Site: www.rcci.org.pk, E-mail: rcci@rcci.org.pk

Table of Contents 1. HISTORY---------------------------------------------------------------------------------------- 1 1.1. The Classical World----------------------------------------------------------------------------1 1.2. Early Modern Europe--------------------------------------------------------------------------2 1.3. 19th Century-------------------------------------------------------------------------------------2 1.4. Modernism3 1.5. Asian History------------------------------------------------------------------------------------3 1.6. Furniture Trends 2008-2009-------------------------------------------------------------------3 2. FURNITURE INDUSTRY OF PAKISTAN----------------------------------------------4 2.1. Furniture Trends in Pakistan-------------------------------------------------------------4 2.2. Sindh-------------------------------------------------------------------------------------------- 5 2.3. Punjab------------------------------------------------------------------------------------------ 5 2.4. NWFP------------------------------------------------------------------------------------------6 2.5. Balochistan------------------------------------------------------------------------------------6 3. RAWALPINDI---------------------------------------------------------------------------------6 3.1. Area and Population------------------------------------------------------------------------7 4. ECONOMY OF RAWALPINDI------------------------------------------------------------7 4.1. Total Number of Manufacturing Units (Furniture) ----------------------------------7 4.2. Types of units --------------------------------------------------------------------------------7 4.3. Employment Generation -------------------------------------------------------------------8 4.4. Total Production ----------------------------------------------------------------------------8 4.5. Capacity Utilization -------------------------------------------------------------------------9 4.6. Main Cluster Areas -------------------------------------------------------------------------9 4.7. Major Players---------------------------------------------------------------------------------9 5. Furniture Business Opportunities in Rawalpindi--------------------------------------10 5.1. Starting a Furniture Business in Rawalpindi:----------------------------------------10 5.2. Requirement to Start a Furniture Business-------------------------------------------11 6. TYPES OF WOOD WORK----------------------------------------------------------------11 6.1. Wood Carving-------------------------------------------------------------------------------11 6.2. Methods and Styles of Wood Carving--------------------------------------------------12 6.3. Wood Engraving----------------------------------------------------------------------------12 6.4. Different Web Sites for Latest Designs-------------------------------------------------12 7. DEFINING THE PRODUCT------------------------------------------------------------12 7.1. International Codes for Furniture------------------------------------------------------13 7.2. Raw Material--------------------------------------------------------------------------------13 7.2.1. Availability of Wood---------------------------------------------------------------------14 8. OTHER RAW MATERIAL----------------------------------------------------------------14 9. DESCRIPTION OF PRODUCT MIX --------------------------------------------------15 10. STANDARD MANUFACTURING PROCESS---------------------------------------15 11. HUMAN RESOURCE REQUIREMENT----------------------------------------------16 12. DISTRIBUTION / MARKETING CHANNELS-------------------------------------17 13. SWOT Analysis (Strength, Weaknesses, Opportunities & Threats)--------------17 13.1. Strengths------------------------------------------------------------------------------------17 13.2. Weaknesses---------------------------------------------------------------------------------17

13.3. Opportunities------------------------------------------------------------------------------18 13.4. Threats--------------------------------------------------------------------------------------18 13.5. THE FOLLOWING FACTS REQUIRED FOR IMPROVEMENT IN WOOD WORKING FIELDS ---------------------------------------------------------------------------18 14. TECHNOLOGY SETUP-----------------------------------------------------------------20 15. MACHINE AND TOOLING TECHNOLOGY--------------------------------------20 15.1. CNC Engraving Machine---------------------------------------------------------------20 15.2. Wood Carving Machine ---------------------------------------------------------------21 16. What is Quality?----------------------------------------------------------------------------- 22 16.1. Definition of Quality----------------------------------------------------------------------22 16.2. Substandard Quality Reasons----------------------------------------------------------23 16.3. Quality Control System or Quality Management ---------------------------------23 16.4. Quality Control in Furniture Manufacturing---------------------------------------25 17. INTERNATIONAL FURNITURE TRADE-------------------------------------------31 17.1. Marketing Strategies for Export-------------------------------------------------------31 17.1.1. Market Research Strategies----------------------------------------------------------32 17.1.2. Product Strategy for Export----------------------------------------------------------33 17.1.3. Product Package and Name checklist----------------------------------------------33 17.1.4. Pricing Strategy for Export-----------------------------------------------------------33 17.1.5. Checklist of Pricing Strategy for Export-------------------------------------------34 17.1.6. Checklist for Export Distribution Strategy----------------------------------------34 17.1.7. How to do Export Promotion?-------------------------------------------------------35 17.2. Export Statistics --------------------------------------------------------------------------37 17.3. Potential Areas ---------------------------------------------------------------------------- 38 17.4. World Market for Pakistan’s Furniture---------------------------------------------42 18. PROBLEMS IDENTIFIED---------------------------------------------------------------44 19. RECOMMONDATION--------------------------------------------------------------------45 12Annex I Annex II

Furniture Industry in Rawalpindi

R&D Department

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HISTORY

Furniture is the movable articles for use in a home or office (i.e. chairs desks, cabinets, closets, etc.). It may be made of wood, metal, plastics, stone, glass, fabrics, and related materials. It ranges from the simple pine chest or country chair to the gilded console table. It is usually movable, though it can be built-in, as are kitchen cabinets and bookcases. It can either reveal or hide how it was constructed, and it can be highly stylized. The design and building of furniture is related to both architecture and interior design. Throughout history the functional and decorative aspects of furniture have been influenced by economics and fashion. Real wood furniture is the most popular furniture in existence; it's been around for hundreds of years. Furniture in fashion has been a part of the human experience since the development of non-nomadic cultures. Evidence of furniture survives from the Neolithic Period and later in antiquity in the form of paintings, such as the wall Murals discovered at Pompeii, sculpture and examples have been excavated in Egypt and found in tombs in Ghiordes, in modern day Turkey.

1.1.

The Classical World

Early furniture has been excavated from the 8th-century B.C. Phrygian tumulus, the Midas Mound, in Gordion, Turkey. Pieces found here include tables and inlaid serving stands. There are also surviving works from the 9th-8th-century B.C. Assyrian palace of Nimrud..

The Rawalpindi Chamber of Commerce & Industry

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Furniture Industry in Rawalpindi

R&D Department

1.2.

Early Modern Europe

The furniture of the middle ages was usually heavy, oak, and ornamented with carved designs. Along with the other arts, the Italian Renaissance of the fourteenth and fifteenth century marked a rebirth in design, often inspired by the Greco-Roman tradition. A similar explosion of design and renaissance of culture in general, occurred in Northern Europe, starting in the fifteenth century.

1.3.

19th Century

The nineteenth century is usually defined by concurrent revival styles, including Gothic, Neoclassicism, Rococo, and the Eastlake Movement. The design reforms of the late century introduced the Aesthetic movement and the Arts and Crafts movement. Art Nouveau was influenced by both of these movements.

The Rawalpindi Chamber of Commerce & Industry

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The traditions out of Pakistan. 1. Art Deco. and the countries of South East Asia have unique facets of their own. furniture and culture in general can vary widely from one dynasty to the next. Wiener Werkstätte. Modernism The first three-quarters of the twentieth century are often seen as the march towards Modernism. It is worth noting that China has an incredibly rich and diverse history. Chinese furniture is traditionally better known for more ornate pieces. intersecting the Pop art movement.Furniture Industry in Rawalpindi R&D Department 1. China.6. 1. Mongolia. and Vienna Secession designers all worked to some degree within the Modernist idiom.4.5. and architecture. but places such as Korea. Bauhaus. gained steam in the 1960s and 70s. religion. Furniture Trends 2008-2009 The Rawalpindi Chamber of Commerce & Industry 3 . De Stijl. Postmodern design. India. promoted in the 80s by groups such as the Italy-based Memphis movement. Transitional furniture is intended to fill a place between Traditional and Modern tastes. Indonesia (Bali and Java) and Japan are some of the best known. The use of un carved wood and bamboo and the use of heavy lacquers are well known Chinese styles. Asian History Asian furniture has a quite distinct history.

Plastic and metallic surfaces are replaced by wood. because it shows love of natural things. Counter high dinner table may sound a little official. furniture is being made on modern machineries. The Rawalpindi Chamber of Commerce & Industry 4 . FURNITURE INDUSTRY OF PAKISTAN Pakistan has a leading furniture manufacturing industry. Lacquered wood is trendy again and suitable to decorate dinning room or a rest room. shiny surfaces are things to pay attention to. 2. a large quantity of wooden furniture is manufactured in Pakistan at the cottage level. Furniture makers keep themselves well acquainted with the latest design kits. Lacquered furniture requires more care. coupled with a feeling for the quality of the material and of aesthetic values. Furniture Trends in Pakistan Today. In dinning room furniture. The fast growing furniture industry is aiming at developing a system designed to incorporate its tradition with modern functional demands. Choose new wardrobe or commode decorated with patterns made of pieces of different wood. the wooden furniture industry holds out a bright scope for further expansion.1. but the image depends on other decorations as well. If you are looking for a new coffee table or a cupboard.Furniture Industry in Rawalpindi R&D Department Wooden furniture is probably always fashionable. cottage and small-scale industry. The environment and conditions being favorable. In developed countries. This type of table requires a set of high chairs that usually see in pubs. but they look subtle and refined. they are also on top this year. 2. The furniture industry in Pakistan can be divided into two main types. This room should be something in between formal style and comfortable cozy atmosphere. counter high dinner table is a must-have this year. Dinning room is a place for the whole family together and enjoys meals. but in Pakistan it is usually made through manual methods and by hands.

made of superior quality wood. circular. and polygonal or palm shaped. apart from carving wooden ceilings. such as table lamps. Punjab A number of families in Khanewal and Dera Ghazi Khan have stuck to the traditional workmanship. These are the specialities of the craftsmen of Chiniot (Punjab). despite sharp. tables. are very popular.2. and therefore it is usually sold locally. are more suitable for export purposes. But. production of such furniture requires installation of modern machinery and plants. it is crude from the export point of view. and other items like doors and windows. The Rawalpindi Chamber of Commerce & Industry 5 . Tastefully designed furniture items. square. 2. which rest on four straight legs or on a single pillar. Sindh Furniture items produced in Sindh comprise of ordinary chairs. the tops may be rectangular. doors and windows. Carved shisham tables come in numerous shapes. The articles. The wood carvers' skills are predominantly visible in furniture making. and for supply to the distant markets within the country. especially in areas close to the production centers. which are light in weight and in knockeddown condition. Jacquard work is a popular traditional craft of Sindh. Since most of the furniture product in this province is simple and heavy in weight. and sofa sets.3. fluctuations in the taste of customers. wooden panels. chairs. produced by the lacquer industries of Hala in Hyderabad district and Kashmore in the Jacobabad district.Furniture Industry in Rawalpindi R&D Department 2.

where craftsmen design massive pieces. The oldest single style evolved. in the province of Punjab. It has been developed in the Peshawar valley. beds. RAWALPINDI Rawalpindi is a city in the Potwar Plateau near Pakistan's capital city of Islamabad. 3. It has been developed in the Quetta. The area was home to the pre-historic Soanian culture indigenous to The Rawalpindi Chamber of Commerce & Industry 6 . carved in various styles of woodwork. stands. has been evolved in the NWFP.5. Balochistan Balochi furniture basically broad sets with traditional look. lamps etc. chairs. 2.Furniture Industry in Rawalpindi R&D Department 2.4. desks. heavy legs (chairs) and geometric floral designs. NWFP Swati furniture has basically broad sets.

3.2. Rawalpindi furniture cluster is comprised of about 2000 units. 275 km (171 miles) to the north-west of Lahore. parks and a cosmopolitan population attract shoppers from all over Pakistan and abroad. and factories making tents. Types of units The details of the different categories of the furniture manufacturing units are following: The Rawalpindi Chamber of Commerce & Industry 7 . After the weakening of Mughal dynasty in India Sikhs grabbed the power and they settled the area in 1765 and invited the nearby traders to Rawalpindi. steel re-rolling. hosiery. marble processing. These units can be categorized into micro. iron mills. ECONOMY OF RAWALPINDI Rawalpindi is one of the important cities of Pakistan. The city is home to many industries and factories. Numerous and endless shopping bazaars. It is the administrative seat of the Rawalpindi District. sawmills. pharmaceutical. beverages and fruit preservation.039. a brewery. Following table indicates the industry size in various categories: Table 2: Industrial Structure Small 400 Micro 1600 4. It is a railroad junction and an important industrial and commercial center. and leather goods. small and medium sized units. The main industry of the city includes an oil refinery. total population of Rawalpindi district is 3.550 persons.Furniture Industry in Rawalpindi R&D Department this region. During the Raj days it became biggest cantonment in Sub-continent. cigarettes. furniture. 4.1. industrial gas processing. sewing machines etc. pottery. 4. Total Number of Manufacturing Units (Furniture) According to the estimates provided by industry sources. Rawalpindi is located in the Punjab province. glass products. City is about 108 square kilometers (42 sq mi). textiles.1. Area and Population According to 1998 Population and Housing Census. Rawalpindi industrial base is diverse and also includes flour mills. railroad yards. This proved to be a significant milestone in the history of the city and the city gradually became a trade hub due to its location between the Punjab and Kashmir.

The Rawalpindi Chamber of Commerce & Industry 8 . polishers. These units sometimes also hire workers on contract basis in case of more orders. 160 million calculating on the basis of 400 rupees per cubic foot on an average type of wood. These units are vertically integrated and are involved in the different stages of furniture manufacturing. a unit producing chairs will only produce chairs). The furniture manufacturing units are selling their products in semi finished and finished form in Rawalpindi as well in the other cities. 4. The small-scaled units can be further divided into: • • • • Saw Mills Furniture Manufacturers Upholstery Units Polishing & Finishing Units • Small Sized Units Rawalpindi furniture cluster consists of about 400 small sized units.000 cubic ft. Most of their sales are domestic but few of them are also involved in the exports. Estimated growth figure is around 10%. medium and micro size units generating almost 50. there is no specialized training institute for furniture workers in Rawalpindi.000-300.000 individuals ranging from 5-10 workers in small and micro size units. Hardly.g.Furniture Industry in Rawalpindi • R&D Department Micro Sized Units According to the statistics provided by the industry. Besides this around 100 million of manmade material is also used. These units have workers ranging from 15 to 50 in number depending upon the amount of work. Total Production The estimated annual wood consumption is around 150. Small size units buy the semi finished furniture from micro sized units and then finish these products. These persons can be divided into the categories of carpenters. any source available to gather the anticipated growth rate. The average cost of this wood is around Rs. This number includes all the units that are either directly or indirectly involved in the furniture manufacturing. there are about 1600 micro sized units involved in the business of furniture manufacturing. Some of these units also have organized themselves in specialized products manufacturing. These units manufacture furniture themselves as well as depend on the micro sized units for their manufacturing requirements. As far as the training of this work force is concerned.3. (e. 4.4. These Units have their own show rooms to display their finished products. These 50.000 individuals are involved with Furniture Industry directly or indirectly. upholstery workers and the general laborers. Employment Generation The industry is labor intensive and concentrated in small.

Rawalpindi Ph#051-4453044 Flat No. 8. Rawalpindi.Aliabad. 5. Organization Major Players Contact Person Mr. Shamsabad Faizabad Kurry Road (Sadiq Abad) Kurry Road (Sultan Da Khoo) Khana Road Chakala Road Hazara Colony Mohan purrah Anayat Bazar Saddar 4.Main Range Road.Fiazabad.7.M. 2. Capacity Utilization Capacity utilization of the existing unit is not sufficient even to meet the demand of the domestic market. 4.Furniture Industry in Rawalpindi R&D Department 4. Main Cluster Areas As it is mentioned above furniture industry consider as the one of the major industry in Rawalpindi. 3. Ph#0300-5202551 913. Ph#051-5857712 150-A.Najam-Ul-Hassan Address 50-A. 9. PIA Colony.2. # (92-51) 5563000 Living Heritage Art land furniture Mr.Al-Hafeez Plaza. Sufficient gap exists and it is increasing day by day with the increase in the population of the country.M.6.5.Riaz The Rawalpindi Chamber of Commerce & Industry 9 . Even the medium sized units take minimum 3-4 months for an order. 1. Rawalpindi Ph. 7.Gul Rehman Mr. None of the unit has the capability to produce goods at mass level.Peshawar Road. 10. Rawalpindi.Lane No.Al-Khadim Chambers. Peshawar Road. It is below 50%. In Rawalpindi different areas are the hub of the furniture there names are mentioned below.Maqsood Ahmed Dynamic Impex Decent Furniture (Pvt. 6.Ltd) Mr. Muree Road. 4.3.

• Creativity: The Furniture Business needs good.000 people. and you should take care to build good customer relations. The Rawalpindi Chamber of Commerce & Industry 10 .1. shelves. Polish affects the quality of the material. you can make your furniture business a huge success in Rawalpindi. Therefore. so that must be kept in mind. you also need to be creative and stock the kind of furniture that appeals to the eye and is comfortable as well. lockers. etc. you need to provide good customer relation services to attract clientele. • Website: Have a website where you can put up an online catalogue of the furniture you retail. You can retail furniture for general or high-end markets. are in huge demand in the City. lampshades. You can sell anything from chairs to sofas. side tables and stools. You can sell wood or metal furniture. Be sure to include photographs. Your marketing strategies must be good. By stocking the best quality goods. from office to lounge furniture. Furniture Business Opportunities in Rawalpindi Rawalpindi has many business and educational establishments. schools. Even couches. • Design: The design of the furniture you retail depends on where the furniture will be used. and selling innovative products. that are manufactured by many big and small furniture-manufacturing units. 5. lamps stands. since all kinds of furniture. • Variety: Have a large variety of furniture in your showroom. The. hotels and restaurants. Furnishers in Rawalpindi equip homes. The establishments in the city need showcases. You can consult books and attend workshops to get an idea of what the customer wants. it is a good idea to look into the business opportunities offered by the furniture manufacturing business in Rawalpindi. as well as residential areas. The furniture businesses in Rawalpindi employ more than 25. Furniture retailers have great business opportunities here.Furniture Industry in Rawalpindi R&D Department 5. • Material: Choose what kind of material goes into the furniture you retail. Once your furniture business gets off. Starting a Furniture Business in Rawalpindi: While Rawalpindi offers many opportunities to start a furniture business. Here are some things to consider when starting a Furniture Business in Rawalpindi. sofas. Do you want to sell office or home furniture? • Price: Decide on the price for selling your furniture. original ideas to survive the fiercely competitive market. consoles are in demand.

Wood Carving Wood Carving is a form of working wood by means of a cutting tool held in the hand (this may be a power tool).1. resulting in a wooden figure or figurine (this may be abstract The Rawalpindi Chamber of Commerce & Industry 11 . 6. TYPES OF WOOD WORK In furniture industry there are many techniques are used to beautify the look of furniture. List of item Workshop Outlet Manpower Machinery Requirement to Start a Furniture Business Quantity 1 1 12 Per required Cost 6.2.Furniture Industry in Rawalpindi R&D Department 5.

1 2 3 Web Sites www.2. 6. Few can be defined as under The Rawalpindi Chamber of Commerce & Industry 12 .com www.Furniture Industry in Rawalpindi R&D Department in nature) or in the sculptural ornamentation of a wooden object.4. Wood Engraving Wood engraving is a relief printing technique.3. 6. to hand-worked moldings composing part of a tracery. where the softer side grain is used.homeideas. from individual sculptures. • • • • • • • Methods and Styles of Wood Carving Chip carving Relief carving Scandinavian flat-plane Caricature carving Love spoon Treen Whittling 6.getdecorating. where the end grain of wood is used as a medium for engraving.No.com www. Different Web Sites for Latest Designs S.woodbin. thus differing from the older technique of woodcut. DEFINING THE PRODUCT There is a large number of products made by the wood.com 7. The phrase may also refer to the finished product.

Generally dry wood is recommended for manufacturing of quality wooden furniture. Raw Material The basic raw material for manufacturing of furniture is wood. Bed: Bed is piece of furniture that provides a place to sleep. The first six digits are known as a subheading. Furniture manufacturing units in Pakistan mostly use Sheesham wood. Chair: Chair is a seat for one person. Cupboard: Cupboard is a cabinet used for storage 7. an independent intergovernmental organization with over 170 member countries based in Brussels.2. The classification system is maintained by the United Nations. with support from back. TABLE 1: Product Codes PRODUCT Office Furniture Kitchen Furniture Bed Room Furniture Other Furniture SITC CODE 82151 82153 82155 85159 HS CODE 940330 940340 940350 940360 7. Forest wood is easily available in the market.Furniture Industry in Rawalpindi • • • • R&D Department Sofa: Sofa is an upholstered seat for more than one person. The HS is a six-digit nomenclature. Belgium. International Codes for Furniture For international trade different codes are used two of them are defined below. Wood obtained from the forest is of prime quality. • SITC CODE (Standard International Trade Classification) SITC is a classification of goods used to classify the exports and imports of a country to enable comparing different countries and years. Other types of wood used in manufacturing furniture are: • • • Teak wood Walnut wood Keekar wood 13 The Rawalpindi Chamber of Commerce & Industry . • HS CODE (Harmonized Commodity Description and Coding System) The Harmonized Commodity Description and Coding System (HS) of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products developed and maintained by the World Customs Organization (WCO) (formerly the Customs Co-operation Council).1. The first four digits are referred to as the heading.

MDF. OTHER RAW MATERIAL Although particle board and medium density fiberboard are primary products used in the manufacturing of value-added wood products such as furniture. spirit. LVL. TABLE 2: Percent of raw materials used (by value) by the manufacturing sector . foam. nails. thinner. These raw materials are easily available in the market.2.1. Type of Wood/Raw Material Hard wood lumber Hard wood plywood Particle board MDF Soft plywood Soft wood lumber LVL LSL TOTAL Kitchen Cabnet 24 27 16 6 11 6 1 1 100 House Hold Furniture 61 13 4 10 2 4 1 0 100 Office Furniture 36 19 12 18 6 6 1 0 100 The Rawalpindi Chamber of Commerce & Industry 14 . raw materials such as lumber and structural panels. cabinets. lumber. and other. sealer. hardener etc are used in manufacturing of furniture. cloth. Plywood. • • • • • • • Chiniot Gujrat Multan: Bhakkar Chitral Dir Sahiwal Availability of Wood 8. screws.Furniture Industry in Rawalpindi • R&D Department Sheesham 7. structural panels. lacquer. glue/solution.

000 30. namely: • Condensation The Rawalpindi Chamber of Commerce & Industry 15 .000 15. The normal quality sofa set a simple design sofa set with good quality fabric material.000 10.000 30.000 50. Lasani gave fine and even surface for finishing and paint. etc). Superior quality had extra carving with complex and elegant design and extra fine polishing and finishing. Smooth surface gave eye-catching effect.000 10.000 20.000 30. DESCRIPTION OF PRODUCT MIX Superior Quality Superior quality furniture are made of supreme quality pure wood furniture with elegant hand carved design.000 15000 8. If the wood purchased is not seasoned than these blocks/slices are seasoned through different processes.000 40. TABLE 3: Product Mix % Bed Set Superior Fine Normal Dinning Set Superior Fine Normal Sofa Set Superior Fine Normal Office Furniture Superior Fine Normal 20% 30% 50% 20% 30% 50% 20% 30% 50% 20% 30% 50% price of different products 50. Medium Density Fiber (MDF) and win board.000 10.Furniture Industry in Rawalpindi R&D Department 9. STANDARD MANUFACTURING PROCESS Wood is cut into different sizes of blocks and slabs. While superior quality sofa set was manufactured form best available upholstery material for elegant design & extra comfort. Fine Quality Fine quality furniture is made of fine quality pure wood. Simple and appealing hand carving was done with fine quality polishing. While fine quality sofa set had a quality upholstered material & elegant design. Normal Quality Normal quality furniture is made of a mixture of pure wood and substitute material Lasani. This finish of bed set & dinning set were assumed to be of paint due to the extra fine surface.

Once the different pieces are carved & molded than these parts/pieces are assembled or fixed together to give the shape to the final product. HUMAN RESOURCE REQUIREMENT The labor required for manufacturing process is easily available on daily wages. It is recommended that selective highly skilled labor should be employed permanently and other labor should be hired as and when required. After the base is prepared final finishing is applied depending on requirement in term of paint/polish. Quality of carving depends on the skills of the labor. Carving means different elegant pattern carved in the wood.Furniture Industry in Rawalpindi • • • R&D Department Boiler System Vacuum System Seasoning through putting the wood slices under normal environmental temperature for considerable duration. Assembled product is grind to make the surface smooth. The seasoned wood blocks are cut into desired shape and slices according to the requirement of design. 11. finishing material is applied to make the surface ready for paint or polish. Before start of manufacturing of any furniture product a desired design is selected. The Rawalpindi Chamber of Commerce & Industry 16 . Once the surface is smooth. Selection of elegant design is important to ensure attractive finished product. per unit basis and permanently employed. The slices of wood are molded into the desired shape according to the design. Upholstery of fabric is carried out according requirement of design.

13.M Channels. The demand for the furniture almost doubles during this period. certified and professionally trained work force. DISTRIBUTION / MARKETING CHANNELS Though the demand for wooden furniture in domestic market is persistent throughout the year. • • • Weaknesses High cost of production due to high rate of raw material. wastage costs. Billboards. but it significantly increases during the period of October to March because of the wedding season.000 8.1. Lack of educated.000 furniture manufacturing units present in the cluster 30. Radio.000 8.000 12. inefficiency losses. and Newspapers are the conventional mediums. There was shortage of certified/skilled manpower in furniture cluster No availability of VTI (Vocational Training Institute). operational losses.500 8.000 people (approx) are directly and indirectly attached with this occupation Strong historical background of some craftsmen 13. i. the primetime to enter into market is start of August.Furniture Industry in Rawalpindi R&D Department Following permanent human resource is required TABLE 4: Factory Staff Requirement Details Description Production Supervisor Carpenter Machine Man Polish Man Carving No 1 5 1 3 2 Monthly Salary in PKR ( per person) 15. Hence. • • • • Strengths Suppliers of raw material are available in the cluster. which have been powerfully used for the promotion of products. There was no proper vocational training institute to train these workers about latest designs & trends and The Rawalpindi Chamber of Commerce & Industry 17 . SWOT Analysis (Strength. Weaknesses. Opportunities & Threats) 13. etc. F.000 10.2.500-3. 2.

THE FOLLOWING FACTS REQUIRED FOR IMPROVEMENT IN WOOD WORKING FIELDS In past few years our country start producing Electronic and Auto Mobil Product with the help of other countries like China. Identify international manufacturers seeking to expand their business network. it include financing for a plant. non standard copies from catalogs/broachers Unawareness of international trade trends. State Bank of Pakistan recently announced scheme for the furniture industrialist to get benefit of cheaper money availability. Unawareness of Social compliance and Environmental issues Unawares of any quality control and standards.Furniture Industry in Rawalpindi R&D Department • • • • • • • • • • • • • • • latest techniques to manufacturer furniture products as per local as well as export market requirements. Low level of technology Low Mechanization Relatively small and Traditional Products range Low quality control of Product Lack of testing facilities Low Labour Productivity Poor Work preparation Lack of workshop organization 13. Lack of space for workshops Most of the manufacturer works in the commercial areas where the community is getting disturbed by their work.3. roads network in the city is very bad Poor power supply. Combine manufacturers/retailers International warehouses. Gujrat etc Raw material cost increased (Due to shortage in the stock of Sheesham wood at any stage because no further plantation as required) China and India’s low price article. • • • Opportunities International furniture exhibitions. markets due to poor marketing skills Poor infrastructural facilities like. Inability to penetrate export market with weak furniture designs based on repeated. Karachi. • • • • • Threats Migration of trained work forces from the cluster because less profit margin especially for manufacturers to the big cities like Lahore. Korea etc and they establish industries in the The Rawalpindi Chamber of Commerce & Industry 18 . 13. Unavailability of proper place for the manufacturers. 13.5. Japan. machinery and equipment to be used by the furniture industries.4.

Furniture Industry in Rawalpindi R&D Department country and getting value added un assembled parts and gives the final shape as complete products. “QUALITY AND PRODUCTIVITY IMPROVEMENT IN FURNITURE MANUFACTURING” for design & markiting One should know that Technologies produces the products. However. Low level of technology Low Mechanization Lack of Latest Technology Relatively small and Traditional Products range Low quality control of Product Lack of testing facilities Non-availability of standards Low Labour Productivity Poor Work preparation Lack of workshop organization Lack of knowledge regarding the proper use of Raw Material and fittings. Keeping view in the above factors the persons will be required proper Training to produce high skill persons for the country and to Export the high skilled. Medium Low Technology. Wood Sector always ignored to improve the performance of this sector where the most of a single person producing the complete furniture item with traditional tools and equipments which required improvement in quality and in productivity. and there are categories of technologies as below: High Technology. the efficiency of this sector is hampered by following the factors. Wood and furniture classified in Low Technology The Rawalpindi Chamber of Commerce & Industry 19 . Medium High Technology. Low Technology.

a huge quantity of foreign exchange can be saved and this will also help the light engineering sector.CNC-based machinery offers greatly reduced set-up times. The most significant trend in the woodworking industry in the 1990s has been the development of computer numeric control (CNC). Most recently used machines description is given below.1. The furniture manufacturers are using only four basic machines to cater their machining requirements.to mediumsize shops. These machines include circular saw. CNC machining systems from vhf are universally applicable. Thus you can use all systems for powerful milling works or precise engravings as well as for special tasks like cutting. embossing. spindle molder and the mortising machine. A stable construction made of aluminum profiles. precise steel linear guides. So there is a need to improve the design and the working of Pakistani machinery according to the requirements. Although these machines can be used to fulfill the machining requirements but excellent quality can not be achieved without the proper machines and the machining techniques. TECHNOLOGY SETUP Except a few units technical standard of all others is of a very low level.Furniture Industry in Rawalpindi R&D Department 14. MACHINE AND TOOLING TECHNOLOGY Overwhelmingly. 15. 15. The final quality of products manufactured on this machinery can not be compared with the products made by foreign machinery. dispensing. Most of the manufacturers don’t have the sanding machines that also affect the furniture quality. The second problem related to machinery is that most of the machinery used in manufacturing is Pakistan made. manufacturers cited CNC technology as the number one factor influencing woodworking production in the 1990s. powerful High Torque driving motors – these are features which apply to all vhf CAM systems. CNC Engraving Machine The Rawalpindi Chamber of Commerce & Industry 20 . Non-availability of seasoning plants is another problem. By improving the local machinery. The technology is now becoming affordable for small. screwing etc. thicknesser planner. followed by improvements in cutting tool technology and other machine advances. marking.

Building model industry: Carving some elaborate small windows. furniture. speed 35 m / minutes. plastic and marble etc. Wood Carving Machine Description High-speed processing: curved. straight line speed. fences. Artwork industry: Carving various characters and figures on gifts. Good parts: The German production of ball screw and linear guide import. strong strength.2. iron and aluminum work piece processing. 15. spindle motor power. Also used in manufacture industry for copper. wall decoration patterns etc. import bearings. Seal industry: Carving various seals with cattle horn. TABLE 5: Contact Information The Rawalpindi Chamber of Commerce & Industry 21 . wood articles.Furniture Industry in Rawalpindi R&D Department Description It can make cutting. plastic. Rational design: the use of advanced dual-axis rack gear transmission. carving processing to wood. Matrix processing industry: Applied in carving of elaborate characters and patterns. artworks and souvenirs. high speed. wood and ink storage matt. processing of small matrix products. select outstanding Stepper System.

United Arab Emirates. Meet all needs. Nanhai road.com Company Contact Person Other Items Telephone Fax Address Web Site Ajman Factories Equipment Trading Co. Jiaolong Industrial Harbour. Bhagwan Swaroop More 3 Trade Leads 91-6-7472-141 91-6-7471-742 Ajaman Factories Equipment Trading Company. use or purpose. Ajman. Qingyang district. good performance. Comply with all standards and specifications. Definition of Quality Satisfy the Customer. good surface finish and reliability. dimensional accuracy (proportion). Post Box: 5538. 16. Available at competitive Rates. India 5538 www.alibaba.Furniture Industry in Rawalpindi R&D Department Company Name: Company Address: Company Phone: Company Fax: Contact Person: Contact Phone: Website: Chengdu Dahua Shengyi Science & Technology Development CO. What is Quality? Different people may have different views on what quality is? In general that the product should gives pleasant usual appearance.com. Chengdu.com 16. Mr. B37. Ajman.graffpinkert. www. Need for Quality Control The Rawalpindi Chamber of Commerce & Industry 22 . Comply with Statuary and other requirement of the society.diytrade. Flexibility in Profit Gain.1. China 86-28-87078556 86-28-87079099 Li Youduan (General manager) 13908014175 http://dhsy.. Ltd. long life service.

Lower Limit Upper Limit The Rawalpindi Chamber of Commerce & Industry 23 . naturally cost will decrease and the customer satisfaction will be improved which means the quality control is important factor in furniture manufacturing. Maintain design standard To meet customers specification To determine department/Personal effectiveness To detect and correct effective product and parts Quality Control in Furniture Manufacturing Introduction.Improvement required the product quality throughout the manufacturing process In below chart two same color portions left and right represent those that fail to meet the requirement. It is simply common sense if the product produced substandard or if product required repair at any stage then off course extra cost will be incur and if produce goods with good quality and as per standard. control or minimize through quality the cost of the quality will be decrease. Quality Control System or Quality Management Objectives for good quality. Left side shows below standard shows the loss and the right also shows the loss because of above standard.3. .Quality control is not only just a judgment concern . if defects are eliminated. Substandard Quality Reasons Following reasons can be effect the product in substandard quality Poor Design Substandard Raw Material / Defective Use f impropriate Machine and tools Impropriate environment Human errors 16. 16.Furniture Industry in Rawalpindi R&D Department It is a general rule.2.

Product design and design change control . Employee selection. a thorough understanding of the raw materials and processing technologies. training and motivation Introduction Machining Accuracy Moisture Content Machined Surface Quality Introduction. User contact and field performance . Policy.Furniture Industry in Rawalpindi R&D Department Below Standard Acceptable Above Standard Total quality control system The basic element of the total quality control system include: . like any other aspect of production management requires a fair share of planning and commitment from the management. the benefits of a good quality control Programme have been elaborated. Corrective action . these benefits can only be materialized provided that the quality Programme is systematically implemented. planning and administration . besides the quality control procedures. Control of purchased material . In the earlier chapters. The Figure below is a schematic diagram that illustrates a good quality control system. Production quality control . The practice of quality control. However. Quality Control Areas Lumber Yard Rough Mills Machine Shop Acceptance sampling Process Control Process Control The Rawalpindi Chamber of Commerce & Industry 24 . This will require. and sound management decisions.

The main sources of defects or quality discrepancies will be discussed. The rough milling or the stock preparation section of a furniture mill should there for e reject or correct most of these defects before the raw materials are fed into the mill. Quality Control in Furniture Manufacturing The Rawalpindi Chamber of Commerce & Industry 25 . moisture content control and some related quality requirements in wooden furniture manufacturing. and drying defects such as splits. This chapter will focus the discussion on the machining. Although certain variations are inherent to the performance of machines. These defects generally affect the surface quality and. The first being the defects that are associated with the raw materials. Whenever possible. these variations should be monitored and controlled. Quality Control in Furniture Manufacturing In the manufacture of furniture. to a certain extent. spring and twists. checks.4. Other important aspects such as wood drying and the adhesive and finishing requirements will not be discussed as these subjects have been adequately covered in other ATTC publications. must be conducted to detect all those unacceptable defects. either 100% or sampling inspection. and appropriate corrective measures will be suggested. they can be carried through the manufacturing processes. quality control procedures will be suggested to assist manufacturers in the implementation of a proper quality management system. and other defects such as stain and insect infestation. compression failures and brittle hearts. Common raw material defects include natural defects such as knots. Defects of Raw Material Natural Handling damages Drying defects Defects Introduced By Manufacturing Processes Surface Quality Dimensional accuracy Basic Sources of Defects The second source of defects arises form manufacturing processes. If these are not eliminated. Inspection. Defects in raw materials are difficult to correct. Slight inaccuracy in machining of parts or components may be accumulated through the manufacturing processes and result in large variations in the quality of a piece of finished furniture.Furniture Industry in Rawalpindi R&D Department Assembly Sanding Finishing Shop Packing/Warehouses Process Control / Acceptance Sampling Process Control Process Control Acceptance Sampling 16. the strength of the joints as well as the stability of the finished products. the real challenge lies in achieving products that are of a consistent quality level within acceptable standards and at competitive costs.

proper set-up of the machine alone is not sufficient and the only way to ensure consistent accuracy is to monitor the performance of the machine and the accuracy of the output constantly. bit. There are many machining processes involved in the manufacturing of furniture and it is essential to monitor each and every one of these processes. Many operators would assume that once a machine is properly set up. Machine setting generally involves the adjusting of the machine to produce the desired dimension. etc. In extreme cases such a loose joints and poor edges. such as thickness. interval. saw blade. pitch. knife. Figure below summarizes the accuracies in machining that need close control. etc. machining accuracy problems arise because the machine has been continuously operating without checking for the need to re-set. Very often. Overall Dimensional Accuracy Thickness Width Length Square ness Accuracy of other measures Intervals Pitch Hole depth Inclination Groove depth Hole diameter MANUFACTUREING ACCURACY IN PROCESSING Inaccuracies in machining could be attributed to a combination of any of the following factors: Machine setting Wearing of jigs and fixtures Wearing of bearings. length. Special setting gauges are available. such as those for the setting of knives in cutter blocks. or any other holding mechanism for the work piece. the machine would produce the same accuracy irrespective of whether the machine has been operation for an hour or ten hours. the components may have to be totally rejected. width.Furniture Industry in Rawalpindi R&D Department Machining Accuracy Accuracy in the machining of parts and components is critical as inaccurate machining will pose problems in the assembling process and also the overall quality of the finished products. resulting in some items of the output accurately machined but some are not. Precision instruments such as dial gauges or veneer calipers should be used for machine setting. The Rawalpindi Chamber of Commerce & Industry 26 . cuffer heads. Therefore. Poor accuracy will result in parts that cannot be assembled properly. chucks.

contains a large amount of water. Tolerance is the amount of allowable deviations from the actual dimension required. In addition.5 mm and 25. Similarly. including kiln drying. If the manufacturer does not have sufficiently and properly dried wood. and even the machine itself. It will not maintain its original size and shape no matter how carefully and accurately machined. For example. nor glue well and it cannot be finished properly.1 mm and + 0. It will not sand well.5 mm.3 mm.3 mm in boards produces by a thickness that has been set and checked through test runs to produce 22 mm thick work pieces. Actual dimensions or measures will vary over a certain range depending on the general conditions of the machine. chucks or other moving parts and components of the machine. This would induce large variations in the accuracy of the machining process. in its natural state. most wood working machines will produce an accuracy of 0. parts and components of the machine. it has been reported that. he will not be able to manufacture quality wood products.05mm. This is due to the existence of vibrations of the cutting tools.5 mm can be accepted. the accuracy of a machine will deteriorate through usage due to the wear and tear of the bearings. This explains why test runs will only give a nominal measure of the required dimensions. Instead of dealing with the principles of drying. The technology in timber drying. For example. It is important to note that a good knowledge of the machine accuracy will be required in determining the nominal dimension so that all the dimensional variations will be within the customer’s specified tolerance limits. Wet Wood is heavy and unstable. This is because wood. wear and tear of jigs and fixtures can happen and this will result in excessive movement of the work piece during machining. if the nominal thickness of a required component is 25 mm with a tolerance of 0. this section will focus on the practical aspects of moisture content in relation to the performance of wooden furniture.7 mm to 22. Dimensional Tolerances The existence of unavoidable Variations in the dimensions of work pieces explains the necessity of having tolerances. it is not surprising to notice thickness variations of between 21. it has to be properly dried before use. This allowance will not affect the quality of the finished product. with bearings in good condition. The Rawalpindi Chamber of Commerce & Industry 27 . then all pieces having a thickness of between 24. Therefore.Furniture Industry in Rawalpindi R&D Department A machine that has been properly and accurately set up will not consistently an continuously be producing the accuracy as indicated by the test runs. Therefore. Moisture Content The drying of wood is the first and perhaps the most important process in the manufacture of furniture. is not new and various literature are available on this subject. Actual studies have indicated that the maximum accuracy is more likely to be between + 0.

It is a well known fact that a piece of wood stored at constant relative humidity will eventually reach a characteristic equilibrium moisture content. The resistance against abrasion (and therefore service life) is lowest for HSS knives. Machined surface Quality In furniture manufacturing. the finished parts are placed in a parts store or are stacked in an assembly area where the humidity can be maintained to prevent moisture pick-up during prolonged storage periods. To avoid such failures. knife angles. TCT knives will last longer. knife types and other parameters have to be carefully considered. The application of a lacquer to all exposed surfaces slows down the rate of change of moisture content but it does not prevent changes occurring in furniture that is moved from one environment to another. conversely..Furniture Industry in Rawalpindi R&D Department Many of the problems associated with the use of wood for furniture manufacturing are caused by dimensional changes. There are three types of knives that are commonly available. i. Such charts can be used to determine the optimum moisture content of the wood at the time of assembly into furniture intended for use in particular conditions. for instance a chair frame assembled under normal factory conditions is exposed to a particularly dry condition’s the wood will shrink as it dries out. Depending on the species of wood to be machined. HSS knives are suitable for most softwood and light density hardwood with little silica content. This can result in the loosening and weakening of joints and in extreme cases. If. say at 06 – 08% moisture content through the rough mill and then machine the wood to final dimensions before any appreciable change in moisture content has occurred. the risk of excessive moisture movement will be minimized. The dimensional movements are due to changes in the moisture content of wood during prolonged exposure to different relative humidities. Knife Geometry The Rawalpindi Chamber of Commerce & Industry 28 . Cutter knives play an important role in determining the quality of a machined surface. satellite tipped knives and tungsten carbide tipped (TCT) knives. Once the furniture is properly finished and packed. the wood moisture content will also increase as it absorbs water vapour form the air and . furniture should be manufactured from wood which has moisture content about mid way between the extremes of moisture content expected expected in service. if the humidity falls. Subsequently. high speed steel (HSS) knives. Charts are available relating the equilibrium moisture content of wood to the relative humidity of the surrounding air. the wood moisture content will fall as it releases water vapour into the drier air. cause failure of the joint. followed by the satellite tipped type and the TCT knives. Wood is surfaced or shaped by using various types of cutters and knives carried on blocks.e. If the relative humidity increases. The modern production method is to process the kiln-dried wood. For high density hardwood and wood with high silica content.

It also provides the sharpness to the edge and is equivalent to the sharpness angle when the front and the back bevel angles are absent. The Grinding angle is the angle formed by the face and the back of the knife.Furniture Industry in Rawalpindi R&D Department The parts and angles of a typical knife are shown in figure below. is the surface which raises the wood fibres in the form of shavings or chips and bends them over until they fail in compression by the rotating action of the cutter. or the angle between the front and the back bevels. The Face of the cutter. The Rawalpindi Chamber of Commerce & Industry 29 . Parts and Angles of Typical Cutter The Back is the ground bevel surface of the knife next to the work piece. A bevel ground on the edge of the cutter face is called the face bevel or front bevel.) for knives used on circular blocks to 12mm (1/2in. The thickness of the cutter varies with the particular cutter block used and the work it has to perform. It may vary from 3mm (1/8 in.) thick for square cutter blocks. which generally has an insert of semi or high speed steel or a tip of tungsten carbide.

Actually. The Cutting angle of a knife is the angle of the knife in relation to the cut or the angle formed by the face of the knife and a radial line drawn from the centre of the cutter block. a large angle gives strength and rigidity to the cutting edge. The clearance angle is dependent on the cutting and sharpness angle. The cutting angle of a knife exerts great influence on the finished product. T. In fact. The lack of a clearance angle increases the cutting friction and impact on the cutting edge.Furniture Industry in Rawalpindi R&D Department The Sharpness angle is the same as the grinding angle unless the front or the back bevels have been ground on the knife.S. It is possible to very the cutting angle by varying the projection of the knife. By varying the cutting angle. Table below given a general guideline on knife geometry for the machining of wood having various types of characteristics. the sharpness angle should not be less than 30 for HSS type and not less than 40 for TCT type. The angles to be selected for machining will depend on the density and the grain orientation of the timber. It has been found that as the angle is reduced to below 30. wear increases rapidly. then the sharpness angle is increased by an amount equal to the front level angle and /or the back bevel angle. Standard cutter blocks generally come with a cutting angle of between 30 to 35. When these are ground.C. Hence.T Type Type 30 The Rawalpindi Chamber of Commerce & Industry . The Value of this angle is related to the sharpness angle. Type of grain Cutting Angle Frontbevel Grinding angle H. or grinding a bevel on the face (front bevel). Wear on the cutter is affected by the sharpness angle. The Clearance angle is the angle between the grinding bevel (or the back bevel if there is one ) and the tangent to the cutting circle. very little clearance angle is necessary this is determined by the required cutting and sharpness angles. It is generally not less than 20 for HSS cutters and not less than 5 for TCT type. the quality of finish can be improved.S. the feed resistance and the power consumption.

Marketing Strategies for Export A strategy is just a sophisticated name for a plan. 1990).2 billion to $8 billion from 1972 to 1982 (Smith and Ma. In this manner.4 billion. is produced by these cutting actions. 1990). Exporter should have one basic plan for exporting. increasing from $8. 17. the more visible the cutter marks and the less smooth is the planed surface. Total furniture imports into the markets more than doubled between 1983 and 1987. The longer the pitch. one knife enters the timber to cut and lift off a shaving followed by the next knife in the block. particularly in Europe (West and Smith.4 billion to almost $18.1. 17. The largest furniture importer is the United States and the second largest is Germany (Alabaladejo. 1989). 1990). Consequently the surface finish can be gauged by the number of cutter marks per unit length.9 billion in 1989 (Anon. Market Research The Rawalpindi Chamber of Commerce & Industry 31 . The distance between one ridge and the next. have increased 168% between 1983 to 1987 (Alabaladejo. 1992). the cutting action is not continuous but intermittent i.4 billion and increased further to $21.Furniture Industry in Rawalpindi R&D Department Non-interlocking. known as cutter marks. The majority of the furniture trade involves member countries of the Organization of Economic Cooperation and Development (OECD) particularly import trade. In 1983 imports totaled $8. known as the pitch. a series of ridges. such a plan can be broken down into five basic steps: 1. 1989). on-woolly Woolly & fiber raising 30 20 15 0 10 15 40 40 40 55 45 40 When a piece of timber is fed through a rotating cutter block with accurately jointed knives. The total trade balance in furniture products for all OECD countries in 1986 recorded an overall deficit of $2. or the pitch which is equivalent to the reciprocal of the number of cutter marks per unit length. INTERNATIONAL FURNITURE TRADE The international market for furniture increased significantly from the mid-1970s to 1988. Worldwide exports to OECD countries grew from $1. Growth proceeded at a slower rate in the later 1980s and early 1990s due to a general economic downturn. Imports from developing countries. that is non-OECD members.1 billion (Smith and Ma. on-woolly Interlocking. corresponds to the distance between the start and finish of the cut by a single knife.e.

So long as the export firm provides adequate product literature. Once a preliminary survey has suggested one or a few countries for closer investigation. he will suggest the names of some suitable local market research firms. If the market research required.Furniture Industry in Rawalpindi 2. In targeting likely foreign market. samples and other necessary information. market research through the participation in a trade fair. etc) 5. The best way of entering the market (agent. is beyond the scope of the Trade Commissioner.1. Distribution 5. government sponsored export mission or personal visit to foreign countries. Trade Commissioners stationed at embassies abroad are only too willing to help the exporter assess the foreign market and suggest likely distributors. promoting and securing orders. the exporter should find out: 1. The existence of any market opportunities that would provide a market "niche" and "competitive edge" Smaller exporter may wish to reduce the costs of any market survey by using government services available. Promotion R&D Department 17. The most suitable channels of distribution 4. Pricing 4.1. competitor's products and their prices 3. the exporter should use a "Checklist" of factors. In practice. Product design 3. Checklist for Market Analysis • Product Advantages? • Sufficient Potential Volume? • Adequate Plant Capacity? • Adequate Export Financing? • Sufficient Availability of Raw Goods? • Compliance with all Export Market: Rules/Regulations/Labels? • Ability to Provide Satisfactory Servicing in Export Market? • Availability of suitable Banking Facilities in Export Market? • Stability of Economic and Political Climate in Export Market? The Rawalpindi Chamber of Commerce & Industry 32 . Some manufacturer may decide not to export them. Market Research Strategies Market Research Strategies for Export the manufacturer should determine which foreign market to target first. The types of customers. The potential size of the market for its product 2. but employ a trading house or export agent to act on its behalf in seeking market opportunities. joint venture.

an exporter may be satisfied with just breaking even or even incurring a loss . Product Strategy for Export The export firm may find a foreign market for its existing product without the need on any kind of redesign. Product Package and Name checklist The package used to enclose the product for local market may not be suitable for export.2. even to persons who may be illiterate? Does the label need to be in a foreign language? Does the logo or brand name have another. perhaps undesirable meaning in the local language? Does the package need to be larger or smaller than the one sold locally? Perhaps local consumers can only afford to buy smaller quantities of it.4. some minor modifications may be necessary to capture a share of the foreign market.with a view of getting established in a new market. 3.1. Questions to be answered should include: • • • • • • • • Does the product need extra protection from rough handling. Pricing Strategy for Export The price charged for the export product. for example: product labeling regulations. language or may be dictated by the local culture or climate. Sometime. 2. weight and measures. or climatic extremes? Is the product easily recognizable and appealing to the foreign customer? Does the label conform to local regulations? Does the label clearly indicate the contents. The physical product itself. The service that is provided together with the product. should cover all the various costs involved in producing and marketing it. 17. The Rawalpindi Chamber of Commerce & Industry 33 . The package in which the product is sold and the name. Have the brand name and trademark been registered in the foreign country? 17.1. Very often.Furniture Industry in Rawalpindi • • R&D Department Availability of Adequate Warehousing? Adequate Shipping/Transport Facilities in Export Market? 17. From the export point of view.3. The modifications may be due to legal requirements.1. a firm's product can be divided into three aspects: 1.

price to foreign port • Competitor's prices • Local agent's commissions • Warranties cost • Credit terms . Checklist for Export Distribution Strategy "There are many ways an export firm can get its products into the foreign markets.It's own required profit.interest cost 17.F.for costing and Export quotation • Product cost • Export cost • Duty drawbacks • Net Profit • Foreign agent's commission • Basic selling price • Insurance cost • C. to sell the product yourself . Checklist of Pricing Strategy for Export Pricing procedure .5. An exporter should calculate and determine all the costs involved in selling its product in the foreign market.1.I.6. including: • • Foreign agent's commission .1. by selling the goods to another local firm (with lower profits) in its own country that re-exports them or engages the services of trading house or export agent on a commission basis.Furniture Industry in Rawalpindi R&D Department It is tempting to sell products at a price that covers only the variable costs of each unit sold to make some contribution to the fixed costs or factory overhead. Any pricing strategy must be flexible to take advantage of: special discounts for quantity purchases or special introductory prices. The Rawalpindi Chamber of Commerce & Industry 34 . There is always the risk that the exporter can be accused of dumping its products abroad and are required to pay anti-dumping import duty.this means that the manufacturer must have its own sales representative abroad or an import agent working on a commission basis or foreign distributor who buys the goods for resale." Direct Export. and then quote a price on that basis. 17. Indirect export.

The exporter must consider. Export agent 6. they may include the following: • Export subsidiary • Government trade missions. Representatives abroad a. Export department 2." What are the various ways to promote your products abroad?. Marketing agreement 3. The Rawalpindi Chamber of Commerce & Industry 35 . Agent c. Export manager d. Exporters should make full use of government promotion that is available. Direct Export a.1. Export merchant 4. Export section c. and incoming buyers • Government export promotion services (for initial market research and to identify prospective customers and distributors) • Consulates and Embassies abroad (also for initial market research and to identify prospective customers and distributors) • Government financial and other export promotion assistance. Advantages of indirect exporting 8. Export Organization b.Furniture Industry in Rawalpindi Checklist for Export Distribution Strategy 1. Resident foreign buyer 7. Disadvantages of indirect exporting R&D Department 9. How to do Export Promotion? "Promotion is the term used to describe marketing activities .7. trade fairs. Own employees b.to persuade potential customers to buy your goods or services. if he plans to use agents or distributors to handle his product channels of distribution. his first task will then be to promote the product and his company to them. 17.

and encouraging the foreign consumer to try it. Later. emphasis must be on informing consumers. in the market maturity stage. The type of customers . buyers. etc.Is the promotion aim at Industrial user or middlemen. As a rule. Finally. in the area of export promotion. etc. customers. Whereas.Furniture Industry in Rawalpindi R&D Department The next task is to consider. the planned expenditure should be at a percentage of expected sales This budget could be divided in one of the following suggested ways: 1. whether current brochures would be suitable for use with foreign agents. there should be some systematic way e. distributors or buyers. varying according to its keenness to get into the export market. In the market growth stage. Does the promotional material needs to be translated into the local foreign language to make it acceptable. promotion can be placed on product differentiation trying to make the product as unique and differential as possible from competitive ones. Promotion blend. Looking for sales leads. special promotion efforts will be required. For consumer goods 45% advertising 35% selling 10% other promotion 2. the firm should concentrate on promoting brand loyalty. if and when sales begin to slip. Advertising and samples are often the most efficient way of persuading middlemen to try a new food product. direct mail to prospective buyers. in promoting the export of its product or products. Promotion budget. you should consider a systematic way to keep track of the company's promotional activities in that foreign market. Trade fairs and trade journals is an excellent way of reaching industrial users. the exporter will have to decide on an appropriate blend of advertising. personal selling is essential in reaching wholesalers. The Rawalpindi Chamber of Commerce & Industry 36 . selling and other sales activities. in practice the amount of money available to be spent is often an arbitrary figure set by top management. advertising in trade journals. For industrial goods 55% selling 25% advertising 10% other promotion (including trade fairs) In the introduction stage of the exporter's product. or aware of buyer's guides and trade directories for source of prospective agents. other contacts made and decide how often to follow-up and visit to the foreign market to develop personal contacts. making the product easily available. participation in trade shows. Sales decline stage.g.

17. Pakistan's tradition of wood-carving has been considerably enriched by the continuing addition of new furniture designs in vogue overseas. training.005 9. and other promotional activities such as credit. Today.683 352 The Rawalpindi Chamber of Commerce & Industry 37 .326 373 9.135 830 11.255 112 5. as well as for the export. coupled with a feeling for the quality of the material and of aesthetic values. selling. the wooden furniture industry holds out a bright scope for further expansion. Furniture makers keep themselves well acquainted with the latest design kits. The environment and conditions being favorable.629 10.719 6. an analysis of the promotion blend should help the exporter decide in spreading its promotional effort in an optimum combination of advertising.782 165 8. Export Statistics Wooden furniture is manufactured in Pakistan by a large number of cottage industries. which are not mechanized. a large quantity of wooden furniture is manufactured in Pakistan at the cottage level.708 597 2005-06 45.692 451 2002-03 17. spread over rural areas.499 8. cottages and small-scale industry. as there is a lot of potential for increasing the market for the Pakistani furniture. There is a need to further explore the international market for boosting exports.711 242 2004-05 176. TABLE 6: Export of Furniture from Pakistan Value In ‘000’ USD Commodities Furniture & Mattress Furniture Furniture of Metal Furniture of wood Furniture of Other Materials Source : TDAP 2001-02 20. The wood furniture industry in Pakistan can be divided into two main types. use out-dated tools and employ manual labor for the production of furniture. The demand for furniture has been rising constantly for the domestic market.523 11.2. product warranties.040 1. special introductory offers. displays. sales aids and after-sales service etc. The fast growing furniture industry is aiming at developing a system designed to incorporate its tradition with modern functional demands. These units.365 13. samples. small towns and cities.409 208 2003-04 47. contests.Furniture Industry in Rawalpindi R&D Department Conclusion.

the list of countries is given below. 70. or America) is a federal constitutional republic comprising fifty states and a federal district.S. Potential Areas The whole world is open for Pakistani furniture.3. 1 2 3 4 5 6 7 8 9 10 11 Source: TDAP  USA The United States of America (commonly referred to as the United States.562 6.236 % Chng.398 June 2007 818 % Chng. The United States is the sole buyer of the Pakistani bedroom furniture.90 JulyJuly-June June 20062007-08 07 11. while the UK and Gulf countries import kitchen and office furniture from Pakistan. The country accounts for approximately 50% of global military spending and is a leading economic. and cultural force in the world. political. 10.. The Rawalpindi Chamber of Commerce & Industry 38 Countries Dubai Saudi Arabia Oman Kuwait USA SriLanka UK Germany Farance Canada Italy . TABLE 8: Major Buyers S.Furniture Industry in Rawalpindi R&D Department TABLE 7: Export from Pakistan with Average Unit Price during 2007-08 Commodities Furniture Value Source TDAP June 2008 1. the USA. the U.38 17. No.

863 $320.Furniture Industry in Rawalpindi R&D Department The people of European countries like both types of furniture .e.068.807.895 $13.731 $1.comtrade.624 $155.un.488 $1.164 $164. Table 9: Trade of furniture Period Office Furniture 2003 2004 2005 2006 2007 Kitchen Furniture 2003 2004 2005 2007 Bedroom Furniture 2003 2004 2005 2006 2007 Other Furniture 2003 2004 2005 2006 2007 Trade Flow Export Export Export Export Export Export Export Export Export Export Export Export Export Export Export Export Export Export Export Reporter Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Partner USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA Code 940330 940330 940330 940330 940330 940340 940340 940340 940340 940350 940350 940350 940350 940350 940360 940360 940360 940360 940360 Trade Value $12. “The export of walnut wood’s furniture is in less quantity because this type of wood gets damaged during transportation.794 $76. Switzerland. Sicily and Sardinia.290 Source: www. Italy shares its northern.344 $782.515 $8. Alpine boundary with France.715 $109.505 $119.494 $768 $3.org  Italy: Italy is a country located on the Italian Peninsula in Southern Europe and on the two largest islands in the Mediterranean Sea. Italian Furniture Industry The Rawalpindi Chamber of Commerce & Industry 39 .735 $85. wooden and metallic.439 $131.476. Austria and Slovenia.376 $883.953 $1.035 $2.i.

057 $36 $8.221 $209. together with an analysis of home furniture sales by distribution channels (small scale independent retailers.502 $1. other seating. other furniture and parts).858 $109. Profiles are provided for the major Italian furniture manufacturers. product type. bedroom furniture. others). furniture parts and seating parts).965 $54. with data on turnover.160 $244. non specialized distribution. kitchen furniture. Italian furniture consumption is broken down by segment as well. other furniture. upholstered furniture. upholstered furniture. Italian furniture imports and exports are broken down by country and segment (office furniture.805 Period 2004 2005 2006 2007 2004 2005 2006 2007 2003 2004 2005 2006 2007 Trade Flow Export Export Export Export Export Export Export Export Export Export Export Export Export Reporter Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Partner Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy Code 940330 940330 940330 940330 940350 940350 940350 940350 940360 940360 940360 940360 940360 The Rawalpindi Chamber of Commerce & Industry 40 .234 $194. non-upholstered seats. dining and living room furniture. specialized large furniture distribution. kitchen furniture. bedroom dining and living room furniture.987 $3.343 $118.974 $799.Furniture Industry in Rawalpindi R&D Department Italian furniture production is broken down by segment (office furniture. 10: Trade of furniture Products Office Furniture Office Furniture Office Furniture Office Furniture Kitchen Furniture Kitchen Furniture Kitchen Furniture Kitchen Furniture Other Furniture Other Furniture Other Furniture Other Furniture Other Furniture Trade Value $6. activity.416 $253.

Japan furniture industry Traditionally. People's Republic of China. is gradually fading away. South Korea and Russia. however. This type of market. The Japanese consumers have a traditional attachment to wood. it lies to the east of the Sea of Japan.comtrade.org  JAPAN Japan is an island country in East Asia. The Rawalpindi Chamber of Commerce & Industry 41 . the focus of home-use furniture demand is shifting to furniture sets for reception rooms. The increasing adoption of western housing and interior designs will further accelerate this trend.Furniture Industry in Rawalpindi R&D Department Source: www. Hence. North Korea. Many single-family dwellings and condominiums come with built. Located in the Pacific Ocean. Instead. and expect manufacturers to perform careful finishing to all parts. products that emphasize the beauty of the wood grain will be an important key to success. stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south.un. Japan's furniture market has been heavily dependent on the so-called box furniture. They dislike the presence of knots in the furniture surface.in furniture such as walk-in closets.

845 $44.735 Office Furniture Bed Room Furniture Other Furniture Source : www.522 $15. TABLE: 12 World Trade Volume Furniture Products World Trade Volume Furniture Products Code Description Value in 000 USD 940350 Bed Room Furniture 9. the value of exports can further be increased in a short span.Furniture Industry in Rawalpindi Table 11: Trade of furniture Period 2005 2006 2007 2004 2005 2006 2007 2003 2004 2005 2006 2007 Trade Flow Export Export Export Export Export Export Export Export Export Export Export Export Reporter Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Pakistan Partner Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Code 940330 940330 940330 940350 940350 940350 940350 940360 940360 940360 940360 940360 R&D Department Trade Value $9.4.comtrade.651. and there are bright prospects for increasing this share.167 $43.814 $11.org 17. but a beginning has been made and with aggressive marketing strategy.421 $119.679 $123.370 $77.876 The Rawalpindi Chamber of Commerce & Industry 42 .171 940330 Office Furniture 3.498 $7. World Market for Pakistan’s Furniture The value of furniture export is very nominal.127 $70.462 $5.082.872 $36. Pakistan's share in the total world market is quite negligible.un.

320 22% Bed Room Furniture Office Furniture 57% 9% Kitchen Furniture Other Office Furniture (Seats etc) 12% The Rawalpindi Chamber of Commerce & Industry 43 .Furniture Industry in Rawalpindi R&D Department 940340 Kitchen Furniture 940360 Other Office Furniture (Seats etc) All Total Volume Trade Volume Furniture Products 4.473 23.953.800 41.868.556.

The Rawalpindi Chamber of Commerce & Industry 44 .Furniture Industry in Rawalpindi R&D Department 18. they had no capacity to buy such costly machinery. All the labor force and craftsmanship has been developed through the inherited system of “Ustad and Chhota” There is no proper vocational training institute to train these workers about latest designs & trends and latest techniques to manufacturer furniture products as per local as well as export market requirements. ii. There was no concept of latest and modern computer numeric control (CNC) machinery in the cluster. Human Resource Issues 1. Lack of educated. Unawares of international certifications and non-tariff barriers 4. Unorganized Nature Over the number of meetings that were held with the various craftsmen & retailers they had expressed the feelings that they were not organized properly in one way or the other. v. certified and professionally trained/skilled work force 2. markets due to poor marketing skills. Most of the banks are reluctant in financing these SMEs because they do not have proper documentations as required. Stakeholders are unaware of any quality control and standards 3. There were only 4-5 manufacturers in Rawalpindi who exported directly. This is the actual reason in loan credits from informal sectors at high cost of capital. 2. Marketing Issues 1. Mostly craftsmen in the cluster were poor. Unawares of international trade trend. Financial Issues Inaccessibility to obtain formal financial support resulting in loan credits from informal sector at higher cost of capital Majority of the SMEs in cluster required finance for working capital and machinery/equipments. Most of the craftsmen are uneducated. They were aware of the problems but were unable to find any solution for them. Currently most of the units supply furniture products to local market are in unpolished (kora) form. iii. iv. PROBLEMS IDENTIFIED The problems being faced by the cluster are as follows: i. No training of skills development centre/institute facilities. Technology Issues Lack of modern & efficient wood processing & hand carving tools/equipments. This industry was faced with the issue of traditional tools & equipment for woodworking and wood carving. There is shortage of certified/skilled manpower in furniture cluster.

marketing and business development services Establishment of training institution that will provide skilled & professional manpower. The Rawalpindi Chamber of Commerce & Industry 45 . Provision of trade. these institutions are not abreast with the latest developments across the globe. • • • • • • • RECOMMONDATION Establishment of Raw Material Bank that will ensure consistent supply of ready to use raw material. Few Facilities of Vocational Training R&D Department Presently there are limited facilities of vocational training furniture industry. There are furniture training institutes at Rawalpindi. 19. The curriculum is obsolete and has not been updated since ages. Financial institutions to provide and devise loaning schemes to facilitate and to meet financial requirements of the cluster. Capacity building of private/public institutions and associations Make the existing unregistered association a register association Separate industrial state is required. The design component gains paramount importance in view of consumers becoming increasingly design conscious.Moti Mahal Cinema Rawalpindi Ph.Furniture Industry in Rawalpindi vi. There is one Punjab Small Industries Institute in Rawalpindi. Lack of Design Innovation Innovative and good design can make a significant contribution towards improving productivity and competitiveness. PSIC WOOD WORKING CENTRE Tipu Road. # (92-51) 9280759 vii. Pakistani furniture industry lacks design innovation due to unavailability of latest information on new designs and absence of skill among the manpower to copy such designs. Moreover.

“Sample” means goods in limited quantity clearly identifiable as such and of no commercial value. . Basis of exports. the 21st July. namely:1. Export of goods specified in Schedule II to this Order shall be subject to the conditions given therein.________(I)/2005 . 2005. unless there is anything repugnant in the subject or context.. -(1)This Order may be called the Export Policy Order.O.(a) “Act” means the Imports and Exports (Control) Act 1950 (XXXIX of 1950).In exercise of the powers conferred by sub-section (1) of section 3 of the Imports and Exports (Control) Act.In this Order. regulations and procedures notified by the State Bank of Pakistan from time to time and upon submission of such documents as may be prescribed. 1950 (XXXIX of 1950). 2 Definitions. (c) “Gift parcel” means goods being sent abroad through post or courier service as gift.Annex 1 R&D Department EXPORT POLICY ORDER. the Federal Government is pleased to make the following Order. (2) It shall come into force at once. (b) “Appendix” means an Appendix to this Order.R. 2005 Islamabad. 3.Exports from Pakistan shall be made under the foreign exchange rules. (2) The provisions of this Order shall not apply to:- The Rawalpindi Chamber of Commerce & Industry 1 . Short title and commencement. 4. 2005 ORDER S.-(1) Export of all goods shall be allowed except those specified in Schedule-I to this Order. (d) “Prescribed” means prescribed by rules made under the Act or under this Order. and “Schedule” means a Schedule to this Order. Export of goods.

Annex 1 R&D Department The Rawalpindi Chamber of Commerce & Industry 2 .

the prescribed conditions have been met. The Rawalpindi Chamber of Commerce & Industry 3 .000) or equivalent per exporter per annum. irrespective of monetary value. Rupees. stores or equipment when sold abroad on Government to Government basis or exported under an export authorization issued by any officer authorized by the Ministry of Defence in this behalf. export of samples subject to the following conditions.Annex 1 R&D Department (a) any goods constituting the stores or equipment or machinery parts and kitchenette of any outgoing vessel. (b) any goods trans-shipped at a port in Pakistan after having been manifested for such trans-shipment at the time of despatch from a port outside Pakistan. bonafide baggage of persons traveling outside Pakistan. Provided further that the monetary and quantitative ceilings shall not be applicable if the samples are exported in a mutilated form. (c) (d) (e) (f) (g) (h) export of gift parcels of a value not exceeding five thousand US dollars (US$ 5. export of relief goods to any part of the world by the Cabinet Division (Relief Cell). namely:that the export of such goods is not banned. or any requirement of encashment certificates provided that such goods do not include items listed in Schedule I and that in respect of items of Schedule III. and persons travelling outside Pakistan who may take with them as accompanied baggage.000). Government of Pakistan. value does not exceed twenty five thousand US dollars (US$ 25. the f. or equivalent in Pak.b. goods without any restriction of quantity.o. conveyance or airline or the bonafide accompanied baggage of the crew or of the passengers in such vessel or conveyance or airline: Provided that banned or restricted items shall not be allowed unless otherwise authorized. and that the goods are supplied free of charge: Provided that leather garment manufacturers shall be entitled to export one hundred samples per annum. any goods.

(2) The Federal Government may issue export authorization in respect of any item for which relaxation is made under sub-paragraph (1) or for which export authorization is required under this Order. 6. . (3) The Federal Government shall issue the aforesaid condonation or authorization on its letter-head consecutively numbered and duly embossed. Export authorization and its validity. for reasons to be recorded allow export in relaxation of any prohibition or restriction under this Order. Relaxation of prohibitions and restrictions.Annex 1 R&D Department (3) Transit and Border Trade shall be allowed under the procedure prescribed therefore. 5.The Ministry of Commerce shall issue export.(1) The Federal Government may.. export – cum .import or re-export authorization for any item under the special The Rawalpindi Chamber of Commerce & Industry 4 .

except vegetable ghee and cooking oil. without opening of Letter of Credit. be valid for a period of six months. Re-export of frustrated cargo.Annex 1 R&D Department dispensation provision of this Order which shall unless specified otherwise. via land route or by air against irrevocable letters of credit.e.Subject to provisions of sub-paragraph (1) of paragraph 4. (b) packages or retail packing shall be prominently and indelibly be marked with the expression “For Export Only”. .Subject to provisions of sub-para (1) of paragraph 4 and Schedule III. 7. and (iii) repayment or drawback of customs-duty. (c) export shall be allowed only through authorized export land routes i. Torkham. shall be allowed via land route. (ii) rebate of central excise duty. 8. Chaman. shall be allowed but these exports shall not be entitled to (i) zerorating of sales tax on taxable goods.. namely:(a) the proof that goods exported from Pakistan have reached Afghanistan will be verified on the basis of copy of import clearance documents by Afghan Customs Authorities across the border. export of all commodities produced or manufactured in Pakistan. and in case of international donor agencies “For Export only – supply for aid to Afghanistan (insignia of the organization) – not for sale in Pakistan’. excluding those manufactured in manufacturing bonds. against Pak-rupee on filing of regular shipping bills without Form ‘E’. Such exports shall not be entitled to (i) zerorating of sales tax on taxable goods. shipments to ISAF are made by their authorized agents duly endorsed by the ISAF receiving agent in Afghanistan. confirmed orders on realization of export proceeds through banking channel or advance payment. subject to the following conditions.. Ghulam Khan (for export of cement only) and Qamar Uddin Karez (when it becomes operational). (2) In convertible currency.Re-export of frustrated cargo shall be allowed by the Customs authorities subject to the conditions contained in the Customs Rules. subject to the following conditions. in convertible foreign currency. shall be allowed (i) zero-rating of sales tax on taxable goods. (d) export from Export Processing Zones and manufacturing bonds. and (iii) repayment or drawback of customs duty: Provided that exports made to ISAF may be made on deferred payment basis.(1) In Pak Rupees. 2001. Exports to Afghanistan and through Afghanistan to Central Asian Republics. namely:the waiver shall be applicable strictly to exports made to ISAF. (ii) rebate of central excise duty. (ii) rebate of central excise duty and (iii) repayment or drawback of customs-duty. and The Rawalpindi Chamber of Commerce & Industry 5 . all items and commodities produced or manufactured in Pakistan exported.

Scrapped battery cells. UNDP. through all standard modes of payment including letters of credit. replacement. (3) Export-cum-import of vehicles shall be allowed for purposes of traveling abroad. (5) Export of acetic anhydride to Afghanistan shall not be allowed till further orders. The Rawalpindi Chamber of Commerce & Industry 6 . or refilling of cylinders and ISO tanks subject to submission of indemnity bond to customs authorities undertaking that goods being exported shall be re-imported after repairs. No refund of import duties or levies. on submission to the customs authorities of undertaking along with evidence of contract that the machinery shall be imported back upon conclusion of the contract. Waste dental amalgam. shall be admissible in such cases of export-cumimport. UNFPA. as relief goods to Afghanistan. or on indemnity bond furnished by the owner of the vehicle. ICRC. 10.. advance payment and DA/DP basis. Re-export of Goods or items (except banned items as per Schedule-I of this Order and items on the negative list Afghan Transit Trade). shall be allowed the facility of normal duty drawback against payment in convertible foreign currency.-Export of imported goods in their original and unprocessed form shall not be allowed except. World Food Programme. (2) Customs authorities shall allow Pakistani exporters to replace the exported goods found defective as per terms of sale contract subject to furnishing ofa copy of contract. FAO. (4) The temporary export and re-import of locally manufactured or imported machinery or equipment for the purpose of carrying out works awarded to construction. (4) Normal duty drawback shall remain available on exports to the Central Asian Republics via Iran. engineering and electrical companies shall be allowed.Parts obtained from ship breaking. replacement. Old machinery provided no refund of import levies or duty draw back shall be made. 9.Annex 1 R&D Department payment of foreign exchange is received within sixty days of shipment. UNICEF against international tenders. Export-cum-import. or refilling. Waste exposed X-ray films. (3) Exports by international donor agencies: Export of such goods as are made by or on behalf of UNHCR.-(1) Imported items may be exported for purposes of repairs. if paid at the time of import of machinery. WHO. and a communication form the buyer detailing the goods that have been found to be defective. or a guarantee issued by Pakistan Transport Mutual Assistance Co-operative Society Ltd. on the basis of carnet de passage issued by Automobile Association of Pakistan.

. importing country shall adopt the necessary measures to ensure that the transferred chemicals shall only be used for purposes not prohibited. 13.” respectively. listed in Appendix “A” have least commercial use and hence cannot be exported to States not party to the convention and hence export of these chemicals have been restricted under Schedule 2 and Schedule 3 chemicals listed in Appendix “B” and “C.” 12. The manufacturer-cum-exporter imported goods with the condition that payment will be made on quality approval and the quality of the goods is not approved. Forms T20 and T30 attached as Appendices “D” and “E. Export from Export Processing Zones. the manufacturer-cum-exporter imported goods which partially consumed in the manufacture of goods for export and the balance remained un-utilized due to quality inspection and damage or the balance goods could not be disposed of locally due to brand conditional ties. 2 and 3 chemicals there-under. Exports from Gwadar Special Economic Zone. 11. are widely used in the commercial sector and can be exported to States not party to the Convention with the restriction that for such transfers. shall be completed by the recipient State and by the end user before importing these chemicals from Pakistan.. have been defined as Scheduled Chemicals and listed as Schedule 1.The units operating in Export Processing Zones may export goods abroad as well as to the tariff area in accordance with the rules and procedures prescribed by the Customs Export Processing Zones Rules. Ordinances and Laws shall be treated to be restrictions and conditional ties under this Order. 1975 (VII of 1976).. under the Convention. the chemicals which can be used for industrial sector as well as for production of chemical weapons. Export of Chemicals etc. 14.Export of goods from Gwadar Special Economic Zone to foreign countries and to the tariff area will be in accordance with the rules and procedures to be notified by the Federal Government. The Rawalpindi Chamber of Commerce & Industry 7 .Restrictions or conditionality imposed under relevant provisions of the following Acts.. and Goods imported under various duty free schemes meant for exports and could not be consumed due to cancellation of export order.(1) Under the Chemicals Weapons Convention.Annex 1 R&D Department items imported against back to back letter of credit for re-export subject to the procedure and conditions notified by the State Bank of Pakistan.” of this Order respectively. 1981. namely:the Antiquities Act. (2) Schedule 1 chemicals. Restrictions imposed under other Acts and laws. Detailed instructions with regard to filling and disposal of these forms are covered in Appendices “F” and “G. and Imported goods in their original and unprocessed form provided that re-export is made against sight letter of credit or advance payment.

1969 (IV of 1969) the Drugs Act. (c) any goods. stores or equipment when sold abroad on Government to government basis or exported under an export authorization issued by any officer authorized by the The Rawalpindi Chamber of Commerce & Industry 8 . 1919 (XII of 1919). (a) any goods constituting the stores or equipment or machinery parts and kitchenette of any outgoing vessel. conveyance or airline or the bona fide accompanied baggage of the crew or of the passengers in such vessel or conveyance or airline: provided that banned or restricted items shall not be allowed unless otherwise authorized. Export of goods specified in Schedule II to this Order shall be subject to the conditions given therein. (b) any goods trans-shipped at a port in Pakistan after having been manifested for such trans-shipment at the time of dispatch from a port outside Pakistan.-(1) Export of all goods shall be allowed except those specified in Schedule I. 1979 (XLIX of 1979). 1889 (IV of 1889). the Poisons Act. 16. 1962 (xxxiv of 1962).Annex 1 R&D Department the Arms Act. the Copyright Ordinance. 1884 (IV of 1884). The provisions of this Order shall not apply to. 1947 (VII of 1947). the Customs Act. 2004 is hereby repealed. . the Petroleum Act. 1878 (XI of 1878). 15. 1976 (XXXI of 1976). Repeal.Any export made without compliance with the requirements of this Order or made on the basis of false or incorrect particulars shall be deemed to have been made in contravention of the provisions of the Act. Contravention of the Act. the Foreign Exchange Regulation Act. 1934 (XXX of 1934). the Explosive Act.. and any other law notified in the official Gazette by the Federal Government . the Merchandize Marks Act. Export Regulations by Pakistan Customs Export of goods. the Pakistan Animals Quarantine (Import and Export of Animal and Animal Products) Ordinance.The Export Policy Order.

goods without any restriction of quantity. (2) The Federal Government may issue export authorization in respect of any item for which relaxation is made under sub-paragraph (1) or for which export authorization is required under this Order.import or re-export authorization for any item under the special dispensation provision of this Order which shall unless specified otherwise.b. and persons traveling outside Pakistan who may take with them as accompanied baggage. (g) Bona fide baggage of persons traveling outside Pakistan. (e) export of gift parcels of a value not exceeding five thousand US dollars (US$ 5.000) or equivalent per exporter per annum. (ii) any number of samples subject to the condition that their f. 6. value does not exceed twenty five thousand US dollars (US$ 25. The Rawalpindi Chamber of Commerce & Industry 9 . export cum . or any requirement of encashment certificates provided that such goods do not include items listed in Schedule I and that in respect of items of Schedule II. the prescribed conditions have been met. allow export in relaxation of any prohibition or restriction under this order. (iii) the above mentioned monetary limit of US$ 25.Annex 1 R&D Department Ministry of defence in this behalf. .(1) The Federal Government may.000/.000).The Ministry of Commerce shall issue export. for reasons to be recorded. Rupees. Export authorization and its validity. Government of Pakistan. (3) Transit and Border Trade shall be allowed under the procedure prescribed therefore relaxation of prohibitions and restrictions. (3) The Federal Government shall issue the aforesaid condonation or authorization on its letter-head consecutively numbered and duly embossed. .shall not be applicable if the samples are exported in a mutilated form. (d) export of samples subject to the following conditions.o. be valid for a period of six months. namely:(i) that the export of such goods is not banned. or equivalent in Pak. (f) export of relief goods to any part of the world by the Cabinet Division (Relief Cell).

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