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

1.

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

1

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

2

1. Wiener Werkstätte. intersecting the Pop art movement.4. Art Deco. 1. Asian History Asian furniture has a quite distinct history. De Stijl.5. Postmodern design. Chinese furniture is traditionally better known for more ornate pieces. China.6. Mongolia. religion. and architecture. and the countries of South East Asia have unique facets of their own. gained steam in the 1960s and 70s. Bauhaus. The use of un carved wood and bamboo and the use of heavy lacquers are well known Chinese styles. and Vienna Secession designers all worked to some degree within the Modernist idiom. Indonesia (Bali and Java) and Japan are some of the best known. promoted in the 80s by groups such as the Italy-based Memphis movement.Furniture Industry in Rawalpindi R&D Department 1. Furniture Trends 2008-2009 The Rawalpindi Chamber of Commerce & Industry 3 . Modernism The first three-quarters of the twentieth century are often seen as the march towards Modernism. Transitional furniture is intended to fill a place between Traditional and Modern tastes. India. but places such as Korea. It is worth noting that China has an incredibly rich and diverse history. The traditions out of Pakistan. furniture and culture in general can vary widely from one dynasty to the next.

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

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

NWFP Swati furniture has basically broad sets. beds. carved in various styles of woodwork. chairs. The oldest single style evolved. The area was home to the pre-historic Soanian culture indigenous to The Rawalpindi Chamber of Commerce & Industry 6 . has been evolved in the NWFP. where craftsmen design massive pieces. 3. RAWALPINDI Rawalpindi is a city in the Potwar Plateau near Pakistan's capital city of Islamabad.4. lamps etc. 2. It has been developed in the Peshawar valley. It has been developed in the Quetta.5.Furniture Industry in Rawalpindi R&D Department 2. desks. heavy legs (chairs) and geometric floral designs. in the province of Punjab. stands. Balochistan Balochi furniture basically broad sets with traditional look.

small and medium sized units. 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. Total Number of Manufacturing Units (Furniture) According to the estimates provided by industry sources. 3. Rawalpindi furniture cluster is comprised of about 2000 units. ECONOMY OF RAWALPINDI Rawalpindi is one of the important cities of Pakistan. Area and Population According to 1998 Population and Housing Census. During the Raj days it became biggest cantonment in Sub-continent.039.2. It is the administrative seat of the Rawalpindi District. glass products. pottery. City is about 108 square kilometers (42 sq mi). 4. beverages and fruit preservation. Following table indicates the industry size in various categories: Table 2: Industrial Structure Small 400 Micro 1600 4. hosiery. textiles.550 persons. parks and a cosmopolitan population attract shoppers from all over Pakistan and abroad. furniture.1. The city is home to many industries and factories. Rawalpindi is located in the Punjab province. iron mills. total population of Rawalpindi district is 3.Furniture Industry in Rawalpindi R&D Department this region. 4. It is a railroad junction and an important industrial and commercial center. 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. marble processing. cigarettes. Types of units The details of the different categories of the furniture manufacturing units are following: The Rawalpindi Chamber of Commerce & Industry 7 . a brewery. The main industry of the city includes an oil refinery.1. pharmaceutical. and leather goods. sewing machines etc. Numerous and endless shopping bazaars. industrial gas processing. These units can be categorized into micro. and factories making tents. steel re-rolling. sawmills. 275 km (171 miles) to the north-west of Lahore. railroad yards. Rawalpindi industrial base is diverse and also includes flour mills.

a unit producing chairs will only produce chairs).000-300.g. there is no specialized training institute for furniture workers in Rawalpindi.4. medium and micro size units generating almost 50. These units are vertically integrated and are involved in the different stages of furniture manufacturing.3. polishers. 4. Estimated growth figure is around 10%. there are about 1600 micro sized units involved in the business of furniture manufacturing. The Rawalpindi Chamber of Commerce & Industry 8 . The furniture manufacturing units are selling their products in semi finished and finished form in Rawalpindi as well in the other cities. These 50.000 individuals ranging from 5-10 workers in small and micro size units. Total Production The estimated annual wood consumption is around 150.000 individuals are involved with Furniture Industry directly or indirectly.000 cubic ft. 4. This number includes all the units that are either directly or indirectly involved in the furniture manufacturing. Some of these units also have organized themselves in specialized products manufacturing. Employment Generation The industry is labor intensive and concentrated in small. These units manufacture furniture themselves as well as depend on the micro sized units for their manufacturing requirements. (e. The average cost of this wood is around Rs. These units sometimes also hire workers on contract basis in case of more orders. As far as the training of this work force is concerned. These Units have their own show rooms to display their finished products. These persons can be divided into the categories of carpenters. 160 million calculating on the basis of 400 rupees per cubic foot on an average type of wood. any source available to gather the anticipated growth rate. Most of their sales are domestic but few of them are also involved in the exports. These units have workers ranging from 15 to 50 in number depending upon the amount of work. 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. Hardly.Furniture Industry in Rawalpindi • R&D Department Micro Sized Units According to the statistics provided by the industry. upholstery workers and the general laborers. Small size units buy the semi finished furniture from micro sized units and then finish these products. Besides this around 100 million of manmade material is also used.

Ph#051-5857712 150-A.Peshawar Road. In Rawalpindi different areas are the hub of the furniture there names are mentioned below.Gul Rehman Mr. 1. 2.5. It is below 50%. 10. Muree Road.Main Range Road.M. None of the unit has the capability to produce goods at mass level. Main Cluster Areas As it is mentioned above furniture industry consider as the one of the major industry in Rawalpindi.Najam-Ul-Hassan Address 50-A. Sufficient gap exists and it is increasing day by day with the increase in the population of the country.Fiazabad.Furniture Industry in Rawalpindi R&D Department 4. Capacity Utilization Capacity utilization of the existing unit is not sufficient even to meet the demand of the domestic market. Ph#0300-5202551 913.Lane No. 8.Al-Khadim Chambers.Al-Hafeez Plaza. 7.Riaz The Rawalpindi Chamber of Commerce & Industry 9 .2. 5. # (92-51) 5563000 Living Heritage Art land furniture Mr.Ltd) Mr. Organization Major Players Contact Person Mr. 4.Maqsood Ahmed Dynamic Impex Decent Furniture (Pvt.Aliabad. Even the medium sized units take minimum 3-4 months for an order.6. Rawalpindi. Shamsabad Faizabad Kurry Road (Sadiq Abad) Kurry Road (Sultan Da Khoo) Khana Road Chakala Road Hazara Colony Mohan purrah Anayat Bazar Saddar 4. Rawalpindi. 6.7.3. PIA Colony. 9. Peshawar Road. 4. Rawalpindi Ph#051-4453044 Flat No. Rawalpindi Ph.M. 3.

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

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

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

The classification system is maintained by the United Nations. Furniture manufacturing units in Pakistan mostly use Sheesham wood.1. • 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). Raw Material The basic raw material for manufacturing of furniture is wood. International Codes for Furniture For international trade different codes are used two of them are defined below. Chair: Chair is a seat for one person.2. Forest wood is easily available in the market. • 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. The first four digits are referred to as the heading. Cupboard: Cupboard is a cabinet used for storage 7. with support from back. Wood obtained from the forest is of prime quality. Other types of wood used in manufacturing furniture are: • • • Teak wood Walnut wood Keekar wood 13 The Rawalpindi Chamber of Commerce & Industry . Belgium. The HS is a six-digit nomenclature. The first six digits are known as a subheading. 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. Bed: Bed is piece of furniture that provides a place to sleep. an independent intergovernmental organization with over 170 member countries based in Brussels. Generally dry wood is recommended for manufacturing of quality wooden furniture.Furniture Industry in Rawalpindi • • • • R&D Department Sofa: Sofa is an upholstered seat for more than one person.

Furniture Industry in Rawalpindi • R&D Department Sheesham 7. cloth. LVL.2. and other. TABLE 2: Percent of raw materials used (by value) by the manufacturing sector . structural panels.1. screws. These raw materials are easily available in the market. sealer. hardener etc are used in manufacturing of furniture. Plywood. spirit. 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. foam. nails. cabinets. thinner. lumber. 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 . lacquer. • • • • • • • Chiniot Gujrat Multan: Bhakkar Chitral Dir Sahiwal Availability of Wood 8. MDF. raw materials such as lumber and structural panels. glue/solution.

Smooth surface gave eye-catching effect. DESCRIPTION OF PRODUCT MIX Superior Quality Superior quality furniture are made of supreme quality pure wood furniture with elegant hand carved design. While superior quality sofa set was manufactured form best available upholstery material for elegant design & extra comfort. If the wood purchased is not seasoned than these blocks/slices are seasoned through different processes. etc).000 10.000 15000 8. 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.000 30.000 40. Simple and appealing hand carving was done with fine quality polishing.000 30. Medium Density Fiber (MDF) and win board. 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. Fine Quality Fine quality furniture is made of fine quality pure wood. Lasani gave fine and even surface for finishing and paint. namely: • Condensation The Rawalpindi Chamber of Commerce & Industry 15 .000 10. The normal quality sofa set a simple design sofa set with good quality fabric material.000 10.000 50. While fine quality sofa set had a quality upholstered material & elegant design. STANDARD MANUFACTURING PROCESS Wood is cut into different sizes of blocks and slabs.000 15. Superior quality had extra carving with complex and elegant design and extra fine polishing and finishing.Furniture Industry in Rawalpindi R&D Department 9.000 20.000 30.

Selection of elegant design is important to ensure attractive finished product. 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. 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. It is recommended that selective highly skilled labor should be employed permanently and other labor should be hired as and when required. Upholstery of fabric is carried out according requirement of design. Quality of carving depends on the skills of the labor. The seasoned wood blocks are cut into desired shape and slices according to the requirement of design. Before start of manufacturing of any furniture product a desired design is selected. Assembled product is grind to make the surface smooth. 11. The Rawalpindi Chamber of Commerce & Industry 16 . After the base is prepared final finishing is applied depending on requirement in term of paint/polish. The slices of wood are molded into the desired shape according to the design. per unit basis and permanently employed. Once the surface is smooth. finishing material is applied to make the surface ready for paint or polish.

2. wastage costs. inefficiency losses. and Newspapers are the conventional mediums.M Channels. SWOT Analysis (Strength. • • • Weaknesses High cost of production due to high rate of raw material. etc. Hence.000 12. which have been powerfully used for the promotion of products. Radio. Weaknesses. Billboards.500-3. the primetime to enter into market is start of August. Lack of educated. • • • • Strengths Suppliers of raw material are available in the cluster.000 8. operational losses. Opportunities & Threats) 13.000 furniture manufacturing units present in the cluster 30. certified and professionally trained work force. DISTRIBUTION / MARKETING CHANNELS Though the demand for wooden furniture in domestic market is persistent throughout the year.000 people (approx) are directly and indirectly attached with this occupation Strong historical background of some craftsmen 13.1. 13.000 8. but it significantly increases during the period of October to March because of the wedding season. There was no proper vocational training institute to train these workers about latest designs & trends and The Rawalpindi Chamber of Commerce & Industry 17 .2.500 8. i. F. The demand for the furniture almost doubles during this period.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) 15.000 10. There was shortage of certified/skilled manpower in furniture cluster No availability of VTI (Vocational Training Institute).

• • • Opportunities International furniture exhibitions. Identify international manufacturers seeking to expand their business network. Unavailability of proper place for the manufacturers. Inability to penetrate export market with weak furniture designs based on repeated. • • • • • Threats Migration of trained work forces from the cluster because less profit margin especially for manufacturers to the big cities like Lahore. 13. Unawareness of Social compliance and Environmental issues Unawares of any quality control and standards. 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. Japan. 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. 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.Furniture Industry in Rawalpindi R&D Department • • • • • • • • • • • • • • • latest techniques to manufacturer furniture products as per local as well as export market requirements. roads network in the city is very bad Poor power supply. State Bank of Pakistan recently announced scheme for the furniture industrialist to get benefit of cheaper money availability. Karachi. Combine manufacturers/retailers International warehouses. it include financing for a plant.3. machinery and equipment to be used by the furniture industries. Lack of space for workshops Most of the manufacturer works in the commercial areas where the community is getting disturbed by their work. non standard copies from catalogs/broachers Unawareness of international trade trends. markets due to poor marketing skills Poor infrastructural facilities like. 13.5. Korea etc and they establish industries in the The Rawalpindi Chamber of Commerce & Industry 18 .4.

and there are categories of technologies as below: High Technology.Furniture Industry in Rawalpindi R&D Department country and getting value added un assembled parts and gives the final shape as complete products. Medium High Technology. 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. Medium Low Technology. Low 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 . 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. “QUALITY AND PRODUCTIVITY IMPROVEMENT IN FURNITURE MANUFACTURING” for design & markiting One should know that Technologies produces the products. However. 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.

CNC-based machinery offers greatly reduced set-up times. marking. The technology is now becoming affordable for small. 15. 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. powerful High Torque driving motors – these are features which apply to all vhf CAM systems. followed by improvements in cutting tool technology and other machine advances. The second problem related to machinery is that most of the machinery used in manufacturing is Pakistan made. embossing. precise steel linear guides. By improving the local machinery. CNC machining systems from vhf are universally applicable.1. Most of the manufacturers don’t have the sanding machines that also affect the furniture quality. Non-availability of seasoning plants is another problem. thicknesser planner. manufacturers cited CNC technology as the number one factor influencing woodworking production in the 1990s.to mediumsize shops. These machines include circular saw. dispensing.Furniture Industry in Rawalpindi R&D Department 14. The final quality of products manufactured on this machinery can not be compared with the products made by foreign machinery. A stable construction made of aluminum profiles. The most significant trend in the woodworking industry in the 1990s has been the development of computer numeric control (CNC). CNC Engraving Machine The Rawalpindi Chamber of Commerce & Industry 20 . 15. So there is a need to improve the design and the working of Pakistani machinery according to the requirements. spindle molder and the mortising machine. Most recently used machines description is given below. a huge quantity of foreign exchange can be saved and this will also help the light engineering sector. The furniture manufacturers are using only four basic machines to cater their machining requirements. MACHINE AND TOOLING TECHNOLOGY Overwhelmingly. TECHNOLOGY SETUP Except a few units technical standard of all others is of a very low level. Thus you can use all systems for powerful milling works or precise engravings as well as for special tasks like cutting. screwing etc.

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

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

control or minimize through quality the cost of the quality will be decrease. Lower Limit Upper Limit The Rawalpindi Chamber of Commerce & Industry 23 .Quality control is not only just a judgment concern . . 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 16.3. if defects are eliminated. Left side shows below standard shows the loss and the right also shows the loss because of above standard.2. naturally cost will decrease and the customer satisfaction will be improved which means the quality control is important factor in furniture manufacturing. Quality Control System or Quality Management Objectives for good quality. 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.Furniture Industry in Rawalpindi R&D Department It is a general rule. 16.

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

Whenever possible.Furniture Industry in Rawalpindi R&D Department Assembly Sanding Finishing Shop Packing/Warehouses Process Control / Acceptance Sampling Process Control Process Control Acceptance Sampling 16. spring and twists.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. and drying defects such as splits. 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. The main sources of defects or quality discrepancies will be discussed. quality control procedures will be suggested to assist manufacturers in the implementation of a proper quality management system. either 100% or sampling inspection. 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. Common raw material defects include natural defects such as knots. and appropriate corrective measures will be suggested. 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. to a certain extent. Inspection. If these are not eliminated. these variations should be monitored and controlled. Defects in raw materials are difficult to correct. checks. These defects generally affect the surface quality and. must be conducted to detect all those unacceptable defects. the real challenge lies in achieving products that are of a consistent quality level within acceptable standards and at competitive costs. The first being the defects that are associated with the raw materials. Quality Control in Furniture Manufacturing The Rawalpindi Chamber of Commerce & Industry 25 . and other defects such as stain and insect infestation. Although certain variations are inherent to the performance of machines. This chapter will focus the discussion on the machining. they can be carried through the manufacturing processes. compression failures and brittle hearts. moisture content control and some related quality requirements in wooden furniture manufacturing. Quality Control in Furniture Manufacturing In the manufacture of furniture. the strength of the joints as well as the stability of the finished products.

such as thickness. 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. The Rawalpindi Chamber of Commerce & Industry 26 . machining accuracy problems arise because the machine has been continuously operating without checking for the need to re-set. interval. resulting in some items of the output accurately machined but some are not. length. Machine setting generally involves the adjusting of the machine to produce the desired dimension. chucks. Special setting gauges are available. Poor accuracy will result in parts that cannot be assembled properly. the components may have to be totally rejected. 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. etc. pitch. Precision instruments such as dial gauges or veneer calipers should be used for machine setting. There are many machining processes involved in the manufacturing of furniture and it is essential to monitor each and every one of these processes. width. such as those for the setting of knives in cutter blocks. Figure below summarizes the accuracies in machining that need close control. Very often. Therefore. In extreme cases such a loose joints and poor edges. etc.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. saw blade. the machine would produce the same accuracy irrespective of whether the machine has been operation for an hour or ten hours. knife. or any other holding mechanism for the work piece. bit. cuffer heads. Many operators would assume that once a machine is properly set up.

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

The dimensional movements are due to changes in the moisture content of wood during prolonged exposure to different relative humidities. i. if the humidity falls. Once the furniture is properly finished and packed. For high density hardwood and wood with high silica content. high speed steel (HSS) knives. 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. knife types and other parameters have to be carefully considered. Machined surface Quality In furniture manufacturing. 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. the risk of excessive moisture movement will be minimized. 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.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. the wood moisture content will also increase as it absorbs water vapour form the air and . followed by the satellite tipped type and the TCT knives.. furniture should be manufactured from wood which has moisture content about mid way between the extremes of moisture content expected expected in service. satellite tipped knives and tungsten carbide tipped (TCT) knives. Wood is surfaced or shaped by using various types of cutters and knives carried on blocks. The modern production method is to process the kiln-dried wood. This can result in the loosening and weakening of joints and in extreme cases. HSS knives are suitable for most softwood and light density hardwood with little silica content. Cutter knives play an important role in determining the quality of a machined surface. the wood moisture content will fall as it releases water vapour into the drier air. If the relative humidity increases. To avoid such failures. Subsequently. It is a well known fact that a piece of wood stored at constant relative humidity will eventually reach a characteristic equilibrium moisture content. conversely. If. 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. The resistance against abrasion (and therefore service life) is lowest for HSS knives. There are three types of knives that are commonly available. cause failure of the joint.e. TCT knives will last longer. knife angles. Charts are available relating the equilibrium moisture content of wood to the relative humidity of the surrounding air. 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. Knife Geometry The Rawalpindi Chamber of Commerce & Industry 28 . Depending on the species of wood to be machined.

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

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

the more visible the cutter marks and the less smooth is the planed surface. have increased 168% between 1983 to 1987 (Alabaladejo. 1990). known as the pitch. such a plan can be broken down into five basic steps: 1.e. a series of ridges. The majority of the furniture trade involves member countries of the Organization of Economic Cooperation and Development (OECD) particularly import trade. Market Research The Rawalpindi Chamber of Commerce & Industry 31 .1 billion (Smith and Ma. In this manner. 1990). 17. Marketing Strategies for Export A strategy is just a sophisticated name for a plan. corresponds to the distance between the start and finish of the cut by a single knife. is produced by these cutting actions. Worldwide exports to OECD countries grew from $1. Exporter should have one basic plan for exporting.2 billion to $8 billion from 1972 to 1982 (Smith and Ma. The distance between one ridge and the next. particularly in Europe (West and Smith. 17. The total trade balance in furniture products for all OECD countries in 1986 recorded an overall deficit of $2. The largest furniture importer is the United States and the second largest is Germany (Alabaladejo. 1990). The longer the pitch. or the pitch which is equivalent to the reciprocal of the number of cutter marks per unit length. 1992). Total furniture imports into the markets more than doubled between 1983 and 1987. the cutting action is not continuous but intermittent i. on-woolly Interlocking. increasing from $8. INTERNATIONAL FURNITURE TRADE The international market for furniture increased significantly from the mid-1970s to 1988. 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.4 billion and increased further to $21.1. that is non-OECD members. 1989). Imports from developing countries. Growth proceeded at a slower rate in the later 1980s and early 1990s due to a general economic downturn. one knife enters the timber to cut and lift off a shaving followed by the next knife in the block. Consequently the surface finish can be gauged by the number of cutter marks per unit length.4 billion.9 billion in 1989 (Anon. In 1983 imports totaled $8.Furniture Industry in Rawalpindi R&D Department Non-interlocking. 1989).4 billion to almost $18. known as cutter marks.

1. Promotion R&D Department 17. he will suggest the names of some suitable local market research firms. joint venture. Trade Commissioners stationed at embassies abroad are only too willing to help the exporter assess the foreign market and suggest likely distributors. 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. etc) 5. the exporter should use a "Checklist" of factors. market research through the participation in a trade fair. Distribution 5. competitor's products and their prices 3. Once a preliminary survey has suggested one or a few countries for closer investigation. promoting and securing orders. In practice.1. 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 . In targeting likely foreign market. Pricing 4. So long as the export firm provides adequate product literature. Market Research Strategies Market Research Strategies for Export the manufacturer should determine which foreign market to target first. Some manufacturer may decide not to export them. government sponsored export mission or personal visit to foreign countries. The types of customers.Furniture Industry in Rawalpindi 2. The most suitable channels of distribution 4. the exporter should find out: 1. The best way of entering the market (agent. but employ a trading house or export agent to act on its behalf in seeking market opportunities. If the market research required. Product design 3. is beyond the scope of the Trade Commissioner. The potential size of the market for its product 2. samples and other necessary information.

The physical product itself.with a view of getting established in a new market.4.3. 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. a firm's product can be divided into three aspects: 1. Very often. 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. language or may be dictated by the local culture or climate. 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.1. Sometime.1. The Rawalpindi Chamber of Commerce & Industry 33 . 17. From the export point of view.2. for example: product labeling regulations. an exporter may be satisfied with just breaking even or even incurring a loss . Pricing Strategy for Export The price charged for the export product. The service that is provided together with the product. Questions to be answered should include: • • • • • • • • Does the product need extra protection from rough handling.1. should cover all the various costs involved in producing and marketing it. some minor modifications may be necessary to capture a share of the foreign market. weight and measures. The modifications may be due to legal requirements. 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. Have the brand name and trademark been registered in the foreign country? 17. The package in which the product is sold and the name. 3.Furniture Industry in Rawalpindi • • R&D Department Availability of Adequate Warehousing? Adequate Shipping/Transport Facilities in Export Market? 17.

Checklist of Pricing Strategy for Export Pricing procedure .1.interest cost 17.for costing and Export quotation • Product cost • Export cost • Duty drawbacks • Net Profit • Foreign agent's commission • Basic selling price • Insurance cost • C.I.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. to sell the product yourself .It's own required profit.1. price to foreign port • Competitor's prices • Local agent's commissions • Warranties cost • Credit terms .F.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. 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. Any pricing strategy must be flexible to take advantage of: special discounts for quantity purchases or special introductory prices. Checklist for Export Distribution Strategy "There are many ways an export firm can get its products into the foreign markets. and then quote a price on that basis. Indirect export.5." Direct Export. including: • • Foreign agent's commission . An exporter should calculate and determine all the costs involved in selling its product in the foreign market. The Rawalpindi Chamber of Commerce & Industry 34 . 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.6. 17.

his first task will then be to promote the product and his company to them. Own employees b. Export agent 6. Direct Export a.to persuade potential customers to buy your goods or services. Marketing agreement 3.7. Exporters should make full use of government promotion that is available. trade fairs. they may include the following: • Export subsidiary • Government trade missions. The Rawalpindi Chamber of Commerce & Industry 35 . Advantages of indirect exporting 8." What are the various ways to promote your products abroad?. The exporter must consider. Representatives abroad a. Export merchant 4. Export manager d. Agent c. Export Organization b. if he plans to use agents or distributors to handle his product channels of distribution. Resident foreign buyer 7. Export department 2. Export section c. How to do Export Promotion? "Promotion is the term used to describe marketing activities .1. 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.Furniture Industry in Rawalpindi Checklist for Export Distribution Strategy 1. Disadvantages of indirect exporting R&D Department 9. 17.

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

an analysis of the promotion blend should help the exporter decide in spreading its promotional effort in an optimum combination of advertising. The fast growing furniture industry is aiming at developing a system designed to incorporate its tradition with modern functional demands. The demand for furniture has been rising constantly for the domestic market. contests. product warranties.135 830 11. the wooden furniture industry holds out a bright scope for further expansion.523 11. small towns and cities. and other promotional activities such as credit. The environment and conditions being favorable. spread over rural areas.499 8. samples.005 9.719 6. which are not mechanized.Furniture Industry in Rawalpindi R&D Department Conclusion. as there is a lot of potential for increasing the market for the Pakistani furniture. training.040 1. sales aids and after-sales service etc.711 242 2004-05 176.326 373 9. selling.782 165 8. Export Statistics Wooden furniture is manufactured in Pakistan by a large number of cottage industries. 17. The wood furniture industry in Pakistan can be divided into two main types.692 451 2002-03 17. There is a need to further explore the international market for boosting exports. cottages and small-scale industry.365 13. coupled with a feeling for the quality of the material and of aesthetic values. as well as for the export. 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. Today. special introductory offers.255 112 5.2. Furniture makers keep themselves well acquainted with the latest design kits.629 10. use out-dated tools and employ manual labor for the production of furniture. Pakistan's tradition of wood-carving has been considerably enriched by the continuing addition of new furniture designs in vogue overseas.409 208 2003-04 47. a large quantity of wooden furniture is manufactured in Pakistan at the cottage level.683 352 The Rawalpindi Chamber of Commerce & Industry 37 . These units.708 597 2005-06 45. displays.

the U.236 % Chng.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. TABLE 8: Major Buyers S.38 17. 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. Potential Areas The whole world is open for Pakistani furniture. No. and cultural force in the world. The Rawalpindi Chamber of Commerce & Industry 38 Countries Dubai Saudi Arabia Oman Kuwait USA SriLanka UK Germany Farance Canada Italy .S.398 June 2007 818 % Chng. political. the list of countries is given below. 70. 10. or America) is a federal constitutional republic comprising fifty states and a federal district..90 JulyJuly-June June 20062007-08 07 11. The country accounts for approximately 50% of global military spending and is a leading economic. while the UK and Gulf countries import kitchen and office furniture from Pakistan. The United States is the sole buyer of the Pakistani bedroom furniture.562 6. the USA.3.

Sicily and Sardinia.715 $109.e.290 Source: www.org  Italy: Italy is a country located on the Italian Peninsula in Southern Europe and on the two largest islands in the Mediterranean Sea.476.515 $8.comtrade.439 $131.863 $320.953 $1.068. Switzerland. 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.un.735 $85.494 $768 $3. “The export of walnut wood’s furniture is in less quantity because this type of wood gets damaged during transportation.731 $1.376 $883.505 $119. Italian Furniture Industry The Rawalpindi Chamber of Commerce & Industry 39 .i. Alpine boundary with France.035 $2.794 $76. Italy shares its northern.164 $164.624 $155.807.488 $1.344 $782. wooden and metallic. Austria and Slovenia.Furniture Industry in Rawalpindi R&D Department The people of European countries like both types of furniture .895 $13.

with data on turnover.Furniture Industry in Rawalpindi R&D Department Italian furniture production is broken down by segment (office furniture. bedroom dining and living room furniture.160 $244. kitchen furniture. other seating. dining and living room furniture.987 $3. other furniture and parts).057 $36 $8.416 $253. 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. non-upholstered seats. non specialized distribution. activity. furniture parts and seating parts). specialized large furniture distribution. product type.221 $209. Italian furniture imports and exports are broken down by country and segment (office furniture. bedroom 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 . other furniture. upholstered furniture. together with an analysis of home furniture sales by distribution channels (small scale independent retailers.858 $109. others). Italian furniture consumption is broken down by segment as well. Profiles are provided for the major Italian furniture manufacturers.343 $118. upholstered furniture. kitchen furniture.234 $194.974 $799.502 $1.965 $54.

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

421 $119.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 $9.4.082.171 940330 Office Furniture 3. TABLE: 12 World Trade Volume Furniture Products World Trade Volume Furniture Products Code Description Value in 000 USD 940350 Bed Room Furniture 9.876 The Rawalpindi Chamber of Commerce & Industry 42 .370 $77.127 $70.comtrade.498 $7. the value of exports can further be increased in a short span. and there are bright prospects for increasing this share.735 Office Furniture Bed Room Furniture Other Furniture Source : www.522 $15.un.679 $123.462 $5. Pakistan's share in the total world market is quite negligible. World Market for Pakistan’s Furniture The value of furniture export is very nominal. but a beginning has been made and with aggressive marketing strategy.org 17.845 $44.167 $43.651.872 $36.814 $11.

473 23.953.556.800 41.320 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 4.868.

certified and professionally trained/skilled work force 2. Technology Issues Lack of modern & efficient wood processing & hand carving tools/equipments.Furniture Industry in Rawalpindi R&D Department 18. Unawares of international certifications and non-tariff barriers 4. Unawares of international trade trend. Stakeholders are unaware of any quality control and standards 3. they had no capacity to buy such costly machinery. iii. PROBLEMS IDENTIFIED The problems being faced by the cluster are as follows: i. This is the actual reason in loan credits from informal sectors at high cost of capital. 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. There was no concept of latest and modern computer numeric control (CNC) machinery in the cluster. No training of skills development centre/institute facilities. Marketing Issues 1. 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. ii. The Rawalpindi Chamber of Commerce & Industry 44 . There were only 4-5 manufacturers in Rawalpindi who exported directly. Lack of educated. Human Resource Issues 1. markets due to poor marketing skills. iv. 2. 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. Most of the craftsmen are uneducated. Currently most of the units supply furniture products to local market are in unpolished (kora) form. There is shortage of certified/skilled manpower in furniture cluster. Mostly craftsmen in the cluster were poor. Most of the banks are reluctant in financing these SMEs because they do not have proper documentations as required. They were aware of the problems but were unable to find any solution for them. v. This industry was faced with the issue of traditional tools & equipment for woodworking and wood carving.

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. 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. Provision of trade. Financial institutions to provide and devise loaning schemes to facilitate and to meet financial requirements of the cluster. The Rawalpindi Chamber of Commerce & Industry 45 . # (92-51) 9280759 vii. PSIC WOOD WORKING CENTRE Tipu Road. 19. Lack of Design Innovation Innovative and good design can make a significant contribution towards improving productivity and competitiveness. The design component gains paramount importance in view of consumers becoming increasingly design conscious. marketing and business development services Establishment of training institution that will provide skilled & professional manpower.Furniture Industry in Rawalpindi vi. Moreover. Capacity building of private/public institutions and associations Make the existing unregistered association a register association Separate industrial state is required.Moti Mahal Cinema Rawalpindi Ph. 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. The curriculum is obsolete and has not been updated since ages. There is one Punjab Small Industries Institute in Rawalpindi.

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

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

(c) (d) (e) (f) (g) (h) export of gift parcels of a value not exceeding five thousand US dollars (US$ 5.000) or equivalent per exporter per annum. 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. 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. Rupees. Government of Pakistan. or equivalent in Pak. value does not exceed twenty five thousand US dollars (US$ 25. goods without any restriction of quantity. export of samples subject to the following conditions. irrespective of monetary value. any goods. The Rawalpindi Chamber of Commerce & Industry 3 .b. Provided further that the monetary and quantitative ceilings shall not be applicable if the samples are exported in a mutilated form.o. namely:that the export of such goods is not banned. and persons travelling outside Pakistan who may take with them as accompanied baggage. 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.Annex 1 R&D Department (a) any goods constituting the stores or equipment or machinery parts and kitchenette of any outgoing vessel. the f.000). the prescribed conditions have been met. export of relief goods to any part of the world by the Cabinet Division (Relief Cell). and that the goods are supplied free of charge: Provided that leather garment manufacturers shall be entitled to export one hundred samples per annum. (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.

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

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

The Rawalpindi Chamber of Commerce & Industry 6 . UNICEF against international tenders. (5) Export of acetic anhydride to Afghanistan shall not be allowed till further orders. No refund of import duties or levies. Scrapped battery cells. (3) Exports by international donor agencies: Export of such goods as are made by or on behalf of UNHCR. World Food Programme. replacement.-(1) Imported items may be exported for purposes of repairs. 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. or refilling. (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. UNDP. advance payment and DA/DP basis. Old machinery provided no refund of import levies or duty draw back shall be made. ICRC. Waste dental amalgam. 10. Export-cum-import.Parts obtained from ship breaking. on the basis of carnet de passage issued by Automobile Association of Pakistan. and a communication form the buyer detailing the goods that have been found to be defective. replacement.. or on indemnity bond furnished by the owner of the vehicle. Waste exposed X-ray films. as relief goods to Afghanistan. FAO. engineering and electrical companies shall be allowed. shall be allowed the facility of normal duty drawback against payment in convertible foreign currency. 9.-Export of imported goods in their original and unprocessed form shall not be allowed except. UNFPA. (3) Export-cum-import of vehicles shall be allowed for purposes of traveling abroad.Annex 1 R&D Department payment of foreign exchange is received within sixty days of shipment. 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). WHO. shall be admissible in such cases of export-cumimport. 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. or a guarantee issued by Pakistan Transport Mutual Assistance Co-operative Society Ltd. (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. if paid at the time of import of machinery. through all standard modes of payment including letters of credit.

. . 13.(1) Under the Chemicals Weapons Convention. 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. Forms T20 and T30 attached as Appendices “D” and “E. Export from Export Processing Zones. the chemicals which can be used for industrial sector as well as for production of chemical weapons. Restrictions imposed under other Acts and laws. namely:the Antiquities Act. shall be completed by the recipient State and by the end user before importing these chemicals from Pakistan. The Rawalpindi Chamber of Commerce & Industry 7 . 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. have been defined as Scheduled Chemicals and listed as Schedule 1. under the Convention.” of this Order respectively. and Goods imported under various duty free schemes meant for exports and could not be consumed due to cancellation of export order. 14. Export of Chemicals etc. 1981. Detailed instructions with regard to filling and disposal of these forms are covered in Appendices “F” and “G.” 12. Ordinances and Laws shall be treated to be restrictions and conditional ties under this Order.” respectively.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.. 1975 (VII of 1976). Exports from Gwadar Special Economic Zone. 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. importing country shall adopt the necessary measures to ensure that the transferred chemicals shall only be used for purposes not prohibited. 11.Restrictions or conditionality imposed under relevant provisions of the following Acts. 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.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. and Imported goods in their original and unprocessed form provided that re-export is made against sight letter of credit or advance payment.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.. (2) Schedule 1 chemicals.

the Customs Act. 2004 is hereby repealed. and any other law notified in the official Gazette by the Federal Government . 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 . 1889 (IV of 1889). the Merchandize Marks Act. The provisions of this Order shall not apply to.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.. 1979 (XLIX of 1979). 1969 (IV of 1969) the Drugs Act. . the Copyright Ordinance. 1976 (XXXI of 1976). 1884 (IV of 1884). Contravention of the Act. Export Regulations by Pakistan Customs Export of goods. 1934 (XXX of 1934). the Pakistan Animals Quarantine (Import and Export of Animal and Animal Products) Ordinance. the Poisons Act. Repeal. 16.Annex 1 R&D Department the Arms Act. (c) any goods.-(1) Export of all goods shall be allowed except those specified in Schedule I. Export of goods specified in Schedule II to this Order shall be subject to the conditions given therein. 1878 (XI of 1878). 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. 1919 (XII of 1919). (a) any goods constituting the stores or equipment or machinery parts and kitchenette of any outgoing vessel. 1962 (xxxiv of 1962). the Foreign Exchange Regulation Act. 15.The Export Policy Order. the Explosive Act. (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. 1947 (VII of 1947). the Petroleum Act.

000/. 6.Annex 1 R&D Department Ministry of defence in this behalf.b. value does not exceed twenty five thousand US dollars (US$ 25. goods without any restriction of quantity. 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. . (e) export of gift parcels of a value not exceeding five thousand US dollars (US$ 5. (g) Bona fide baggage of persons traveling outside Pakistan. and persons traveling outside Pakistan who may take with them as accompanied baggage. (3) The Federal Government shall issue the aforesaid condonation or authorization on its letter-head consecutively numbered and duly embossed.000) or equivalent per exporter per annum. allow export in relaxation of any prohibition or restriction under this order. (3) Transit and Border Trade shall be allowed under the procedure prescribed therefore relaxation of prohibitions and restrictions.shall not be applicable if the samples are exported in a mutilated form. . (d) export of samples subject to the following conditions. (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.The Ministry of Commerce shall issue export. (f) export of relief goods to any part of the world by the Cabinet Division (Relief Cell). the prescribed conditions have been met.o. The Rawalpindi Chamber of Commerce & Industry 9 . be valid for a period of six months.import or re-export authorization for any item under the special dispensation provision of this Order which shall unless specified otherwise. export cum . Government of Pakistan. (ii) any number of samples subject to the condition that their f.000). Rupees. Export authorization and its validity. or equivalent in Pak. namely:(i) that the export of such goods is not banned. for reasons to be recorded. (iii) the above mentioned monetary limit of US$ 25.(1) The Federal Government may.

Sign up to vote on this title
UsefulNot useful