The Head Offices of all Authorized
Dealers in Foreign Exchange,

Dear Sirs,

EXPORT TO AFGHANISTAN

Attention of Authorised Dealers is invited to Circular letter No. 2/EPP-2/2002 dated the 11th March, 2002 regarding the above subject. In this regard, the SRO 137(1)/2002 dated the 7th March, 2002 issued by Ministry of Commerce in respect of export to Afghanistan was circulated vide our Circular letter No. 3/EPP-2/2002 dated the 12th March, 2002 to all the Authorised Dealers. The afore-mentioned SRO stipulates that only those exports which are made in terms of Pak-rupees are exempt from the requirement of Form ‘E’. Additionally, such exports are also not entitled to:-

i) Zero rating of sales tax.
ii) Rebate of Central excise duty.
iii) Repayment of duty draw back.

2. However, in case convertible currency is involved for export to Afghanistan, the requirement of Form ‘E’ will be applicable as per normal procedure as is applicable for exports to other countries may be followed.

3. Further, cash (foreign currency notes) received in the bank against export to Afghanistan is required to be reported under Summary Statement S-6 (An Abstract of Authorised Dealer’s Ledger Account which consists of transaction in foreign currency notes). As there is no export schedule available under S-6, a new row with the words “Cash Exports (Schedule A-2)” will be added in S-6 which will refer to Schedule A-2(. The same is being introduced (schedules are enclosed) that will remain effective till establishment of a Banking system in Afghanistan.

2. Authorised Dealers are advised to bring the same to notice of the all their constituents.

Appendices ( V-103 , V-105 )