The Head offices of
All Authorized Dealers
in Foreign Exchange.

Dear Sirs,

ADVANCE REMITTANCES – IMPORTS

Attention of Authorized Dealers is invited to sub para (i) of para 30 of Foreign Exchange Manual (Eighth Edition) 2002 in terms of which, in special cases, with prior permission of State Bank of Pakistan, advance remittances may be allowed upto 33 1/3% of the estimated C & F value of the total quantity of the goods to be imported

2 With a view to further liberalize this facility, it has been decided that henceforth Authorized Dealers may themselves approve such requests of Advance remittance upto the extent of 50% of the estimated C&F value of the total quantity of the goods to be imported. However, Authorized Dealers will report this transaction post fact, on Form “I” alongwith (App.V-29) duly signed by the Importer, to the SBP with their monthly return.

3. In this connection, para 30 sub para (i) of Chapter XIII of Foreign Exchange Manual (Eighth Edition) 2002 may be recasted as under:

“Authorized Dealers may consider applications for advance remittance against imports upto the extent of 50% of the estimated C & F value of the total quantity of the goods to be imported. Applications for such advance remittance should be made to Authorized Dealer on Form “I” and should be accompanied by the original contract entered into between the importer and the foreign manufacturer or supplier. The applications should also be supported by an undertaking in the prescribed form (Appendix V-29) duly signed by the importer.”

4. Appendix V-29 duly amended is enclosed

5. Authorized Dealers are advised to bring the same to the notice of all their constituents.

Encl. (1)