CHAPTER XXI
REPATRIATION OF INVISIBLE
EARNINGS OF FOREIGN EXCHANGE
Obligation to repatriate Foreign Exchange.
Information on Foreign Exchange Receipts.
(i)
Indenting Houses/Agents.
(ii)
Tour Operators.
(iii)
Trade Marks/Patent Agents and Attorneys.
1. Obligation to repatriate
Foreign Exchange.
Notification
No.S.R.0.1016(I)/79 dated the 17th October, 1979 (Appendix II-8) issued by the Federal
Government pursuant to Section 9 of the Act requires all citizens of Pakistan and other
persons residing in Pakistan continuously for 6 months or more who become the owner of any
foreign exchange whether held in Pakistan or abroad to sell such foreign exchange to an
Authorised Dealer within three months of the date of acquisition by them of such foreign
exchange. In the case of foreign nationals or foreign business houses, however, the above
provision is applicable only to the extent of their earnings abroad in respect of business
conducted in Pakistan or services rendered while in Pakistan.
2. Information on Foreign
Exchange Receipts.
Indenting Houses/Tour Operators and Trade Marks/Patent
Agents and Attorneys are required to file with the State Bank, the following documents/
information in respect of their foreign exchange earnings:
(i) Indenting
Houses/Agents.
(a) Half yearly statement
of their commission earnings in foreign exchange in the prescribed form (Appendix V-98) as on 30th June and
31st December each year. This statement should reach the State Bank within two months
after each half year.
(b) A copy each of the agency agreement entered into by
them with foreign suppliers.
(ii) Tour Operators.
(a) Half yearly statement
in the prescribed form (Appendix
V-99) showing the amount of foreign exchange received by them on account of services
rendered to foreign tourists. The aforesaid statement should show the position as of 30th
June and 31st December each year and reach the State Bank within two months after each
half year.
(b) A certified copy of each agency agreement entered
into with foreign tour operators and airlines etc. In cases where the business is
undertaken on the basis of special terms and conditions not covered by any agency
agreement, authenticated copies of the relative correspondence on the basis of which the
rates have been finalized, should accompany the above half yearly statement.
(c) Tour Operators who are earning foreign exchange on
account of services rendered to foreign tourists and are reporting such invisible earnings
to the State Bank in the manner prescribed in sub-para (a) above may be allowed to keep
upto 5% of their foreign exchange earnings, for opening of Offices abroad and for foreign
marketing. Those Tour Operators who intend to avail of this facility may approach the
Senior Deputy Director, Investment Division, Exchange Control Department, State Bank of
Pakistan, Central Directorate, Karachi in the matter.
(iii) Trade
Marks/Patent Agents and Attorneys.
(a) Half yearly
statement in the prescribed form (Appendix
V-100) showing the foreign exchange received by them on account of Government fees and
their own professional charges. The statement should show the position as of 30th June and
31st December each year and reach the State Bank within two months after each half year.
(b) A certified copy of the agreement entered into by
them with foreign clients. In case business is undertaken on the basis of special terms
and conditions not covered by any standing agreement authenticated copies of the relative
correspondence exchanged between the foreign client and the Pakistani Patent
Agent/Attorney should accompany the statement.
3. Encashment certificates from Authorised Dealers in
support of foreign exchange received from abroad and shown in the half yearly statement
should invariably be enclosed with the relative statement. |
