A large number of representations have been received from the exporters that as a result of adverse global effects and other abnormal situations with specific reference to Pakistan in the past one year, they have unable to fulfill their export orders as per respective schedule. This has resulted in imposition of fines for violation under both Parts of the Scheme. The request has been considered and it has been decided that in order to facilitate the exporters following relaxations under the Export Finance Scheme has been allowed: -

Relaxation under Part-I

 The exporter, who has availed pre-shipment finance the maturity of which fell on or after  11^th September, 2001  and has shipped the goods with a maximum delay of 21 days from the due date of loan (i.e. after 180 days), shall not be subjected to imposition of fine on account of delayed shipment. In other words there shall be no fine for delayed shipment if qualified shipment(s) is/are made within 201 days from the availment of loan. This relaxation shall be admissible only to the cases matured upto 30^th June 2002.

  Relaxation under Part-II

 An additional period of 21 days has been allowed for the exporters having shortfall in required performance in the monitoring year 2001-02 under Part II. Thus they may include eligible entries showing export proceeds realized upto 21^st July 2002 in their EF 1 Statement for the year 2001-2002. The exporter requiring to avail this relaxation shall have to submit an additional EF –1 Statement duly verified by the Exchange Policy Department through their bankers. Their entitlement of limit may also be worked out on the basis of such entries, if requested by the exporters concerned. The additional EF-I Statement shall be submitted to the respective Office of the Chief Manager, State Bank of Pakistan, SBP BSC (Bank) within one month from verification but not later than 15^th October, 2002.

 2.         The delinquency for non/delayed shipment for the period exceeding 21 days under Part-I and short performance even after including entries of export proceeds realized upto the extended period of 21 days under Part-II by the affected exporters, shall continue to be dealt with in accordance with the procedure prescribed for refund of fine under the Scheme already circulated to banks vide BPD Circular No. 23 dated 31-08-2002.

 3.                  All other instructions on the subject shall remain unchanged.

 Please acknowledge receipt.

Contd……P/2

 - 2 -

 Endt. No BPD/PU-39/936/X/2002- 4591  of date

 Copy forwarded to: -

 1.            The Chief Managers, SBP, BSC (Bank), Karachi/ Hyderabad/ Sukkur/ Bahawalpur/ Multan/ Faisalabad/ Lahore/ Gujranwala / Sialkot/ Rawalpindi/ Islamabad/ Muzaffarabad/Peshawar/D.I.Khan/Quetta. It is advised that fine if already recovered under Part I may be refunded, where admissible, without receipt of formal request from the bank/exporter concerned. However, individual cases where this Department has already accorded /allowed relief for a longer period in either Parts of the Scheme, shall continue to be governed as per the relevant instructions issued by us.

 2.            The Director, Internal Audit Department, State Bank of Pakistan, SBP BSC (Bank), H.O., Karachi.

Junior Joint Director