The Presidents/ CEOs,
All
Banks,
Dear
Sirs,
Refinance
Facility under Export Finance Scheme
for Consultancy Services- Provision of Part-II facilities
Please
refer to BSD Circular No.41 dated 30th October
2001 containing therein procedure for provisions of financing
facility against Consultancy Services for specified sectors,
under Part I of the captioned Scheme.
2. It has been decided
that the exporters of the consultancy services in respect
of the sectors already specified in our Circular referred
to above, shall henceforth be eligible to avail facilities
under Part-II of the Export Finance Scheme subject to following
conditions: -
i) The
exporters of services and / or consultancies shall be entitled
to have financing facility under Part II of the Scheme as
from the financial year 2003-04 on the basis of the export
proceeds realized by them from exports of consultancy services
for the specified sector. Thus, entitlement of part-II limit
for an exporter involved in consultancy services, shall
be fixed on the basis of the export proceeds realized by
it against services provided in the same sector during the
preceding year. The amount of limit shall however be fixed
at 50% of the proceeds realized during the preceding year,
for which exporter would fill in the Form EE (Services Sector)
as per specimen attached which shall be verified (in triplicate)
by Verification Unit of the concerned Exchange Policy Department
of the SBP BSC (Bank) in line with instructions / procedure
specified in the Export Finance Scheme.
ii) As
per instructions contained in paras 2 & 5 of our circular
referred to above, the exporter would be required to include
only those export proceeds in form EE (Services Sector)
which have been reported by them on monthly basis. After
verification of the entries on Form EE, the bank concerned
shall retain Original copy of Form EE, fix the limit in
favour of the exporter and shall be eligible to provide
finance to the exporter. The financing bank shall be entitled
to avail refinance on submission of following documents
to the Refinance Zone of the concerned office of SBP BSC
(Bank) :-
a)
Undertaking as per format on Annexure – D (For Service)
b)
D.P. Note as per format in vogue.
c) Form
EE (Services Sector) one verified copy marked as “duplicate”.
3. The exporter availing
the facility under Part II of the Scheme shall be required
to repatriate proceeds from the export of services and /
or consultancies from the same sector equal to two times
of the finance availed and shall be under obligation to
submit performance report on Form EF (Services Sector) as
per specimen attached by including the proceeds realized
and earlier reported on monthly basis to their banker /SBP
BSC (Bank) in terms of Para 2
& 5 of BSD Circular No.41 dated 30th
October, 2001. The entries in respect of export proceeds
which have been utilized for reporting performance under
Part I of the Scheme shall not be included / reported in
EF (Service Sectors) to avoid duplicate financing.
The exporter / bank shall be required to prepare
and submit the said form in triplicate to the concerned
Exchange Policy Department, SBP BSC (Bank) for verification
of the entries reported therein latest by 31 August following
the monitoring year (July-June basis) to which it relates.
4.
The failure of the exporters to meet performance
requirements under the Scheme shall continue to be subjected
to fine in accordance with the provisions already specified
in the cases of delinquency under Part-II of the Export
Finance Scheme. Likewise,
other instructions concerning Part-II of the Export Finance
Scheme shall also be applicable to govern the grant of facilities
under Part-II to the exporters of the Services and Consultancy.
5.
Other terms and conditions of the Scheme shall apply
as applicable.
Please
acknowledge receipt.
Annexures