Circulars/Notifications  

 BPD Circular No.30
September 20, 2003 

All Banks
Dear Sirs/Madam,

Revision in rates of Fine under Export Finance Scheme

            Please refer to the instructions issued from time to time in respect of scales of fines under Export Finance Scheme.  

2.         It has since been decided to revise the scales of fines under the captioned Scheme as per following: -


Nature of Irregularity.

Existing

Rates of Fine

Revised

Rates of Fine

A Part I
i)
Non –Shipment
[ Para 9.1 of Booklet of Instructions -2000] 		Paisa 37 per day per Rs.1000 or part thereof Existing Scale
ii)
Short / Delayed
Shipment
[Para 9.2 of Booklet of Instructions ]
Paisa 37 per day per Rs.1000 or part thereof Paisa 28 per day per Rs.1000 or part thereof
iii)
 Late adjustment of funds by a bank against repayment made to it.
[Para 9.3 of Booklet of Instructions] 		Paisa 60 per day per Rs.1000 or part thereof Paisa 42 per day per Rs.1000 or part thereof
iv)
 Fine for delayed submission of shipping documents by the exporters
[Para 9.5 of Booklet of Instructions] 		Rs.2000 for the default and Rs.100 per day for each day of default Existing Scale
B Part II
 

Short-fall in performance
[Para 28(iii) Booklet of Instructions -1998]

Paisa 37 per 1000 of the short-fall or part thereof Paisa 28 per day per Rs.1000 or part thereof, however, exporters who fail to perform to the extent of, at least 50% of the prescribed level, shall continue to be subject to fine @ Paisa 37 per 1000 of the product of shortfall.
2
 
Nature of Irregularity.

Existing

Rates of Fine

Revised

Rates of Fine

C General
i)
Non –Shipment
[ Para 9.1 of Booklet of Instructions -2000] 		Paisa 37 per day per Rs.1000 or part thereof Existing Scale
ii)
 Short / Delayed
Shipment
[Para 9.2 of Booklet of Instructions ]
Paisa 37 per day per Rs.1000 or part thereof Paisa 28 per day per Rs.1000 or part thereof
iii)
 Late adjustment of funds by a bank against repayment made to it.
[Para 9.3 of Booklet of Instructions] 		Paisa 60 per day per Rs.1000 or part thereof Paisa 42 per day per Rs.1000 or part thereof
iv)
 Fine for delayed submission of shipping documents by the exporters
[Para 9.5 of Booklet of Instructions] 		Rs.2000 for the default and Rs.100 per day for each day of default Existing Scale
B Part II
  Short-fall in performance
[Para 28(iii) Booklet of Instructions -1998] 		Paisa 37 per 1000 of the short-fall or part thereof Paisa 28 per day per Rs.1000 or part thereof, however, exporters who fail to perform to the extent of, at least 50% of the prescribed level, shall continue to be subject to fine @ Paisa 37 per 1000 of the product of shortfall.
i)
 Fine for any other default by the exporter/bank
[Para 9.4 of Booklet of Instructions] 		Paisa 37 per day per Rs.1000 or part thereof Existing Scale, however, depending upon the nature of irregularity by the exporter and / or bank or both, in administering the Scheme, such as misuse of the facilities, utilization of the Scheme on fraudulent and or tempered documents etc, SBP may also consider to place an embargo for a period of one year on the bank  and / or exporter or both for availing financing facilities under EFS.
ii)

Fine for wrong information and incorrect reporting / entry in statement (EF-1, EE-1, ED and Annexure-D) required to be submitted to SBP.

 

[Para 9.6 of Booklet of Instructions]

Rs.100 per wrong entry. Rs.100 per wrong entry.


3.         The revised scale of fines shall be applicable as from 1st July, 2003 for the Export Finance Scheme cases maturing on or after 30th June, 2003 under Part-I and for all those cases of shortfall under Part-II pertaining to the year 2002-03 and onward.

Yours faithfully,
Sd/-
(Qasim Nawaz)
Joint Director

BPD Circulars/ Circular Letters issued in 2002
 

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