All
Authorised Dealers
in Foreign Exchange,
Dear
Sirs,
IRAN’S
CREDIT OF US $ 50 MILLION TO PAKISTAN
Funds
are available under Iran’s Credit of US$ 50 million
for import from Iran of various goods excluding crude oil
by private sector importers registered with the Export Promotion
Bureau (EPB).
2.
National Bank of Pakistan/Habib Bank Limited/ United Bank
Limited/Muslim Commercial Bank Limited and Allied Bank of
Pakistan Limited have been authorized to handle transactions
including opening of letters of credit under this Credit.
3.
The importers are free to make imports under this Credit
on FOB or C&F basis. In case of FOB imports, the shipping
lines/airlines will obviously issue Bills of Landing / Airway
Bills on "Freight to Collect" basis. As and when
freight is required to be paid in Pakistan rupees, the importers
will approach the Authorized Dealer who had opened the letter
of credit alongwith a copy of Bill of Lading/Airway Bill
indicating the amount of freight payable together with freight
invoice issued by the carrier where available for issuance
of a certificate in the format enclosed which will bear
the name/address and the stamp of the issuing Authorized
Dealer. The carriers will accept freight on the basis of
the above certificate and will attach the said certificate
with the application to be made to State Bank of Pakistan
for allowing remittance of surplus freight collections.
4.
The loan funds are available for financing FOB/C&F value
of the goods as also the charges of the bank in Iran handling
letters of credit under this Credit.
5.
The letters of credit to be opened under this Credit should
invariably stipulate that the negotiating bank will claim
reimbursement from the Central Bank of the Islamic Republic
of Iran under Banking Arrangement dated the 27th
July, 1995 between State Bank of Pakistan and the Central
Bank of the Islamic Republic of Iran. All contracts/letters
of credit will be expressed in U.S. Dollar.
6.
The L/C opening bank before opening the letter of credit
will have to seek clearance for the same from the Director,
Accounts Department, State Bank of Pakistan, Central Directorate,
Karachi through respective area office of the State Bank.
After establishment of the L/C a copy thereof will be furnished
by the L/C opening banks to the respective area office of
the State Bank for forwarding the same to the Director,
Accounts Department, State Bank of Pakistan, Central Directorate,
Karachi requesting the latter to approach the Central Bank
of the Islamic Republic of Iran for making funds available
letter of credit.
7.
The allocation under this Credit has been treated as "commodity"
loan. Hence, the L/C-opening bank will be required to deposit
rupee counterpart funds with State Bank of Pakistan within
3 working days of receipt of documents from Iran or within
10 days from the date of negotiation of documents, whichever
happens to be earlier, as per the existing rules. The L/C-opening
bank will make its own arrangement with the importers for
making rupee recoveries at the appropriate time. In the
even of L/C-opening bank’s failure to deposit rupee
counterpart funds with State Bank of Pakistan within the
prescribed time limit, fine will be charged at the rates
given in F.E. Circular
No. 28 of 1994.
Freight
to Collect