The Head/ Principal Offices of all
Authorized Dealers in Foreign Exchange
Dear
Sirs/Madam
Advance
Payments Against Imports
Attention of Authorized Dealers is invited to the provisions
of FE Circular No. 16 dated November 1, 2004 as subsequently
amended vide EPD Circular Letter No.13/Policy-2004 dated
November 10, 2004. In order to address the genuine needs
of the manufacturing/industrial sector, it has been decided
to allow advance payment upto the amount of US$ 10,000/-
or equivalent thereof in other currencies per invoice, against
intended imports of spare parts/consumables by manufacturing
and industrial users for their own use without the requirement
of a Letter of Credit or bank guarantee from the supplier.
Authorized Dealers may, therefore, process such requests
at their end while ensuring the bona-fides of the underlying
import transactions and ensuring that related shipping documents
are submitted to them by the importers within four months
of the advance payments.
The
Authorized Dealers will pursue the matter with the importers
and report those cases to the area offices of Foreign Exchange
Operations Department, SBP-Banking Services Corporation,
where the requisite documents are not produced within the
prescribed time limit.
Please
bring the above to the notice of your constituents.