The Head/ Principal Offices of all
Authorized Dealers in Foreign Exchange
Dear
Sir/Madam
6%
RESEARCH AND DEVELOPMENT SUPPORT
TO THE GARMENTS INDUSTRY
The Government of Pakistan has decided to provide Research
and Development Support to the Textile Garments Units manufacturing
and exporting textile garments at the rate of 6% of the
FOB value of the exports to EU and USA, subject to the terms
and conditions mentioned in the Ministry of Commerce’s
SRO No. 437 (I)/2005 dated May 18, 2005, as amended vide
Ministry of Commerce’s SRO No. 611 (I)/2005 dated
June 15, 2005. The said support is applicable to the shipments
made on or after 12th April, 2005. The list of eligible
items is as given under Chapter 61 and 62 of the Pakistan
Customs Tariff.
2.
The R&D support shall be provided subject to the conditions
that the exporting unit shall be a member of any of the
associations registered with the Director, Trade Organization
(DTO), Ministry of Commerce, namely; PRGMEA (Pakistan Readymade
Garments Manufacturers & Exporters Association), PHMA
(Pakistan Hosiery Manufacturers Association), PAKSEA (Pakistan
Knitwear & Sweater Exporters Association) and PCFAMEA
(Pakistan Cotton Fashion Apparel Manufacturers & Exporters
Association). Exporting Units shall spend the amount received
as R&D Support on the following activities:
The expenditures incurred on these activities shall also
be reflected in the annual accounts and balance sheets of
the exporting units.
3.
Payment of “Research and Development Support”
will be made as per the following procedure:
i)
Exporters will lodge their claims of R&D Support with
Field Offices of SBP-Banking Services Corporation through
their Authorized Dealers on the prescribed form (Annexure-I
& II), duly supported by the documents as mentioned
therein within 30 days of the date of realization of Export
proceeds. Time barred claims shall not be entertained. However,
in the case of exports against irrevocable L/Cs, Authorized
Dealers can submit applications for R&D Support along
with a certificate from the respective Authorized Dealers
to the effect that export documents have been negotiated
under an irrevocable L/C and that the proceeds will be realized
and credited to the bank’s Nostro A/c in due course.
In the event of non-realization or short realization of
export proceeds, the Authorized Dealer, who had issued the
above mentioned certificate, will promptly arrange refund
of the full or proportionate amount of R&D Support along
with penal interest within 07 days of such non-realization,
failing which SBP will debit the Account of the Authorized
Dealer.
ii)
Before submitting the claims, the Authorized Dealers will
scrutinize the application carefully and submit the same
under their certification to the Field Offices of SBP-Banking
Services Corporation. Such applications will be received
by the Field Offices upto 11:00 A.M on all working days.
iii) Payment of the admissible R&D Support claim, as
approved by the Field Office of SBP-Banking Services Corporation,
shall be made within 3 working days of receipt of claim,
by credit of the amount to the account of the Authorized
Dealer concerned. Authorized Dealers will pay the amount
of the R&D Support to the exporters within 24 hours
of receipt of Credit in their account.
iv) In order to avoid delay or rejection of the R&D
Support claim, the Authorized Dealers, at the time of certification
of the E-Form, shall ensure that the description of the
commodity is properly mentioned in the Form “E"
and the invoices, in accordance with the nomenclature given
under Chapter 61 and 62 of the Pakistan Customs Tariff.
v)
Authorized Dealers, while forwarding applications for payment
of R&D Support shall affix prominently a Rubber Stamp
at the top of the Triplicate copy of the relative “E”
Form with the following narration:
“Application for Research and Development Support
of Rs.___________ submitted to Field Office, SBP-Banking
Services Corporation, vide Forwarding Schedule No.________
dated __________ at Serial No.___________.
vi)
Applications containing discrepancies shall be returned
to the Authorized Dealers within two (2) working days between
2:30 P.M to 3:30 P.M for re-submission after rectification
within the period as indicated in para (i) above. While
re-submitting the applications, Authorized Dealers will
quote the reference of the “Forwarding Schedule”
under which the application was originally submitted.
vii)
No remittance on account of foreign importers’ subsequent
claims for quality or quantity etc. shall be considered,
unless a proportional amount of R&D Support is refunded.
viii)
In case of exports against Advance Payments, claim for R&D
Support may be lodged once related goods have been shipped.
ix)
Applications for R&D Support relating to zero period
i.e. for the shipments made between April 12, 2005 and the
date of issuance of this Circular will also be submitted
by the Authorized Dealers as per the above procedure. Such
cases may be applied/submitted within one month of the date
of issuance of this circular. However, in such cases requirement
of Custom’s endorsement with specific reference of
R&D Support will not be applicable.