Attention of Authorized Dealers is invited to EPD Circular Letter No. 11 dated December 15, 2014 on the above subject.
Authorized Dealers (ADs) may find enclosed Ministry of Commerce’s Office Memorandum No. 7(2)/2012-E.III dated January 2, 2015 on the captioned subject in terms of which Government of Pakistan, in supersession of its earlier decision, has allowed sugar mills to export 650,000 MT sugar as per the terms and conditions mentioned therein.
2. Accordingly, ADs are advised to process the export of sugar cases as per following mechanism:
a. ADs will forward the requests of Sugar Mills through their respective Departmental /Business/Group Heads to the Director, Exchange Policy Department, State Bank of Pakistan, Karachi for approval quoting the reference of this circular letter along with the attested / authenticated copies of the following documents:
i. Clearance issued by the concerned Cane Commissioner to the effect that concerned sugar mill has cleared outstanding arrears of the growers
ii. Sugar export contract
iii. E-Form
iv. Irrevocable L/C or advance payment voucher, swift message and reporting schedule/credit advice, as the case may be.
b. SBP will allow permission against each E-Form on first come first served basis.
c. ADs will ensure receipt of a minimum 15% of total contract value as advance payment (evidenced by advance payment voucher, swift message and reporting schedule/credit advice) or obtain an irrevocable L/C from the buyer.
d. Exporter must ship the sugar within 45 days from the date of SBP approval or by May 15, 2015, whichever comes earlier.
e. ADs shall ensure to forfeit 15% advance payment in favour of Government of Pakistan in case of non-performance within the stipulated time.
f. ADs will submit sugar export shipment update to the Director, Exchange Policy Department, State Bank of Pakistan, Karachi on weekly basis as per the enclosed reporting format at [email protected] failing which SBP will initiate action under related rules and regulations.
3. Incomplete requests shall not be considered.
4. Authorized Dealers are advised to bring the same to the notice of all their constituents.
Encl: As above