FE Circular No. 11 of 2017
The Presidents/Chief Executives of all
Authorized Dealers in Foreign Exchange
Revision of Instructions regarding Making and Dispatch of Shipping Documents by the Exporters
Attention of Authorized Dealers is invited to Para 11 & 19, Chapter 12 of Foreign Exchange Manual-2017 which sets out instructions regarding making and dispatch of shipping documents related to export consignments.
In the wake of successful implementation of Electronic Form-E (EFE) module in WeBOC and to facilitate exporters, it has been decided to allow exporters to directly dispatch shipping documents to the consignees or their agents in the country of final destination in case of exports other than against L/C or advance payment.
Accordingly, the following new paragraph 11A has been inserted after paragraph 11 of Chapter 12 of Foreign Exchange Manual-2017:
Para 11A – Making and Dispatch of Shipping Documents by the Exporters
As an exception to the instructions contained in Para 11, Authorized Dealers (ADs) may allow making of shipping documents in the name of the foreign importers and dispatch of the same by the exporters to the foreign consignees or their agents in the country of final destination by issuing a certificate as per Appendix V-12A to the carriers (ships, airlines, trucks, railways etc.) subject to the following terms and conditions:
- The value of export consignment must not exceed USD 100,000 or equivalent in other currencies.
- The export overdues of an exporter should not be more than 5% of the previous year’s exports.
- The total outstanding/unrealized exports allowed by the AD through this facility shall not exceed 25% exports of the preceding year.
- This facility shall be extended only to those exporters who have export performance of at least 3 years with a minimum total export realization equivalent to USD 1.00 million. To this end, the AD may accept certificates of other ADs showing export performance of the exporter through them.
- The AD shall obtain an undertaking from the exporter that export proceeds against such exports will be realized as per the prescribed time period. Further, the AD, at its discretion, may obtain the personal guarantees of the Directors/Sponsors of the firm/company to ensure realization of export proceeds against such shipments.
- Before certification of Form-E/EFE, the AD shall obtain a valid contract/proforma invoice and satisfy itself about the bonafides of the importers/consignees abroad. Further, the AD shall also obtain copies of shipping documents (electronically or manually) within 5 working days of the shipment.
- The AD shall monitor the shipment(s) made by the exporter and ensure realization of export proceeds thereagainst within the prescribed time. In case of non-realization within the prescribed period, the matter shall be reported to the Foreign Exchange Operations Department, SBP-BSC as per applicable instructions.
- In case of unsatisfactory behavior of the exporter or export overdues exceeding the prescribed limit, as mentioned at (ii) above, the AD shall discontinue extending the above facility to the exporter.
All other terms, conditions and instructions on the matter shall remain unchanged.
Authorized Dealers are advised to bring the above instructions to the knowledge of all their constituents for meticulous compliance.
Encl: Appendix V-12A
Back to Circular Page