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 dues of the farmers upto the last season and has started crushing at full capacity. Further, the concerned Cane Commissioner shall also certify the quantity (in MT) of surplus sugar available with the concerned sugar mill for export during the current season.
ii. Sugar export contract.
iii. Manual Form-E or print out of EFE request in case of electronically generated Form-E through WeBOC.
iv. Irrevocable L/C or advance payment voucher, swift message and reporting schedule/credit advice, as the case may be.
b. Export will be allowed only from surplus sugar available with the concerned sugar mill during the current season as certified by the concerned Cane Commissioner.
c. SBP will allocate sugar export quota to sugar mills on first come first served basis.
d. 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.
e. All exports including those destined for Afghanistan and Central Asian Republics will also be subject to receipt of export proceeds by wire transfer through banking channel.
f. Exporter must ship the sugar within 45 days from the date of SBP approval regarding quota allocation or by March 31, 2017, whichever comes earlier.
g. There will be no export rebate/ cash support on incidental and freight for the export.
h. In case of non-performance within the stipulated time against the quota allocated by SBP, ADs will:
i. recover a penalty of 15% of total contract value from the exporter and deposit the same with the Exchange Policy Department, State Bank of Pakistan, Karachi through DD/ PO in favor of Government of Pakistan.
ii. obtain prior permission from SBP for return of advance payment received there against from the importer.
i. 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].
3. Incomplete requests shall not be considered.
4. Authorized Dealers are advised to bring the same to the notice of all their constituents.