Circulars/Notifications - Exchange Policy Department  
 EPD Circular Letter No. 05 of 2017

February 20, 2017



The Presidents/Chief Executives of all
Authorized Dealers in Foreign Exchange

Dear Sirs/Madam,

Export of Urea

Authorized Dealers (ADs) may find enclosed Ministry of Commerce’s Office Memorandum No. 6(1)/2015-Exp.III dated January 27, 2017 regarding the above subject in terms of which Government of Pakistan has allowed urea manufactures to export 0.3 million tons of urea as per the terms and conditions mentioned therein.

2.   Accordingly, ADs are advised to process the export of urea cases as per following mechanism:

a. ADs will forward the requests of urea manufactures on prescribed format (Annexure-I) through their respective Departmental/ Business/Group Heads to the Director, Foreign Exchange Operations Department (FEOD), SBP-Banking Services Corporation (BSC), Head Office, Karachi for approval quoting the reference of this circular letter along with the attested / authenticated copies of the following documents:

i.   Urea export contract.
ii.   Manual Form-E or print out of EFE request in case of electronically generated Form-E through WeBOC.
iii.   Irrevocable L/C or advance payment voucher, swift message and reporting schedule/credit advice, as the case may be.

b.   FEOD, SBP-BSC will allocate urea export quota to urea manufacturers 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.   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.

e.   Exporters must ship the urea within 45 days from the date of FEOD’s approval regarding quota allocation or by April 28, 2017, whichever comes earlier.

f.   There will be no export subsidy on export of urea.

g.   In case of non-performance within the stipulated time against the quota allocated by SBP-BSC, the ADs will:

i.   Recover a penalty of 15% of total contract value from the exporter and deposit the same with the FEOD, SBP-BSC, Head Office, Karachi through DD/ PO in favor of Government of Pakistan. In case of partial shipment, the penalty shall be recovered by the AD proportionately.

ii.   Obtain prior permission from FEOD, SBP-BSC for return of advance payment received there against from the importer.

h.   Format of application by the urea manufacturers (Annexure-I) and the undertaking by AD (Annexure-II) are enclosed.

i.   ADs will submit urea export shipment update to the Director, FEOD, SBP-BSC, Head Office, Karachi on weekly basis as per the enclosed reporting format (Annexure-III) 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.

Encl: As above


Yours truly,

Sd/-
(Moinuddin)
Additional Director


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