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
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
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)
3. Incomplete requests shall not be considered.
4. Authorized Dealers are advised to bring the same to the notice of all
Encl: As above