Attention of the Authorized Dealers (ADs) is invited to FE Circular No. 03 dated July 01, 2016 in terms of which ADs were allowed to make remittances in foreign exchange on behalf of Hajj Group Organizers (HGOs) to vendors/service providers in Saudi Arabia subject to terms and conditions mentioned therein.
2) In order to facilitate the HGOs to make arrangements of Maktab, housing, catering, transportation, guides, etc. in Saudi Arabia, it has been decided to allow the ADs to make advance remittances on behalf of HGOs upto 30% of the Hajj Package being offered by them to the individual pilgrims. The remittances will be made on submission of following information/ documents by the respective HGOs:
(i) Authenticated underlying contract with Saudi vendor/service provider.
(ii) Details of Hajj Package bifurcating projected local and foreign expenses per pilgrim.
(iii) Quota Allocation letter by Ministry of Religious Affairs & Interfaith Harmony for previous Hajj season.
(iv) Undertaking from concerned HGO for repatriation of funds in case of non-performance.
(v) Invoice(s) issued by Saudi vendors/service providers in favor of which advance remittance is being made. However, in case final invoices are not available with the HGOs at the time of remittance, the ADs will ensure receipt of related invoices subsequently.
3) While processing advance remittance request, the AD will take all possible measures to verify the bonafides and genuineness of the transaction. In case of non performance of contract for any reason, the AD and HGO will ensure repatriation of advance payment before completion of respective Hajj season.
4) In the case of repatriation of advance payment, exchange gain, if any, will not be passed on to the HGO, rather the same will be deposited in favor of State Bank of Pakistan through Demand Draft/Payment Order with the Director, Foreign Exchange Operations Department, SBP-Banking Services Corporation, Head Office, Karachi along with calculation/working sheet. To this effect, the AD should get consent/agreement signed by the concerned HGO at the time of effecting remittance.
5) All other terms and conditions of the above referred FE circular shall remain unchanged.
6) ADs are advised to bring the above to the notice of all their constituents and ensure meticulous compliance.