exempted from Foreign Exchange Regulations.
prescribed for declaring Exports.
and Period of Payment.
Retention Period of Export Proceeds.
of Export Forms by Authorised Dealers.
by Country Craft, Motor Launch or Truck.
and Distribution of Export Forms.
Making out and Delivery of Shipping Documents.
of Shipping Documents by Authorised Dealers.
Utility of the Copies of Form 'E'.
of Export Documents to Authorised Dealers.
Scrutiny of Documents.
Exports subject to receipt of Advance Payments
on Irrevocable Letters of Credit.
Special Requirements for Export of Wool and
other Commodities subject to Grading Scheme.
Part Drawings and Advance Remittances.
Shipment Lost or Damaged in Transit.
Advance Remittances Against Exports.
Exports Against Payments Tendered by Buyers
on DA/TR basis- Non-payment by Foreign Buyers.
Export Proceeds Realisation Certificate.
28. Issue of Duplicate Export Proceeds
Payment of Freight in Rupees.
Reporting of Overdue cases.
Export of Jewellery/Precious or Semi-precious
of Export Commission, Brokerage and Discount.
Export of Services.
Retention of a part of incremental export
Private Commodity Exchange Arrangement with
Internet Merchant Accounts.
Government of Pakistan have, by their Notification Nos.I(6)-ECS/48
and I(7)ECS/48 both dated the 1st July, 1948 issued in pursuance
of Section 12 of the Act, prohibited the export by post and otherwise
than by post, of any goods either directly or indirectly, to any
place outside Pakistan, unless a declaration is furnished by the
exporter to the Collector of Customs or to such other person as
the State Bank may specify in this behalf that foreign exchange
representing the full export value of the goods has been or will
be disposed of in a manner and within a period specified by the
State Bank. This chapter deals with the regulations governing
exports from Pakistan.
Exports exempted from foreign Exchange Regulations.
prohibition mentioned above does not apply to exports to Afghanistan,
exports to Iran by land route under special arrangement and to
the export of:
trade samples of articles exported as such by an exporter registered
under the Registration (Importers and Exporters) Order, 1993 as
amended from time to time, or who has been exempted from registration
thereunder provided the FOB value of samples supplied free of
charge does not exceed the limit notified by the Ministry of Commerce
from time to time. Leather garment manufacturers are entitled
to export 50 (fifty) samples in a calendar year irrespective of
effects whether accompanied or unaccompanied of travellers,
ship stores and transshipment cargo,
under the orders of the Government of Pakistan or of such officers
as may be appointed by the Government of Pakistan in this behalf
or of the Military, Naval or Air Force authorities in Pakistan
for Military, Naval or Air Force requirements. In the case of
export by post, a certificate signed by a Gazetted Officer or
by any person entitled to use service postage stamps should be
pasted on the outer cover of the parcel to the above effect,
parcels where they are accompanied by a declaration by
the sender that the contents of the
parcel are of a value not exceeding the ceiling notified
by the Ministry of Commerce for gift parcels and that the dispatch
of the parcel does not involve any transaction in foreign exchange,
where the packet is covered by a certificate issued by
the State Bank to the effect that the export of the parcel does
not involve any transaction in foreign exchange.
authorities will not allow exports without declaration on the
export forms except in the cases listed above.
3. Export Control Regulations.
policies regarding exports cover all goods exported from Pakistan
irrespective of whether they are subject to licence under the
Export Trade Control Regulations or not. Similarly, nothing in
the Exchange policies relieves the exporters from the necessity
of complying with the Export Trade Control Regulations as laid
down by the Government from time to time, including the necessity
of obtaining an export licence wherever necessary. The Government
of Pakistan has under the Export Trade Control Regulations banned
exports to Israel.
the Registration (Importers and Exporters) Order, 1993, as amended
from time to time, no person can export any goods from Pakistan
unless he is duly registered as an exporter with the Export Promotion
Bureau. Authorised Dealers should, therefore, ensure before certifying
any export form 'E' as required in para 8 ibid that the person
is so registered. The registration number should be quoted on
the relative export forms.
5. Forms Prescribed for declaring
required under the Federal Government Notification Nos.I(6)-ECS/48
and I(7)ECS/48 both dated the 1st July, 1948 the exporters are
required to declare their exports to the Customs/Postal authorities
in form 'E' (Appendix V-11).
6. Method and period of Payment.
Full export value of goods exported from Pakistan and declared
to the Custom authorities should be received in an approved manner,
as embodied in State Bank's Notification No. F.E. 3/2001-SB dated
the 28th September, 2001 on the due date for payment
or within six months from the date of shipment/posting, whichever
is earlier, or within a period as may be prescribed by the State
Bank through specific or general instruction, through an Authorised
Dealer either in convertible foreign currency in which the Authorized
Dealer maintains accounts or in U.S. Dollar or in Pakistan rupee
from a non-resident bank account. However, where the terms of
sale/irrevocable letter of credit provide for payment on 180 days’
usance/270 days' usance in the case of Hand Knotted Carpets, from
the date of shipment/posting, it shall be permissible for the
exporter to repatriate the export proceeds within 195/285 days
from the date of shipment/posting. Similarly, in the case of exports
to South American countries Authorised Dealers may certify Form
‘E’ if the letter of credit provides for payment on 270 days sight/usance
from the date of shipment and the export proceeds may be repatriated
within 285 days from the date of shipment. Prior approval of the
State Bank should be obtained before arranging for payment in
any manner other than that indicated above.
(ii) As an exception to the above,
payment for goods exported to countries other than those with
which Pakistan has special payment arrangements e.g. Asian Clearing
Union member countries etc., may also be accepted from foreign
currency accounts maintained with banks in Pakistan including
an account maintained by the exporter himself. The transaction
shall be reported first on Schedule E-4 as payment to the account
holder and simultaneously on Schedule A-1/A-2 as purchase on account
of export proceeds.
Where the terms of sale provide for payment earlier than
six months, Authorised Dealers may allow extension in the realisation
period if they are satisfied with the explanation given for delay
in realisation, provided such extension does not extend the period
beyond six months from the date of shipment.
Retention period of Export Proceeds.
is permissible for exporters to retain the export proceeds including
‘Advance Payments’ in foreign currency with an Authorised Dealer
in Pakistan for three working days and to sell the same within
this period to any Authorised Dealer. The foreign currency so
retained shall be kept by the Authorised Dealers in ‘ Special
Exporters’ Account’ outside their
Certification of Export Forms by Authorised Dealers.
Before the export forms are lodged by the exporters with
the Customs/Postal authorities all the copies thereof are required
to be certified as under by the Authorised Dealers:-
Certified that the above exporter(s) is/are known to us,
that he/they is/are bonafide businessman/businessmen in Pakistan
and that he/they has/have made arrangements with us for the realisation
of the export proceeds, of the goods declared on this form on
the due date for payment or within six months from the date of
shipment/posting, whichever is earlier, in accordance with the
State Bank’s Notification No. FE. 3/2001-SB dated the 28th
September, 2001 and that we are satisfied with said arrangements.
We have also satisfied ourselves about the bonafides of the importers/consignees
abroad and their credentials etc.
We undertake to ensure that export proceeds against shipment
on firm contract shall be received by us on the due date for payment
or within six months from the date of shipment/posting, whichever
is earlier, in accordance with the State Bank’s Notification No.
FE 3/2001-SB dated the 28th September, 2001. In the
event of non-compliance due to reasons beyond our control we shall
furnish to the State Bank of Pakistan a full explanation as to
the reasons and circumstances resulting in our inability to comply.
We undertake that in the event of non-realisation of export
proceeds against shipment on consignment sale within the stipulated
period of six months, we shall obtain from the exporter(s) and
furnish to the State Bank of Pakistan a full explanation as to
the circumstances resulting in non-realisation. We further undertake
that in the event of short realisation, we shall obtain from the
exporter(s) and furnish to the State Bank of Pakistan a fully
documented account sale certified by the consignees/Chamber of
Commerce of the country of import.
Authorised Dealers shall not certify any export form unless
they have satisfied themselves with regard to the following:
Arrangements have been made for realisation of export proceeds
of the goods covered by the relative export forms.
Bonafides of the importers/consignees abroad and their
credentials have been verified. Wherever necessary they should
make discreet enquiries through their foreign correspondents.
In case of shipments against T.R. (Trust Receipts) or D.A. (Documents
against Acceptance) greater care should be exercised by the Authorised
Dealers in certifying the relative export forms. Where Authorised
Dealers doubt the bonafides or standing of the importers/consignees
or where they suspect collusion with the intent to evade or delay
repatriation of full export proceeds, they should report such
cases promptly to the State Bank.
Arrangements have been made for receipt of documents of
title to goods like Railway Receipt, Bill of Lading, Airway Bill
and Truck Receipt.
Genuineness of the charter party where shipment is to be
made against a charter party Bill of Lading has been verified.
Discreet enquiries should be made about the carrier and the importers
as indicated in sub-paragraph (b) above to safeguard against any
loss of cargo or foreign exchange in such cases.
The export form has been signed by the exporter or his
authorised agent. The signatory should disclose his status/capacity
in the concerned firm/company etc., i.e. Director/Partner/Proprietor/Manager
etc. In case the form is signed by the agent of the exporter,
it should be ensured by the Authorised Dealers that he holds a
valid legal power of attorney from the exporter & the terms
of the power of attorney are such that the exporter as well as
the attorney can be held responsible severally and jointly for
the repatriation of the export proceeds to Pakistan.
Letter of credit for export to Asian Clearing Union member
country has been received under the ACU Arrangement, unless the
export is covered by a loan/credit extended to the importing country
by International Agencies like IBRD/Asian Development Bank etc.,
in which case letters of credit will be established envisaging
payment in convertible currencies outside the Asian Clearing Union
In the case of re-export of imported goods, the conditions
laid down by the Ministry of Commerce through the existing export
policy have been complied with.
Export by Country Craft, Motor Launch or Truck.
Dealers can also advise letters of credit or confirm arrangements
and certify export forms for exports by means of country-craft
or motor-launch or truck subject to normal procedure followed
in case of exports.
Printing and Distribution of Export Forms.
Offices of Authorised Dealers are required to maintain a complete
record of all export forms printed by them and of their distribution
to their branches and customers. For this purpose, they should
maintain a Stock Register which should show branch-wise distribution
of the export forms. It is the responsibility of the Head/Principal
Offices to keep their branches adequately stocked with the export
Maintenance of Party-wise Record of Certified Export Forms.
Dealers should maintain another register for recording therein
the particulars of export forms issued and certified by them in
respect of each exporter. In this register they should record
against each form the date of submission of the export documents
in cases where shipments have been made, or of the surrender of
complete set of export forms in cases where goods have not at
all been entered for shipment or of submission of complete “shut-out
notice” in cases where the goods have been entered for shipment
but have been shut-out. Against each export form, the Authorised
Dealers should also indicate the date of realisation of the export
proceeds wherever the documents are negotiated or collected through
them. In cases where none of the above documents are received
by them within the period of 21 days from the date of certification
on the relative export forms, the Authorised Dealers should immediately
get in touch with the exporter concerned to ascertain whether
or not the shipment has been effected. If the Authorised Dealer
is satisfied that the exporter has not yet been able to ship the
goods against the certified export form, it should make a suitable
notation against the entry in the register of the relevant certified
export form and follow it up till the documents referred to above
are submitted to it. All other cases where the exporters do not
respond to the notices of the Authorised Dealers should be reported
to the State Bank on monthly basis in the prescribed form (Appendix
11. Making out and Delivery of Shipping Documents.
exercise of the powers vested in it under Section 20(3) of the
Act, all carriers whether common or private (railway, steamship,
motor trucking or airline companies) and their agents have been
directed by the State Bank as under:
(a) In respect of export of goods from Pakistan to foreign
countries by land route or by sea, the Railway Receipts, Bills
of Lading, Truck Receipts or any other documents of title to cargo
should be drawn only to the order of an Authorised Dealer designated
for the purpose by the exporter. This restriction will not apply
if the exporter produces a certificate to the carrier from the
Authorised Dealer concerned in the prescribed form (Appendix V-13).
The certificate will be issued by the Authorised Dealer only if
the shipment is being made against an advance payment or against
an irrevocable Letter of Credit which calls for drawing of documents
of title to cargo to the order of the opening bank, or the importer,
or the exporter or to order and blank endorsed. In all cases the
railway receipt, bill of lading and other documents of title to
cargo should be delivered by the carriers to the authorised representative
of the Authorised Dealer concerned holding authority letter for
collecting these documents.
A Seaway bill may be accepted by the Authorised Dealers if the
export is being made against receipt of advance payment or against
an irrevocable letter of credit opened/confirmed by a reputable
bank abroad, envisaging payment on the basis of seaway bill.
In respect of export of goods to foreign countries by air,
the airway bills and any other documents of title to cargo should
be drawn to the order of a bank in the country of import nominated
by the Authorised Dealer designated for this purpose by the exporter.
However, in the case of export of goods against advance payment
or against irrevocable letter of credit which contains a condition
that the airway bill and other documents should be drawn to the
order of the importer abroad, the airway bill and other documents
of title to cargo may be drawn to the order of the importer abroad,
provided the exporter produces to the carriers a certificate to
this effect from the Authorised Dealer concerned in the prescribed
form (Appendix V-13). In all cases the airway bill and other documents
of title to cargo will be delivered by the carriers to the authorised
representative of the Authorised Dealer concerned holding authority
letter for collecting these documents.
The directions contained in sub-paragraphs (i) and (ii) do not
apply to the following cases:
Bonafide trade samples provided the F.O.B. value of each
supplied free of charge does not exceed the limit prescribed by
the Ministry of Commerce.
Personal effects, whether accompanied or unaccompanied,
Ship stores and transshipment cargo.
Goods shipped under the orders of Federal Government or
of such officers as may be appointed by the Federal Government
in this behalf or by Military, Naval or Air Force authorities
in Pakistan for Military, Naval or Air Force requirements.
Exports covered by exemption certificates issued by the
fresh fish, vegetables, fruits, poultry and other goods of perishable
In case where irrevocable Letter of Credit contains a condition
that documents shall accompany a certificate from the beneficiary
stating that one original (1/3rd or 2/3rd) Bill of Lading or Airway
bill has been dispatched to the buyer/consignee, Authorised Dealers
may allow dispatch of original 1/3rd or 2/3rd Bill of Lading or
Airway Bill to the party named in the letter of credit only after
the documents have been presented for negotiation under the letter
Export of Software.
The following procedure will be adopted for the export
of computer software and realisation of the proceeds of such exports:
The Software houses/companies will get themselves registered
with the concerned area office of the Exchange Policy Department.
Whenever an exporter concludes an agreement for the export
of software, he will submit a copy of the same to the area office
Each exporter will submit a monthly statement of his exports/earnings
in the prescribed form (Appendix V-14) alongwith the Export Proceeds
Realisation Certificates issued by the Authorised Dealer through
which the value of exported software is repatriated to Pakistan.
It is permissible for exporters of software to retain amounts
upto 35% of their export earnings in Special Exporters Foreign
Currency accounts opened with the Authorised Dealers exclusively
for payment of commission/discount to the overseas agents/buyers
and to use the same to meet other expenses such as promotional
publicity, import of Hardware/Software, foreign consultant’s fee
13. Exports to Afghanistan.
As stated in paragraph 2 ibid, exports to Afghanistan are
not required to be declared on form ‘E’. In the case of any foreign
exchange becoming due to an exporter against such exports, he
is required to repatriate the same to Pakistan and sell it to
an Authorised Dealer against payment in Pakistan currency.
Exports to the Central Asian Republics via Afghanistan
by land route would, however, be subject to declaration on form
14. Endorsement of
Shipping Documents by Authorised Dealers.
Authorised Dealers to whose order the relative railway receipts,
bills of lading etc., are drawn shall endorse the same to the
order of their foreign correspondent but in no case shall they
make any blank endorsement thereon or endorse them to the order
of the consignor unless they have obtained specific or general
approval of the State Bank. However, in the case of exports through
third country intermediary i.e. under merchanting arrangements,
it will be in order for Authorised Dealers to make blank endorsement
where advance payment has been received or where documents are
negotiated under letters of credit which call for such blank endorsement.
15. Functional Utility
of the Copies of Form ‘E’.
exports from Pakistan which are subject to Foreign Exchange regulations
are required to be declared on Form
'E' which is in sets of four copies each. The exporter
should submit the full set of Form
'E' to the Authorised Dealer for certification as described
in paragraph 8 (i) ibid only after it has been completed and signed
by the exporter himself or his
authorised agent. While certifying Form
'E', Authorised Dealers should ensure that exporters
give only one address in Form
'E'. After the form is certified by the Authorised
Dealer, it should be submitted to the Customs/Postal authorities
at the time of shipment alongwith the shipping bill. The Customs
authorities will detach the original copy and after filling in
the portion relating to them and affixing their seal and signature
thereon forward it to the State Bank. The Customs authorities
will return the duplicate, triplicate and quadruplicate copies
to the exporter or his authorised agent who will retain the quadruplicate
for his own record and submit the duplicate and triplicate copies
to the Authorised Dealer alongwith the shipping documents within
14 days from the date of shipment. The Authorised Dealer will
forward the triplicate copies of the export forms to the State
Bank alongwith the monthly returns in which realisation of export
proceeds is reported, retaining the duplicate for his record.
In cases where receipts of export proceeds are reported by an
Authorised Dealer in respect of exporters residing in the jurisdiction
of an area office of Exchange Policy Department other than that
to which the returns are being submitted, separate area-wise schedules
with one additional copy will be prepared and submitted to the
Exchange Policy Department.
The name of the area office of Exchange Policy Department to which
the schedules pertain will be prominently indicated on top thereof.
16. Submission of
Export Documents to Authorised Dealers.
shipping documents covering goods exported from Pakistan and declared
on Form 'E' must be passed through the medium of an Authorised
Dealer within 14 days from the date of shipment. The exporter
must submit the duplicate (bearing Customs seal and signature
of Customs Officials with Code number) and triplicate copies of
Form 'E' alongwith the shipping documents, invoices etc., to the
Authorised Dealer who had certified the Form 'E'. An extra copy
of the shipper's invoice must be attached to the triplicate copy
of the Form 'E'. In the event of payment being received through
an Authorised Dealer other than the one who had certified the
export form, the Authorised Dealer negotiating or collecting the
export documents should convey the particulars of the export form
to the Authorised Dealer which had originally certified the export
form to enable the latter to make a suitable note in the relative
17. Scrutiny of Documents.
receipt of the bill of lading/airway bill/railway receipt etc.,
alongwith the Form 'E' and the export documents, the Authorised
Dealers should compare the bills and/or documents with the relative
export form and satisfy themselves that they conform in all respects
to the declarations made on the relative export forms and the
amount of the bills and invoices is not less than the value declared
on them. In the case of those commodities which are subject to
Export Price Check (EPC)
procedure, the invoice should also be compared with the EPC form
approved/registered by the relevant authority, to ensure that
the quantity, quality, value, destination and terms of sale/payment
shown therein agree with those declared on the EPC form, and the
quantity and value should be endorsed on the reverse of the EPC
form. All such cases where the Authorised Dealers consider that
the value declared to the Customs and accepted by them does not
represent the true value of the goods should be promptly reported
to the State Bank. The Authorised Dealers may, however, accept
bills/documents for negotiation/ collection if the difference
between the value stated on the relative export form and the amount
of the bill/invoice represents legitimate adjustments on account
of short weight or actual freight and other items of similar nature.
Details of such adjustments must be given on the relative export
forms and must be authenticated by the Authorised Dealers under
their stamp and signature.
18. Exports subject to receipt of Advance Payments
or Irrevocable Letters of Credit.
the case of commodities export of which is permissible only on
receipt of advance payment or irrevocable letter of credit, shipments
will be allowed by the Customs only on the basis of the certificate
of the Authorised Dealer on the export forms to the effect that
either advance payment or irrevocable letter of credit has been
received covering export of the goods mentioned on the export
Special Requirements for Export of Wool and other Commodities
subject to Grading Scheme.
Wool Grading Scheme of the Government of Pakistan every exporter
of wool is required to obtain a test report from the Government
Test House for all shipments of wool intended for export whether
on firm contract or on account basis. In all such cases the exporter
of wool is required to forward to the State Bank through an Authorised
Dealer a copy of the test report of the Wool Test House duly initialed
by the Customs alongwith the invoice and triplicate copy of the
relative export form. In the case of firm sales, the exporters
should also mention in the invoice:
the quality of wool,
the rate per pound and
yield basis on which the sale has been made.
of wool on consignment basis is required to be made only by public
auction through recognized Auction Houses abroad. Account Sale
from these recognized Auction Houses should be forwarded to the
State Bank alongwith the relative triplicate copy of the export
The procedure governing other commodities which may, in
future, be subjected to Grading Scheme will be notified to Authorised
20. Part Drawings and Advance Remittances.
(i) If it is customary in any
particular trade for exporters to draw bills for only a percentage
of the invoice value and to receive the balance after arrival
of the goods at destination, Authorised Dealers may negotiate/collect
bills in the part amount provided they obtain an undertaking from
the exporters that they will realize the balance within the prescribed
period. Authorised Dealers should report such part receipts on
“Form 'E' not attached Voucher" on Schedule 'A-2'. It is
the responsibility of the Authorised Dealers to follow up each
such case and to ensure that the balance amount is also realised
within the prescribed period. This exemption will not, however,
apply in the case of shipments of those goods which are subject
to either 100% advance remittance or to the opening of irrevocable
letter of credit for the full amount of the export.
When a part of the invoice value has been received in advance
by the shippers, the Authorised Dealers when negotiating/collecting
documents for the balance should certify on the triplicate copy
of the export form that part of the amount had been received by
them in advance quoting reference to the return in which the receipt
was reported on an "Advance Payment Voucher" (Chapter
In both the above cases the triplicate copy of the export
form should be kept outstanding by the Authorised Dealer and submitted
to the State Bank only after the full value of the export has
21. Short Shipment.
a portion of a consignment is short shipped and the exporter consequently
draws a bill or prepares an invoice for a quantity less than that
declared on the relative export form, he should produce a notice
of short shipment on the prescribed form duly certified by the
Customs alongwith the shipping documents. In such cases, Authorised
Dealers should negotiate/collect the shipping documents on the
basis of short shipment notice. The Authorised Dealer will forward
the short shipment notice to the State Bank alongwith triplicate
copy of 'E' form while reporting the realisation of full value
of the goods shipped. If the exporter fails to produce the short
shipment notice alongwith the export documents, the Authorised
Dealer may negotiate/ accept the documents for collection but
report full particulars of the case to the State Bank. The Authorised
Dealer should, however, continue to follow up the case with the
exporter for submission of short shipment notice.
22. Shipments Shut-out
Where a shipment to be made by a particular vessel is entirely
shut-out and reshipped by another vessel, the exporter should
apply on the prescribed form in duplicate to the Customs for permission
to alter the name of the vessel on the relative export form and
the shipping bill.
Where a shipment is entirely shut-out and is not being
reshipped immediately by another vessel, the exporter should give
a notice to the Customs in the prescribed form in duplicate. It
will be the responsibility of the exporter concerned to produce
to the Authorised Dealer who had certified the export form, a
copy of the shut-out notice duly certified by the Customs within
21 days from the date of certification of the export form. On
receipt of the shut-out notice, the Authorised Dealer should treat
the relative export forms as cancelled and forward the shut-out
notice to the State Bank.
23. Shipment lost
or damaged in Transit.
If shipments from Pakistan are lost in transit for which
payment has not already been received, the Authorised Dealers
must see that an insurance claim is made immediately the loss
is known. The triplicate copy of the relative export form should
be endorsed with the narration "Shipment Lost" under
the stamp and signature of the Authorised Dealer and sent to the
State Bank under a separate covering letter giving the following
particulars and bearing running serial number:
Name of the insurance company with which goods were insured.
Amount of insurance and its currency.
Place where claim is payable.
The Authorised Dealer who had certified the export form
should pursue the matter with the shipper and ensure that in each
case the exporter has received the insurance claim and produces
encashment certificate, in cases where claims are paid in foreign
currencies and Rupee payment certificate where settlements are
made in Rupees. These certificates should be forwarded by the
Authorised Dealer to the State Bank giving reference of relative
24. Advance Remittances
i) In case of remittance
received in advance for goods to be exported from Pakistan, Authorised
Dealers should obtain a certificate in duplicate from the beneficiary
on the Advance Payment Voucher (Appendix V-18) declaring the particulars
of the intended export, before disbursing the amount to him. Both
copies of the Advance Payment Voucher shall be authenticated by
the Authorised Dealer. The original shall be surrendered to State
Bank with the relative Schedule A-2, while the duplicate shall
be returned to the exporter for production at the time of certification
of Form 'E'. The Authorised Dealer which has disbursed the amount,
shall ensure that Form 'E' is certified for export in accordance
with the declaration made on the Advance Payment Voucher within
a period of one year of receipt of advance payment and particulars
of Form(s) 'E' viz. date of certification, value for which 'E'
Forms certified and progressive un-utilised balance (where more
than one Forms 'E' are certified) shall be endorsed on the duplicate
copy of the Advance Payment Voucher. The triplicate copy of the
'E' Form will be surrendered to the State Bank under a covering
letter alongwith a photocopy of the Advance Payment Voucher and
In case of payments received for export of fresh fruits/vegetables,
it would be in order for the Authorised Dealers to certify 'E'
Forms against Advance Payment received, even if the detailed particulars
of the 'Goods', their 'Quality' and 'Invoice Value' have not been
filled in, provided the broad description i.e. ‘Fresh Fruits’,
‘Fresh Vegetables’, or ‘Fresh Fruits/Vegetables' is declared in
the relevant column. While certifying the 'E' Form, the following
remarks would be added by the Authorised Dealers:-
form has been certified against the outstanding balance of ___________
(Amount) out of the advance payment of __________ (Amount) received
on __________ (Date)’.
is no objection to the use of one ‘E’ form for export of both
fresh fruits and vegetables
if these goods form a single consignment. At the time of
shipment, the exporter will fill in the required particulars in
all copies of the 'E' Form and submit the duplicate and triplicate
copies to the Authorised Dealer alongwith the shipping documents
and an invoice. The Authorised Dealer will compare the details
of the 'Goods', 'Quantity' and 'Invoice Value' and process the
case as indicated in sub-para (i).
25. Exports Against Payments Tendered by Buyer
In case where payment for goods to be exported is made
out of foreign exchange (excluding foreign currency notes) brought
from abroad by a purchaser on person, the following procedure
will be followed:-
The seller (exporter) will arrange the encashment of foreign
exchange (excluding foreign currency notes) brought in by the
foreign buyer with a bank in Pakistan.
The Authorised Dealer while encashing foreign exchange
will obtain an application in the prescribed form (Appendix V-19)
from the foreign buyer and get the ‘Advance Payment Voucher’ completed
by the seller.
The Rupee proceeds will be credited to the account of the
seller, if one is maintained with the encashing bank, or passed
on to the bank with whom the seller maintains his account for
credit thereto. Thereafter the Authorised Dealer will make
out the prescribed certificate (Appendix V- 20).
While reporting the receipt of foreign exchange as advance
payment for export on Schedule A-2, the Authorised Dealer will
attach the application and certificate (Appendices V-19 and V-20)
with the “Advance Payment Voucher”.
26. Export on D.A./T.R. Basis - Non-Payment by
case of exports on firm contract on D.A. or T.R. basis, Authorised
Dealers, before certifying the export form, should ensure that
the foreign buyer is of sound financial standing and enjoys good
repute. Doubtful cases should be referred to the State Bank for
instructions. Despite aforesaid precaution, if a foreign buyer
refuses to accept the goods, the exporter should either make immediate
arrangements for shipping the goods back to Pakistan or alternate
buyer found with the approval of the State Bank. However, prior
approval of the State Bank will not be necessary in cases where
the consignment initially refused is taken up finally by the original
consignee or an alternate buyer found provided that payment for
the consignment is not less than 90% of its original value minus
actual demurrage charges, if any. In those cases where the foreign
buyers default in making payment after taking delivery of the
goods against their acceptance of the bill or T.R., Authorised
Dealers shall consider the possibility of initiating legal action
against the foreign buyers for recovery of export proceeds in
consultation with the State Bank. To this end, Authorised Dealers
should make arrangements for obtaining a suitable undertaking
from the exporters at the time of certification of the Form 'E'
for firm sales on D.A. or T.R. basis so that there is no hitch
in initiating legal action in those cases where the foreign buyers
Verification of Export Proceeds Realisation Certificate.
exporters are required to produce to the Government Departments
evidence of exports and the realisation of their proceeds. In
such cases proceeds realisation certificates may be issued by
the Authorised Dealers in the prescribed form (Appendix V-21)
after getting them authenticated by the State Bank. The State
Bank will authenticate such certificates on the strength of certification
made by the Authorised Dealers. The transaction would be post-facto
verified by the State Bank with reference to the relative schedule/statement
received from the concerned Authorised Dealer. To facilitate checking
and verification of these transactions Authorised Dealers should
quote the correct reference and the period of their schedule/statement
in column 10 of the proforma at Appendix V-21.
Issue of Duplicate Export Proceeds Realisation Certificate.
case of loss of original export realisation certificate, the State
Bank on application would authorise issuance of duplicate thereof
on the basis of undertaking given by the Authorised Dealer in
the prescribed form (Appendix V-22). The word "Duplicate"
will be prominently marked in indelible ink at the top of such
Payment of Freight in Rupees.
Carrier companies will not accept payment of freight in
Rupees on cargo shipped on C&F or CIF basis unless the exporter
produces to them a certificate from an Authorised Dealer in the
form given below:
that 'E' form No …………………………in respect of shipment to be made by
Messrs (Name of Exporter) ………………………… has been stamped to the effect
that the documents in respect of the shipment under this 'E' form
shall be negotiated/accepted only if these are drawn on C&F
or CIF and not on FOB basis".
Before issuing the above certificate, Authorised Dealer
will invariably endorse the relative 'E' form in the following
that documents in respect of the shipment under this form shall
be negotiated/ accepted only when these are drawn on C&F or
CIF and not on FOB basis."
carrier companies will invariably submit to the Authorised Dealer
through whom remittance of surplus freight collection is desired
to be made with the freight manifests the aforesaid bank's certificates
alongwith the relative bills of lading which should be arranged
according to the entries appearing in the freight manifest.
Reporting of Overdue Cases.
The State Bank has prescribed the period within which full
foreign exchange value of the exports must be realised. Non-realisation
or delay in realisation of the export proceeds without the prior
permission of the State Bank constitutes an offence and renders
the exporters liable to action under the Act.
To enable the State Bank to review the position of all
outstanding export bills, the Head/Principal Offices of Authorised
Dealers will furnish to the State Bank every month the following
Statement showing the total figures of all export bills outstanding
(including partly unrealised) relating to all their branches,
at the end of each month in the prescribed form (Appendix V-15).
Statement in the prescribed form (Appendix V-16) containing particulars
of those export bills which have become overdue during the month
under report. This statement will be prepared in respect of Authorised
Dealer's branches according to the area office of the Exchange
Policy Department given in para 4 of Chapter 1 and will be submitted
in duplicate for each area separately. The outstanding export
bills pertaining to each exporter should be listed in a sequence
with exporter-wise totals and the grand total given at the end.
However, the statement for the month of June each year should
show particulars of all overdue export bills as on 30th June.
Statement in Appendix V-17 showing particulars of those cases
which were reported by Authorised Dealers as overdue in the previous
statements but the items are deleted from their books during the
month under report either due to realisation of the proceeds or
under instructions from the State Bank.
The above statements in Appendices V-15, V-16 and V-17
should reach the Exchange Policy Department (Central & Statistics
Section), State Bank of Pakistan, Central Directorate, Karachi
by the 15th of the month following that to which they relate.
It will be the responsibility of the Authorised Dealers to see
that the above statements are submitted to the State Bank on due
dates and that all cases of exports which become overdue are invariably
incorporated in these statements and that there is no omission
in this regard. The statements in forms V-16 and V-17 will additionally
be submitted on floppy diskettes.
31. Export of Jewellery, Precious or Semi-precious
of gold jewellery/precious and semi-precious stones will be allowed
in accordance with the procedure notified by the Government of
Pakistan and the instructions issued by the State Bank from time
32. Remittance of
Export Commission, Brokerage and Discount.
Authorised Dealers are permitted to allow payment of commission/brokerage/discount
due to foreign importers/or agents by exporters in Pakistan at
the following rates:
journals and magazines.
33 1/3 %
goods (Electrical and Non-electrical).
Upto 10 %
goods, surgical instruments, cutlery, leather goods, ready-made
garments and other textile made-ups, carpets and plastic
Upto 7 %
Upto 2 %
other goods except cement.
not covered by the above instructions should be referred to State
Bank with full facts and documentary evidence necessitating the
payment of commission at a higher rate.
Authorised Dealers can allow payment of commission etc.,
upto the above extent without the prior approval of the State
Bank as under after satisfying themselves that the payment is
in conformity with the relative agreement between the exporter
and the buyer/agent abroad:
By deduction from the invoices where payment is to be made to
the foreign buyers themselves. In such cases the net amount realised
will only be reported as "Purchase".
By instructing the negotiating bank abroad that the amount of
commission etc., may be paid by them to the agents direct out
of the proceeds of the bill. In such cases the Authorised Dealers
should report the full export proceeds of the bill as "Purchase"
and the amount of commission should be reported as "Sale".
By remittances from Pakistan, when the full export proceeds are
received within ninety days of the receipt of export proceeds.
The Authorised Dealers should report the full export proceeds
of the bill as "Purchase" and the amount of commission
remitted should be reported as "Sale".
remittance is not made as provided herein, approval of the State
Bank in accordance with the provisions of paragraph 7 of Chapter
XIV shall be obtained. It
should, however, be noted that in the case of exports under special
trading agreements, commission is payable only through the special
accounts opened for settlement of related transactions.
In cases where the exporter is not required to pay commission
or where he is required to pay an amount less than the maximum
permissible limits, such amounts of commission/ differential not
exceeding 6% of the FOB value of goods realised can be retained
in foreign currency account with Authorised Dealers in Pakistan.
The funds held in such foreign currency accounts can be used by
the exporters for promotional publicity, collection of commercial
intelligence, purchase of designs/patterns, market studies, bonafide
export claims and shortfall in realisation of export proceeds,
without any approval from the State Bank. The foreign currency
accounts so opened will be fed exclusively with the amount of
commission on exports and no other deposits, whatsoever the nature,
will be accepted for credit to such foreign currency accounts.
This facility is also available where export proceeds are realised
under ACU Arrangement.
Free Sample’ may be supplied alongwith consignments of drugs and
medicines being exported by the pharmaceutical companies, upto
the extent agreed to between exporters and foreign buyers/agents.
33. Export of Services.
of services such as Financial Services, Wholesale Distribution
and Retail Trade, Transportation, Storage and Communications,
Tele-communication Services, Medical Services, Educational Services,
Engineering Services, Real Estate Development, Hotel and Tourism/Tourism
Related Services, Technical Testing Facilities and Consultancy
Services etc. are authorised to retain 35% of their net foreign
exchange earnings in foreign currency accounts with Authorised
Dealers in Pakistan. The Authorised Dealers should ensure that
such funds are utilized only for payment of commission/discount
and for meeting other expenses such as promotional publicity,
foreign consultant’s fee etc.
a part of incremental export earnings.
exporters who post at least 10% growth in their net foreign exchange
earnings in terms of US dollar over the last year’s export performance
may be allowed by the State Bank to retain 50% of their additional
export earnings in their foreign currency account maintained with
Authorised Dealers in Pakistan. For claiming this facility, the
Exporter/Group will work out on aggregate basis in the context
of companies/firms having common Directors/Partners/individual
company owned by the single owner having substantial equity, and
will prepare a Bank-wise statement in the prescribed form (Appendix
V-23 A) showing the performance of previous financial year and
current financial year. They are also required to submit a consolidated
statement in the prescribed form (Appendix V-23 B) to the Exchange
Policy Department alongwith the ‘performance’ in original for
issuance of formal permission to the exporter to retain 50% of
their additional export earnings in their foreign currency account
from their future export earnings in the designated bank. This
facility will be available in addition to the one available in
terms of paragraph 32 (iii) ibid.
Private Commodity Exchange Arrangement With Foreign Parties.
(i) It is permissible for private
parties in Pakistan to enter into Commodity Exchange Arrangement
(CEA) with foreign parties (including undertakings controlled
by foreign governments and public sector agencies but excluding
foreign governments). The Ministry of Commerce will prescribe,
from time to time, a negative list of commodities which cannot
be exported under this scheme.
Applications for conducting transactions through Private
Commodity Exchange Arrangement may be submitted to the Exchange
Policy Department (Policy Division, Central Directorate, Karachi)
through banks authorised to deal in foreign exchange, for approval
alongwith copies of Export/Import Registration Certificates, the
past performance showing the value of exports made by the applicant
in each year during the preceding three financial years duly certified
by their bankers, and the recommendation of the bank whether in
view of its past dealings, the party may be given permission to
conduct business through private Commodity Exchange Arrangement.
Exporters having less than three continuous years export performance
would not be eligible. A copy of the agreement entered into between
the party in Pakistan and the counter-party in the concerned country
abroad will also be required to be submitted. In the case of both
exports and imports by the party in Pakistan, the normal laws,
regulations, rules governing such export/import will continue
to be applicable barring the exemptions granted in this paragraph.
The approvals will be given by the State Bank in the format appearing
at (Appendix V-23 C)
The party permitted to undertake business transactions
under such arrangement will be exempt from the existing requirement
of drawing the documents of title to export cargo to the order
of an Authorised Dealer in case of export, and it can also receive
the import documents from the counter-party direct. Authorised
Dealers shall also be required to certify Form “E” in the modified
form as indicated in the Appendix V-23 C. The parties will ensure
that imports at least equal to the value of exports are made by
them within the period prescribed from time to time for repatriation
of export proceeds failing which the value of exports should be
repatriated in convertible foreign currency within the prescribed
The party will nominate an Authorised Dealer to maintain
proforma account in its name for the purpose of accounting the
trade transactions. Separate proforma account will be maintained
in respect of each Commodity Exchange Arrangement. The concerned
Authorised Dealer will be required to submit a monthly statement
in duplicate in the prescribed form (Appendix V- 23 D) in respect
of each CEA showing:-
the value of goods exported, alongwith the copies of invoice and
duplicate ‘E’ Forms;
the value of goods imported from abroad alongwith copies of the
invoices, non-negotiable copies of bills of lading and photocopies
of Exchange Control
copy of Customs Bills of Entry evidencing import of the goods
into the country;
the opening and closing balances.
forwarding the above statements to the State Bank of Pakistan,
the Authorised Dealer will code the items exported/imported.
It is clarified that no forward exchange facility either
for export or import transactions shall be admissible. Export
under the scheme is not eligible for the purpose of Export Refinance
The withholding tax leviable on the export as per the Notifications
issued by the Central Board of Revenue from time to time will
be recovered by the Authorised Dealers at the time of passing
the entry in the account in respect of exports from Pakistan.
35. Internet Merchant Accounts.
order to promote Business-to-Consumer (B2C) e-Commerce in Pakistan,
banks operating in Pakistan can open and operate Internet Merchant
Accounts. In this connection the following parameters are to be
Merchants desirous of opening an Internet Merchant Account with
a bank in Pakistan can open the same either in local currency
or in US$ for the purpose and, in addition to observance of normal
procedure for opening an account, will be required to submit a
copy of their NTN Certificate to the bank.
Merchants must be engaged in a business permissible under laws
Merchants must have a registered place of business in Pakistan.
Merchants intending to export goods/services must provide a copy
of export registration certificate from the Export Promotion Bureau
For the present, merchants desirous to undertake transactions
outside Pakistan will be required to submit ‘E’ forms for transactions
of value less than US$ 500 each to their bank who shall submit
the same in consolidated form on monthly basis to SBP. Each ‘E’
form for the aforesaid accounts should specifically indicate the
words “E-Commerce” on the upper left corner.
Banks shall recover charges for Internet Merchant Accounts strictly
in accordance with Prudential Regulation X. Any clarification
with regard to bank charges on these accounts may be obtained
from the Director, Banking Supervision Department, SBP, CD, Karachi.
The banks shall be responsible for reporting business through
the Internet Merchant Accounts to the Exchange Policy Department,
State Bank of Pakistan on monthly basis as per proforma appearing
at Appendix V-24.
The banks shall be responsible for reporting any suspected transactions
against the laws of the country, as per Prudential Regulation