| CHAPTER
XXI
REPATRIATION
OF INVISIBLE EARNINGS OF FOREIGN EXCHANGE
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Obligation
to repatriate Foreign Exchange.
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Information
on Foreign Exchange Receipts.
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Submission
of Encashment Certificates.
1.
Obligation to Repatriate Foreign Exchange.
Notification
No.S.R.0.1016(I)/79 dated the 17th October, 1979 (Appendix II-8)
issued by the Federal Government pursuant to Section 9 of the
Act requires all citizens of Pakistan and other persons residing
in Pakistan continuously for 6 months or more, who become the
owner of any foreign exchange, whether held in Pakistan or abroad,
to sell such foreign exchange to an Authorised Dealer within
three months of the date of acquisition by them of such foreign
exchange. In the case of foreign nationals or foreign business
houses, however, the above provision is applicable only to the
extent of their earnings abroad in respect of business conducted
in Pakistan or services rendered while in Pakistan.
2. Information on
Foreign Exchange Receipts.
Indenting
Houses/Tour Operators and Trade Marks/Patent Agents and Attorneys
are required to file with the State Bank, the following documents/
information in respect of their foreign exchange earnings:
(i)
Indenting Houses/Agents.
Half
yearly statement of their commission earnings in foreign exchange
in the prescribed form (Appendix
V-97) as on 30th June and 31st December each year
along with a copy of each agency agreement entered into by them
with foreign suppliers. This statement is required to be submitted
only by those Indenting Houses / Agents whose indenting income
exceeds US $ 100,000/-, and should reach the State Bank within
two months after each half year.
(ii)
Tour Operators.
(a)
Half yearly statement in the prescribed form (Appendix V-98) showing the
amount of foreign exchange received by them on account of services
rendered to foreign tourists. The aforesaid statement should
show the position as of 30th June and 31st December each year
and reach the State Bank within two months after each half year.
(b)
A certified copy of each agency agreement entered into with
foreign tour operators and airlines etc. In cases where the
business is undertaken on the basis of special terms and conditions
not covered by any agency agreement, authenticated copies of
the relative correspondence on the basis of which the rates
have been finalized, should accompany the above half yearly
statement.
(c)
Tour Operators who are earning foreign exchange on account of
services rendered to foreign tourists and are reporting such
invisible earnings to the State Bank in the manner prescribed
in sub-para (a) above are allowed to retain upto 35% of their
net foreign exchange earnings in foreign currency accounts,
vide paragraph 33 Chapter XII of the Manual. Those Tour Operators
who intend to use these funds for opening of offices abroad
may approach the Joint Director, Investment Division, Exchange
Policy Department, State Bank of Pakistan, Central Directorate,
Karachi in the matter.
(iii)
Trade Marks/Patent Agents and Attorneys.
(a)
Half yearly statement in the prescribed form (Appendix V- 99) showing the
foreign exchange received by them on account of Government fees
and their own professional charges. The statement should show
the position as of 30th June and 31st December each year and
reach the State Bank within two months after each half year.
(b)
A certified copy of the agreement entered into by them with
foreign clients. In case business is undertaken on the basis
of special terms and conditions not covered by any standing
agreement, authenticated copies of the relative correspondence
exchanged between the foreign client and the Pakistani Patent
Agent/Attorney should accompany the statement.
3. Submission of
Encashment Certificates.
Encashment
certificates from Authorised Dealers in support of foreign exchange
received from abroad and shown in the half yearly statements
mentioned in paragraph 2 should invariably be enclosed with
the relative statement.
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