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FE
Manual 2002 |
| CHAPTER XXII RETURNS OF ALL FOREIGN EXCHANGE TRANSACTIONS Authorised
Dealers should maintain proper record of all dealings in foreign
exchange in their books including transactions on non-resident
accounts. 2. Submission of
Returns to State Bank. Authorised
Dealers should take utmost care in compilation of various returns/statements
prescribed in this as also other chapters so that all transactions
are correctly and duly reported. They should also ensure that
these returns/statements are invariably sent to the State Bank
on due dates. 3.
Basis and Procedure for Reporting of Transactions. The
system of reporting transactions is designed to compile figures
on the basis of actual entries in the currency accounts so that
there are no suspense items. Authorised Dealers should report
transactions as per following procedure: (i)
EXPORTS a)
Export bills drawn under irrevocable letters of credit. Transactions
in respect of export bills negotiated by Authorised Dealers
should be reported as purchases only at the time entries are
made in the currency account duly supported by Schedule 'A'
and Forms 'E'. b)
Export bills drawn on collection basis. Sometimes
Authorised Dealers also purchase export bills drawn on collection
basis. Transactions relating to such export bills should be
reported as an outright purchase against "Exports"
in the summary statement after the transaction is put through
the currency account on receipt of advice of realisation of
the export proceeds. (ii) OTHER RECEIPTS The
procedure indicated in sub-paragraph (i) (a) above should also
be followed with regard to D.Ds. and M. Ts. etc. In other words,
purchases in respect of D.Ds. and M.Ts. etc., should be reported
only when the transactions are put through the currency accounts. (iii)
IMPORTS a)
In case of import bills drawn under letters of credit, the foreign
currency accounts of the Authorised Dealers are debited at the
time of negotiation of documents by their foreign correspondents.
Accordingly, sales on account of import bills drawn under confirmed
and irrevocable letters of credit should be reported when the
transaction is put through the currency account on receipt of
import documents and not on the basis of retirement of bills
by the importers. b)
All sales on account of imports are required to be supported
by the original copy of the Form
‘I’. In view of the time-lag between the date of receipt of
the import bills and the date of their retirement by the importers,
it may not be possible to submit original copy of Form
‘I’ duly signed by the importers. In such cases, Authorised
Dealers should fill in the quadruplicate copy of the Form
‘I’ and submit it alongwith the relevant schedule and the summary
statement. The original copy of the Form
‘I’ should be submitted after it has been signed by the importer,
which will be at the time of retirement of the bill. c)
Authorised Dealers will forward to the State Bank a monthly
statement showing particulars of the Form
‘I’originals of which have not been sent by them to the State
Bank, giving reasons for their non-submission. These statements
should reach the State Bank by the 7th of the following month
and should bear running serial numbers. d)
With regard to import bills received on collection basis, the
transactions will be reported on Schedule E-2 supported by
original Form
‘I’. (iv)
OTHER PAYMENTS Transactions
relating to D.Ds. and M.Ts. issued by the Authorised Dealers
should also be reported only at the time entries are made in
the currency accounts. Non-resident
Rupee accounts of foreign banks and correspondents including
barter accounts should also be reported by Authorised Dealers
in the manner indicated in this para. Authorised
Dealers are required to give code numbers for all transactions
pertaining to receipts as well as payments whether under cash,
loan, credits or barter on the relevant prescribed forms as
also in the columns provided in the relevant schedules, excepting
stubs given on the right hand top of the schedules relating
to "Period", "Authorised Dealer" and "Currency"
whose coding is done in the State Bank. Separate
code lists are provided for the following items:
For entering code numbers on various schedules, the code lists mentioned below against each schedule should be referred to :
The
stubs earmarked for 'Department' are to be used in cases of
transactions relating to imports and invisible payments. All
payments by Government and Semi-Government agencies out of cash
resources should be correctly co-related with those given in
Code-8 and code number given accordingly. Where payments for
imports or invisibles are made by private parties out of cash
resources, the Code No.501 of Code-8 will be given under 'Department'. Authorised
Dealers should ensure that the description of transactions given
in the relevant forms conforms to the nomenclature given in
the Code Lists. Coding should be done with extreme care. It
is advisable to entrust the Coding work to experienced and responsible
members of the staff. To guard against any possible misclassification,
coding should be got checked independently. For all amounts
equivalent to Rs. 1 Lac and above, the checking of codes should
be done by supervisory staff. 5. Returns of Foreign Exchange Transactions. Authorised
Dealers should report to the State Bank particulars of foreign
exchange transactions effected by them i.e. all outward and
inward remittances made whether through their accounts in foreign
currencies or through the Rupee accounts of non-resident banks.
For this purpose, Authorised Dealers should submit to the State
Bank a summarized statement of their transactions in each currency
in which a position is maintained by them and also summary statement
of transactions effected on the Rupee accounts of non-resident
banks maintained with them for each month, reaching the respective
area office of the Exchange Policy Department by the 3rd of
the following month from branches and by the 10th from Head/Principal
Offices of Authorised Dealers. These
summary statements should be submitted on: "S-1" statement
for transactions in all foreign currencies (Appendix V- 100). "S-4" statement
for transactions on Rupee accounts of non-resident banks (Appendix V- 101). "S-5" statement
for transactions under Rupee barter (Appendix V- 102). "S-6" statement
for transactions in foreign currency notes (Appendix V- 103). 6. Compilation of
Summary Statements. i)
Each summarized statement will be an abstract of the Authorised
Dealer's ledger account and will consist of totals under specified
heads. Opening and Closing balances should be added making each
summary a complete and balanced statement. ii)
Authorised Dealers will complete one "S-4" statement
for each period in which consolidated figures of all non-resident
bank accounts maintained with them will be given. It will not
be necessary to complete a separate "S-4"
statement for each non-resident bank account. iii) The Head/Principal Offices of the designated banks maintaining
the barter accounts will incorporate their branch transactions
against the respective heads provided in the summary statement.
For this purpose, the branches of the designated banks will
forward every month copies of the related coded schedules, showing
their transactions under each barter agreement to their Head/Principal
Offices, which should prepare one consolidated statement and
relative schedules for each barter agreement on the basis of
entries passed through the respective barter accounts. In
the case of exports under barter arrangements, Authorised Dealers
should affix rubber stamp on the relative Form
'E' with the following narration: - “Commodity
Exchange Agreement with (Name of the Country) _________dated_________
” The
branches of the designated banks shall submit the relative forms
and schedules alongwith "S-5" statement
to the area offices of the Exchange Policy Department. iv) Statement "S-6"
is to be submitted in duplicate. 7. Supporting Schedules
and Forms of the Summary Statements. To
support the details of the totals entered in the summarized
statements, every statement must be accompanied by schedules
and the relative forms as indicated in the summarized statements.
The schedules should be compiled as under : RECEIPTS
& PAYMENTS SCHEDULES Schedules
"A-1", "A-2", "A-3", "J", "E-2", "E-3" and "E-4" are given combined
heading as follows:
Combined
headings have been provided to facilitate preparation of Schedules
'O' & 'P' in respect of transactions
of branches, which do not maintain independent currency positions,
but operate on the foreign currency accounts of the Head/Principal
Office/another branch and themselves submit unbalanced Summary
Statements "S-1" and "S-4" to their
area offices of the Exchange Policy Department. The procedure
for preparation of these schedules by the branches, which do
not maintain independent currency positions is given subsequently
in this para. SCHEDULES
"A-1", "A-2" and "A-3" (APPENDICES
V-
104, V-
105 and V-
106): Purchase
of foreign currencies or debits to non-resident bank Rupee accounts
covering proceeds of exports from Pakistan will be listed on
Schedules "A-1", "A-2" and "A-3" as follows: SCHEDULE
"A-1": In cases
where Form
'E' is certified against a purchase of foreign currencies
or debit to non-resident Rupee account, the transaction must
be listed on a relative Schedule "A-1" in triplicate
showing the number of the Form 'E' and the amount. SCHEDULE
"A-2": In cases
where no Form
'E' is certified at the time of purchase of foreign
currency or debit to non-resident Rupee account, the particulars
will be listed on Schedule "A-2" in triplicate.
Such cases will fall into two categories:
i)
Advance
payments for goods to be exported.
ii)
Part
realisation where the triplicate of the Form 'E'' will be lodged
with the State Bank at the time when final proceeds are received.
If
an advance payment is received for an export, the Authorised
Dealer must make out an "Advance Payment Voucher"
(Appendix
V-18). When the Form
'E' is ultimately made out and a deduction shown
for the advance payment, the date of the "Advance Payment
Voucher" must be stated on the Form 'E'. When
proceeds of exports are received and the Form
'E' is not available or in case of part realisation,
a voucher "Export Receipts: Form
'E' not attached" (Appendix
V- 111) must be completed. "Advance
Payment" and "Export Receipts: Form
'E' not attached" voucher must be listed on
Schedule "A-2". SCHEDULE
"A-3": In cases
where 'E'
Form is certified against purchase of foreign currencies
or debit to non-resident Rupee account for re-export of imported
goods the transaction will be listed on Schedule A-3
in triplicate. Totals
of Schedules "A-1", "A-2" and "A-3" must be cast
and the total of "A-2" and "A-3" brought forward
to "A-1"
and grand total shown on "A-1"
which must agree with the amount entered on
the summary statement. Even in cases where there are
no certified Forms 'E' to be submitted
with the return, an "A-1"
Schedule should be completed showing a nil figure and giving
the total figure of "A-2",
making up the grand total on "A-1". For
every item on Schedules "A-1",
"A-2"
and "A-3"
a certified copy of Forms
'E' or a voucher, as applicable, must be enclosed.
Conversely, for every voucher or Forms
'E' enclosed, there must be an item on the appropriate
schedule. No Forms 'E' should be enclosed
with the returns against which no receipt is being reported
on the return. The forms and vouchers must be sorted in the
order they are listed. If more than one schedule sheet is used,
the sheets must be serially numbered and pinned together. While
reporting export receipts, separate schedules ( "A-1", "A-2" and "A-3") should be
prepared for receipts on account of exporters residing in the
jurisdiction of area offices of the Exchange
Policy Department other than the area office to which
the 'Returns' are being submitted. Such schedules should be
prepared area-wise with one additional copy. The name of the
area office to
which the schedules pertain should be prominently written on
the top thereof. Separate Schedules "A-1",
"A-2"
and "A-3"
must be attached to the summary statement relating to each currency.
It is not permitted, for example, to enter the Forms 'E' in U.S. dollars
and Pound Sterling on the same summary statement. SCHEDULE
"B" (APPENDIX V- 112) Purchases
of a currency against sale of other foreign currencies are to
be listed on Schedule "B". Separate schedule should
be used for each currency purchased. Exchange Policy Department
area from where the currency is purchased must be mentioned
in specified column. The schedule will be attached with relevant
Summary Statement "S-1"
and total of the currency purchased must agree with the amount
shown against item 'Purchases against sale of other foreign
currencies' on receipt side of the Statement "S-1". SCHEDULE
"C" (APPENDIX V- 113) The
currencies purchased from Authorised Dealers or branches in
Pakistan maintaining a separate currency position must be listed
on Schedule
'C'. A separate schedule should be made out for each
currency with its name written on the schedule and must be attached
to the relative "S-1" statements. SCHEDULE
"D" (APPENDIX V- 114) Foreign
currencies purchased from and sold to the State Bank must be
entered on Schedule "D" and totals
entered on the "S-I"
statements. SCHEDULES
"E-2", "E-3" and "E-4" (APPENDICES
V-
108, V-
109 and V-
110). Forms
relating to sales of foreign currencies to the public must be
listed as under: As with Schedules "A-1" and "A-2", separate
schedule must be made out for each currency and attached to
the respective "S-1", "S-4", "S-5" or "S-6" statement.
For every item listed in the schedule there must be a payment
Form "I",
"T-1"
or "M"
as appropriate to the transaction and these forms must accompany
the relative schedules. No forms should be submitted which are
not listed on the schedules. SCHEDULE
"F" (APPENDIX V- 115) The
sale of a currency against purchase of other foreign currencies
is to be listed on Schedule 'F'. A separate
schedule should be used for each currency sold and the Exchange
Policy Department area to which the currency is sold must be
mentioned in the specified column. The schedule will be attached
with relevant Summary Statement "S-1"
and total of sales in the schedule must agree with the amount
entered against item "Sales against purchase of other Foreign
Currency" on the sales side of "S-1"
statement. SCHEDULE
"G" (APPENDIX V- 116) The
currencies sold to Authorised Dealers or branches in Pakistan
maintaining a separate currency position must be listed on Schedule
"G". A separate schedule must be made out
for each currency with its name written on the schedule and
must be attached to the relative "S-1"
statements. SCHEDULE
"H" (APPENDIX V- 117) Currencies
bought against credit to non-resident bank Rupee accounts must
be entered on Schedule "H". A
separate schedule must be made out for each currency and attached
in duplicate to the relative summarized Statement
"S-1" and total amount of currency shown
on the schedule must agree with item 4 on the purchases side
of the relative summary statement, while total of Rupees must
agree with the total of items on credit side of "S-4" statement. SCHEDULE
"J" (APPENDIX V- 107) All Forms "R" and "IRV" must be listed on Schedule "J" and a separate list should be made for each currency. The schedules must be attached to the relative "S-1", "S-4", "S-5" or "S-6" statement and the totals on the schedule must agree with those entered in the statements. For every item appearing in the schedule, a "R" Form/"IRV" must be attached. In the case of encashment of foreign currency instruments of foreign missions in Pakistan, the name of the mission concerned, should invariably be mentioned in Form "R"/"IRV" (Appendix V-118/Appendix V- 119). Authorised Dealers must carefully note that Schedule 'J' is to cover all receipts OTHER THAN EXPORTS. Export receipts are to be reported on Schedules 'A-1' and 'A-2' and not on Schedule 'J'. "R" Form is to be used for amounts over Rs.10,000/- or equivalent, for purposes other than Family Maintenance Remittances and Exports. For amounts of Rs.10,000/- and less received for purposes other than 'Family Maintenance Remittances' and all amounts received as 'Family Maintenance Remittances', Authorised Dealer will prepare one |