The Presidents/Chief Executives of all

Authorized Dealers in Foreign Exchange

Dear Sir/Madam,

Amendments in Foreign Exchange Regulations

1. In wake of the emerging circumstances due to global outbreak of COVID-19, it has been decided to amend the foreign exchange regulations given in the below mentioned instructions/ paragraph of the Foreign Exchange Manual:

1. Para 6 Sub-para (ii), Chapter 12 - Method and Period of Payment

In terms of above Sub-para, where export contract provide for payment earlier than six months, Authorized Dealers (ADs) may allow extension in the realization period if they are satisfied with the explanation given for delay in realization, provided such extension does not extend the period beyond six months from the date of shipment. As an exception to these instructions, ADs may allow extension in realization of export proceeds to exporters up to 90 days beyond the expiry of six months from the date of shipment, provided the expiry of six months falls between January 1, 2020 to June 30, 2020 (both date inclusive). However, this extension shall be provided by the ADs subject to submission of satisfactory explanation by the exporter along with supporting evidence showing delay in realization of export proceeds due to COVID-19 pandemic. Authorized Dealer would not be required to submit revised reporting of overdue cases for the month of January and February 2020.

2. Para 30 Sub-para (i)(b)(c) & (ii), Chapter 13 - Advance Remittances

In terms of above Sub-paras, in case of advance payment against imports, Authorized Dealers (ADs) are required to obtain an undertaking from the importers (V-31) that in case the goods against advance payment are not imported and related shipping documents are not submitted to AD within four months from the date of advance payment, the AD will recover a penalty @1% per month or part thereof on the amount of advance payment from the date of remittance till date of submission of shipping documents.

As an exception to the above instructions, ADs may extend the time period for import of goods and submission of shipping documents, against advance payment, up to 90 days from the due date of import of goods, under general or special permission, in cases where the due date falls between January 01, 2020 to June 30, 2020 (both days inclusive). However, this extension shall be provided by the ADs subject to submission of satisfactory explanation by the importer along with supporting evidence showing delay in import of goods due to COVID-19 pandemic.

3. FE Circular No. 8 dated August 15, 2017

In continuation of the instructions contained in the above-mentioned FE Circular, It has been decided to dispense with the requirement of physical submission of the following documents to SBP - Banking Services Corporation (SBP- BSC) from the month of March, 2020 onwards:

1. Export Advance Payment Voucher (APV) in original along with copy of Schedule A-2/O-2.
2. Triplicate Copy(s) of E-Form(s) / EFEs certified against export APVs along with copy(s) of related APV(s) showing progressive unutilized balance and invoice.
3. Manual E-Forms along with supporting documents.

Further, Authorized Dealers shall maintain complete record/documents of monthly foreign exchange returns as per existing procedure and shall present the same to SBP/SBP-BSC for onsite inspection and offsite monitoring, as and when required.

4. All other terms & conditions and instructions applicable to the above transactions shall remain unchanged.
5. Authorized Dealers are advised to bring the above instructions to the knowledge of all their constituents for meticulous compliance.