All Authorized Dealers
In Foreign Exchange,

Dear Sirs,

EXPORT OF GOLD JEWELRY AND PRECIOUS / SEMI-PRECIOUS STONES & IMPORT FACILITY AGAINST EXPORT PERFORMANCE

The procedure for export of indigenous precious and semi-precious stones (both in rough and finished form) and gold jewelry from Pakistan to foreign countries has been revised vide Export Promotion Bureau’s Notification No.SRO No.131(KE)-96 published in the Gazette of Pakistan (Extra Ordinary) on the 17th December, 1996. The effect of the Notification is that henceforward, exporters would not require any approval from the State Bank of Pakistan for getting the Forms 'E' for export on self consignment basis or otherwise Certified by the Authorized Dealer. The Forms 'E' will now be certified by the Authorized Dealer on production of approval of the Export Promotion Bureau on Annexures; A, D, J and K to the said Notification.

2. Accordingly, the instructions contained in our F.E. Circular No.89 dated the 26th September, 1990 stand cancelled and following instructions are issue for the guidance of the Authorized Dealers and general public:-

a. While certifying Forms 'E', the Authorized Dealers will ensure that the exporter is not only registered with the Export Promotion Bureau as importer/exporter but also holds registration from the Export Promotion Bureau as an Authorized Exporter of gold jewelry vide Para 7 Part-I of the above Notification.

b. All Authorized Dealers are advised to strictly follow the revised procedure as per Export Promotion Bureau’s aforesaid Notification.

c. The Authorized Dealer will accept Custom’s Certificate in Annexure ‘M’ to the said Notification in evidence of realization of export proceeds ion the shape of import of pure gold in lieu of Bill of Entry. However, the exporter will continue to submit Bill of Entry in respect of unsold jewelry brought back. The Authorized Dealer will ensure that export proceeds whether in the shape of foreign exchange or gold are repatriated in 4 months from the date of export / dispatch of the consignment and in case of default the particulars of such cases are reported to the State Bank of Pakistan as per procedure already outlined in Para 18, Chapter XII of the Foreign Exchange Manual.

d. The requests of the exports for extension in realisation of export proceeds shall continue to be forwarded by the Authorised Dealers to the respective area offices of the State Bank of Pakistan. In cases where export proceeds are to be realised partly in foreign exchange and partly in the shape of 24 karat gold,relative triplicate forms 'E'' invoice and original Customs Certificates on Annexure 'M' and Bill of Entry for jewelry brought back,if any,will be submitted to the export section, Foreign Exchange department of State Bank of Pakistan under a covering letter after the exporter has realised full export proceeds.Realisation of the part proceeds of the value in cash will be reported by the authorised Dealers on schedule A-2/O-2 supported by 'E' form not attached voucher"

e. For statistical and Foreign Exchange Dept.(SBP) purposes the value of consignment in the invoice as well as in the 'E' form,will be shown as under :-

Net value to be repatriated :

3. Attention is also invited to the table given in para 3 of F.E Circular No.12 dated the 27th May,1997 regarding imports on usance basis.The word "tax" appearing in column No. 9 of the said table may be amended to read as "interest".