Circulars/Notifications - Exchange Policy Department  
 F.E. Circular No. 23
February 29, 1992 

All Authorized Dealers
In Foreign Exchange,

Dear Sirs,


Under the existing banking practice and procedure, banks in Pakistan accept Dills of Lading, Airway Dills, Railway or Truck­ receipts or any other documents of title to cargo which indicate that the goods have bean loaded on board or shipped on a named vessel and that the same has been issued by the carrier itself or by its authorised agent. It has now been decided allow the Authorised Dealers to accept House Airway Bills in case of air cargo and House Bills of Lading in case of sea cargo, issued by the Cargo Forwarders in Pakistan. In this context, it is clarified that only those Pakistani Cargo Forwarders who are approved members of FIATA and registered with Investment Promotion Bureau, Government of Pakistan as Consolidators and actively engaged in Break bulk of air/sea cargo in Pakistan/collaboration with their counterparts abroad will be allowed to handle consolidation/break‑bulk of cargo. 

2.      The effect of this change will be that hence forth Airlines/Shipping Companies/Shipping, Agents will be able to issue Master Airway Bills/Master Bills of Lading for such "consolidated shipments"  being made against advance payment or irrevocable letter

of credit which contains a provision for, issuing title documents under Cargo Consolidation System showing consolidators as shippers and their Break‑bulk agents abroad as consignees In respect of Pakistan exports cargo on C&F basis they (carriers) will also collect freight in rupees without the prior approval of the State Bank as per procedure prescribed in para 27 Chapter of the Exchange Control Manual on the basis of a certificate to on APP-V‑14A issued by the 4 Authorised Dealers. however, while reporting such freight collection  to the State Bank in terms of paragraph I Chapter XIV of Exchange Control Manual, the Airliners/Shipping companies/shipping Agents must submit alongwith the monthly Export Freight Manifests a copy of manifest of Consolidators showing therein all House Airway House Bills of Lading issued by them, freight collected from each exporter,  payments made to local transporters and freight paid to the concerned Airlines/Shipping Company/Shipping Agent in Pakistan. 

3.      Accordingly, the following amendments. may be made in the Exchange, Control Manual:- 

(i)    A new Para 2-A in Chapter XIV nay be added  as under:-

“2-A. Cargo Consolidators/Forwarders who are approved members of FIATA and registered with Investment Promotion Bureau Government of Pakistan as such, may accept freight in rupees without the prior  approval of the State Bank only in respect of Pakistani Exports Cargo on  C&F/CIF basis as per procedure prescribed in paragraph 27-Chapter XII of the Exchange Control Manual provided the consignment being dispatched against Advance Payment or an irrevocable letter of credit which contains a provision for issuance of 'document of title under Cargo Consolidation System and a certificate to this effect issued by the Authorised Dealer on.App.V-14A is produced".

 (ii)       The following may be added, as item (h) under paragraph 1(ii) of    

        Chapter XIV

 “(h) A copy of manifest of Cargo Consolidators together with relative non­negotiable copies of house Bill of Lading or/ House Airway Bill (quoting reference of original Master Bill of Lading or Master Airway Bill issued by them, with names of each shippers), “E” form certificates prescribed vide para 27 Chapter XII of Exchange Control Manual and encashment certificate where freight is paid in foreign exchange separately".

Senior Deputy Director
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