All
Authorized Dealers
In Foreign Exchange,
Dear
Sirs,
EXPORT
TO AND IMPORT FROM CENTRAL ASIAN REPUBLICS
It
has been represented to us that in view of the foreign exchange
constraints prevailing in Azerbaijan, Kazakhstan, Kirghyztan,
Tajikistan, Turkmenistan and Uzbekistan, traders in these
countries are not at present in a position to settle the
value of goods purchased by them from Pakistan in convertible
currencies but they are prepared to pay the same in the
shape of supply of goods. In view of this position, it has
been decided to withdraw the condition for export against
confirmed irrevocable letter of credit from a first class
bank, and for imports against payment in convertible currency
as laid down in F.E. Circular No.6 of 14th January,
1992, in respect of the above mentioned countries. Henceforth,
it would be in order for traders in Pakistan to conduct
transactions with parties in the above countries either
in convertible currency/non-resident rupee account of a
foreign bank in the normal manner or through Private Commodity
Exchange Arrangements. In the case of private barter or
Private Commodity exchange arrangement, the party in Pakistan
will be required to obtain our approval in any of the above
countries, for the purpose of accounting of the trade transactions.
Such accounts may be maintained in any currency.
2.
Applications for conducting transactions through private
Commodity Exchange arrangement may be submitted to the Foreign
Exchange Department through banks authorized to deal in
foreign exchange for approval alongwith the past performance
with respect to value of exports and imports made by the
applicant in each year during the preceding three calendar
years and the recommendation of the bank whether in view
of its past dealings, the party may be given permission
to conduct business through private barter arrangement.
A copy of the agreement entered into between the party in
Pakistan and the counter-party in the concerned country
abroad will also be required to be submitted. In the case
of both exports and imports by the party in Pakistan, the
normal laws, regulations, rules governing such export/import
will continue to is applicable barring the exemptions granted
through this Circular. The party shall be required to deposit
import fee at the time of placing order for imports and
submit a copy of the Challan/Annexure
'A' to F.E.Circular No.31 of 1991 showing deposit of
the import fee in the State Bank of Pakistan/National Bank
of Pakistan. The approvals will be given by us substantially
in the format attached with this Circular as 'Annexure
B'.
3.
The party permitted to undertake business transactions under
such arrangement will be exempted from the existing requirement
for drawing title documents to cargo to the order of an
Authorized Dealer in case of export and it can also receive
the import documents from the counter party direct. Authorized
Dealers shall also be required to certify form
'E' in the modified form as indicated in Annexure
'B'.
4.
The party will nominate an Authorized Dealer to maintain
proforma accounts in its name for the purpose of accounting
trade transactions. Separate proforma account will be maintained
in respect of transactions with each party in the above-named
States. The concerned Authorized Dealer will be required
to submit a monthly statement in duplicate in the enclosed
form (Annexure 'A') showing:-
-
The
value of goods exported alongwith the copy of invoice
and Triplicate 'E'
form;
-
The
value of goods imported from abroad alongwith copies
of the invoices, bills of lading, triplicate copy
of Customs Bills of Entry evidencing import of the
goods into the country;
-
The
amount settled in convertible currency either by an
outward remittance from Pakistan or an inward remittance
from abroad.
While
forwarding the above statement to State Bank of Pakistan,
the Authorized Dealer will code the items exported/imported.
5.
It is clarified that no forward exchange facility either
for export or import transactions shall be admissible. However,
it would be in order for the party in Pakistan to settle
the balance appearing in these accounts in convertible currencies
by way of remittance from Pakistan in case of an adverse
balance and by repatriation of the amount in convertible
currencies in case of a credit balance. Application for
remittance from Pakistan will be made to the State Bank
of Pakistan on Form
'I'.
6.
Please bring the contents of this Circular to the notice
of your constituents.