In Foreign Exchange,
UNDER FOREIGN PRIVATE LOANS – REALISATION OF IMPORT
Enquiries have been received
regarding the stage at which import fee is to be recovered
in connection with imports under foreign private loans /
suppliers credits obtained by the entrepreneurs for erection
/ expansion of the Industrial undertakings.
2. It is clarified that in
such cases imports can be made after registration of the
relevant contracts with the Investment Division, Foreign
Exchange Department, State Bank of Pakistan, Central Directorate,
and Karachi. Such imports are usually made against letters
of credit / letters of guarantee or orders placed with the
foreign suppliers. Authorized Dealers are required to ensure
that import fee for the full contract value is recovered
from the importers at the time of opening of letters of
credit or issuance of guarantee. Where issuance of letter
of credit / guarantee is not involved, fee will be recovered
at the time of effecting the remittance of down payment.
However, where no letter of credit / letter of guarantee
or down payment is involved, fee will be recovered at the
time of placement of order with the overseas suppliers.
The import fee recovered from the importers will be deposited
in the Government account through Annexure 'A' to F.E. Circular
No.31 of 1991 within the prescribed time limit. A copy of
the evidence of payment of import fee should be submitted
alongwith the application for exchange entitlement certificates.
Please bring the above to the notice of your constituents.