Circulars/Notifications - Exchange Policy Department  
 F.E. Circular No. 65
September 22, 1994 

All Authorized Dealers
In Foreign Exchange,

Dear Sirs,


In terms of Import Policy Order, 1994 issue by the Ministry of Commerce vide their Notification No.SRO.736(I)/94 dated the 26th July, 1994, the importers registered with the Export Promotion Bureau under the provisions of Registration (Importers & Exporters) Order, 1993, can make imports either by opening letters of credit or by registering the indents/proforma invoices or orders with the Authorized Dealers. As an exception to the above general rule. Registered importers have been permitted vide para 2.5(1) of the aforesaid Import Policy Order, to make imports upto US$ 10,000 (or equivalent in other currencies) without opening of letters of credit or registering the indents/proforma invoices or orders with the Authorized Dealers, and make remittances there against through demand draft. The registered importers are free to make remittances in respect of such imports either in advance or after receipt of the goods in Pakistan. The remittances can be made through demand draft/telegraphic transfer/mail transfer. In case where the registered importers make advance payment for such imports, they will be required to furnish to the Authorized Dealer at the time of making a request for remittance, an undertaking to produce invoices and bills of lading/Airway bill within a period of four months from the date of advance payment. The Authorized Dealers will pursue the matter with the importers and report those cases to the area foreign exchange office where the requisite document are not produced within the prescribed time limit. In cases where remittances are made after receipt of goods in Pakistan, the registered importers can approach the Authorized Dealers for remittance on the basis of invoices and original bills of lading or Airway bill. The Authorized Dealers have our general permission to make advance payments or arrange remittances against the prescribed documents on receipt of goods in Pakistan.

2. Attention is also invited to para 4 of F.E. Circular No. 60 dated the 11th August, 1994. The third sentence "The Import Policy Order further ------- un-utilized value of letters of credit" may be recast as under:-

    "The Import Policy Order further empowers the Authorized Dealers to extend the letters of credit beyond the initial period of 12/24 months mentioned above for a further period of 24 months/36 months in case of items other than machinery/mill work and ‘machinery and mill work’ respectively provided request for revalidation is made before the expiry of initial period of 12/24 months or the extended validity period, on payment of revalidation charges @ 0.25% for each 6 monthly period on the un-utilized valued of letter of credit".

3. The date of F.E. Circular No.100 mentioned as 21st December, 1993 in F.E. Circular No. 60 of 1994 may be changed to 21st December, 1992.

4. Please bring the above to the notice of your constituents.


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