F.E.
Circular No. 48 |
October 22, 1998 |
All
Authorised Dealers
In Foreign Exchange,
Dear
Sirs,
DELAYED
REALISATION OF EXPORT PROCEEDS
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In
terms of notification
No. F.E.-1/98-SB dated the June 8, 1998 circulated
vide F.E. Circular No. 20 of 1998,
exporters are required to repatriate export proceeds
on the DUE DATE of payment, or within four months from
the date of shipment, whichever is earlier. In case
of bills sent on collection basis, which includes discrepant
documents drawn under letters of credit and not accepted
by the L/C opening bank, the DUE DATE would be the date
of payment determined as per terms indicated in the
underlying contract or four months from the date of
shipment, which is earlier. However, in case of any
extension allowed by the State Bank in the period prescribed
for repatriation of export proceeds, the DUE DATE shall
be deemed to be the date of expiry of the period of
such extension.
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In
the case of exporters not repatriating export proceeds
within 3 days of the DUE DATE or four months from the
date of shipment, whichever is earlier, it has been
decided that regardless of the exchange rate prevailing
on the date of surrender of export receipts, export
proceeds shall be converted into rupees at the rate
of exchange prevailing on the DUE DATE of repatriation
of proceeds.
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In
case of delayed repatriation of proceeds, the exporter
shall render himself liable to pay on the over due proceeds
a return in equivalent US dollars @ 3 per cent above
6-months LIBOR for the currency of the export bill for
the period of delay calculated with effect from the
expiry DUE DATE. In case of bills denominated in Pak
Rupee, the exporter will pay a return in Pak Rupee @
3 per cent above the normal lending rate of the bank
which has handled the documents.
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In
respect of export bills already over due, the exporters
will be entitled to rupee proceeds at the exchange rate
prevailing on the date of realisation provided the proceeds
are realised within 10 days from the date of issue of
this circular. Any over due export proceeds realised
after the expiry of ten (10) days from the date of issue
of this circular shall be paid at the rate prevailing
on the original DUE DATE.
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The
export refinance facility will cease to be available
at the concessional rate after the DUE DATE as determined
in para (a) or the maximum permissible period allowed
for refinance, whichever is earlier. In such an event,
the banks will recover the penalty as prescribed in
the Export Refinance Scheme. It is clarified that the
export refinance obtained from State Bank of Pakistan
will in any event, be repaid to State Bank of Pakistan
as per existing procedure.
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All
Authorised Dealers are directed to furnish the State
Bank with a Statement of "Overdue Export Bills",
on monthly basis as per proforma annexed herewith. The
Statement of "Outstanding Export Bills" prescribed
at Appendix
V-15 will continue to be submitted. The Statement
in the prescribed proforma at Appendix
V-17 is no longer required. Regional / Controlling
Offices of the bank are required to submit a consolidated
statement of all over due cases at the branches under
their jurisdiction to the respective Area Control Offices
(as specified in para
4, Chapter-I
of FE Manual) within 15 days of the date of the Statement.
A copy of the Statement shall be forwarded by them to
their Head Office, for preparing a consolidated Statement
in a diskette form for submission to the Director, Foreign
Exchange Department, State Bank of Pakistan, Central
Directorate, Karachi within 21 days of the date of the
Statement.
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Any
exporter who fails to repatriate the export proceeds
within 90 days of the expiry of DUE DATE, shall be deemed
to be a "Defaulter", for all intents and purposes
of banking facilities and his name may be included in
such a category if not specifically exempted by the
State Bank for genuine reasons.
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Authorised
Dealers are directed to take appropriate measures to
ensure that the amount of return recoverable from the
exporters is recovered in time for the credit to State
Bank of Pakistan's account with National Bank of Pakistan,
New York or paid to the concerned office of the State
Bank in case of amounts due in Pak Rupees, failing which
State Bank of Pakistan will recover the equivalent rupees
by debit to Authorised Dealers (Bank) account maintained
with it at the market rate.
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Authorised
Dealers are advised to note the above instructions carefully
and immediately convey for implementation of the same
to their branches authorised to deal in foreign exchange,
as well as to those of their customers who are engaged
in export.
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