Attention
of Authorised Dealers is invited to para
46(b) (Re-print circulated vide our Circular
letter No.CIR.49 / FEP.Reg.(12)-97 dated the 18th
November, 1997). Chapter XIII
of the Foreign Exchange Manual (7th Edition
- 1992), as amended from time to time, regarding merchanting
trade, in terms of which Authorised Dealers / exporters
were permitted to conduct merchanting trade in eight commodities
mentioned therein.
2.
It has now been decide to permit merchanting trade in
commodities (other than the eight commodities mentioned
in para
46(b) subject to the same terms and conditions
as laid down in the said para of the Foreign Exchange
Manual except that the margin to be retained by the Pakistani
intermediary which includes his commission and expenses
is not less than (a) 10% if the sale price is to be recovered
from the foreign buyer before remittances of the purchase
price is made to the overseas supplier of the goods, and
(b) 15% if the back-to-back letter of credit provides
for payment to be made to the overseas supplier of the
goods before receipt of remittance from the overseas buyer.
Other terms and conditions laid down in said para of the
Manual will remain an changed for the transactions covered
by this para.