Shipping Companies in
OF SURPULUS FREIGHT COLLECTION -
FOREIGN SHIPPING COMPANIES
has been decided to delegate to the Authorized Dealers,
the powers to allow remittance of surplus freight collections
of foreign shipping companies voyage-wise. Consequently,
the following is added as sub-paragraph (iii) of paragraph-1,
Chapter XIV of the Foreign Exchange Manual. The existing
sub-paragraphs (i) and (ii) are renumbered as sub-paragraph
(ii) & (i) respectively:-
on account of surplus freight companies/local to foreign
As an exception to the instructions contained in sub-paragraph
(ii) above, foreign shipping agents of foreign shipping
companies desiring to remit surplus freight without
prior approval of SBP may designate an Authorized
Dealer and approach SBP through it for such permission.
SBP , after ensuring that the agent holds necessary
lenience from Customs and that agency agreement between
the principal and the agent is registered with the
Board of Investment, will authorize the concerned
Authorised Dealer to remit surplus freight on production
of the following documents in addition to the documents
mentioned in sub-paragraph(i) above:-
on Form "FP-Shipping" (App.V-46A) along
with Import/Export freight manifest, copies of relative
Bills of Lading and other documentary evidence/appendices
in accordance with the procedure laid down in Para
2 Chapter XIV of the Manual.
of valid permission from BOI for representing the
foreign principal to whom or to whose order remittance
is being made.
certificate for payment of income tax at the applicable
rate or of having obtained exemption certificate
covering the remittance from the Income Tax Authorities.
undertaking from the agent duly certified by the
designated AD to the effect that any irregularity
detected and advised by SBP shall either be rectified
within 7 days of receipt of such advice by submitting
the requisite documents or by repatriating to Pakistan
the amount remitted through normal banking channel.
Authorised Dealers will allow remittance of the surplus
freight of the ships voyage-wise for an amount not exceeding
the amount mentioned in the last column of the statement
of FP-Shipping (App.V-46-A)and shall ensure that whole disbursement
whether paid or due but not paid and amount of freight not
yet collected are duly deducted from the freight collections.
The Authorised Dealers will also ask the applicant to ensure
regular submission of monthly statement of FP-Shipping (App.V-46-A)
and disbursement statements in respect of all vessels handled
by it on behalf of its foreign principals.
Authorized Dealers will submit the above documents along
with a photocopy of Form M for post facto checking
within 3 days of remittance to the Joint Director,Foreign
Exchange Department, State Bank of Pakistan, Central Directorate,
Karachi under a covering letter. The original Form M
shall be submitted as usual through schedule E-4 while reporting
the transaction in their monthly Foreign Exchange Returns.
Any irregularity detected and and advised by the State Bank
shall be rectified within 7 days of receipt of such advice
failing which the amount remitted against such booking will
be required to be repatriated to Pakistan through normal
banking channel. It will be the responsibility of the designated
ADs to ensure that letter through which the irregularities
pointed out by SBP are responded to by them along with requisite
documents and where documents are not supplied, by encashment
certificate in token of having repatriated and encashed
the amount with an Authorized Dealer.
Following amendments in Chapter XIV of the Foreign Exchange
Manual are also made:-
line 4 of Pare 1(ii) (formerly 1(i) "Full stop"
will be omitted and following words/sentence will be
other statements/documents mentioned in sub-Para(i)
above. A separate statement of Form FP-Shipping (Specimen
enclosed as App.V-46-A) shall be used for remittance
Para-2 will be replaced as under:-
"Shipping Companies/Airlines may accept freight
in rupees only in the under noted cases without the
prior approval of the State bank:-
Export from Pakistan made on C&F/CIF basis against
form E duly certified by ADs on their letterheads
in terms of Para-27 Chapter XII of Foreign Exchange Manual.
Import freight on FOB basis:-
Against Ads certificate on their letterhead on Form prescribed
in Appendix V-24 in terms of Para-11 Chapter XIII of the
Against SBPs approval for import on FOB basis in
public sector in terms of Para-12 Chapter XIII of the
Against certificate of registered importers for freight
on Import of Trade sample not exceeding Rs. 500/- per
year in terms of Para-14 Chapter XIII of the Manual.
Freight on personal effects/excess baggage in accordance
with the procedure laid down in paras (40 (a) & 40
(c) Chapter XVII of the Manual.
Freight on Export Trade sample in accordance with the
procedure laid down in Para 40 (b) Chapter XVII of the
all other cases prior approval of the State Bank should
be obtained before collecting freight in Rupees. For this
purpose, applications should be made to the State Bank giving
the nature of the transactions and the reasons why freight
cannot be paid in foreign currency.
Statement to be submitted
(Downloadable in MS-Excell Format)