Circulars/Notifications - Exchange Policy Department  
 EPD Circular Letter No. 22 / EPP 1(51) 3% R&D -2006
November 30, 2006 

The Head/Principal Offices of
All Authorized Dealers in Foreign Exchange

Dear Sir/Madam,

Research and Development Support Order, 2006

Reference may please be made to Ministry of Textile Industry’s SRO. No. 803(I)/2006 dated August 04, 2006, SRO. No. 931(I)/2006 dated September 4, 2006 and SRO. No. 1128(I)/2006 dated November 10, 2006, on the captioned subject in terms of which FE Circular No. 12 dated August 28, 2006, FE Circular No. 13 dated September 14, 2006 and FE Circular No. 17 dated November 13, 2006 were issued by SBP wherein 3% & 5 % R&D Support has been made available to Home Textiles & Dyed/Printed Cloth Manufacturing-Cum-Exporting Units. In the light of suggestions of the stakeholders made in different meetings to streamline the process/implementation of R & D Support, following guidelines/decisions, duly confirmed/endorsed by Ministry of Textile Industry, are issued::-

1. Period of 90 days would be applicable only for submission of cases and not for resubmission of cases.

2. If the H. S. Code is eligible and the basic description of goods given in invoice/GDF match with the description of goods in Pakistan Customs Tariff Codes (PCTC), cases will be entertained.

3. Claims having H. S. Codes under heading “others” will be entertained if the ‘E’ Form /Shipping Bill/Invoice contain the same H. S. Codes.

4. Requirement of AD’s separate realization certificate against HAWB / FCR is relaxed, as in Annexure II, AD confirms the same who can be penalized if any discrepancy is detected subsequently.

5. Differences in dates on MR (on the back of GD Form) and date of shipment on B/L will be ignored. This difference is usually due to requirements of L/C. The date on MR shall be considered for calculating the eligible period.

6. Commission Paid Certificate will not be required.

7. Concerned Associations will be responsible for through verification of their members’ status. They will ensure proper utilization of R&D Support by their members. Once the claim duly certified by the concerned Association is submitted to SBP-BSC offices, the same will be entertained without further authentication/ reference to the concerned Association. However, as a precautionary measure, the concerned Associations are required to furnish a list of their members to SBP and Ministry of Textile Industry for information and record. Further, they will submit a statement giving detail of cases certified by them on monthly basis to the concerned area office of SBP-BSC.

8. Copy of Bill of Lading, Seaway Bill, House Airway Bill with relevant Carrier Airway Bill and Through Bill of Lading will be acceptable. However, where date of shipment is not available on the document, additional evidences of shipment may be required to determine the eligibility of claim.

9. In case a product has two portions of white and dyed, major portion will be counted for R&D support rate i.e. if white portion is 49% and dyed portion is 51%, the claim will be eligible for the rate applicable to dyed and vice versa.

10. The certificate from the concerned Association required under Appendix-III of SRO 803 dated August 04, 2006 should be sealed / stamped only. The condition of the EMBOSSED seal is not mandatory.

11. The claims for R&D Support which could not be filed/submitted to SBP-BSC Offices within prescribed time period of 90 days, for any reason, may be submitted by 31st December, 2006.

12. Submission of Carrier Bill of Lading as per SRO No. 1128 (I)/2006 dated 10-11-2006 shall be applicable prospectively i.e. w.e.f. 10th November, 2006.

Authorized Dealers are advised to bring the same to the notice of their constituents.


Yours sincerely,

(Muhammad Akmal)
Joint Director

About SBP
Economic Data
Press Releases
Laws & Regulations
Monetary Policy
Help Desk
SBP Videos
Contact us
What's New?
Online Tenders
Web Links

Educational Resources
Regulatory Returns
Rupey ko Pehchano
Zahid Husain Memorial Lecture
Best view Screen Resolution : 1024 * 768
Copyright © 2016. All Rights Reserved.