The Head/ Principal Offices of all
Authorized Dealers in Foreign Exchange
REVIEW /UPDATE ON SUGAR SITUATION-SUGAR EXPORT
Attention of Authorized Dealers is invited to Ministry of Commerce& Textile Industry’s Office Memorandum No. 7(2)/2012-E-III (Vol-IV) dated September 13, 2013 on the captioned subject in terms of which Government of Pakistan has allowed export of sugar on the following terms & conditions as mentioned therein. Copy of the said O.M. is enclosed.
i. Sugar Mills are allowed to export a total of 500,000 MT of sugar out of which 250,000 MT are allowed to be exported with immediate effect up to 31 st October, 2013; and the remaining quantity of 250,000 MT from 1 st November, 2013 onward subject to the following conditions:
(a) The Sugar Mill owners will clear the outstanding arrears of Rs.1.7 billion (as reported by the representative of PSMA), to be paid to the growers.
(b) The Sugar Mills will start crushing sugarcane in Sindh and Punjab by 1 st November and 15 th November, 2013, respectively.
ii. Quota will be allocated on first come first served basis by the SBP.
Export will be made against irrevocable letter of credit or a contract with 25% non-refundable advance payment.
In case of applications for exports against contract, Shipment will be made within 45 days of the registration of contact with the State Bank of Pakistan, and the non-refundable advance payment will be forfeited in favour of GOP in case of non-performance in the stipulated time.
The SBP will display the summary information covering number and quantity approved against the applications so received from Authorized Dealers on its website www.sbp.org.pk which may be viewed by the concerned stakeholders and General Public.
Accordingly, the Authorized Dealers are advised to process the cases as per following mechanism:-
1. Receipt of a minimum 25% of total contract value as advance payment (evidencing by advance payment voucher, swift message and reporting schedule/credit advice) and exporter must ship the sugar within 45 days from the date of SBP approval.
2. Obtaining an irrevocable L/C from the buyer and exporter must ship the sugar within 45 days from the date of SBP approval.
3. Banks will forward the requests of Sugar Mills alongwith attested photocopies of clearance issued by the concerned Cane Commissioner to the concerned sugar mill in compliance of conditions mentioned at para (i) a) and b) above, Contract, E-Form, irrevocable L/C or advance payment voucher, swift message and reporting schedule /credit advice, as the case may be, for SBP approval.
4. All requests should be addressed to the Director, Exchange Policy Department, State Bank of Pakistan, I.I. Chundrigar Road, Karachi with reference to the related F. E. Circular Letter on the subject.
5. SBP will allow permission against each E-Form on first come first served basis.
6. Bank will send sugar export update to the Director, Exchange Policy Department State Bank of Pakistan, I.I. Chundrigar Road, Karachi on daily basis as per following format failing which SBP will initiate action under related rules & regulations:-
Name of Sugar Mill
Date of Shipment
Remarks, if any
7. Incomplete requests will not be considered.
Authorized Dealers are advised to bring the same to the notice of all their constituents.