EPD Circular Letter No . 02 /EPP.1 (51) of 2014 |
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The Head/ Principal Offices of all
Authorized Dealers in Foreign Exchange
Dear Sirs/Madam,
Review /Update on Sugar Situation-Sugar Export
Attention of Authorized Dealers is invited to Ministry of Commerce’s Office Memorandum (O.M) No. 7(2)/2012-E-III (Vol-VIII) dated April 3, 2014 (copy enclosed) on the captioned subject in terms of which Government of Pakistan has;
i. Allowed export of a total of 250,000 MT of sugar through sugar mills from surplus sugar stock before June 15, 2014 subject to following conditions;
a- |
Quota may be allocated on first come first serve basis. |
b- |
Export may be made against irrevocable letter of credit or a contract with 25% non-refundable advance payment. |
c- |
Shipment may be made within 45 days of the registration of contract with the SBP, and the non-refundable advance payment to be forfeited in favor of Government of Pakistan in case of non-Performance |
ii. Directed the Minister for National Food Security & Research, Minister for Industries & Production and concerned Secretaries to ensure timely payment of outstanding dues to sugar cane growers by the sugar mills through Cane Commissioners/Provincial Governments.
2. Accordingly, the Authorized Dealers are advised to process the cases as per following mechanism;
i- |
The bank will ensure receipt of a minimum 25% of total contract value as advance payment (evidenced by advance payment voucher, swift message and reporting schedule/credit advice) or obtain an irrevocable L/C from the buyer |
ii- |
Exporter must ship the sugar within 45days from the date of SBP approval. |
iii- |
Banks will forward the requests of Sugar Mills for SBP approval along with the attested / authenticated copies of the following documents: |
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a- |
Clearance issued by the concerned Cane Commissioner to the effect that concerned sugar mill has cleared outstanding arrears to be paid to the growers |
b- |
Contract |
c- |
E-Form |
d- |
Irrevocable L/C or advance payment voucher, swift message and reporting schedule /credit advice, as the case may be. |
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iv- |
All requests should be addressed to the Director, Exchange Policy Department, State Bank of Pakistan, I.I. Chundrigar Road, Karachi with reference to the this F.E. Circular Letter. |
v- |
SBP will allow permission against each E-Form on first come first served basis. |
vi- |
Banks will submit sugar export update to Director, Exchange Policy Department on daily basis as per the format given below at [email protected] failing which SBP will initiate action under related rules and regulations: |
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Name of Sugar Mill |
E-Form No. |
Quantity Shipped |
Date of Shipment |
Remarks, if any |
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3. Incomplete requests will not be considered.
4. Authorized Dealers are advised to bring the same to the notice of all their constituents.
Encl: As above
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Yours faithfully,
Sd/-
( Najm-us-Saqib Shabbir)
Additional
Director
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