Attention of Authorized Dealers (ADs) is invited to EPD Circular Letter No. 11 dated December 15, 2014 and EPD Circular Letter No. 01 dated January 05, 2015 regarding export of sugar.
ADs may find enclosed Finance Division’s Notification No. 1(4) CF-C/2014-114 dated February 18, 2015 in terms of which Government of Pakistan has approved total cash subsidy @ PKR 10/- per kg to sugar mills on export of sugar, as per the terms and conditions mentioned therein.
2. Accordingly, ADs are advised to process the cases of eligible sugar mills for cash subsidy against the export of sugar allowed under the above mentioned circular letters as per following mechanism:
a) ADs will forward the requests of sugar mills on prescribed format (Annexure-I) through their respective Departmental/Business/Group Heads to The Director, Foreign Exchange Operations Department (FEOD), SBP, Banking Services Corporation (BSC), Head Office, Karachi or The Chief Manager, Field Office of SBP, BSC, as the case may be, for claiming subsidy allowed under Finance Division’s above notification quoting the reference of this circular letter along with the attested / authenticated copies of the following documents:
i. SBP approval letter for allocation of sugar export quota.
ii. E-form.
iii. Goods Declaration Form (GD).
iv. Bill of Lading/ Truck Receipt/ Railway Receipt. In case export has been done through House Bill of Lading, it must be accompanied by relevant Master Bill of Lading.
v. Commercial / Customs Invoice.
vi. Export Proceeds Realization Certificate / Advance Payment Voucher.
b) Shipments made after 45 days of SBP approval or after May 15, 2015 will not be eligible for subsidy. Sugar exported to Afghanistan on price less than USD 450 per MT will not be eligible for subsidy.
c) Subsidy will be allowed only after full realization of export proceeds against E-Form.
d) Sugar mills will approach FEOD, SBP-BSC or respective field office of SBP-BSC, as the case may be, through their AD claiming the subsidy within 90 days of full realization of export proceeds or within 90 days from the date of shipment if export is made against 100% advance payment. No claims will be entertained after aforementioned time period.
e) The SBP-BSC will scrutinize the claims within 30 days of receipt of subsidy claim. Discrepant claim will be returned to respective AD and the same must be resubmitted after removing the discrepancy within 30 days of return, after which no such application will be entertained.
f) Approved claim will be disbursed to respective AD in its account maintained with SBP-BSC for onward credit to the exporter’s account within 24 hours of disbursement.
g) Format of application by the sugar mills (Annexure-I) and the undertaking by AD (Annexure-II) are enclosed.
3. Incomplete requests shall not be considered.
4. Authorized Dealers are advised to bring the same to the notice of all their constituents.
Encl: As above.