Circulars/Notifications - Exchange Policy Department  
 EPD Circular Letter No. 09 of 2016

June 20, 2016



The Presidents/Chief Executives of all
Authorized Dealers in Foreign Exchange

Dear Sirs/Madam,

SUBSIDY ON EXPORT OF SUGAR

          Attention of Authorized Dealers (ADs) is invited to EPD Circular Letter No. 20 dated December 28, 2015 and EPD Circular Letter No. 02 dated February 8, 2016 regarding export of sugar.

2.         In this regard, ADs may find enclosed Finance Division’s fax message No.F.2(3)/CF-C/2014 dated April 6, 2016 regarding allocation of funds being Federal Government’s share of subsidy on export of sugar and other terms and conditions mentioned therein.

3.         SBP shall disburse subsidy at the rate of PKR 13/kg to those exporters whose respective provincial governments will contribute their share of subsidy. In case a province decides not to contribute its share of subsidy, 50% share of subsidy (PKR 6.5/kg), being federal share shall be paid to the claimant.

4. 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:

  1. ADs will forward the shipment-wise 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 quoting the reference of this circular letter along with the attested / authenticated copies of the following documents:

    1. SBP approval letter for allocation of sugar export quota.
    2. Manual Form-E/Electronic Form-E (EFE).
    3. Goods Declaration Form (GDF).
    4. Certificate issued by the concerned Cane Commissioner to the effect that concerned sugar mill has purchased sugarcane from farmers at a minimum price of PKR 180/40 Kg to be eligible for federal share of cash support on export of sugar.
    5. Bill of Lading/ Truck Receipt/ Railway Receipt. In case export has been made through House Bill of Lading, it must be accompanied by relevant Master Bill of Lading.
    6. Commercial / Customs Invoice.
    7. Export Proceeds Realization Certificate / Advance Payment Voucher properly showing utilization. Where shipment has been made against Advance Payment, shipping documents must have been submitted by the AD under Para 24, Chapter XII of the F.E Manual (2002).

  2. Shipments made after 45 days of SBP approval or after March 31, 2016 will not be eligible for subsidy. Sugar exported to Afghanistan and Central Asia on price less than USD 450 per MT will not be eligible for subsidy.

  3. All exports including those destined for Afghanistan and Central Asian Republics by land route will be subject to receipt of export proceeds by wire transfer through banking channel.

  4. Subsidy will be allowed only after full realization of export proceeds against E-Form.

  5. Sugar mills will approach FEOD, SBP-BSC, Head Office or respective field office of SBP-BSC, as the case may be, through their AD claiming the subsidy latest by October 31, 2016. No claims will be entertained after aforementioned time period.

  6. 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 discrepancies within 30 days of return, after which no such application will be entertained.

  7. 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.

  8. Format of application by the sugar mills (Annexure-I) and the undertaking by AD (Annexure-II) are enclosed.

5.         Incomplete requests shall not be considered..

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

Encls: As above.
- Annexure-I - Annexure-II



Yours truly,


S/d

(Fazal Mahmood)
Director

       
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