Circulars/Notifications - Exchange Policy Department  
 EPD Circular Letter No. 05 of 2020

March 19, 2020

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

Dear Sir/Madam,

Revision of Instructions regarding Making and Dispatch of Shipping Documents by the Exporters

Attention of Authorized Dealers is invited to Para 11A Chapter 12 of the Foreign Exchange Manual regarding the above subject.

2.            In order to facilitate the exporters, the instructions contained in the above mentioned paragraph have been amended. Accordingly, the existing instructions contained in Para 11A Chapter 12 of the Foreign Exchange Manual shall be replaced with the following:

Para 11A – Making and Dispatch of Shipping Documents Direct to Importer

As an exception to the instructions contained in Para 11, Authorized Dealers (ADs) may allow making of shipping documents in the name of the foreign importers and dispatch of the same by the exporters directly to the foreign consignees or their agents in the country of final destination by issuing a certificate as per Appendix V-12A to the carriers (ships, airlines, trucks, railways etc.) subject to the following terms and conditions:

  1. The export overdues of an exporter should not be more than 5% of the previous year’s exports.
  2. The value of export consignment to be shipped by the exporters shall be subject to following limits:

    Criteria Export overdues as a percent of previous financial year’s exports proceeds realized, on the cut-off date (quarter end).

    Up to 1% More than 1% & up to 3% More than 3% & up to  5%
    Minimum export proceeds realized during the last three years in USD or equivalent in other currencies 5 million 2.5 million USD 250,000
    Value of export consignment in USD or equivalent in other currencies subject to fulfilment of above criteria (both conditions).

    No Limit Up to 1,000,000 Up to 500,000/-

  3. The exporter availing this facility shall have to provide a certificate to the AD on the prescribed format (Appendix V-12B) showing bank-wise consolidated position of outstanding overdue export bills, as of quarter end, as a percentage of the total exports proceeds realized during the preceding financial year. This certificate shall be used by the ADs for determining the value of export consignment, under sub-para (ii) above, during the quarter subsequent to the quarter end  date to which the certificate relates.  
  4. The AD may accept export performance certificates of other ADs showing export proceeds realized through them during the last three financial years in order to determine the export performance of the exporter.

  5. The AD shall obtain an undertaking from the exporter that export proceeds against such exports will be realized as per the prescribed time period. Further, the AD, at its discretion, may obtain personal guarantees of the Directors/Sponsors of the firm/company to ensure realization of export proceeds against such shipments.

  6. Before certification of Form-E/EFE, the AD shall obtain a valid contract/proforma invoice and satisfy itself about the bona fides of the importers/consignees abroad. Further, the AD shall also obtain copies of shipping documents (electronically or manually) within 10 working days from the date of the shipment.

  7. The AD shall monitor the shipment(s) made by the exporter and ensure realization of export proceeds thereagainst within the prescribed time. In case of non-realization within the prescribed period, the matter shall be reported to the Foreign Exchange Operations Department, SBP-BSC as per applicable instructions.

  8. In case of unsatisfactory behavior of the exporter or export overdues exceeding the prescribed limit, as mentioned at (ii) above, the AD shall discontinue extending the above facility to the exporter.

3.            All other terms, conditions and instructions on the matter shall remain unchanged.

4.            Authorized Dealers are advised to bring the above instructions to the knowledge of all their constituents and ensure meticulous compliance of the above and other relevant instructions on the subject.


Appendix V-12A

Appendix V-12B


Yours truly,


(Arshad Mehmood Bhatti)

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