EPD Circular Letter No. 07 of 2020 |
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The Presidents/Chief Executives of all
Authorized Dealers in Foreign Exchange
Dear Sir/Madam,
Amendments in Foreign
Exchange Regulations
In
wake of the emerging circumstances due to
global outbreak of COVID-19, it has been
decided to amend the foreign exchange regulations
given in the below mentioned instructions/
paragraph of the Foreign Exchange Manual:
- Para 6 Sub-para (ii), Chapter
12 - Method and Period of Payment
In terms of above Sub-para, where export
contract provide for payment earlier than
six months, Authorized Dealers (ADs) may
allow extension in the realization period
if they are satisfied with the explanation
given for delay in realization, provided
such extension does not extend the period
beyond six months from the date of shipment.
As an exception to these instructions,
ADs may allow extension in realization
of export proceeds to exporters up to
90 days beyond the expiry of six months
from the date of shipment, provided the
expiry of six months falls between January
1, 2020 to June 30, 2020 (both date inclusive).
However, this extension shall be provided
by the ADs subject to submission of satisfactory
explanation by the exporter along with
supporting evidence showing delay in realization
of export proceeds due to COVID-19 pandemic.
Authorized Dealer would not be required
to submit revised reporting of overdue
cases for the month of January and February
2020.
- Para 30 Sub-para (i)(b)(c)
& (ii), Chapter 13 - Advance Remittances
In terms of above Sub-paras, in case of
advance payment against imports, Authorized
Dealers (ADs) are required to obtain an
undertaking from the importers (V-31)
that in case the goods against advance
payment are not imported and related shipping
documents are not submitted to AD within
four months from the date of advance payment,
the AD will recover a penalty @1% per
month or part thereof on the amount of
advance payment from the date of remittance
till date of submission of shipping documents.
As an exception to the above instructions,
ADs may extend the time period for import
of goods and submission of shipping documents,
against advance payment, up to 90 days
from the due date of import of goods,
under general or special permission, in
cases where the due date falls between
January 01, 2020 to June 30, 2020 (both
days inclusive). However, this extension
shall be provided by the ADs subject to
submission of satisfactory explanation
by the importer along with supporting
evidence showing delay in import of goods
due to COVID-19 pandemic.
- FE Circular No. 8 dated August
15, 2017
In continuation of the instructions contained
in the above-mentioned FE Circular, It
has been decided to dispense with the
requirement of physical submission of
the following documents to SBP - Banking
Services Corporation (SBP- BSC) from the
month of March, 2020 onwards:
- Export Advance Payment Voucher
(APV) in original along with copy
of Schedule A-2/O-2.
- Triplicate Copy(s) of E-Form(s)
/ EFEs certified against export APVs
along with copy(s) of related APV(s)
showing progressive unutilized balance
and invoice.
- Manual E-Forms along with supporting
documents.
Further, Authorized Dealers shall maintain
complete record/documents of monthly foreign
exchange returns as per existing procedure
and shall present the same to SBP/SBP-BSC
for onsite inspection and offsite monitoring,
as and when required.
- All other terms & conditions
and instructions applicable to the above
transactions shall remain unchanged.
- Authorized Dealers are advised to
bring the above instructions to the
knowledge of all their constituents
for meticulous compliance.
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Yours truly,
Sd/-
(Arshad Mehmood Bhatti)
Director |
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