FE Circular No. 02 of 2023 |
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The Presidents/Chief Executives of all
Authorized Dealers in Foreign Exchange
Dear Sir/Madam,
Realization of Export Proceeds
Attention of Authorized Dealers (ADs) is invited to FE Circular No. 01 dated February 13, 2023, which sets out the instructions relating to delayed realization of export proceeds by exporters.
2. In view of the representation received from various stakeholders, it has been decided that exporters who are able to bring their delayed export proceeds to Pakistan by April 30, 2023 will not face any deductions and their export proceeds will be converted into PKR and released to them in a normal fashion. Accordingly, the amounts withheld by the ADs in pursuance of the above mentioned instructions will also be released to the exporters. It has also been decided to further amend the instructions conveyed vide above mentioned circular and accordingly paragraph 33A, Chapter 12 of FE Manual has been revised, as under:
“33A Delayed Realization of Export Proceeds
- In cases where export proceeds (fully or partially) are realized after the prescribed period (as stipulated in Para 6 of this Chapter), the AD shall convert the export proceeds at the prevailing market exchange rate, credit the same into the exporters’ account and subsequently adopt the following procedure:
- The AD shall mark a lien on the amount of export proceeds realized by the exporter, as mentioned below:
Number of days export proceeds is delayed |
Percentage of amount to be marked under lien |
Up to 30 days |
3% |
From 31 to 60 days |
6% |
Beyond 60 days |
9% |
- A consolidated statement regarding all such liens by the AD will be submitted by Head/Principal Offices of the ADs to the Director, Foreign Exchange Operations Department (FEOD), SBP-BSC on weekly basis as per prescribed format (Revised Appendix V-20A).
- FEOD shall file a complaint to Foreign Exchange Adjudication Department (FEAD), SBP-BSC with respect to delay in realization of export proceeds for all reported cases. Subsequently, AD shall deposit the fine as ordered by FEAD with SBP (out of the amount marked under lien as per
paragraph (a) above) and release the remaining amount to the exporter. In case FEAD does not impose any fine on the exporter, the entire amount under lien would be released to the exporter.
- The above instructions will not be applicable in cases of export bills/ export receivables that are discounted by the exporter to the AD.”
3. The above instructions will be applicable with immediate effect. Authorized Dealers are advised to bring the above instructions to the knowledge of all their constituents and ensure meticulous compliance of the above instructions.
Encl: As above
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Yours truly,
Sd/-
(Dr. Asif Ali)
Director
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