CHAPTER
XVIII
IMPORT
AND EXPORT OF CURRENCY NOTES AND COIN, FOREIGN
EXCHANGE, JEWELLERY, GOLD AND SILVER
1.
General.
2.
Import
of Pakistan Currency Notes.
3.
Import
of Foreign Currency Notes and Coin.
4.
Ban
on Sending Pakistan and Foreign Currency Notes or Coin by Post.
5.
Export
of Pakistan Currency Notes.
6.
Export
of Currency on Steamers and Aircrafts
7.
Prohibition
to sell Pakistan Currency Notes abroad.
8.
Ban
on Export of Foreign Exchange Instruments
and Pakistan
and Foreign Currency Notes and Coin by Post.
9.
Import of Foreign Exchange Instruments.
10.
Export
of Foreign Exchange.
11.
Definition
of Jewellery and Precious Stones.
12.
Import
of Jewellery and Precious Stones
13.
Export of Jewellery and Precious Stones.
14.
Taking
out of Precious Stones and Jewellery.
15.
Definition
of Gold and Silver.
16.
Import
of Gold and Silver.
17.
Export
of Gold and Silver.
18.
Declaration
to Customs by Outgoing Passengers.
1.
General.
In exercise of the powers conferred by sub-section (1) of Section
8 of the Act, the Federal Government has issued Notification
No.F1(8)/EF/49 dated the 2nd May, 1949 and No.1(2)ECS/48 dated
the 1st July, 1948 as amended by Notification No.1(14)-EF/49
dated 5th November, 1949, prohibiting the bringing or sending
into Pakistan from any place outside Pakistan, of Pakistan and
foreign currency notes or bank notes, un-issued or in circulation,
or coin, except with the general or special permission of the
State Bank.
2. Import of Pakistan Currency Notes.
However,
under Notification No.FE.5/92-SB dated the 28th December,
1992 State Bank has granted general permission for bringing
into Pakistan notes legal tender in Pakistan
not exceeding Rs 500 from India and Rs 3000 from any
country other than India,
in value, in all per person at any one time.
3. Import of Foreign Currency Notes
and Coin.
The
State Bank has also granted under Notification No.F.E.30/49-SB
dated the 5th November, 1949 and Notification No.FE. 5/92-SB
dated the 28th December, 1992 general permission
to the travellers to Pakistan, to bring with them without limit
foreign currency notes except un-issued notes and coin, except
coin which is legal tender in India, which can be brought only
upto Rs.5/- in value per person at any one time.
4.
Ban on sending Pakistan and Foreign Currency Notes or
Coin by Post.
The
permission contained in preceding paragraphs 2
and 3 is valid only for bringing
in of Pakistan or foreign currency notes or coin by travellers
personally with them, but not for sending them into Pakistan
by post or otherwise which is illegal. Currency notes and coin
sent by post to Pakistan are liable to be confiscated, which
is besides the legal action that will be taken under the Act
in such cases.
5. Export of Pakistan Currency Notes.
State
Bank has granted general permission vide Notification No.FE.4/92-SB
dated the 28th December, 1992 for taking out from
Pakistan currency notes of the Government of Pakistan and State
Bank of Pakistan notes not exceeding Rs 500 and Rs 3000 in value
to India and any country other than India respectively, in all
per person at any one time.
6. Export of Currency on Steamers
and Aircrafts.
The
State Bank has granted general permission for export of currency
which has been brought into Pakistan in the safes of vessels
or aircrafts, or which has been taken on board a vessel or aircraft
with the permission of the State Bank.
7.
Prohibition to sell Pakistan Currency Notes abroad.
Pakistan
currency notes upto Rs 500 and Rs 3000, which the persons leaving
Pakistan are permitted to take with them to India and to any
country other than India respectively, are not intended for
expenditure in foreign countries, but are meant for immediate
expense on their return to Pakistan. Authorised Dealers should
bring this to the notice of travellers when issuing exchange
to them for travel purposes.
8.
Ban on Export of Foreign Exchange Instruments and Pakistan
and Foreign Currency Notes and Coin by Post.
The
permission contained in paragraphs 5
and 10 (d), (e) and (f) is valid
only for taking out foreign exchange instruments and currency
notes and coin by the travellers themselves, but not for sending
them out by post or otherwise, which is illegal and renders
the foreign currency instruments and currency notes and coins
so sent liable for confiscation, besides any legal action that
may be taken against the sender under the Act.
9.
Import of Foreign Exchange Instruments.
The
term 'foreign exchange' as defined in Section 2 of the Act means
foreign currency and inter alia includes any instrument drawn,
accepted, made or issued under clause (8) of Section 17 of the
State Bank of Pakistan Act, 1956 and any drafts, travellers
cheques, letters of credit and bills of exchange expressed or
drawn in foreign currency or in Pakistan currency but payable
in any foreign currency. There are no restrictions on the import
of foreign exchange instruments either personally or by post
or otherwise. Such restriction applies only to foreign currency
notes and coin in respect of which para 4 ibid may be referred.
10.
Export of Foreign Exchange.
In
pursuance of sub-section
(2) of Section 8 of the Act, the State Bank has issued
Notification No. F.E.2/98-SB dated July 21st, 1998 granting
general permission to: -
(a)
Authorised Dealers to send out of Pakistan, cheques,
drafts or bills of exchange which have been acquired by them
in the normal course of their business and within the terms
of their authorisation.
(b)
Any person maintaining an account expressed in a foreign
currency, and held under any permission, general or otherwise,
granted by the State Bank of Pakistan to take or send out of
Pakistan, cheques or drafts drawn on such account.
(c)
Any person, other than a person to whom foreign exchange
is issued for travelling purposes only, to send out of Pakistan
foreign exchange issued to him by an Authorised Dealer.
(d)
Any person to take out of Pakistan foreign exchange issued
to him by an Authorised Dealer in Pakistan and endorsed on his
passport.
(e)
Any person not ordinarily resident in Pakistan, to take
out of Pakistan the unspent amount of foreign currency brought
by him into Pakistan, provided the period of his continuous
stay in Pakistan does not exceed three months, and
(f)
Any person to take out of Pakistan US$ 10,000/- or equivalent
thereof in other foreign currencies.
11. Definition of
Jewellery and Precious Stones.
12. Import of Jewellery and Precious Stones.
Under
the Act there are no restrictions on the import of jewellery
and precious stones, but their import is regulated by the Import
Trade Control Regulations. Import of jewellery, precious metals,
precious stones, etc., by incoming passengers is regulated by
the Rules made under the Customs Act.
13.
Export of Jewellery and Precious Stones.
Sub-section
(2) of Section 8 of the Act prohibits export from Pakistan of
jewellery or precious stones except with the general or special
permission of the State Bank. The State Bank has granted general
permission vide its Notification No.F.E.3/85-SB dated the 15th
August, 1985, under which any person can take out of Pakistan
at any one time to any country outside Pakistan, precious stones
or jewellery other than articles made wholly or mainly of gold
as under:
(a) India.
Nil.
(b) Afghanistan, Bangladesh and Iran. upto Rs.1,000/- in value
(c) Any other country or place not
upto Rs.2,000/- in value
mentioned in
(b) above
No
person is allowed to take any jewellery to India without the
approval of the State Bank.
14. Taking out of Precious Stones and Jewellery.
(i)
Under the State Bank Notification
No.FE.3/85-SB dated the 15th August, 1985, any person other
than a person domiciled in Pakistan or India, who is returning
to his/her own country, may take with him/her any precious stones
or jewellery brought by him/her into Pakistan without limit
if the same had been declared to the Customs Authorities on
the prescribed form at the time of his/her arrival in Pakistan,
and precious stones and jewellery, other than articles made
wholly or mainly of gold purchased in Pakistan upto a further
Rs.10,000/- in value. The intention is that this facility will
be available only to the families of foreign nationals who are
working in Pakistan with the permission of the concerned authorities.
Foreign nationals and overseas Pakistanis can also take out
gold, jewellery, precious/semi precious stones upto the value
of $10,000/- in
all provided the same have been purchased against encashment
of foreign exchange brought by them from abroad.
(ii)
Applications
to carry jewellery to India or to other countries in excess
of the limit prescribed in para 13 ibid, should be made to the
State Bank in duplicate on Form 'J' (AppendixV-81). The application
should be accompanied by an undertaking from the traveller that
should the State Bank accede to his/her request, he/she will
bring back the jewellery to Pakistan within the specified period,
declare it to the Customs and produce proof thereof to the State
Bank. Where such requests are allowed by the State Bank, it
will issue a licence for the Customs in duplicate. While the
original copy of the licence will be surrendered to the Customs
at the time of taking out the jewellery, the duplicate thereof
will be retained by the traveller. On his/her return to Pakistan,
the jewellery brought back by the traveller will be declared
to the Customs who will endorse the duplicate copy of the licence.
The duplicate copy of the licence endorsed by the Customs will
be produced by the travellers to the State Bank within the specified
period in pursuance of the undertaking given by him/her at the
time of departure.
15.
Definition of Gold and Silver.
'Gold'
as defined in Section 2 of the Act includes gold in the form
of coin, whether legal tender or not, or in the form of bullion
or ingot, whether refined or not. 'Silver' means silver bullion
or ingot, silver sheets and plates which have undergone no process
of manufacture subsequent to rolling and uncurrent silver coin
which is not legal tender in Pakistan or elsewhere.
16.
Import of Gold and Silver.
(i)
The Federal Government by their Notification No.1(2)
ECS/48 dated the 1st July, 1948 issued pursuant to sub-section
(1) of Section 8 of the Act have prohibited, except with the
general or special permission of the State Bank, the import
into Pakistan from any place outside Pakistan of:
(a)
any gold coin, gold bullion, gold sheets or gold ingot
whether refined or not, and
(b)
any silver bullion, any silver sheets or plates which have undergone
no process of manufacture subsequent to rolling or any uncurrent
silver coin.
Import
of gold and silver into Pakistan is, therefore, subject to State
Bank's authorisation.
(ii)
Import of pure gold/silver and
rough/uncut precious and semiprecious stones will be allowed
against export of gold/silver jewellery and cut and polished
precious/semi-precious stones in accordance with the procedure
notified by the Government
of Pakistan and the instructions issued by the State Bank from
time to time.
(iii)
The State Bank vide its Notification No. F.E.1/94-SB
dated the 20th March, 1994 has granted general permission
for import of gold into Pakistan from any place outside Pakistan
as accompanied
baggage provided such imports are made in accordance with the
existing import policy.
17. Export of Gold and Silver.
Sub-section
(2) of Section 8 of the Act prohibits the export of gold except
with the general or special permission of the State Bank. The
State Bank, however, does not allow the export of gold.
Under
the Act, there are no restrictions on the export of silver.
Its export when allowed requires to be declared on form 'E'
prescribed for export by the State Bank and the export proceeds
are required to be repatriated within the stipulated period.
18.
Declaration to Customs by Outgoing Passengers.
In
terms of State Bank's Notification No.FE.4/91-SB dated the 26th
February, 1991, all persons are required to declare to the Custom
authorities at the time of leaving Pakistan, jewellery and precious
stones carried by them in prescribed declaration Form 'CD' (Appendix
V-82).
In
order to ensure that the outgoing passengers do not face any
difficulty in obtaining 'CD' forms and filling them at the time
of their departure, airlines/shipping companies, travel agents
are required to supply these forms to the intending passengers
at the time of issuing the tickets so that the completed forms
are with them before they enter the Custom Lounge. |