SBP issue procedure for processing 300,000MT sugar export

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KARACHI: State Bank of Pakistan (SBP) has laid down procedure for banks to process the cases for export of 300,000 metric tons sugar.
In a circular issued on Friday, the central bank informed the banks that on July 21, 2017 the government had allowed sugar mills to export 300,000 MT sugar.
The SBP advised the banks to process the export of sugar cases as per following mechanism:
a. banks will forward the requests of sugar mills through their respective Departmental/ Business/Group Heads to the Director, Foreign Exchange Operations Department (FEOD), SBP-Banking Services Corporation (BSC), Head Office, Karachi for approval quoting the reference of this circular letter along with the attested/ authenticated copies of the following documents:
i. Sugar export contract.
ii. Manual Form-E or print out of EFE request in case of electronically generated Form-E through WeBOC.
iii. Irrevocable L/C or advance payment voucher, swift message and reporting schedule/credit advice, as the case may be.
b. FEOD will allocate sugar export quota to sugar mills on first come first served basis.
c. Banks will ensure receipt of a minimum 15 percent of total contract value as advance payment (evidenced by advance payment voucher, swift message and reporting schedule/credit advice) or obtain an irrevocable L/C from the buyer.
d. All exports including those destined for Afghanistan and Central Asian Republics will also be subject to receipt of export proceeds by wire transfer through banking channel.
e. There will be no export subsidy/ cash support for the export.
f. In case of non-performance against the quota allocated by FEOD, ADs will obtain prior permission from FEOD, SBP-BSC, Head Office, Karachi for return of advance payment received there against from the importer.
g. Banks will submit sugar export shipment update to the Director, FEOD, SBP-BSC, Head Office, Karachi on weekly basis.
Incomplete requests shall not be considered, the SBP said.

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