Attention of Authorized Dealers is invited to the sub-paragraphs (i) & (ii), para 11 of Chapter XII of Foreign Exchange Manual (Eighth Edition-2002), which interalia, envisage drawing of the export documents to the order of the bank in importer’s country where goods have been exported against advance payment or irrevocable letter of credit.
2. For further facilitating exporters and foreign buyers the instructions contained in the sub-paragraph (i) & (ii) of para 11 ibid have been revised to cater for direct delivery of shipping documents by the exporters. Accordingly, on receipt of advance payment in full (100%) against the export of goods from Pakistan, it shall be permissible for Authorized Dealers to release the documents to the exporters for despatch directly to their buyers/consignees. The following amendment by way of addition has, therefore, been made in para 11 of Chapter XII of Foreign Exchange Manual (Eighth Edition-2002) whereby the under noted para is added at the end of para (i)(b) and (ii):-
“In addition to the above, it shall also be permissible for Authorized Dealers to release the export documents etc. to the concerned exporter for despatch directly to the foreign buyer in such cases where advance payment in full (100%) has been realized from the consignee abroad against the export of goods from Pakistan”.
3. As a consequence, Authorized Dealers, while considering requests under the given instructions, shall ensure that the exporter concerned submits to them all the requisite documents alongwith the copy of Form-E in due course for the purposes of their record and reporting to Foreign Exchange Operations Department, SBP Banking Services Corporation as existing.
4. Authorized Dealers are also advised to please bring the above to the notice of their constituents.