export refinance scheme sbp guidelines
TRANSCRIPT
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ExportFinanceScheme
(EFS)
March2012
StateBankofPakistanInfrastructure,Housing&SMEFinanceDepartment
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Infrastructure Housing & SME Finance Department State Bank of Pakistan Export Finance Scheme (
[i]
PREFACE
There has been a persistent demand from various stakeholders that updated operational instructions
issued under the Export Finance Scheme (EFS) since its inception should be summarized and published in
consolidatedform
for
their
information
and
guidance.
In
order
to
facilitate
the
stakeholders,
all
instructions
have
been summarized and incorporated in the shape of book for general guidance and benefit of bankers and
exportersintendingtoavailexportfinancefacilityundertheScheme.
The instructionsonthesubjectare invariably issuedtocommercialbanksandchanges/amendmentsare
also intimated from time to time to them. This publication aims at providing the exporters with an uptodate
compendiumon termsandconditions oftheScheme. Itwouldbeadvisable thatexportersshouldconsult their
bankersforguidancewithreferencetospecificinstructions,alreadyavailablewiththemorwithreferencetoany
particular problem in case it is not clearly comprehendedby them or for ascertaining fresh instructions on the
subjectsoastoavoidirregularitiesofthenatureindicatedinthisbookanditsconsequentialeffects.
ThisbookshouldinnowaybeconstruedasasubstituteforthecircularsonthesubjectandStateBankof
Pakistanreservestherighttoamendorrevisethecontentsofthebookas&whendeemednecessary.
We would like to acknowledge and appreciate the valuable feedback of Development Finance Support
Departmentand
SBP
BSC
Offices
on
the
initial
draft
of
the
book.
SyedSamarHasnain
Director
Infrastructure,Housing&SMEFinanceDepartment
March2012
Karachi.
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Infrastructure Housing & SME Finance Department State Bank of Pakistan Export Finance Scheme (
[ii]
TheTeam
SyedSamarHasnain
Director
MuhammadIshfaq
SeniorJointDirector
MuhammadRazimKhan
JointDirector
IqbalHussain
DeputyDirector
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Infrastructure Housing & SME Finance Department State Bank of Pakistan Export Finance Scheme (
[iii]
TableofContents
PAGE#
I.
EXPORT
FINANCE
SCHEME
AN
INTRODUCTION.......................................................................... - 1 -
II. EXPORTFINANCESCHEME(EFS)PARTI...................................................................................... - 3 -
1. OPERATIONSOFTHESCHEMEUNDERPARTI.............................................................................................. 3
2. SUBMISSIONOFREQUIREDDOCUMENTS.................................................................................................... 5
3. SUBSTITUTIONOFEXPORTLC/CONTRACT.................................................................................................. 7
4. EXTENSIONINLOANPERIODANDENHANCEDPERFORMANCEREQUIREMENTS..................................................8
5. GENERALGUIDELINESANDIMPORTANTNOTESUNDERPARTIOFTHESCHEME.................................................8
III. EXPORTFINANCESCHEMEPARTII............................................................................................... - 13 -
1.
PRE
REQUISITESAND
PROCEDURE
OF
ENTITLEMENTOFLIMIT.......................................................................
13
2. MONITORINGOFEXPORTPERFORMANCEUNDERPARTII........................................................................... 15
3. PERFORMANCEBASEDMARKUPRATE................................................................................................... 16
4. ROLLOVERFACILITY............................................................................................................................. 16
5. EXTENSIONINPERIODOFBORROWINGLIMIT........................................................................................... 17
6. CALCULATIONOFBORROWING&PERFORMANCE...................................................................................... 17
7. IMPORTANTTRANSACTIONDATESBEINGCOUNTEDFORENTITLEMENT/PERFORMANCEPURPOSE.......................18
IV. COMMONINSTRUCTIONSUNDERTHESCHEME.......................................................................... - 20 -
1. ALLOCATIONOFREFINANCELIMITSTOBANKS.......................................................................................... 20
2. RATEOFFINANCINGANDPAYMENTTHEREOF............................................................................................ 21
3.
ELIGIBLEGOODS&SERVICESUNDERTHESCHEME.....................................................................................
21
4. NEGATIVELIST(NL)........................................................................................................................ 23
5. LINKAGEOFOVERDUEEXPORTPROCEEDSWITHEFS................................................................................. 28
6. ONSITEVERIFICATIONOFREFINANCECASES............................................................................................ 28
7. INCENTIVESUNDERPRUDENTIALREGULATIONS......................................................................................... 29
8. PENALTIESBEINGCHARGEDUNDERTHESCHEMESONACCOUNTOFVARIOUSIRREGULARITIES............................30
9. PROCEDURESFORREFUNDOFFINE......................................................................................................... 31
10. PERIODOFPRESERVATIONOFRECORD.................................................................................................... 31
ANNEXURES........................................................................................................................................... - 33 -
DOCUMENTSREQUIREDUNDEREFSPARTI ......................................................................................................................... -35-
DOCUMENTSREQUIREDUNDEREFSPARTII ........................................................................................................................ -51-
LISTOFIMPORTANTCIRCULARS/CIRCULARLETTERS ........................................................................................... -64-
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Infrastructure Housing & SME Finance Department State Bank of Pakistan Export Finance Scheme (
[iv]
Definitions:Bank A banking company as defined in the Banking Companies Ordinance
1962 is any company which transacts the business of banking in
Pakistan & includes their branches and subsidiaries functioning
outsidePakistanofbankingcompaniesincorporatedinPakistan.
BorrowingProduct
A
term
used
under
EFS
Part
II
for
determining
required
level
of
performance: it is the resultant of amount of Finance multiplied by
numberofdaysitremainedoutstanding.
CleanFacility AFinancingFacilityagainstwhichbankacquiresnocollateral.
DirectExporter Anentitywhichmanufacturesandexports,oratradingcompanywho
procuresandexports.
EligibleCommodities CommoditieswhichareeligibleforexportrefinanceundertheExport
FinanceSchemeandarenotincludedinNegativeList.
ExistingExporter Anexporterwho isavailing facilitiesunderEFSfromanycommercial
bank.
ExportOverdue Exportproceedsunrealized/outstandingdespiteexpiryofitsduedate.
Export Performance Referstoexportsmadebyanexporter
FinancialYear YearstartsfromJuly01,andendsonJune30.
IndirectExporter Amanufacturerorsupplierofgoodsormaterialswhicharetobeused
asinputsforexportsbyDirectorExporter.
NegativeList Alistofcommoditieswhicharenoteligibleforexportrefinanceunder
theExportFinanceScheme
PerformanceProduct AtermusedunderEFSPartII,formatchingactualperformancemade
againstBorrowingProduct.Itistheresultantoftotalvalueofexport
proceedsrealizedfromeligiblecommoditiesduringafinancialyear
multipliedbyaspecificmultiplierdependinguponrequired
performancelevel.For2timesexportperformancerequirement,the
multiplierisusedas180.
Rollover Itreferstoredisbursementofalreadyavailed loanonexpiryof loan
periodforanextspecificperiod.
Standardized
PurchaseOrder
InlandLetterof
Credit(ILC)
A prescribed format issued by Direct Exporter in favour of Indirect
Exporter,againstwhichEFSfacilitycanbeavailedbyIndirectExporter.
Inland Letter of Credit (ILC) is issued to meet out the credit
requirement for domestic trade. This is a form of non fund based
creditextendedbythebanks.
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Infrastructure Housing & SME Finance Department State Bank of Pakistan Export Finance Scheme (
[v]
ListofAcronyms:
BCD BankingControlDepartment
BPD BankingPolicyDepartment
BPRD
BankingPolicy
&
Regulations
Department
BSD BankingSurveillanceDepartment
DA DocumentsagainstAcceptance
DL DemandLoan
DP DocumentsagainstPayment
DPNote DemandPromissoryNote
EFS ExportFinanceScheme
EGM
ExportGeneral
Manifest
EPRC ExportProceedsRealizationCertificate.
F.E ForeignExchange
FCR Forwarder'sCargoReceipt
FCY ForeignCurrency
FDBC ForeignDocumentaryBillfor Collection
FEOD ForeignExchangeOperationsDepartment
GRN
GoodsReceived
Note
HSCode HarmonizedSystemCode
ILC InlandLetterofCredit
IT InformationTechnology
LC LetterofCredit
M.R MatesReceipt
NOC NoObjectionCertificate
PRs
PrudentialRegulations
SME Small&MediumEnterprises
SPO StandardizedPurchaseOrder
UCP UniformCustoms&PracticesforDocumentaryCredit
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nfrastructure Housing & SME Finance Department State Bank of Pakistan Export Finance Scheme (E
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I.ExportFinanceSchemeAnIntroductionTheExportFinanceScheme(EFS)isinoperationsince1973withtheobjectivetoboostexports
of the country. Under the scheme short term financing facilities are provided to exporters
throughBanksforexportsofallmanufacturinggoodsespeciallyvalueaddedproductswiththe
exceptionofbasic&primarycommodities/rawmaterialsasmentionedinnegativelist issued
vide BPRD Circular No. 5 dated February 24, 2003. It operates in two parts viz PartI
(TransactionBased)andPartII(PerformanceBased).
EFS PartI: PartI is a transaction based facility. The commercial banks provide exportfinancetotheexportersoncasetocasebasisatpreshipmentand/orpostshipmentstage
against Firm Export Order/Contract/LCs. The exporter has to show export proceeds
equivalentto
the
loan
amount
as
performance.
The
tenor
of
the
facility
is
up
to
180
days
with a rolloveroption for further 90 dayssubject toshowingperformanceequivalent to
117%oftheborrowedamountincaseofavailingrolloveroption.
EFSPartII:It isaperformancebasedfacility,whereentitlementofexporterforrevolvingexport finance limit is equal to 50% of the export proceeds realized through export of
eligiblecommoditiesintheprecedingfinancialyear.Exportperformanceofanexporteris
matchedannuallyagainsttotalloanavailedduringthefinancialyearondailyproductbasis.
The exporter has to realize export receipts from the export of eligible commodities,
excludinganyexportsforwhichfinanceisobtainedunderPartIoftheSchemeduringthe
relevantperiod. Themaximumtenorofthe loanunderPartIIofthescheme isalso180
days which could be rolled over for another 180 days subject to showing at least 70%
shipmentofloanavailedininitial180days.
MarkupRate:Currently,markuprateunderEFSfortheborrowerstandsat11%(banksget
refinance fromSBPat10%andarepermittedamaximumspreadof1%).Themarkup rate
hasbeenlinkedwiththeweightedaverageyieldsonsixmonthsTBillsw.e.f.2001.
To further incentivize the financing under EFS (PartII) the rates under EFS PartII has been
linked with export performance. Exporters giving higher performance under EFS PartII can
availmarkupraterebaterangingfrom0.51.5percentagepointsdependinguponthelevelof
performanceachieved.
Eligibility:UnderEFSallmajorvalueaddedcommoditiesexported fromPakistanareeligible
for financing except those mentioned under negative list under the scheme. Therefore, any
exporterwhomeetsthelendingcriteriaofabankcanavailfinancingforeligiblecommodities.
FacilityforIndirectExporter:EFSFacilityisalsoavailabletotheinputsuppliers/manufacturers
oftheDirectExporter,termedasIndirectExporter(IDE)onthebasisofStandardizedPurchase
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nfrastructure Housing & SME Finance Department State Bank of Pakistan Export Finance Scheme (E
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Order(SPO)ortheInlandLetterofCredit(ILC)tobeestablishedbytheDirectExporteragainst
theparticularExportOrder/Contract/LetterofCredit.IDEwillbeeligibletoavailfinancefrom
banks against ILC or SPO, to the extent of the amount mentioned therein. The period of
financingbybanktoanIndirectExportershallbedeterminedasperthetermsoftherelevant
ILC/SPO,butsubjecttoamaximumof120days.
Linkage of Overdue Export Proceeds with EFS: EFS has been linked with overdue exports
position of an exporter. if overdue export position of an exporter is greater than 5% of the
previousyearsexportsshowninEE1statements,theexporterwouldnotbeentitledtoavail
theEFSfacilitytillsuchtimethattheoverduepositionisreducedtothe5%benchmarklevel.
ExportersavailingonlytheEFSPartI facilityarealsorequiredtosubmittheprescribedEE1
statements. For this purpose each exporter is required to give a Certificate on a prescribed
Formonasixmonthlybasisby31stMarch&September30,eachyear;whichwillremainvalid
uptonextsixmonths.
CreditRisk:
Banks
take
the
credit
risk
under
the
scheme,
and
SBP
takes
exposure
on
banks.
TherefinanceextendedbySBPBSCofficestothebanksisrecoveredontheduedatesasper
repaymentschedule fromtheaccountofthebanks/DFIs. Incasetheborrower failstomake
repaymentoftheloanontheduedate,thebankisentitledtochargenormalrateofmarkup
on such overdue principal amounts besides taking other actions to recover the same.
Therefore,therepaymentofEFSloanstoSBPisnotdependentupontherecoveryofloanfrom
the borrower. In this way, ultimate credit risk under the Scheme is borne by the lending
banks.
Implementationand
Enforcement
Mechanism
of
the
Scheme:
SBP
has
the
responsibility
of
general policy making and monitoring of Export Finance Scheme. SBP allocates the annual
refinance limits to the banks and review them on quarterly basis. SBP BSC implements the
scheme and conducts onsite verification of banks refinance cases through its field offices
across the country. The banks disburse funds under the scheme and claim reimbursement
thereagainstfromSBPBSCfieldofficestotheextentof limitsassignedtoeachbankbySBP.
TheSBPBSC fieldofficesprocess the refinancerequestswithin48hours ,maintainthe loan
accountsandrecoverprincipalamountandprofitsetc.ontherespectiveduedates.Exporters
having availed refinance under the scheme have to meet the required level of export of
eligible
goods
and
realize
export
proceeds.
In
case
of
any
default/violation
of
prescribedinstructions or non/short/delayed shipment/performance, the exporters/banks are liable to
payprescribedfines.
Incentives under Prudential Regulations: Finance provided under EFS is exempted from
certainrestrictionsfixedunderPrudentialRegulationsforCorporate/CommercialBankingviz.
limitonexposuretoasingleperson/group(PrudentialRegulationsRI),perpartylimitonclean
facilities (Prudential Regulations R4), and limit on ratio of bank borrowing to the capital &
reserves(freeoflosses)oftheborrower(PrudentialRegulationR5).**********
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nfrastructure Housing & SME Finance Department State Bank of Pakistan Export Finance Scheme (E
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II.ExportFinanceScheme(EFS)PartIEFSPartIisatransactionbasedfacility.BankshavingEFSlimitsprovideexportfinanceto
theexporters
at
pre
shipment
and/or
post
shipment
stage
on
case
to
case
basis
against
Export Letter of Credit/Contract for export of eligible goods. Indirect
exporter/manufacture, who supply inputs to direct exporter can also avail the facility
against Inland Letters of Credit/Standardized Purchase Order established by direct
exporter. For Direct Exporter maximum period of financing is 180 days with a rollover
option for further 90 days subject to showing performance equivalent to 117% of the
borrowedamountincaseofavailingrolloveroption.IndirectExportercanavailthefacility
up to120 days.However,where facilitiesagainst aparticular L.C. /contract/firm export
order are availed by both Direct and Indirect Exporter, the combined period shall not
exceed180days.Exporterisrequiredtosubmitproofofshipmentwithin30daysfromthe
expiry
of
loan
period
in
case
of
preshipment
loan,
and
provide
proof
of
realization
of
exportsproceedsin210days(270daysforcarpetexporters)fromthedateofshipment.
1. OperationsoftheSchemeunderPartI1.1 Finance from banks under PartI of the Scheme is available to Direct Exporters to the
extentof100%ofthevalueofafirmexportorder/contract/letterofcreditbothatpre
shipmentandpostshipmentstagesagainsteligiblegoods.
1.2 IndirectExporterswhosupply inputsi.e.materialsandgoodstoaDirectExportertobeusedforfurtherprocessingand/ortobeexported,arealsoeligibletoavailfinancefrom
banks under the Scheme at preshipment stage. The Direct Exporter, who has a firmexportorder/contract/letterofcreditmayrequesthisbanktoopenanInlandLetterof
Credit(ILC)/ortheDirectExportermay issueStandardizedPurchaseOrder(SPOasper
specimen at Annexure E) in favour of the Indirect Exporter i.e. domestic supplier.
IndirectExporterwillbeeligibletoavailfinancefrombanksagainstsuchInlandLetterof
Credit (ILC) or Standardized Purchase Order (SPO), to the extent of the amount
mentionedtherein.
1.3 TheDirectorIndirectExporter,asthecasemaybe,shallapproachhisbankforavailingfacilities under EFS indicating his financial needs as per prescribed Form B or C
respectivelyupon
establishment
of
aletter
of
credit
or
on
receipt
of
afirm
export
order
in caseofaDirect Exporter,oruponestablishment of an Inland Letter of Creditoron
issuanceofaStandardizedPurchaseOrder inhisfavourbyaDirectExporter, incaseof
anIndirectExporter.
1.4 After the finance has been disbursed by banks, they may make an application to theconcerned office of the SBP BSC indicating particulars of Direct / Indirect exporters to
whomthebankhasgrantedfinanceandagainstwhichnowtheyintendtoavailrefinance
asperFormD. Eachrequestforreimbursementforrefinancewillbeaccompaniedbya
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DemandPromissoryNotedulyexecutedbytheexporterconcernedinfavourofthebank
andendorsedinfavourofconcernedSBPBSCofficeasperFormA.
1.5 Thetotalamountoffinancingextendedbyanybankagainstfirmexportorder/contractorletterofcredittobothDirectandIndirectexportersshallnotexceedthetotalamount
ofthefirmexportorder/contractorletterofcredit. Thecombinedperiodoffinancing
against
an
export
order
to
the
Direct
Exporter
as
also
to
his
supplier(s)
i.e.
Indirect
Exporter shall not exceed the permissible period of 180 days from the date of first
disbursement. TheperiodoffinancingbybankundertheSchemetoanIndirectExporter
shall be determined as per the terms of the relevant Inland Letter of Credit /
Standardized Purchase Order, up to the period mentioned therein but subject to a
maximum of 120 days. The bank shall, however, ensure that the total amount
withdrawnbytheDirectExporterandvalueof ILC/SPOestablishedonhisbehalfdoes
notexceedthevalueoftheexportfinanceadmissibletotheDirectExporteragainstthe
particularExportOrder/Contract/LetterofCredit.
1.6
Banks
shall
extend
the
financing
facility
under
the
Export
Finance
Scheme
to
Direct/Indirect Exporters for preshipment and post shipment (to Direct Exporter only)
basisonproductionofthefollowingdocumentsbytheexporterconcerned:
Nature of
Financing
DirectExporter IndirectExporter
A. Preshipment - Firm Export Order/Contract/LetterofCredit.
- Application/undertaking asperFormB.
- D.P.Note
- Inland Letter of Credit/StandardizedPurchaseOrder.
- Application/Undertaking as perFormC.
B. Postshipment - Firm ExportOrder/Contract/Letter of
Creditalongwithacceptance
from buyer in case of
discrepantdocuments.
- Application/undertaking asperFormB.
- D.PNote- Original duplicate copy of
FormE
- BillofLading/Airwaybill.- Invoice
Nofacility.
1.7 Commercialbanks,afterprovidingfinancetotheDirect/IndirectExportersshallbecomeeligibletoavailrefinance fromtheSBP.TheconcernedofficeoftheSBPBSCwillgrant
refinanceagainstfinancialfacilitiesprovidedbythebankforpre/postshipmentstage,to
thebankeroftheDirectExporteror IndirectExporter,asthecasemaybe,andrelease
theamountaccordinglywithin48 hours on receiptof the refinance claimas perForm
D complete in all respects and D.P Note executed by the exporter concerned, as
explainedinPara1.4above.
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nfrastructure Housing & SME Finance Department State Bank of Pakistan Export Finance Scheme (E
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1.8 The scrutiny of documents to be submitted by exporter will be done by the bankconcerned. The onsite verification team of SBP BSC and inspectors of Banking
Inspection Department or any other authorized officer of the State Bank of Pakistan,
while making a regular or special inspection of a bank, shall examine the cases of
financesofthebankundertheScheme.
2. SubmissionofrequiredDocuments2.1 The Direct exporter shall be liable to submit the proof of shipments to the bank
concerned against the loan, evidencing that the shipment had been made against the
relevantFirmExportOrder/ExportLetterofCreditwithin30daysfromtheexpiryofloan
period to respectivebank fromwhereheavailedofexport refinance facilityunder the
Scheme.Afterexaminationofshippingdocuments,thebankwillsubmitAnnexureDby
reportingallshipmentmadeinvalidityoftheloanperiodwithin7daystorespectiveSBP
BSCOffice.
2.2 TheDirectexporterwillsubmitdelayedshipmentshippingdocuments tobankwithin30daysfromthedateof lastdelayedshipmentandthereafter bankwillreportalldelayed
shipments to respective SBP BSCOfficeon submission of additionalAnnexure D in 7
days.ThusinallonlytwoAnnexureDwillbesubmittedagainstonedemandloan.
2.3 In case of failure to submit shipping documents within stipulated time period asmentionedabove,fineasprescribedundertheSchemewillberecoveredfromexporter
in this regard. However, no fine on account of late submission of AnnexureD will be
chargedfrombank.
2.4 TheloangrantedtotheIndirectExporter,alongwithmarkupthereon,shallbeadjustedupondeliveryofthe inputsandpaymentofdocumentsdrawnunderthe ILC/SPOorat
theexpiryoftheperiodof120days,whicheverisearlier.The Indirectexportershallbe
underobligationtoproducedocuments,evidencingutilizationoftheloantothebanker
of the Direct Exporter within 15 working days of the supply of goods to the Direct
Exporter.
2.5 The shipping documents required to be submitted by the Direct /Indirect Exporters tothebankconcernedareasunder:
DirectExporter
Indirect
Exporter
Preshipment - OriginalduplicatecopyofFormE- Bill of Lading / Airway bill (non
negotiablecopy)
OR
- FCRs, provided that document isagainstL/CandMatesReceipts(M.
R. where shipment is by sea) or
Export General Manifest (EGM
- Invoice- Truck/Railwayreceipt.- Goods Received Note
GRN / Delivery Challan
signedbythebuyer.
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nfrastructure Housing & SME Finance Department State Bank of Pakistan Export Finance Scheme (E
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whereshipmentisbyair),
- E.P.R.C. to be submitted within 210days (270 days for carpet exports)
from the date of shipment of an
export bill, or within 30 days of
expiry of the period prescribed by
ourExchange
Policy
Department.
Postshipment - E.P.R.C. to be submitted within 210days (270 days for carpet exports)
from the date of shipment of an
export bill, or within 30 days of
expiry of the period prescribed by
ourExchangePolicyDepartment.
NA
2.6 Incaseshippingdocumentsarenotreceivedbythebankfromtheexporterconcerned,onorbefore30daysfromtheexpiryofloanperiod,thebankshallserveanoticetothe
exporter
concerned
at
least
7
days
before
expiry
of
30
days
showing
intention
of
deducting fine on account of nonshipment due to nonsubmission of shipping
documentsagainsttheloanavailedbyit.Despitetheservingofthenoticeasprescribed,
iftheshippingdocumentsarenotreceivedbythebankconcernedonorbefore30days
timelimitandsubsequentlyresultedinnonsubmissionofAnnexureDtorespectiveSBP
BSCOfficewithinstipulatedperiod,theofficeshallrecoverthefinetreatingthecaseas
thatofnonshipment.
2.7 Theexporterconcernedshallbeentitledtorefundoffinesorecovered,onsubmissionofthe relevant documents and after adjusting the fine that may be applicable for short
shipment or delayed shipment and delayed submission of shipping documents, as
prescribedin
the
Scheme.
The
bank
concerned
shall
prepare
aresume
of
such
exporters
qualifying for refund as and when documents are submitted by them and would
approachconcernedofficeof SBPBSCforclaimingrefundoffine(asperAnnexureF)
earlierpassedontoitwhowillafterscrutinyoftheinformation,refundthesametothe
bank concerned, if foundjustified. The bank would be liable to pass on the benefit of
refundtotheexporterconcernedonthefollowingworkingday,withoutanydelay.
2.8 Whiletheexportofthecommodity,againstaFirmExportOrder/ExportLetterofCredit,shall remain the responsibility of the direct exporter, the indirect exporter would be
under obligation to supply the required inputs in accordance with the terms of the
ILC/SPO,
failing
which
he
shall
be
liable
for
fines
under
the
Scheme.
Payment
of
suchfinesshall,however,notabsolvehimforhisliabilitiestotheDirectExporter.
2.9 Ondeliveriesofthedomesticinputsandreceiptofpaymentbythesupplieri.e.indirectexporter, the amount(s) of the finance earlier granted in his favour shall be adjusted.
LikewiseastheDirectExporterwouldhavereceived inputsfromhisdesignatedIndirect
Exporter, as per terms of ILC / SPO the amount disbursed by his bank, to the bank of
Indirect Exporter, shall become a loan liability of the Direct Exporter as per normal
lendingpractice.
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nfrastructure Housing & SME Finance Department State Bank of Pakistan Export Finance Scheme (E
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2.10 It shallbe obligatoryon thepartof theDirectExporter thatall the ILCs establishedorSPOissuedinfavourofIDEsareinrelationtothesupplyofinputsforexportandwould
containthenameoftheexporterandNumberoffirmexportorder/contract/letterof
credit. The financing bank of the IndirectExporter shall be under obligation tocertify
that the facility availed by the Indirect Exporter was covered by an export order /
contract or letter of credit of the Direct Exporter and proof of shipping thereagainst
maybe
collected
from
the
banker
of
the
Direct
Exporter
in
this
regard.
2.11 ThedocumentsrequiredtobesubmittedbythebanktotheconcernedofficeofSBPBSCasevidenceofshipmentsareasunder:
a) Annexure D (to be submitted within 7 days from the expiry of period asmentionedinPara2.1and2.2above)asthecasemaybe.
b) E.P.R.C.tobesubmittedwithin210days(270daysforcarpetexports)fromthedate of shipment of an export bill, or within 30 days of expiry of the period
prescribed by our Exchange Policy Department for realization of the export
proceeds,
failing
which
cases
of
non
realization
will
be
reported
by
the
bank
to
the concerned office of State Bank for appropriate action under the Foreign
ExchangeRegulations.
3. SubstitutionofExportLC/Contract3.1 In case DirectExporter fails tomake shipmentunder the relevant Firm Export Order /
Export Letter of Credit/Contract on the basis of which finance / refinance has been
availedbyhim,heshallbeunderobligationtoproduceshippingdocumentsevidencing
shipmentoftheexportofsameoranyothereligiblecommodityvaluingtheamountof
loan, in respect of another Firm Export Order / Export Letter of Credit. The Direct
Exporterwill,
however,
undertake
and
confirm
separately
that
he
has
neither
availed
any
financeunderEFSagainstanysuchnewexportorder/contract/ letterofcreditnorhas
reportedorwouldreportanyentryofrelevantEFormsalreadyutilizedbyhimunder
PartIIoftheEFS. TheBankconcernedisauthorizedtoacceptsuchsubstitutionoffered
by the Direct Exporter. A request in this regard shall be submitted by DE to his bank
alongwithsubmissionofshippingdocuments.
3.2 TheDirectExportershallbeeligibletoobtainfinanceagainstaContractorL/Cpartiallyand substitute any other export under the same contract or L/C for showing it under
anotherloanofPartIortouseitforreportingperformanceunderPartIIprovidednoE
Formis
used
simultaneously
under
both
parts
of
EFS
so
as
to
avoid
duplicate
financing
undertheScheme.
3.3 No facility of substitution is available to the Indirect Exporter in respect of supply ofinputstotheDirectExporters.
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nfrastructure Housing & SME Finance Department State Bank of Pakistan Export Finance Scheme (E
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4. ExtensioninLoanPeriodandEnhancedPerformanceRequirements4.1 As per SMEFD Circular No.04 of 2009, the facility under PartI of the Scheme is also
available for an extended period of 270 days to exporters provided they show
enhancedexportperformance.However,bankswillhavetoadjustthefinancewithina
maximum period of 180 days, and rollover is allowed for an additional period of 90
days,provided
that
shipment
has
been
made
by
the
exporters
within
aperiod
of
180
days after withdrawal of finance. In case of export finance already availed of by
exporters under PartI of the Export Finance Scheme, banks may allow an additional
period up to 90 days for repayment of export finance availed of for export of all
eligiblecommodities,exceptwhereexportproceedshavebeenrealizedearlierbythe
exporters.
4.2 Theexporter/bankdesiringrolloverofthe facilityshallbeunderobligation tosubmitAnnexureD,asprescribedundertheschemewithinamaximumperiodof180days
ofavailingofthefinancegivingthereintheparticularsofshipment. TheconcernedSBP
BSCOffice
shall
allow
rollover
of
refinance
for
aperiod
of
90
days
against
the
already
submittedloandocuments.
4.3 In view of the prime objective of promoting exports, the export performancerequirementshasbeenincreasedi.e.a)theexporterswillgetfinanceupto85%ofthe
value of firm export order/contract/letter of credit and will be required to make
shipmentsequivalentto117%againstrefinanceavailedfor270daysfromtheexportof
eligible commodities under PartI (preshipment), b) in case of post shipment,
exporterswillbeeligibletoavail85%refinanceagainsttherespectiveshipment.
4.4 Incaseanexporterpreferstoremain intheoldsystem,hecanavailexportrefinancefacility
for
amaximum
period
of
180
days
under
existing
terms
and
conditions.
5. GeneralGuidelinesandImportantNotesunderPartIoftheSchemeSome important tips for exporters / banks while availing / granting facilities under the
Schemeandsubmissionofprescribeddocumentsthereagainstareasfollows:
i) Whilescrutinizingthe loanapplication,thebankshallensurethatexporter isavailingtheloanagainstacommoditywhichiseligibleforexportsunderEFS. Forthispurpose,theHS
CodeforeachcommodityasmentionedinFormBandFormCshallbecomparedwith
theNegative listand ifthecode isnotappearing intheNegativeList,thecommodityfor
whichfacilityisbeingsoughtshallbeeligibleundertheExportFinanceScheme.
ii) Astampshouldbeaffixedinvariablyontheoriginalcopyofafirmexportorder/contract/letter of credit indicating the refinance loan No. and amount allowed by SBP BSC
subsequentlyforrecordpurpose.
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iii) Incase,anyexporterhasappliedforfinanceagainstafirmexportorder/contract/letterofcreditwhichhasalreadyavailedfinance/refinanceinpart,itmustbeensuredthatthe
exporterhasaffixedastamp
UtilizedforrefinanceunderDemandLoan(D.L.)
No.______________dated___________
Onsuch firmexportorder/ contract/ letter ofcreditdulycountersignedby theauthorized
signatoryofthebankthroughwhichDemandLoanhasbeenobtained. Itmustalsobeconfirmedthat
loansbeingavailedofarecoveredundertheabovecontract/letterofcredit/firmexportorder.
iv) Thebankshallkeeporiginalandaphotocopyof firmexportorder/contract/ letterofcreditwithendorsementsonitsbackpageforrecordpurposesfortheperiodasprescribed
undertheScheme.
v) Itshallbeensuredthatnofinance isprovidedtoanexporterforanyamountofadvancepaymentalreadyreceivedbyhimunderafirmexportorder/contract/letterofcredit.
vi) The Direct Exporter is allowed to substitute any firm export order / contract / letter ofcredit with another export order / contract / letter of credit in respect of an eligible
commodity only. But it will be mandatory on the exporter to expressly mention that
financehasnotbeenavailedbyhimagainstthesame fromanyotherbank. Incaseany
finance has been availed of or that document has been used for substitution in a loan
earlier,theexporterwillgiveparticularsthereofasalsosubsequentlyfurnishparticularsof
EFormsusedforthepurposetothebankconcerned.
vii) ThemonitoringofloanwillbeonthebasisofEFormnumberandthebankwillensurethatoneshipmentutilizedagainstaparticularEFormisnotincludedforreportingsubstitution
underanotherfirmexportorder/contract/letterofcreditortheentryinvolvedhasnot
been/willnotbereportedforexportperformanceunderPartII.
viii) The stamp or date of Shipped on Board on Bill of Lading or flight date as shown onAirway billwill form the basis fordeterminingactualdate of shipment forcalculation of
period of delay in shipment under the Scheme, if any. However, where shipment is
effectedfromaDryPort,thedateofreceiptforshipmentasappearingonshippingbillor
thedate
of
custom
clearance
on
duplicate
EForm
appraised
by
custom
authorities
at
Dry
Port,asthecasemaybe,willbetakenintoaccount.Itisunderstoodthatthegapbetween
thetwodatesshallnotbeabnormalinnormalcircumstances.
ix) The banks are required to repay the refinance on realization of proceeds in full or partthereofas thecasemaybe,within threeworkingdays fromsuch realization. Refinance
shallberepaidbybankfromitsownsourcesonexpiryofthematurityperiodoftheloan.
Ifthebank failstodoso,theconcernedofficeoftheSBPBSCshallrecoverthesameon
due date bydebit to itsaccountas isdoneatpresent. However, where repaymenthas
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beenmadebyexporterbeforeexpiryofthe loan,thesameshallberepaidtoconcerned
officeofSBPBSCwithinthreeworkingdays fromrepaymentmadebytheexporter. For
thispurposetheperiodwillstartfromthereceiptofsuchpaymentbutwillbeexclusiveof
thedateofitsrepaymenttoSBPBSCoffice. Incaseofdefaultinrepaymenttherewillbe
nograceperiodandfinefortheentireperiodforwhichtherepaymentwasdelayedwillbe
charged
at
the
prescribed
rate.
Intimation
regarding
repayment,
giving
particulars
of
respectivedemand loanshallbepromptlymadetotheconcernedofficeoftheSBPBSC.
Efforts shall also be made for prompt communication among different branches of the
bankconcernedwiththebranchdealingwithrespectiveofficeoftheSBPBSC.
x) Thebankwillnotasktheexporterforsubstitutionoffirmexportorder/contractorletterofcreditincaseswhere:
a) Acommodity is replacedwithanothereligiblecommoditythroughsuchamendment,
acceptabletobothexporterandhisclientabroad.
b)
Rates
/
quantities
/
specifications
are
modified
by
the
buyer
under
any
amendment
in
firmexportorder/contractor letterofcreditor insuchcase,thoughnotcoveredby
anyamendmentwherebuyersacceptancehasbeenreceivedbythebank.
c) The exporter has shipped the goods against another firm export order / contract /
letterofcreditandconfirmedthatneitheranyrefinancehasbeenavailedof,norwill
beavailedofagainstspecificEForm inany other loan underPartI. Likewiseexport
madeunderthespecificEFormwillnotbeutilizedforperformanceunderPartII.
xi) It will be obligatory on the part of the exporter to negotiate and realize the exportproceedsunderaspecificEFormthroughthebankfromwhichhehasavailedofrefinance
loan(s). However, in case circumstances do not permit realization of proceeds under a
specificEFormthroughthebankwhichhadissuedthesame,therealizingbankwillrealize
andpassontheamountrealizedtotheEFormissuingbank,promptlybutnotlaterthan3
workingdaysofreceiptoffundsbyit. Suchproceedswhenrealizedwillbecreditedinthe
accounts of the exporter by the receiving bank only upon a specific NOC of the EForm
issuingbank. Inthatcasetoo, thebank issuingNOCwillbeheldresponsible fordelay in
repaymentofamountofrefinanceloaninvolved,ifany.
xii) Thedateofrealizationforthepurposeofrepaymentoffinanceshallbethedateofreceiptoftelex,adviceorswiftmessagebytheHeadOfficeorPrincipalOfficeorZonalOfficeofa
bank,however
overnight
receipts
of
such
telex
/advices
/messages
will
be
considered
as
receipts in thenextworkingday inPakistan. Theexportproceedsshallbeappropriated
within three working days towards liquidation of refinance loan. The Head Office /
PrincipalorZonalOfficeshouldensurethatitpassescreditsimmediatelytotheconcerned
brancheswithinareasonableperiodoftime. Thedateofliquidationofrefinanceloanshall
beexclusiveofthegraceperiod.
xiii) The bank should use the following suggested check list of documents preferably forscrutinyofcasesunderEFS.
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CHECKLIST
ATFIRSTGLANCE
1. Receivingdateandtime
2.
Signatureverified
OnD.P.Note Yes No
OnUndertaking Yes No
L/CContractareunderlienoftheBank Yes No
PartoftheL.C.contracthasbeenusedforotherD.L.(incaseyesmentionedDL dated)
Yes No
ONSCRUTINY
1. D.P.Note
Revenuestampofappropriatevalueaffixed Yes No
Amountinwordstallywiththeamountinfigure Yes No
StampoftheCo.&AuthorizedSignatory Yes No
Signatureverificationbybank Yes No
2. Undertaking
Allbanksontheformataredulyfilledin&inorder Yes No
TheparticularsofL/C/Contract/FirmOrderasenteredintheundertakingareinconformitywithattachedL/C
/Contract/FirmOrder.
Yes No
Initially,theamountcolumnonlystatesForeignCurrency
Yes No
(HavevaluedateandPKRvaluedulyfilledinasperprevailingrateonthedateofdisbursement)
Yes No
H.S.CodeisthatofEligiblecommodityonly Yes No
3. LocalInputs
NameandamountmentionedonSPO/ILCrelatestoapplicant
Yes No
Date,deliverytobeeffected.(Shouldbewithinthetimeallowedforshipment).
Yes No
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Whetherpaymentterms(onsight/onDAbasis/PostdatedChequesetc.)dulyfilledin.
Yes No
4. ImportedInputs
WhetheraspertermsofL/Cofopened Yes No Commitmenttoprovidedocumentsalsoconformto
FirmOrder/Contract/LC
Yes No
Commitmenttoprovideshippingdocumentswithin21days*fromshipment.
Yes No
AuthoritytoDebitAccountdulygiven Yes No
FormBorChastobecompletedafterabovechecksandfinancedisbursedafterincorporatingthe:
i) cityofdisbursementii) dateofdisbursementiii) valuedateandiv) PKRequivalentasprevalentonthedateofdisbursement.
Duecaremustbeexercised,whilestampingthedatesonD.P.Note,undertaking(stamppaperdatemustbe
priortothedateofdisbursement),valuedateetc.
AutilizationstampmustbeaffixedonoriginalL/C,FirmexportOrder,ILCorSPOafterprovidingfinanceeach
time.
Preparedby Checkedby
*Assuggestedbybanksfortimelyscrutinybythem.TheperiodunderEFSishowever30days.
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III.EXPORTFINANCESCHEMEPARTIIEFS PartII is a performancebased export financing facility. Under PartII an exporters
revolvingexport
finance
limit
equivalent
to
50%
of
export
proceeds
realized
through
export
of
eligiblecommodities intheprecedingfinancialyear(JulyJunebasis)isfixedonannualbasis.
The exporter is free to utilize the facility within entitlement of limit for the whole year.
Maximumperiodofaspecificloanis180dayswithrolloverfacilitysubjecttomeetingatleast
70%shipmentrequirementofalreadyavailedloan.Tofixfreshlimitsbasedonpreviousyears
export performance for exporters having outstanding finance under the Scheme after 30th
June,totalborrowingavailedundertheschemeisrequiredtobeadjustedon31stAugusteach
year.Exportperformanceofanexporterismatchedannuallyagainsttotalloanavailedduring
thefinancialyearondailyproductbasis.
1. PrerequisitesandprocedureofEntitlementofLimit1.1 The bank will give export finance limits to the exporters on the basis of export
performancemeasuredbytheexportreceiptsduringtheprevious financialyear (July
Junebasis)againstexportofeligiblecommodities.Anexporter isentitledtoavail limit
ofupto50%ofsuchexportperformance.Toobtainthisfacility,anexportershallapply
to his banker in triplicate of Form EE1, the copies being marked as original,
duplicate and triplicate. The banker shall verify the entries in the application and
authenticatethecorrectnessoftheentriesonallthecopies.Nobankshallauthenticate
more
than
three
copies
of
the
Form
EE
1
in
respect
of
any
exporter
for
any
period.
The
bankshallallowalimittotheexporterontheabovebasisandsendallcopiesofForm
EE1inrespectofeachcasetoForeignExchangeOperationsDepartment(FEOD)ofthe
respective office of SBP BSC for verification of realization of proceeds. After verifying
Forms, the concerned FEOD shall return the original and duplicate copies to the
concernedbankandretainthethirdcopy.
1.2 Anexportermayobtainfinancelimitfrommorethanonebanktotheextentof50%oftheexportproceedsrealizedthrougheachbankduringprecedingyear.The limitsmay
alsobeswitchedbetweenanytwobanks,iftheexportersodesires,withtheconsentof
boththe
banks
in
which
case
the
exporter
shall
submit
all
copies
of
the
Form
EE
1duly
authenticatedbythebankthroughwhichtheproceedswererealizedalongwithbanks
NOC,tothebankfromwhichthefinanceisdesiredtobeobtainedanddeclarethathe
hasnotobtainedanyexportfinancefromtheformerbank.Similarly,bygettinganNOC
fromsanctioning/verifyingoffice, limitscanbetransferredfromoneSBPBSCOfficeto
otherSBPBSCOfficesubjecttotheconditionthatnoduplicatefinancingisinvolved.
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1.3 Asandwhenthebankextendsfinancetoexporterafterfixationofentitlementoflimitasmentioned aboveandwishes to obtain refinance from the SBP BSCOffice, it shall,
besides the usual documents, send to the concerned office, duly authenticated
duplicate copy of Form EE1 of the exporter concerned retaining the original for its
recordandsubsequentinspection.
1.4 TheborrowingsofabankunderPartIIoftheEFSfromSBPBSCshallnotexceedatanytimethetotalamount lenttotheconcernedexporter.Foranydefaultonthisaccount
thebankshallbeliabletopayfineasprescribedunderthescheme.
1.5 IncasepartorfullpaymentofrefinanceloanunderEFPartIIismadebytheborrowerbefore itsduedate, thebankshall remain liable to repaytheamount involvedwithin
sameday.
1.6 DirectExporter(DE)shallbeentitledtoavailfinancebyfurnishinganundertakingtothebank as per Form UTDEII The DE may also authorize their banker to open ILC(s) in
favourofIDE(s)formakingsuppliesofinputstohimasperprocedurelaiddownunder
PartIoftheScheme,withintheprescribed limitasperFormDE3.Theamountofthe
limitavailedof bytheDEasalsotheamountof ILC(s)opened in favourof IDE(s) for
supplyof inputs,whentakentogethershallnotexceedhisentitlementof limitatany
pointoftime. Itmayhoweverbeensuredthat in individual instancethe loanshallnot
remainoutstandingbeyondamaximumperiodof180days.
1.7 The Direct Exporter shall be under obligation to match export performance annuallyagainst total loan availed during the financial year on daily product basis including
financeavailed
by
his
Indirect
Exporter(s)
under
ILC(s)
opened/
SPO(s)
issued
by
the
DE.
The export performance shall be provided by realization of export receipts from the
export of eligible commodities, excluding any exports for which finance is obtained
underPartIoftheSchemeduringtherelevantperiod.
1.8 On receipt of an application from the Direct Exporter, on Form "DE3" requesting forgrantof finance to thespecific IndirectExporter(s), forsupply ofdomestic inputs, the
financingbankshallopenILC(s)/issueSPO(s)infavourofthe saidIDE(s)byreducingthe
entitlementoftheDEunderPartIloftheScheme.Thebankshallalsoprovidefinancing
facilities, to the extent of his balance entitlement of limit to the DE as per his
manufacturing requirement afteradjusting amount(s) of ILC(s) issued in favour of the
IndirectExporter.
1.9 UponsubmissionofapplicationonForm"IDE2"bytheIDE,thebankeroftheDEorIDE,asthecasemaybeshallprovidefinancetotheextentoftheamountoftheILC(s)tothe
IDE concerned upon production of the requisite documents on the basis of which
financingfacilityunderPartIisavailabletotheIDE.
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1.10 The refinancing to extent of the amount released by the financing bank of the directexporter(s)totheindirectexporter(s),againstILC(s)shallbeprovidedbytheconcerned
officeoftheSBPtothebankeroftheindirect/directexporter,uponsubmissionofthe
followingdocuments:
RefinanceapplicationontheprescribedFormDE3 CertifiedcopytherelevantILC/SPOalongwithamendmentsthereto,ifany. DP Note of the Indirect Exporter covering the amount of the ILC(s)/SPO(s),
dully endorsedinfavourofSBP
UndertakingoftheIndirectExporterontheprescribedFormUTIDEII Scheduleofdeliveries.
1.11 IDE(s)wouldbeunderobligationtosupplytherequiredinputsonacasebycasebasisinaccordancewiththetermsofILC/SPO,failingwhichheshallbeliablefornonshipment
fineasprescribedunderPartI.Paymentofsuchfinesshall,however,notabsolveIDE(s)
fromhis/their
liabilities
to
the
DE.
1.12 The loan granted to the indirect exporter(s) along with mark up thereon, shall beadjusted upon submission of the documents evidencing delivery of the inputs and
negotiationof ILC(s)/SPO(s) involved.The IndirectExporter(s)shallbeunderobligation
to produce the following documents to the banker of the direct exporter, evidencing
delivery/acceptanceoftheinputsbyhimtothedirectexporter.
InvoiceinfavourofDirectExporter. Goods Receipt Notes/Delivery Challan duly signed by the Direct Exporter,
showingdateandquantitydeliveredtothedirectexporteraspertermsofthe
delivery.
1.13 OnproductionofdocumentsmentionedinPara1.12above,evidencingdeliveriesoftheinputs,theamount(s)oftheloan(s)earliergrantedinfavourofIndirectExporter(s)shall
betransferredinthenameoftheDirectExporterandallmarkupchargesfromthedate
ofsaidtransfershallbeborneby theDirectExporter.Therefinanceearlieravailedby
the bank of the Direct Exporter(s), against disbursement(s) released to Indirect
Exporter(s) shall continue to remain outstanding till the monitoring period or up to
maturityofloanwhicheverisearlier.
2. MonitoringofExportPerformance2.1 Exportperformanceofanexporterismatchedannuallyagainsttotalloanavailedduring
the financial year on daily product basis. The exporter has to realize export receipts
from the export of eligible commodities, excluding any exports for which finance is
obtained under PartI of theScheme during the relevantperiod. In case of failure to
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show export (non/short performance), fine as prescribed under the Scheme shall be
imposed.Theperformanceoftheexportershallbewatchedbythebankconcernedby
obtainingFormEF 1 fromconcernedexporter.Likewise theprocessofverificationof
FormEE1,FormEF1alsoissubmittedintriplicatetoFEODforverificationaftercloseof
financial year. After verification of these Forms by FEOD, the original and duplicate
copies
shall
be
returned
to
the
bank
concerned,
the
third
copy
shall
be
retained
by
FEOD.TheduplicatecopyshallbesubmittedbythebanktotherespectiveofficeofSBP
BSCby31stAugust.
2.2 AsbanksareawarethatsomeoftheentriesreportedinEF1statementaremarkedforpost factoverificationpendingsubmissionof reportof realizationofexportproceeds.
Theseentriesarebasedonexportsagainstconfirmed&irrevocableL.Cwithoutreserve
madeupto30thJunebutexportproceedsarenotrealizeduptosaiddate.Bankswill
report such entries after actual realization on the Supplement to EF1 statement for
verificationofFEODlatestbythe30thNovemberontherespectiveEF1statement.
2.3 Inordertosaveanexporterfromunnecessaryimpositionoffineonaccountofshortfallin performance at the time of matching his export performance with his borrowing
productunderPartIIoftheExportFinanceScheme,theSBPBSCOfficeshallserveupon
thebankeroftheexporter15daysnoticepriortolevyingofsuchfineindicatingtothe
exporter inhisexportperformanceonwhichfine istobe leviedtoenableexporterto
arrangetotransfertherequiredamountoutofhisexcess/surplusperformance, ifany,
withsomeotherbank(s)fallinginthejurisdictionofotheroffice(s)alongwithNOCfrom
suchofficewhereexcess/surplusperformanceisavailabletothesaidexporter.NoNOC
will,
however,
be
required
to
be
submitted
to
the
concerned
SBP
BSC
Office
for
the
purposeofmatchingexportperformanceofanexporterwithhisborrowingproductsin
respectofhiscombinedexportperformancefromallthebanksoftheexporterfalling
withinthejurisdictionofthesameoffice.
3. PerformanceBasedMarkupRateTofurtherprovideincentivestotheexporterswithhighperformanceunderPartIIofthe
Scheme, alowermarkupratehasbeenputinplaceforthoseexporterswho achieved
excessperformance
from
monitoring
year
2008
09
onward
as
per
procedure
laid
down
in SMEFD Circular No.06 dated March 09, 2009. The exporters are required to claim
benefit of markup rate differential from SBP BSC through their bank within one year
aftertheperformanceyear,providedtheyhavenoexportproceedsoverduebills.
4. RolloverFacilityExportersavailingfinancingfacilitiesunderPartIIoftheschemeshallcontinuetosubmit
EF1 statement duly verified by the respective offices of FEOD, SBPBSC within two
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monthsfromthecompletionofthefinancialyear,asatpresent.However,whileapplying
forrolloverofloansunderPartIIaftercompletionoftheinitial180daysoratanearlier
date,exportersshallberequiredtosubmitastatementshowingdetailsofshipmentsof
eligiblegoods[asperForm EP]totheextentof70%oftherefinancealreadyavailed
againstwhichrolloverisbeingsought.SBPBSCshallnotallowtherolloverfacilityunless
shipmentstotheextentof70%ofrefinanceavailedisestablished.Bankswillberequired
toforward
duly
authenticated
copy
of
the
said
statement
of
shipments
to
the
concerned
Office of the SBPBSC alongwith the loan application for roll over. Compliance to this
requirementshallinvariablybecheckedbytheverifyingteamsoftheconcernedofficeof
theSBPBSC,whichshallnotsubstituteforthenormalinspectionbyBankingInspection
DepartmentoftheStateBank.
5. ExtensioninPeriodofBorrowingLimitExportrefinance limitssanctioned infavourofbanksonthebasisof financialyear,are
due to expire on 30th June each year. The exporters are required to submit the EE1
statement
for
the
next
year
duly
verified
by
our
Foreign
Exchange
OperationsDepartmentlatestby31stAugust.Toensurethatthefinancingfacilitiesareavailableto
theexportersunderEFStillfinalizationofnewlimitsunderPartII,continuationoflimits
sanctionedbybankstoexportersunderPartIIofEFSfor lastyear isallowedupto31st
Augusteachyear.ThefacilityunderPartII isselfregulating,theexportersshallrequire
toforeseetheirexportearningsduringlastyear;workouttheirownestimateastothe
quantumoftheirentitlementfornextyearandshouldaccordinglyadjusttheirexisting
borrowings on or before end June in case his performance is not up to the mark to
remainwithinthelimittoavoidutilizationofexcessfacilitiesunderEFSduringtheperiod
ofrolloverwhichwouldbesubjecttofine.
6. CalculationofBorrowing&Performance6.1CalculationsofBorrowingProducts&Performance(ExampleofExcessPerformance):
[EntitlementofLimit=Rs.500,000]
Period AmountofRefinance Numberofdays BorrowingProduct
1106 to25106 400,000 25 10,000,000
26106 to30606 500,000 155 77,500,000
TotalBorrowingsProduct: = 87,500,000
TotalPerformanceProduct:
AmountofEF1x180 = Rs.700,000x180(Notionalamount)
=126,000,000
SurplusPerformance = 38,500,000
6.2CalculationsofBorrowingProducts&Performance(ExampleofShortfall):Borrowings(Limit=Rs.2Million):
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Period AmountofRefinance Numberofdays BorrowingProduct
3706 to4806 2,000,000 33 66,000,000
91106to311206 2,000,000 52 104,000,000
30107to30607 2,000,000 152 304,000,000
TotalBorrowingsProduct: = 474,000,000
TotalPerformanceProduct:
Amount of EF1 = Rs. 2,000,234 x 180 (Notionalamount)
= 360,032,120
ShortfallinPerformance 113,967,880
7. ImportantTransactionDatesbeingcountedforEntitlement/Performancepurpose
Exports made against various transactions and the basis for taking into account the
entitlement/performanceunderPartIIoftheSchemeisgivenhereunder:
Natureof
transaction
Thematerialdatethatisbasedfortakingintoaccounttheperformance/
entitlementunderPartII.
DP/DAbasis Dateofrealization
Entries in EE1 & EF1 Statements against exports made on DP/DA (Payment
against acceptance/Payment against receipt of document) basis or on open
accountwhicharesubjecttorealizationofproceedsforthepurposeofentitlement
asalsoperformance.SuchentriesarementionedasFDBC&itsRunningnumberin
theRemarkscolumnofthesaidStatements
Documents/Bills
underL/C.
Dateofshipment
TherealizationofproceedsofthedocumentsdrawnunderL/Carelegallycovered
interms
of
the
ongoing
UCP
arrangements
and
the
banks
who
are
the
parties
to
the said letter of credit are under obligation for payment provided there is no
discrepancy in the documentation. In such cases, the exporter can mention the
Date of Shipment for the purpose of entitlement & performance under Part II
andshallmarkN/AinColumn10pertainingtotheDateofNegotiation.Suchentry
shallbemarkedpostfactoandshallbedeemedtobeonrealizationbasis.Where,
however, the documents are under reserve or discrepant, then only the date of
realizationqualifiesforperformance.
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Discountofbill
underL/C
DateofNegotiation
ThebanksusuallydiscountcleanexportbillsdrawnunderL/C.Theentriesshowing
Date of Negotiation in Column 10 of EE1 / EF1 Statements qualify for
entitlement / performance provided the proceeds thereagainst are realized by
30th
November. Such entries are marked on Post Facto basis by FEOD for
verification
of
realization
of
proceeds
and
the
exporters/banks
are
required
to
submit proof of realization separately. In case proceeds thereagainst are not
realizedornotreportedinSupplementaryReportbythattime,therelevantentry
isdeletedfromtheentitlement/performanceoftheexporterconcerned.
AdvancePayment Dateofshipment
Althoughpaymentarerealized inadvancefromthebuyer,however,theDateof
Shipment istaken intoaccountforentitlement/performanceunderPart IIonly
when
actual
shipment
is
effected
and
such
date
is
within
the
monitoring
period.
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IV.CommonInstructionsundertheScheme1.
Allocation
of
Refinance
Limits
to
Banks
1.1 TheStateBankofPakistanwillmakerefinanceavailabletobanksintheformofeitherpurchase/rediscountofsuchbillsofexchange/promissorynotesasareeligible for
purchase/rediscountbytheStateBankofPakistanunderSection17(2)(a)oftheState
BankofPakistanAct,1956orasloansagainstsuchbillsunderSection17(4)(c)ofthe
Actforamaximumperiodnotexceeding180days.
1.2 The Head / Principal / Country Office of a scheduled bank is required to lodge anapplication at the beginning of a financial year or as advised in this behalf by the
Infrastructure,Housing&SMEFinanceDepartment,StateBankofPakistanspecifically.
Anoverall
revolving
refinance
limit
will
be
sanctioned
for
both
parts
of
the
Scheme,
by
StateBankofPakistanasperapprovedcriteria. Incasethelimitsosanctionedinfavour
ofparticularbankdoesnotsuffice tomeet thedemand forcredit fromexporters,SBP
mayconsiderrequestfromthebankconcernedforincreasingitsmaximumentitlement
for limit, provided its request is covered within SBP internal criteria for allocation of
limits.
1.3 ThebankswillbeappraisedoftherevolvinglimitssanctionedintheirfavourandcopiesthereofshallbeendorsedtotheSBPBSCOfficesoftheareawheretheHead/Principal/
CountryOfficeof thebanksare located. Thebankswillbe required to indicate to the
concernedoffice
of
SBP
BSC,
the
amount(s)
that
it
desires
to
draw
from
various
offices
of
SBPBSC,withintheoverallrefinancelimitsanctionedtoit. Abankisalsoeligible,atits
discretion,toalteritslimitatvariousofficesoftheSBPBSCduringthefiscalyearandto
havethereallocationoftheamount(s)ofthelimit. Forthepurpose,itmayrequestthe
concernedSBPBSCOfficeforreallocationofthelimitbyindicatingtheamount(s)tobe
availedfromSBPBSCOffice/Officesinamannerthatsuchreallocationiswithinoverall
refinancelimitsanctionedtoit.
1.4 Banks shall be required to execute following documents (on the prescribed format) infavouroftheSBP,inordertoavailtherefinancelimitfromtheStateBankofPakistan:
i) AgreementwithStateBankofPakistan(FormA).ii) DemandPromissoryNotefortheentireamountofthelimitsanctionedtothem.
1.5 StateBankofPakistanreservestherighttocancelorreducethelimitgrantedbyittoascheduled bank or to reject the demand promissory note of any particular exporter
submittedbythebank. StateBankwillalsohavetherighttodebaranyexporterifitis
satisfiedthatithasmisusedthefacility. DecisionoftheStateBankinthisregardshallbe
bindinguponbanks/exporters.
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1.6 EveryscheduledbankshallsubmitsuchadditionalreturnsorfurnishsuchinformationinrespectofrefinancecasesastheStateBankofPakistanmayrequirefromtimetotime.
2. RateofFinancingandpaymentthereof2.1 The maximum rate of markup under the Export Finance Scheme to be charged by
banksfrom
their
exporters
shall
vary
from
time
to
time.
The
current
rate
of
mark
up
chargedbybanksfromborrowersis11.0%p.a.witheffectfromJanuary1,2011.
2.2 Thebanksshall invariablymakepaymentofprofitonquarterlybasis to theconcernedofficeoftheSBPBSCattheendofeachquarter.
3. EligibleGoods&ServicesundertheScheme3.1 All major value added commodities exported from Pakistan are eligible for financing
underthescheme,exceptthosementioned inNegativeList.Anyexporterwhomeets
the
lending
criteria
of
a
bank
can
avail
financing
under
EFS
for
export
of
eligiblecommodities.
3.2 WiththechangingbusinesspotentialfromPakistan,especiallytheexportofsoftware/ITrelatedandotherservices,SBPhasextendedthescope
1 ofEFSanddevisedspecial
procedure2foravailingfinanceundertheSchemeagainstexportofsuchservices.SBP
haselaboratedfinancingagainstexportofITenabledservicesandinconsultationwith
theMinistryofScience&TechnologydefinedthetermITenabledservicesas;software
development,webhostingandwebsiteservices,Medical/Legal/ Insuranceandother
transpiration services, Medical billing, data entry, back office processing, engineering
services and design, Network consulting, remote education, Animation, Finance and
accountingservices,
customer
relationship
services
and
customer
interaction
etc.
3.3 FinancingundertheSchemeisalsoavailableforconsultancyservicesofvarioussectorsof economy where foreign earning is remitted into Pakistan. Such sectors include;
medical, pharmaceutical, engineering, accountancy, management, financial services,
wholesale distribution and retail trade, transportation, storage and communication,
telecommunicationservices,educationalservicesandrealestateconsultancyservices.
DetailedprocedureandspecialprescribeddocumentsusedforavailingEFSfacilityfor
consultancyservicesaregiven inBSDCircularNo.41datedOctober30,2001andPBD
CircularNo.26datedJuly11,2003.
3.4 EFSfacilitycanbeavailedfortheexportsofGoldJewellery(embeddedwithorwithoutprecious/semipreciousstones)/gemstones/preciousandsemipreciousstonesonself
consignment basis subject to adherence with the conditions as laid down under F.E.
Circular No.13 dated 28th May, 1997 as well as the procedure of export of the
commodity mentioned vide Ministry of Commerce Notification No.SRO/266(I)/2001
1BPRDCircularNo.5datedMarch03,1997
2BPRDCircularLetterNo.23datedOctober20,1998
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dated 7th May, 2001(c.f. BPD Circular No.12 dated April 7, 2003 read with SMED
CircularletterNo.05datedSeptember11,2006)
3.5 The Scheme in its broad parameters is also applicable for, i) local supplies againstinternationaltenders(detailBCDCircularNo.4dated26thJanuary,1982),ii)exporton
PostshipmentbasisasalsoexportproceedsrealizedunderPart IIagainsttheeligible
goodexported
for
display/sale
in
International
Fairs
and
Exhibitions(detail
BCD
Circular
No.31dated28thAugust,1982readwithSMEFDCircularNo.12dated July16,2009)
and iv) supplies to Export Processing Zones (detail BCD Circular No.26 dated 4th
August,1982).
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4. NEGATIVELIST(NL)Listofcommoditiesnoteligibleforexportrefinanceunderthe
ExportFinanceSchemealongwiththeirspecificharmonizedcodes.
Sr.No. Commodity HarmonizedCode
MainHC
ITCSub
Heading
No.
1. RawCotton
(Excluding Surgical Bleached /
Absorbent
52.01
52.02
52.03
1404.20
2. AllTypesofYarn 52.05
52.06
5207.1000
5207.9000
3. Mutton and Beef other than
frozen&preserved
02.01
02.02
02.03
02.04
02.06
02.08
16.01
16.02
Excl. 0208.20.FrogLegs
4. PetroleumProducts 27.08
27.10
27.11
27.12
27.13
27.14
27.15
Excl.
2710.0011
MotorSpirit.
Excl.2712.1000PetroleumJelly
Excl. 2712.2000 Paraffin
wax.
5. Crude Vegetable materials
n.e.s.
06.01
06.02
12.11
12.13
12.14
13.01
13.02
14.01
(Excl.RoseBuds/Flower)
(Excl.Sassafrass
Leaves)
(Excl. Guar Gum Extract / Guar
Protein / Liquorice
Extract/AsafoetidaHing).
(Excl Lithospermum Vestitum
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14.01
14.02
14.03
14.04
RattanJot)
(Excl. Henna Powder)
(1404.1010)
6. Wool&AnimalHair 05.02
05.03
51.01
51.02
51.03
51.04
51.05
(ExclWoolTops)(5105.29)
7.
CrudeAnimal
Material.
04.07
04.08
05.04
05.05
05.06
05.07
05.08
05.09
05.10
05.11
(Excl. Animal Casings &
Fatends).
(Excl.Bones).
8. AllGrainsincludingGrainFlour 10.01
10.02
10.03
10.04
10.05
10.06
10.07
10.08
11.01
11.02
11.03
11.04
11.06
(Excluding Packeted Irri
/Basmati / Parboiled /
White/Brown Rice in retail
packetsof150kgs).Moreover,
the export of Brown Rice in
bulk/loseis
eligible
to
European
Countries under EFS PartI
againstL/Csonly.
9. Stone,SandandGravel. 25.05
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25.06
25.07
25.14
25.15
25.16
25.17
25.20
25.21
(Excluding: Onyx, marble and
Granite tiles/slabs polished or
unpolishedcut intoregularsize
with
a
maximum
thickness
of
oneinch.
10. Waste&Scrapofallkinds 23.03
23.04
23.05
23.06
23.07
23.08
26.18
26.19
26.20
26.21
39.15
41.10
47.07
55.05
57.03
71.12
72.14
74.04
76.02
78.02
79.02
80.02
2303.10(ExcludingRiceGluten)
3907.6020(Polyethylene
Terephthalate(PET)Resin)
5301.30
5303.90
11. FertilizerCrude 25.10 3101.00
3102.50
3104.10
12. Jewellery exported under the
EntrustmentScheme.
(Excluding Gold Jewellery
embedded with or without
precious/semi precious stones
to be financed as per BPD
Circular No.12 of 2003 on case
by case basis against Firm
ExportOrder/LC.
13 LiveAnimals 01.01
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01.02
01.03
01.04
01.05
01.06
(Excl. Hatching Eggs & Day Old
Chicks
14 Hides&Skins 41.01
41.02
41.03
15 LeatherWetBlue 41.04
41.05
41.06
41.07
4104.21to4104.29
4105.11to4105.19
4106.11to4106.19
4107.21
16 CrudeMinerals 25.01
25.02
25.03
25.04
25.07
25.08
25.09
25.11
25.12
25.18
25.19
25.22
25.25
25.26
25.27
25.28
25.29
25.30
27.01
27.02
27.03
(Excl. Refined/TreatedSalt)
17. Antiques 97.06
18. AllMetal Ores 26.01
26.02
26.03
26.04
(Excl. Magnesite in the
processedform)
(ExcludingBlisterCopper 26.03
& 74.01)
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26.05
26.06
26.07
26.08
26.09
26.10
26.11
26.12
26.13
26.14
26.15
26.16
26.17
74.01
75.01
(Excl. Chrome concentrates in
theprocessedform26.10).
19. FurSkins 43.01
43.02
43.03
20. Woodinroughorsquared 44.01
44.02
44.03
44.04
44.05
44.06
44.07
44.08
44.09
21 Bleached/UnbleachedCloth *(Excl. Bleached / unbleached
cloth exported at a price of
above US $ 2.50 (or
equivalent)/squaremeter.
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5. LinkageofOverdueExportProceedswithEFS5.1 TostreamlinetheprocedureforavailingfinancingunderEFS,aconditionofmaximum
overdue exports proceeds as 5% of last year exports has been laid down for the
exporters3.Accordingly,ifoverdueexportpositionofanexporterisgreaterthan5%of
the
previous
years
exports
shown
in
EE1
statements,
the
exporter
would
not
be
entitledtoavailtheEFSfacilitytillsuchtimethattheoverduepositionisreducedtothe
5%benchmark level.ExportersavailingonlytheEFSPartI facilityarealsorequiredto
submittheprescribedEE1statements.
5.2 EachexporterisrequiredtogiveaCertificateonaprescribedFormshowingconsolidatedposition of overdue export bills outstanding against all bank(s) {as per the record of
ForeignExchangeOperationsDepartment(FEOD)},asapercentageofthetotalexports
ofthepreceding yearfinalizedinEE1statements.Thetotalamountofoverdueexport
proceeds willbe reported in PKR by applying theannualaverageexchange rate of the
year(simple
average
of
monthly
average
exchange
rate
published
by
SBP),
on
which
the
export performance would be based for calculating the 5% benchmark of overdue
exportbills.TheCertificateshouldbesubmittedthroughthebanktotheconcernedSBP
BSCofficeonasixmonthlybasisby31stMarch&30th
September,eachyear;whichwill
remainvaliduptothenextsixmonths.
5.3 Ifanexporterbecomeseligible forEFS by repatriating theproceeds to the levelof 5%benchmark inthe interveningperiodprescribed forsubmissionofcertificate,hewould
beallowedtosubmitarequestalongwithanewcertificateforavailingtheEFSfacility.
5.4 Anymisreporting/misstatementshallattract impositionoffineonbank/exporterattherateprescribedundertheScheme.
6. OnsiteVerificationofRefinancecases6.1 TheconcernedSBPOfficewillundertakerandomonsitecheckingofrefinancecasesat
banks on the financial year basis and will examine the entire documents. Verification
teamofSBPBSCOfficeswillverifyat least70%of theamountsofrefinancedisbursed
under each part, ensuring coverage of all types of cases ie Small, Medium and large,
duringtheverificationprocess.Incaseirregularitiesarepointedoutinvolvingrecoveryof
fineonaccountofanydefault inprocessingofcaseorscrutinyofshippingdocuments,
fineslevied
upon
banks
for
such
irregularities
shall
not
be
refunded.
However,
where
such irregularities / deviations were found to have been willfully suppressed by the
employees of bank the concerned institution shall be at discretion for taking such
punitiveactionsasconsideredappropriatebythemanagementofthebank. Subsequent
to the finalization of the checking no claim for refund relating to modification in
documentsetc. fromtheborrower/bankwillbeentertained.
3IH&SMEFDCircularNo.08datedJuly23,2011
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6.2 The concerned SBP BSC Office will nominate their representative officers to conductverificationofEFScasesatanyparticularbranchesofbank.TheSBPBSCOfficewillissue
a lettertotheconcernedbankat least15dayspriortoschedulevisitforverificationof
EFScaseswithout intimating theactualdateofvisitto theconcernedbank. Thebank
shallextendallpossiblehelpforthesmoothcheckingofthecasesandtheofficialsofthe
bankshallcooperatewiththeauthorizedofficerstocarryouttheirworkexpeditiously.
Suchverification
shall
be
in
addition
to
the
regular
inspection
of
the
bank
conducted
by
our Banking Inspection Department. As such checking by Export Refinance Section of
concerned SBP BSC Office, shall not absolve bank from its responsibilities under the
Scheme.
6.3 Incaseoftransferoflimit/performanceunderEFSPartIItheNOCissuingSBPBSCOfficewillconductonsiteverificationofEE1/EF1statementsandrelevantdocumentsduring
onsiteverificationofthebankeven ifno loanhasbeenavailedbytheexporteratthat
office/bank.AnyviolationobservedthereinwillbecommunicatedtotheNOCreceiving
office, in order to charge fine(s) for violation(s) under the provision of EFS. Onsite
verification
of
documents
against
EE
1/EF
1
statements
will
also
be
carried
out
at
bank(s)
whoissuedNOCinfavorofotherbankswithinonecentreforthepurposeoftransferof
exporterslimit/performance.
7. IncentivesunderPrudentialRegulationsUnderthePrudentialRegulations,forCorporate/Commercialbanking,exportersavailing
finance under EFS are exempted from certain restrictions which are available to both
Direct&IndirectExporters,asunder:
a. In determining limit on exposure to a single person/group, pre / post shipment creditprovided
to
finance
export
of
goods
covered
by
letter
of
credits
/firm
export
order
are
notincludedintheexposure(PrudentialRegulationsRI).
b. Banks/DFIs not shall provide unsecured/clean financing facility in any form of a sumexceeding Rs. 500,000 to any person. However, clean facilities granted to finance the
exportofcommoditieseligibleundertheExportFinanceSchemeshallbeexemptfrom
perpartylimitoncleanfacilities(PrudentialRegulationsR4).
c. Whilegranting accommodation,banks/DFIsshall ensure that the total accommodationavailed
by
any
borrower
from
financial
institution
does
not
exceed
10
times
of
the
capital
&reserves(freeof losses)oftheborrowerasdisclosed in itsAuditedAccounts. Export
finance shall be excluded from the borrowings for the purpose under Prudential
RegulationR5.
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8. PenaltiesbeingChargedundertheSchemesonaccountofVariousIrregularitiesVariousFinesarechargedunderEFStobothborrowerandbankonaccountofdifferent
kindsofirregularitiesatratesgiveninthefollowingtable:
FineEFSPartI:
S.No. NatureofIrregularity RateofFine
i) NonShipment Paisa37perdayperRs.1000orpart
thereof
ii) Short/DelayedShipment Paisa28perdayperRs.1000orpart
thereof
iii) Lateadjustmentoffundsbyabank
againstrepaymentmadetoit.
Paisa42perdayperRs.1000orpart
thereof
iv) Finefordelayedsubmissionofshipping
documentsbytheexporters
Rs.2000forthedefaultandRs.100per
dayforeachdayofdefault
v)
Finefor
wrong
information
and
incorrect
reporting/entryin anyStatement
requiredtobefurnishedtoStateBankof
Pakistan
Rs.100/
per
such
wrong
/incorrect
reportedentry
vi) FinefornonsubmissionofEPRCbybank
withinprescribedperiod.
Rs.20,000/,25%ofwhichi.e.Rs.5,000/,
wouldbenonrefundableevenonlate
submissionofEPRC.
vii) Fineforirregular availmentofpre
shipment/postshipmentexportfinance
facilitybyexporters
In all preshipment/postshipment loans
cases where it has been noticed that
shipment(s) was made before/after (in
caseof
post
shipment)
disbursement
of
finance,theshipmenthastobe treated
asinordersubjecttorecoveryoffineat
the rate of Rs.2,000/ and Rs.100/ per
day for the period for which the
refinance loan remains outstanding on
thepartofthebankoruptothedateof
factual position conveyed to concerned
SBPBSCOffice,whicheverisearlier.
FineunderEFSPartII:
S.
No.
NatureofDefault RateofFine
I Shortfallinperformance Incaseofnon performance, fineshall
bechargedattherateofPaisa37per
Rs.1000 or part thereof (Product).
However, where performance is in
excess of 50% of the prescribed level,
fine shall be charged at the rate of
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Paisa28perRs.1000oftheshortfallor
partthereof.
Ii Fineforanyotherdefaultbythe
exporter/bank
Paisa 37 per day per Rs.1000 or part
thereof,however,dependinguponthe
nature of irregularity by the exporter
and/orbankorboth,inadministering
the
Scheme,
such
as
misuse
of
the
facilities, utilization of the Scheme on
fraudulent and or tempered
documentsetc,SBPmayalsoconsider
to place an embargo for a period of
oneyearonthebankand/orexporter
or both for availing financing facilities
underEFS.
Iii Fine for wrong information and
incorrect reporting / entry in
statement
(EF
1,
EE
1
or
in
any
other
Forms required to be submitted to
SBP.
Rs.100perwrongentry.
9. ProceduresforRefundofFineFinesare imposedontheexporters fornonperformanceonaccountof their failureto
produce
evidences
of
shipment
under
Part
I
and
performance
reports
under
Part
II
within
the prescribed deadlines. However, after imposition of fine, a considerable number of
representations are made to SBP for refund of fine, which are not supported by the
requisite and necessary documents / evidences and resulted in delay in processing of
cases.Inordertostreamlineprocessingofthecasesinvolvingrefundoffinesrecovered
under EFS as also to make the system more transparent, a procedure has been
prescribed for refund of fine vide SMEFD Circular No.05 dated December 26, 2008,
where reasons for non performance are due to unanticipated factors and beyond the
controloftheexporter(forcemajeureevent).
UndertheExportFinanceSchemenorequest(s)forrefundoffine(s)shallbeentertained
afterexpiry
of
3years
from
the
date
of
recovery
of
fine
on
account
of
various
violations.
(c.f.SMEFDCircularLetterNo10.datedJune29,2010).
10. PeriodofPreservationofRecord10.1 TheperiodofpreservationofrecordrelatingtoExportFinanceSchemewillbe3yearsin
cases where no fine has been recovered or fine recovered does not pertain to non
shipment/performance provided there is no dispute between the bank and the
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borrower.Banksmayliketoprotecttheirinterestinsuchcases,withoutputtingexporter
toanyhardship.
10.2 Incaseswherefinehasbeenrecoveredfromtheexporteronaccountofanyirregularityinshipmentorperformance,thebanksshallbeunderobligationtokeeprecordsofsuch
casesforaperiodofatleastsixyears.
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Annexures
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AnnexureI
ListofDocumentsusedunderExportFinanceScheme(EFS)
S.No. Name Subject Page
No.
1. FormA FORMOFTHEAGREEMENTTOBESUBMITTEDBYTHEPRINCIPAL/HEADOFFICE
OF
THE
SCHEDULED
BANK
(TO
BE
STAMPED
AS
AN
AGREEMENT
IN
ACCORDANCE
WITHTHELAWINFORCEINEACHPROVINCE)
36
2. FormB APPLICATION / UNDERTAKING FOR FINANCE (FOR PRE/POST SHIPMENT UNDER
PARTITOBESUBMITTEDBYTHEDIRECTEXPORTER)
39
3. FormC APPLICATION/UNDERTAKINGFORFINANCEUNDERPARTI(TOBESUBMITTEDBY
THEINDIRECTEXPORTER)
42
4. FormD REFINANCECLAIMFORM(SUBMITTEDBYBANKFORCLAIMINGREFINANCE) 44
5. Annexure
"D"
STATEMENT OF PERFORMANCE AGAINST REFINANCE OBTAINED FROM SBP
UNDER THE EXPORT FINANCE SCHEME (PART1) INCLUSIVE OF
FINANCES/REFINANCESOBTAINEDBY THEDIRECTORINDIRECTEXPORTES
49
6.
Annexure
ESTANDARDIZED
PURCHASE
ORDER
(SPO)
FOR
PURCHASE
OF
INPUTS
BY
THE
DIRECTEXPORTERFROMINDIRECTEXPORTER47
7. Annexure
F
APPLICATIONFORMUSEDFORREFUNDOFNONSHIPMENTFINE 50
8. UTDEII UNDERTAKINGTOBESUBMITTEDBYTHEDIRECTEXPORTERUNDERPARTII 52
9. FormDE3 APPLICATION FORM OF THE DIRECT EXPORTER GIVINGPARTICULARS OF
BORROWING LIMIT (AS PER FORM EEI)AND THE LOCAL SUPPLIES FROM THE
INDIRECTEXPORTER
53
10. UTIDEII UNDERTAKINGTOBESUBMITTEDBYTHEINDIRECTEXPORTERUNDERPARTII 55
11. IDE2 FORM OF APPLICATION FOR CLAIMING FINANCING FACILITIES UNDER EXPORT
FINANCE
SCHEME
BY
THE
INDIRECT
EXPORTER
FOR
SUPPLY
OF
LOCAL
INPUTS
AGAINSTILC/SPO
57
12. FormEB APPLICATIONFORMUSEDBYBANKFORAVAILINGREFINANCEUNDEREFSPARTII 58
13. FormEE1 A STATEMENT SHOWING PARTICULARS OF EXPORT RECEIPTS IN RESPECT OF
ELIGIBLECOMMODITIESUNDERPARTIIOFTHEEXPORTFINANCESCHEME(USED
FORTHEENTITLEMENTOFLIMIT)
60
14. FormEF1 A STATEMENT SHOWING PARTICULARS OF EXPORT RECEIPTS IN RESPECT OF
ELIGIBLECOMMODITIESUNDERPARTIIOFTHEEXPORTFINANCESCHEME(USED
FORMATCHINGPERFORMANCE)