LAHORE: The State Bank of Pakistan (SBP) has expedited proceedings against exporters for realization of E-forms by forcing them for an early performance of the same, causing worries among the later ones, said sources.
In most of the notices, it has been pointed out that the exporters had given undertaking in E-forms that they would repatriate the full amount of proceeds through banks within six months from the date of shipment/export.
Since they have failed to repatriate the full amount of sale proceed within the prescribed period and contravened the provisions of Foreign Exchange Regulation Act, 1974, by delaying the same.
It may be noted that the federal government is authorised to prohibit export of goods unless a declaration is furnished for repatriation of sale proceed within the prescribed period except where sale is delayed or payment for the goods is made otherwise then in the prescribed manner.
According to the sources in the export community, they are receiving notices from the SBP to explain their position in respect of the contravention of law. It is worth noting that the SBP also ensures undertaking regarding a full explanation as to the circumstances resulting in non-realization. In the event of short-realization, the exporters are also bound to furnish a fully documented account sale certificate by the chamber of commerce of the country of import.
The SBP is authorised to impose penalty not exceeding five times the amount or value involved or five thousand rupees that may extend to Rs 2,000, calculated at the prevailing rate of exchange, for every day during which the contravention or default continues.
Some exporters exporting indigenous goods to Iran via land route have informed that they were facing problem in realization of sale proceed because the Iranian buyers were issuing cheques of cash payments which are dishonoured on presentation to the local banks in Iran.
According to them, it has been provided in the foreign exchange manual that legal proceedings for recovery of export proceeds in case of default by a foreign buyer will be carried out in consultation with the SBP Banking Service Corporation, but no such legal assistance is provided with by the Corporation and the exporters are supposed to handle the issue alone.
Copyright Business Recorder, 2023
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