Governor State Bank of Pakistan Ashraf Mahmood Wathra and Chairman FBR Tariq Bajwa have shown optimism that automation of Form-E will have manifold benefits to all stakeholders and the country would reap advantages of increased inflow of foreign exchange. "The automation will reduce cost of doing business for exporters and will bring efficiency in the system," the Governor said.
The Chairman FBR remarked that automation of Form-E will also facilitate in efficient processing of duty drawback claims of the exporters as well as preventing any fake/bogus documentation. Governor SBP and the Chairman FBR were speaking at the signing ceremony of memorandum of understanding (MoU) between SBP and FBR at SBP Headquarters on Monday.
In order to streamline issuance of Form-E, SBP and the Pakistan Customs had initiated a project for the automation of the process of issuing Form-E. In this regard, an Electronic Form-E (EFE) module has been developed in consultation with relevant stakeholders and incorporated in the Pakistan Customs' electronic system called Web based One Customs (WeBOC).
The landmark development is expected to provide several benefits to stakeholders including reduced cost of doing business for exporters, efficient processing of duty draw back claims of exporters, elimination of fake/forged Form-E, improve repatriation of foreign exchange besides bringing efficiency to the current system. At present, most of the exports are processed through WeBOC but a small percentage of the export cargo are being exported through the 'One Customs' system. Efforts are underway to expand scope of the EFE module to export of such goods as well. Currently, Form-E is issued manually by Authorized Dealers (Banks). The system will begin receiving applications for EFE with effect from November 2, for exports taking place from November 11, onwards. The request for EFE will be submitted electronically by the exporter in WeBOC and Authorized Dealer will approve or reject EFE electronically in WeBOC. Accordingly, paragraph 36 has been added in Chapter XII of EFE Manual 2002, which provides regulations for issuance of EFE. However, for exports taking place through One Customs, manual Form-E will be issued by Authorised Dealers as per existing instructions.
After electronic approval of Form-E by the Authorized Dealer, the exporter will attach EFE in WeBOC with Goods Declaration (GD) Form to carry out export of goods for which Form-E has been approved. The serial number of EFE for each Authorised Dealer will be generated by WeBOC. Authorised Dealer shall fill in relevant sections of Bank Credit Advice (BCA) for each EFE in WeBOC, including the date of lodging shipping documents with Authorised Dealer, acceptance received from importer's bank and realisation of export proceeds wherever documents are negotiated or collected through them.
The Governor and the Chairman FBR hoped that both institutions would continue their mutual collaboration for the benefit of public in general and business community in particular in future as well. Going forward SBP and Pakistan Customs would also work to automate Form I which is expected to reduce illegal payments besides having a salutary impact on import revenues.-PR