In the wake of successful implementation of Electronic Form-E (EFE) module in WeBOC, the central bank allowed exporters to directly dispatch shipping documents to the consignees or their agents in the country of final destination.
This facility shall be extended only to those exporters who have export performance of at least 3 years with a minimum total export realization equivalent to USD 1 million. The incentive can be availed by exporters in case of exports other than against Letter of Credit or advance payment.
The development is expected to provide manifold benefits to the local exporters, including reduction in the cost of doing business, efficient processing of export documents and improvement in competitiveness of Pakistani exports in the international market.
Commercial banks as Authorized Dealers (ADs) may allow creation of shipping documents in the name of the foreign importers and dispatch of the same by the exporters to the foreign consignees or their agents in the country of final destination by issuing a certificate to the carriers including ships, airlines, trucks, railways etc.
SBP instructed that the value of export consignment must not exceed USD 100,000 or equivalent in other currencies. The export overdues of an exporter should not be more than 5% of the previous year’s exports.
The total outstanding/unrealized exports allowed by the AD through this facility shall not exceed 25% exports of the preceding year.
Furthermore, banks/AD may accept certificates of other ADs showing export performance of the exporter through them.
The banks/AD shall obtain an undertaking from the exporter that export proceeds against will be realized as per the prescribed time period. Further, the AD, at its discretion, may obtain the personal guarantees of the Directors/Sponsors of the firm/company to ensure realization of export proceeds against such shipments.
The AD shall monitor the shipment(s) made by the exporter and ensure realization of export proceeds within the prescribed time. In case of non-realization within the prescribed period, the matter shall be reported to the Foreign Exchange Operations Department of the central bank.
In case of unsatisfactory behavior of the exporter or export overdues exceeding the prescribed limit, as, the banks/AD shall discontinue extending the above facility to the exporter.