SBP Directs ADs to Transfer Export Development Surcharge Directly to Central Bank

The State Bank of Pakistan (SBP) has directed Authorised Dealers (ADs) in foreign exchange to transfer the consolidated amount of Export Development Surcharge (EDS) deductions directly to the SBP via RTGS instead of the National Bank of Pakistan (NBP).

Bank branches that deduct EDS must transfer the funds to their main RTGS branch on a daily basis, the central bank said in a letter to the Chief Executives and Presidents of ADs.

Bank branches that deduct EDS must transfer the funds to their main RTGS branch on a daily basis.

The main RTGS branch shall arrange for the consolidated amount of EDS to be transferred on a T+1 basis (T being the deduction date) to SBP through RTGS for onward credit to EDF in an account titled G12305-Export Development Fund RTGS, Number: 021992999990394 Mnemonic: FGEDFRTG, the circular added.

Meanwhile, banks will report individual exporter information via the central bank’s Data Acquisition Portal (DAP). Banks must include their unique reference number in both DAP filings and Bank Credit Advice (BCA) filings with Customs authorities for reconciliation and reference purposes.

Banks will also ensure that the total number of individual transactions always equals the amount transferred via RTGS. Any instance of misreporting will be dealt with in accordance with the penal provisions of the Banking Companies Ordinance, 1962, and the SBP’s penalty scale.

The regulator has also advised banks to ensure strict adherence to these instructions. Unlawful retention of government funds by banks will result in penalties as costs of funds equal to 1.5 times SBP’s Ceiling Rates of retention dates.

Pertinently, SBP had previously prescribed the mode and manner of EDS deduction and deposit at the NBP on January 4, 2003.