Export Refinance Scheme SBP Guidelines

8/12/2019 Export Refinance Scheme SBP Guidelines

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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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[ii]

TheTeam

SyedSamarHasnain

Director

MuhammadIshfaq

SeniorJointDirector

MuhammadRazimKhan

JointDirector

IqbalHussain

DeputyDirector


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[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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[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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[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

1

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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2

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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3

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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4

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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5

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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6

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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7

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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8

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.


15/71


9

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


16/71


10

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.


17/71


11

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


18/71


12

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.


19/71


13

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.


20/71


14

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.


21/71


15

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


22/71


16

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


23/71


17

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):


24/71


18

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.


25/71


19

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.


26/71


20

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.


27/71


21

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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Infrastructure Housing & SME Finance Department State Bank of Pakistan Export Finance Scheme (EFS)

24

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

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)

Export Refinance Scheme SBP Guidelines

Documents

Transcript of Export Refinance Scheme SBP Guidelines