SBP links payment to realisation of export proceeds
RIZWAN BHATTI
KARACHI: The State Bank of Pakistan (SBP) has linked payment of subsidy on wheat/wheat flour export with full realisation of export proceeds.
The SBP on Thursday, announcing the procedure for the payment of subsidy on wheat export, has asked all Authorized Dealers (ADs) in foreign exchange to process the cases of eligible exporters for subsidy claims against export of wheat/wheat flour (Ata).
The Economic Coordination Committee of the Cabinet in a meeting on Feb 9, 2015 allowed some 0.4 million tons wheat export from Sindh and some 0.8 million tons from Punjab with a subsidy of $45 per ton and $55 per ton, respectively.
As per procedure, a special account will be opened at State Bank titled "Support of wheat/flour export" and the federal government through the ministry of finance will deposit Rs 1.5 billion in the account as first tranche to start the export of wheat and wheat flour.
According to SBP, ADs will forward the requests of wheat exporters on prescribed format through their Departmental/Business/Group Heads to The Director, Foreign Exchange Operations Department (FEOD), SBP, Banking Services Corporation (BSC), Head Office, Karachi or The Chief Manager, Field Office of SBP, BSC.
The ADs will be required to submit attested/authenticated copies of E-form, Goods Declaration (GDs) Form, a letter from the Food Department of respective provincial governments confirming the procurement of specific quantity of wheat/wheat flour (Ata), Commercial/Customs Invoice and Export Proceeds Realization Certificate/Advance Payment Voucher.
Moreover, the bill of lading/truck receipt/railway receipt and commercial/customs invoice will be required along with subsidy application. In case export has been done through House Bill of Lading, it must be accompanied by relevant Master Bill of Lading.
Exporters have been told that wheat/wheat flour (Ata) must be procured and lifted latest by March 31, 2015 for Sindh and by April 15, 2015 for Punjab while the export should take place within 30 days of the respective lifting date to be eligible for the subsidy.
The SBP has made it clear that subsidy will be allowed only after full realisation of export proceeds against E-Form. Therefore, exporters exporting wheat/wheat flour (Ata) will approach FEOD, SBP-BSC or respective field office of SBP-BSC, as the case may be, through their AD claiming the subsidy within 90 days of full realisation of export proceeds or within 90 days from the date of shipment if export is made against 100 percent advance payment. No claims will be entertained after the aforementioned time period, it added.
The SBP-BSC will scrutinize the claims within 30 days of receipt of subsidy claim. While, discrepant claim will be returned to respective AD and the same must be resubmitted after removing the discrepancy within 30 days of return, after which no such application will be entertained.
Approved claim will be disbursed to respective AD in its account maintained with SBP-BSC for onward credit to the exporter's account within 24 hours of disbursement.
The SBP has directed exporters/ADs that the application must be submitted as per prescribed format and duly verified by the Food Department of respective provincial governments with unique reference number.
Regarding the exchange rate, the SBP has clarified that the rate of exchange applicable for calculation of PKR subsidy will be the buying rate of weighted average customer exchange rates issued by Domestic Markets and Monetary Management Department of SBP on the date of final realisation of export proceeds against E-Form.
Application must be accompanied by AD's undertaking on behalf of the exporter and incomplete requests shall not be entertained.
