The State Bank of Pakistan (SBP) has asked Authorized Dealers (ADs) to process the export of sugar cases as the federal government has allowed 0.3 million tons sugar to export. SBP has issued these directives following the Ministry of Commerce's Office Memorandum No 7(2)/2012-Exp.III dated July 21, 2017 regarding the sugar export in terms of which government has allowed sugar mills to export 300,000 metric tons sugar.
As per sugar export mechanism, ADs will forward the requests of sugar mills through their respective Departmental/ Business/Group Heads to the Director, Foreign Exchange Operations Department (FEOD), SBP-Banking Services Corporation (BSC) Head Office Karachi for approval.
Attested/authenticated copies of sugar export contract, Manual Form-E or print out of EFE request in case of electronically generated Form-E through WeBOC, Irrevocable L/C or advance payment voucher, swift message and reporting schedule/credit advice, will required for processing. FEOD will allocate sugar export quota to sugar mills on first come first served basis.
ADs will ensure receipt of a minimum 15 percent of total contract value as advance payment (evidenced by advance payment voucher, swift message and reporting schedule/credit advice) or obtain an irrevocable L/C from the buyer.
All exports including those destined for Afghanistan and Central Asian Republics will also be subject to receipt of export proceeds by wire transfer through banking channel. However, there will be no export subsidy/ cash support for the export.
According to SBP, In case of non-performance against the quota allocated by FEOD, ADs will obtain prior permission from FEOD, SBP-BSC Head Office Karachi for return of advance payment received there against from the importer.