KARACHI, July 11: The State Bank has asked all the banks to issue a 7-day notice to the exporters before imposing a fine on delayed shipments.

In a circular (BPD no 16) issued here on Thursday the State Bank said that the step had been taken to avoid recovery of fine in cases where the exporter might have made full or part shipment but the documents could not have been submitted to the banks.

“In case shipping documents are not received by the bank from the exporter concerned on or before 30 days from the expiry of loan the bank shall serve a notice to the exporter concerned at least 7 days earlier before expiry of 30 days showing intention of deducting fine on account of non-shipment due to non-submission of shipping documents,” says the circular. But if the exporters fail to submit the documents despite serving of this notice “the bank shall recover the fine treating the case as that of non-shipment and pass on the amount of fine so recovered to State Bank office concerned within three working days.”

“The exporter concerned shall be entitled to refund of fine so recovered on submission of the relevant documents and after adjusting the fine that may be applicable for short shipment or delayed shipment and delayed submission of shipping documents.”