KARACHI, Sept 22: The State Bank has slightly lowered scales of fines under the export finance scheme.

The central bank said in a circular issued on Monday that in case of short or delayed shipment the exporter concerned would be fined at a rate of 28 paisa per day per Rs1,000 instead of 37 paisa per day per Rs1,000. It also said a fine of 42 paisa per day per Rs1,000 would be imposed in case of late adjustment of funds by a bank against repayment made to it. The existing rate is 60 paisa per day per Rs1,000.

The circular says that in case of shortfall in performance under the export finance scheme the rate of fine would be 28 paisa per day per Rs1,000 instead of 37 paisa per day per Rs1,000. But the exporters who fail to perform to the extent of at least 50 per cent of the prescribed level shall continue to pay a fine of 37 paisa.

It says that the rate of fine will remain unchanged at 37 paisa per day per Rs100 in case of non-shipment of goods under the export finance scheme. It further says that the rate of fine for any other default by the exporter or the bank concerned will continue to be 37 paisa per day per Rs1,000. However, depending upon the nature of irregularity by the exporter or the bank, the SBP may also consider to place an embargo for a period of one year on the bank or on the exporter or on both.

The circular says that fine for submitting wrong information and incorrect reporting will continue to remain unchanged at the rate of Rs100 per wrong entry. Fine for delayed submission of shipping documents by the exporter will also remain unchanged at Rs2,000 for the default and Rs100 per day for each day of default.