KARACHI, March 22: The State Bank on Thursday announced amendments in the rules for refunding of the fine to exporters. The non-performance by exporters attracts fine at the rate of 37 paisa a day per Rs1,000 or part thereof. The exporters, having subjected to fine for reasons beyond their control, are required to submit their request to SBP for consideration of refund of fine charged on them.

For the purpose a procedure was formulated earlier and circulated vide BPD Circular No. 23 dated August 31, 2002. It contained stipulation/procedure to be observed by the exporter, his banker and the concerned office of the State Bank for the purpose of submitting requests for refund of fine.

It has been observed that at times these requirements resulted into duplication of information besides making it difficult to process the case promptly at each stage.

In some cases the ignorance of SBP’s requirements prescribed under Export Finance Scheme as also procedure for refund of fine also delayed finalisation of request for refund of fine submitted by exporters.

In order to expedite the process for refund of fine and make it more transparent modifications have been made in the existing procedure for refund of fine.

The exporter seeking refund of fine along with their bankers will be required to substantiate their request(s) for refund of fine for non-shipment, delay in shipment under Part I or short performance under Part II or for extension in the period for meeting the requirement under both Parts of the Scheme by explaining the reasons of their failure to meet the requirements prescribed under the scheme.

In line with previous procedure, requirements to be met by the exporters, disbursing/main branch of the bank and this department have been prescribed separately.

However, the earlier requirement of routing the application for refund of fine through the field offices of SBP BSC (Bank) has been done away with.