KARACHI, Dec 30: The State Bank has provided 90 days waiver for the purpose of availing financing under export finance scheme (EFS) to all exporters, whose export proceeds are overdue till date of issuance of the mew circular issued on Tuesday.
A number of decisions were taken on complaints from the exporters that banks were not providing financing under EFS.
One-time waiver for 90 days will be allowed for the purpose of availing financing under EFS to all exporters, whose export proceeds are overdue till date of issuance of this circular letter, said the SBP.
After the expiry of 90 days period, export refinance facility under the scheme will be discontinued for the exporters, who failed to arrange repatriation of overdue export bills. However, the facility will be restored, automatically, by the banks, if otherwise in order, as and when exporter subsequently realises overdue bills.
The banks may allow the financing facility under EFS to exporters, who could not arrange to repatriate export overdue bills due to bankruptcy or liquidation and litigation involving foreign buyer, provided that the respective bank confirms having received all the supporting documents and is satisfied with them.
While allowing the facilities in such cases the financing bank will be under obligation to record the reasons for continuation of the EFS facilities to the exporter concerned.
The exemption of 90 days will not be available in case the exporter has subsequently shipped additional consignment to the same importer or its associated company, or where the payment in respect of shipments has been stuck up on account of discrepant documents, or failure of the exporter to ship the goods in accordance with the requirements of the importer, provided shipments so made and discrepant documents so sent have been accepted by the importer abroad.
The banks will also provide information of all such cases to SME Finance Department. Further, the SBP concludes that the facility of 90 days exemption or the financing facilities under EFS were provided without complying with the specified parameters.
Authorised dealers may allow extension in the realisation period if they are satisfied with the explanation given for delay in realisation, provided such extension does not extend the period beyond six months from the date of shipment. In addition, in order to facilitate the exporters, Exchange Policy Department of SBP also considers such requests for extension on case-to- case basis in case of valid reasons for delay in repatriation of export proceeds.