KARACHI, April 7: The State Bank has revised the procedure for obtaining export finance by exporters of gold jewellery.

In a circular issued to all banks on Monday the SBP said that it would continue to provide export refinance to the banks under the export finance scheme for the exports of gold jewellery with or without precious/semi-precious stones. The facility will be available on self-consignment basis.

The circular says that banks may provide finance under part I of the scheme to the exporters for export of gold jewellery on case to case basis on production of firm export order or letter of credit. The date of shipment will be the date of on which shipment is allowed by the customs.

The exporters will be required to repatriate proceeds into Pakistan by importing gold and remitting value on account of gems and making charges through banking channel. The exporters will also be required to appropriate the proceeds immediately towards the export finance allowed by the bank. For this purpose the date of realization and the date of import of gold will be taken into account.

As prescribed under the scheme the bank will be required to pass on the amount repaid by the exporters/received against the relevant contract to the State Bank within three working days of its receipt/repayment.

The exporters or their banks will submit shipping documents and performance documents against finance availed under the scheme to the SBP. The documents they will need to submit include a copy of the EPB approval and a firm order/contract or LC.

They will also need to submit some other documents required for monitoring the performance, including a copy of the shipping bill indicating certification of shipment allowed by the customs authority and a copy of the EPB approval.

The exporters or their bank will also be required to submit to the SBP the documents evidencing realization/repatriation of export proceed.

The SBP had initially allowed export finance facility to the exporters of gold jewellery sometime in April 1996 and had laid down a procedure for availing this facility. But in the last few years so many changes were made in the circular that had first allowed this facility.

The current circular is a simplified and revised version of the set of instructions so far issued on this subject.