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FE RulesExchange Policy Department - 2015Import of Cash US Dollars against Export of Permissible Foreign Currencies

IMPORT OF CASH US DOLLARS AGAINST EXPORT OF PERMISSIBLE FOREIGN CURRENCIES

EPD Circular Letter No. 16 of 2015                                                                              July 27, 2015

The Chief Executives of all
Exchange Companies ‘A’ Category

Dear Sirs / Madam,

Import of Cash US Dollars against Export of Permissible Foreign Currencies

Attention of the authorized Exchange Companies (ECs) is invited to EPD Circular Letter No. 06 dated April 01, 2005 and other instructions issued from time to time requiring ECs to repatriate equivalent US Dollars against exported foreign currencies in their foreign currency accounts maintained with banks in Pakistan.

2) It has been decided that henceforth ECs may also import cash US Dollars against export of permissible foreign currencies. ECs may also continue to export permissible foreign currencies against repatriation of equivalent US Dollars in their foreign currency accounts maintained with banks in Pakistan as per existing procedure.

3) The conditions/procedure for import of cash US Dollars against export of permissible foreign currencies shall be as follows:

i) US Dollar currency notes can be imported only through Jinnah International Airport (JIAP) Karachi.  Thus, ECs exporting foreign currencies from Karachi, Lahore or Islamabad airports will bring into Pakistan cash US Dollars only through JIAP Karachi.

ii) The exchange company shall give prior written intimation to relevant SBP-Customs Joint Booth staff of Karachi, Lahore or Islamabad airports at the time of export of foreign currencies clearly mentioning the amount of cash US Dollars to be imported, flight number and time of arrival of flight at Karachi as per Annexure-I with a copy to Director EPD, SBP and Director FEOD, SBP BSC. The format of Annexure Ipreviously being used for export of foreign currency communicated vide EPD Circular Letter No. 06/24(71)EC-05 dated April 1, 2005 http://www.sbp.org.pk/epd/2005/FECL6.htm will stand amended accordingly.

iii) For each export consignment a Unique Transaction Number (UTN) will be mentioned on the Annexure I. UTN shall be combination of alpha initials of name of EC (Annexure-II), transaction number, and financial year. UTN for export of currencies will be centrally maintained by EC and issued by its head office for export of foreign currency currently allowed from Karachi, Lahore and Islamabad airports. UTN will be the reference number for future reconciliation of export and import transactions of the EC. A specimen of UTN to be used by an EC for the purpose of record keeping and related instructions as explained inAnnexure III of this circular.

iv) Cash US Dollars must be brought into Pakistan within two working days from the date of export of foreign currencies. The practice of repatriation of USD through credit to bank accounts of EC with banks in Pakistan shall remain unchanged. The format of reporting of import of USD in either form has also been revised as per attached Annexure IV.

v) ECs shall be responsible to ensure that import consignments do not contain soiled/damaged/counterfeit currency notes.

vi) Representatives of ECs shall declare the import consignment of cash US Dollars, upon their arrival into Pakistan, to the SBP staff at SBP Booth located at International Arrival Lounge of JIAP, Karachi alongwith original deal ticket of foreign bank/exchange company clearly showing the amount of cash USD as per format given at Annexure-V. The foreign government’s customs and/or other export documents in original must be submitted at SBP Booth which will be stamped by SBP official at the booth mentioning time, date and flight details. A copy of the same must be kept in record by the exchange company for on-site inspection by the State Bank’s inspection team.

vii) Only those incoming flights must be chosen which are scheduled to arrive at JIAP, Karachi between 10:30 am to 06.30 pm from Monday to Saturday.

viii) All rules and regulations of overseas jurisdiction from where the cash US Dollar is being brought must be adhered to.

ix) ECs must ensure due diligence and compliance to all relevant Anti-Money Laundering laws in respect of cross-border transfers, which may be enforced from time to time in Pakistan as also in the respective jurisdiction from where US Dollars are imported.

x) Imported cash USD shall be reflected in books of accounts of EC on arrival.

xi) Exchange Company shall also submit Currency Declaration Form to Customs Authorities as required under Notification No. F.E.1/2012-SB dated 16th June, 2012.

xii) This arrangement shall remain in operation from 3rd August 2015 to 15th October, 2015 unless advised otherwise or until further instructions.

xiii) All other instructions on the subject shall remain unchanged.

4) Non-compliance of the above instructions and other rules and regulations will attract appropriate action against the delinquents.

Encl: As above

Yours truly,

Sd/-

(Fazal Mahmood)
Director

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