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30. Booking of
passage/Release of foreign exchange to representatives of Consultancy/ Constructions
companies and firms.
Airlines/Shipping Companies/Travel Agents and Authorised Dealers may issue
tickets/release foreign exchange at the rates specified in paragraph 28 without prior
approval of the State Bank to the representatives of Consultancy/Construction
firms/companies whose Bid Bonds/Performance Bonds have been accepted by foreign
beneficiaries. For this purpose, such persons/firms, if they are not members of any
Chamber of Commerce and Industry or Trade Organization, will be required to fill in Form
'T-2' in triplicate and submit it to the Offices of the Export Promotion Bureau for
certification. Other instructions for issue of tickets, release of foreign exchange,
admissibility of travel facility and the mode of payment for cost of passage/exchange etc.
will remain the same as prescribed in paragraph 29 (i) to (vi) for business travel on the
recommendations of the Chambers of Commerce/Trade Organizations on Form 'T-2'. However, in
case the Consultancy /Construction firm/company is a public sector company,
passage/exchange facility will be available only with the prior approval of State Bank of
Pakistan.
31. Release of Exchange to Pakistani exporters for participation in
International Trade Fairs/Exhibitions in Private Capacity.
Authorised Dealers may extend, subject to fulfillment of the drill prescribed
herein for each category, following facilities to Pakistani registered exporters for
participation in International Trade Fairs/Exhibitions in their private capacity as and
when approached:
Category ‘A’ where sample goods are taken for display.
(i) Remittance of space rent direct to Fair/Exhibition authorities against their
debit note and undertaking from the exporter's firm/company on the form appearing at
Appendix V-72. Remittance will be reported on Form 'M'.
(ii) Release of exchange for construction of pavilion against estimate subject to
rendition of account for expenses incurred and undertaking on the form appearing at
Appendix V-72. Remittance will be reported on Form 'M'.
(iii) Issue of an authority letter to the airline/travel agents for issue of ticket to and
from the country where the Trade Fair/Exhibition is being held, for the representative of
the firm/company on whose behalf foreign exchange for space rent/construction of pavilion
already released, not exceeding two persons, on the form appearing at Appendix V-73 on
production of documents showing confirmation for booking of space and credit note/receipt
for foreign exchange already released. This authority letter will be retained by the
airline for submission through passage statements.
(iv) Release of foreign exchange on production of return ticket purchased against
Authorised Dealer's authority mentioned in preceding sub-para (iii) at the rate not
exceeding Business Travel Quota for the number of days of the fair plus another seven days
for setting up stall and winding up of affairs but not exceeding 30 days. Release of
exchange will be reported on T-1 Form under this authority.
(v) Payment for the cost of ticket and foreign exchange to be released for payment of rent
for stalls, booking of space, construction of pavilion, advance deposits etc. and for the
expenses of the representative of the firm/company participating in international trade
fairs / exhibitions will be received by the Airlines/Travel Agents/Shipping Companies and
Authorised Dealers through cheques drawn on the bank account of the firm/company
concerned.
Category 'B' - Trade Fairs/Exhibitions organized by the Chambers of Commerce and
Industries (of Pakistan) or where exporter is participating in individual capacity where
goods are taken for sale under Form 'E' procedure.
(i) Remittance of Advance space rent by the Chamber of Commerce and Industry direct
to Fair authorities against Debit Note supported by (a) list of participating members with
their share of space rent and (b) undertaking in (Appendix V-72) from each member
participating in the fair. Remittance will be reported to State Bank on Form 'M'.
(ii) Certification of Form 'E' on self consignment basis or otherwise as recommended
by the organizing Chamber of Commerce and Industry.
(iii) Issue of an authority letter to airline/travel agent for the issue of ticket to
and from the country where the Fair is being held, for not more than two persons of the
participating firm on whose behalf Form 'E' has already been certified, on Appendix
V-73.This authority letter will be retained by the airline for submission through passage
statements.
(iv) Issue of authority letter to airline/travel agent for issue of tickets to the
Pavilion Officer(s) nominated by the organizing Chamber on Appendix V-73. This authority
letter will be retained by the airline for submission through passage statements.
(v) Release of foreign exchange for Duty/Sales tax to the participating members on
repatriable basis as per undertaking furnished on Form Appendix V-72. This will be
reported on T-1 Form alongwith Business Travel Quota.
(vi) Release of foreign exchange to the representative(s) of the participating
firm/Pavilion Officer(s) on production of return air tickets purchased against Authorised
Dealer's authority mentioned in preceding sub-paragraphs (iii) and (iv), at a rate not
exceeding the Business Travel Quota for the number of days of the Fair plus 7 days extra
for setting up stall and winding up of affairs but not exceeding 30 days. This will be
reported on T-1 Form under this authority.
(vii) Issue of authority letter for re-import of unsold goods exported under Form 'E'
procedure as per preceding sub-paragraph (ii) on freight-to-pay basis. Original will be
retained by the airline/shipping company and photo-copy will be produced to Customs for
release of the goods.
(viii) Payment for the cost of ticket and foreign exchange to be released for payment
of rent for stalls, booking of space, construction of pavilion, advance deposits etc. and
for the expenses of the representative(s) of the firm/company participating in
international trade fairs/exhibitions will be received by the Airlines/Travel
Agents/Shipping Companies and Authorised Dealers through cheques drawn on the bank account
of the firm/company concerned.
Authorised Dealers should carefully note that in case of failure of the participants to
submit evidence of having brought back the sample goods taken for display or encashment
certificate of the samples sold and for failure to repatriate the foreign exchange
released for space rent/duty etc., alongwith the sale proceeds (Category B) the Authorised
Dealers will report the matter to the area office of the Exchange Policy Department of the
State Bank for suitable action. The Authorised Dealers will also report the outstanding
sale proceeds including the amount released on account of space rent/duty etc. in their
monthly overdue statement prescribed in App.V-16 of the Manual with specific remarks
"Exhibition case".
32. Business Travel abroad with the approval of State Bank.
Persons desirous of proceeding abroad on business visits are free to approach the
State Bank for approval of passage facility and release of exchange for such visits.
Applications for this purpose should be made to the State Bank on Form "T"
(Appendix V-74). At the time of forwarding such applications, which should be duly
completed, Authorised Dealers should ensure that the requisite documents including a
Confidential Report on the financial standing of the party are enclosed with the
application.
33. Blanket permission for business travel abroad to exporters of
Commodities, services etc.
(i) State Bank also issues blanket permission for purchase of ticket and release
of foreign exchange for business travel abroad to exporters of commodities, services etc.
whose export earnings during the preceding calendar year or the year immediately preceding
the month of the application are Rs 2.5 million or more in the case of exporters of
commodities and Rs 0.25 million or more in the case of exporters of services like
Indenting/Recruiting Agents, Construction Companies, Trade Marks and Patent Attorneys etc.
(ii) Request for issue of blanket permission should be made to the State Bank on Form
"BT" (Appendix V-75) in duplicate. Names of the Directors/Executives/Officials
who would undertake business travel on behalf of the applicant firm against the blanket
permission will be specified in the application. Not more than 3 persons can be nominated
at a time for this purpose.
(iii) State Bank will issue blanket permission on the original 'BT' form, which will be
valid for a period of one year only. Only two representatives of the export
houses/firms/companies can travel at a time against the blanket permission provided both
of them are not travelling in one and the same direction and their destinations are
distinctly separate. As an exception, two representatives can travel at a time against the
blanket permission in one direction and for the same destination provided one of them is a
technical representative of the firm / company and his visit is necessary. On expiry of
the blanket permission, it should be surrendered to the issuing office of the State Bank
by the holders thereof alongwith one detailed achievement report in respect of all the
business trips undertaken under the blanket permission. The renewal of blanket permission
will be allowed by the State Bank only in those cases where they are satisfied about the
bonafides of the business visits undertaken and of the concrete results achieved by way of
increased foreign exchange earnings for the country.
34. Booking of passage against blanket permission.
Airlines/Travel Agents may issue ticket for travel abroad of the persons named in
the blanket permission issued by the State Bank. The Airlines/Travel Agents will make
endorsement in token of having issued the ticket on the blanket permission in the space
provided for the purpose under their stamp and signature. A copy of the blanket permission
will be retained by the Airline/Travel Agent which will be submitted in support of the
booking reported in their monthly "Return of Passage Bookings". The aforesaid
copy of the blanket permission shall be certified by the Airlines / Travel Agents in
the following manner :-
"Payment received through Cheque No. _________________dated ___________drawn on the
bank account of firm / company concerned.
Stamp & Signature”
35. Release of Foreign Exchange against blanket permission.
Authorised Dealers may release foreign exchange at the rates prescribed in para
28 of this chapter on the strength of the following documents:
(i) Blanket Permission of the State Bank.
(ii) Airline ticket.
(iii) Letter from the export house/firm/company detailing the purpose and duration of the
proposed visit.
(iv) 'T-1' Form.
(v) Passport.
In addition to the endorsement of foreign exchange released on the airline ticket and
passport as required under the rules, the Authorised Dealer will also make endorsement of
the foreign exchange released on the blanket permission in the space provided therein
under its stamp and signature. A photo-copy of the blanket permission, duly certified by
the Authorised Dealer in the manner indicated in the preceding paragraph, alongwith the
letter of export house/firm/company mentioned at (iii) above, will be enclosed while
reporting the sale to the Exchange Policy Department in their monthly exchange return.
36. Release of Foreign Exchange against Credit Cards to exporters.
Bonafide exporters can also draw exchange quota against credit card for business
visits to countries other than Afghanistan. The following procedure will be followed in
this regard:
(i) Exporters desirous of availing the facility of credit card for business travel abroad,
will make an application to the concerned Authorised Dealers (Credit Card Issuing
Agencies) in the form appearing at Appendix V-76 duly certified by a Chamber of
Commerce/Trade Organizations listed in Appendix V-70. While issuing credit card, the
Authorised Dealers (Credit Card Issuing Agencies) shall make the endorsement on the face
of blanket permission in the following format:
Name of Authorised Dealer (Credit Card Issuing Agency)
Credit Card No._______________________________
Issued to Mr. _________________________________
Signature __________________________
Dated _____________________
(ii) The limit upto which the persons concerned may utilize the credit card facility shall
be the maximum Business Travel Quota admissible under the rules for the time being in
force less any amount of foreign currency notes/travellers cheques issued to them in
Pakistan.
(iii) When proceeding abroad on business visit, persons concerned will submit to the
Authorised Dealers (Credit Card Issuing Agencies) original blanket permission granted by
the State Bank or T-2 form duly certified by Federation of Pakistan Chamber of Commerce
& Industry/Chamber of Commerce & Industry/concerned Trade Organization.
(iv) All remittances made by Authorised Dealers (Credit Card Issuing Agencies) in
reimbursement of expenses incurred abroad by the holders of credit card will be reported
in the monthly foreign exchange returns by them under the code relating to business
travel.
(v) If so desired by the persons concerned, initial release in the shape of either foreign
currency notes or travellers cheques, can be obtained by them but only from the Authorised
Dealer which has issued the credit card and from no other Authorised Dealer. Such sales
will be reported to the Exchange Policy Department under the code relating to business
travel on T-1 form with which a photocopy of Blanket Permission/T-2 form duly endorsed by
the Authorised Dealers (Credit Card Issuing Agencies) will be attached. In the case of
business travel against Blanket Permission a photo-copy of the letter submitted by
exporting firm under para 35(iii) of this chapter will also be attached with the returns.
(vi) Subsequent remittance made by the Authorised Dealers (Credit Card Issuing Agencies)
in reimbursement of the amount utilized abroad by the credit card holders will be reported
on Form 'M' and endorsed on the photocopy of the relative Blanket Permission/T-2 form
which will be attached with Form 'M'. In the case of business travel against Blanket
Permission a photocopy of the exporting firm's letter referred to in preceding sub-para
(v) will also be attached.
(vii) A photocopy of Blanket Permission/Original T-2 form bearing Authorised Dealer's
(Credit Card Issuing Agency's) endorsement regarding release of initial amount of foreign
exchange as well as subsequent remittances made by the Authorised Dealers (Credit Card
Issuing Agencies) will be submitted to the Exchange Policy Department alongwith a monthly
statement in the form appearing at Appendix V-77. This statement should reach the area
office of the Exchange Policy Department by the 10th of the month following the month to
which it relates. In the case of business travel against Blanket Permission the original
letter submitted by the exporting firm in terms of para 35(iii) of this chapter will also
be attached with the return.
(viii) Initial release/all subsequent remittances shall also be endorsed by the Authorised
Dealer on original Blanket Permission which on expiry of its validity will be surrendered
to the Issuing Office in accordance with the instructions laid down in para 33(iii) of
this chapter.
37. Release of Foreign Exchange to business executives of firms/companies
other than exporters against Credit Cards.
The Credit Card facility as admissible to the bonafide exporters in terms of para
36 ibid can also be availed of by business executives of firms/companies other than
exporters provided the firm/company is paying minimum income tax of one million rupees a
year, after obtaining necessary approval from the area office of the Exchange Policy
Department on production of the following documents through their bankers:
(i) Formal request of the firm/company for credit card facility to their executives.
(ii) Valid passports of the concerned persons together with original National Identity
Cards.
(iii) Attested copy of the latest Income Tax Assessment Order of the firm/company.
(iv) Attested copy of the receipted challan evidencing payment of Income Tax during the
preceding income year.
After obtaining State Bank’s approval, the following procedure will be followed:
(a) Firms/companies other than exporters will approach the concerned Authorised Dealers
(Credit Card Issuing Agencies) alongwith the approval letter of State Bank of Pakistan and
form "T-2" duly certified by the respective Chamber of Commerce and
Industry/Trade Association. While issuing credit cards, the Authorised Dealers (Credit
Card Issuing Agencies) shall make endorsement on the face of duplicate "T-2"
form and on the back of State Bank’s approval letter in the following format:
Name of Authorised Dealer (Credit Card Issuing Agency)
Credit Card No.........................................
Issued to Mr...........................................
against S.B.P. Approval No............................. dated.........................
Date:………………..
Signature: ...........................
Authorised Dealers (Credit Card Issuing Agencies) will retain a photo-stat copy of State
Bank’s approval letter and return the original to the applicant.
(b) The limit upto which the persons concerned may utilize the credit card facility shall
be the maximum Business Travel Quota admissible under the rules for the time being in
force less any amount of foreign currency notes/travellers cheques issued to them in
Pakistan.
(c) All remittances made by Authorised Dealers (Credit Card Issuing Agencies) in
reimbursement of expenses incurred abroad by the holders of credit card will be reported
in the monthly foreign exchange returns under the code relating to business travel.
(d) If so desired by the persons concerned, initial release in the shape of either foreign
currency notes or travellers cheques, can be obtained by them but only from the Authorised
Dealer which has issued the credit card and from no other Authorised Dealer. Such sales
will be reported to the Issuing Office under the code relating to business travel on
"T-1" form with which a photo copy of State Bank’s approval letter and
"T-2" form duly endorsed by the Authorised Dealers (Credit Card Issuing
Agencies) will be attached.
(e) Subsequent remittances made by the Authorised Dealers (Credit Card Issuing Agencies)
in reimbursement of the amount utilized abroad by the Credit Card holders will be reported
on Form 'M' and endorsed on the photo copy of the relative 'T-2' form which will be
attached with Form 'M' alongwith photostat copy of State Bank’s approval letter.
(f) A photo copy of State Bank’s approval letter and Duplicate "T-2" form
bearing Authorised Dealer's (Credit Card Issuing Agency's) endorsement regarding release
of initial amount of foreign exchange as well as subsequent remittances made by the
Authorised Dealer (Credit Card Issuing Agency) will be submitted to the Exchange
Policy Department alongwith a monthly statement in the form appearing at Appendix V-77.
This statement should reach the area office of the Exchange Policy Department by the
10th of the month following the month to which it relates.
