As the federal government has released Rs 1.625 billion for payment of subsidy on sugar export, the State Bank of Pakistan (SBP) has asked to process the cases of eligible sugar mills for cash subsidy against the export of sugar.
The federal government has placed Rs 1.625 billion at the disposal of the SBP for the disbursement of subsidy on sugar export in pursuance of Economic Co-ordination Committee (ECC), which allowed 0.5 million tons sugar export with inland freight subsidy of Rs 3 per kilogram and a cash subsidy of Rs 10 per kg with a financial implication of Rs 6.5 billion to be borned by the federal government and respective provincial governments on 50:50 sharing.
According to a circular, issued on Tuesday, the SBP will disburse subsidy at the rate of Rs 13 per kg to those exporters whose respective provincial governments will contribute their share of subsidy. In case a province decides not to contribute its share of subsidy, 50 percent share of subsidy Rs 6.5 per kg, being federal share will be paid to the claimant.
Accordingly, Authorised Dealers (ADs) in Foreign Exchange have been advised to process the cases of eligible sugar mills for cash subsidy against the export of sugar allowed by the federal government.
As per process, ADs will forward the shipment-wise requests of sugar mills on prescribed format through their respective Departmental/Business/Group Heads to the Director, Foreign Exchange Operations Department (FEOD), the SBP Banking Services Corporation (BSC), Head Office, Karachi or The Chief Manager, Field Office of SBP-BSC.
Attested / authenticated copies of the SBP approval letter for allocation of sugar export quota, Manual Form-E/Electronic Form-E (EFE), Goods Declaration Form (GDF), Bill of Lading/ Truck Receipt/ Railway Receipt, Commercial / Customs Invoice and Export Proceeds Realisation Certificate / Advance Payment Voucher properly showing utilisation will be required for claim.
In addition, where shipment has been made against Advance Payment, shipping documents must have been submitted by the AD under Para 24, Chapter XII of the F.E Manual (2002). Certificate issued by the Cane Commissioner concerned to the effect that concerned sugar mill has purchased sugarcane from farmers at a minimum price of Rs 180 per 40 kg to be eligible for federal share of cash support on export of sugar. In case export has been made through House Bill of Lading, it must be accompanied by relevant Master Bill of Lading.
However, the SBP has made it clear that shipments made after 45 days of the SBP approval or after March 31, 2016 will not be eligible for subsidy. Sugar exported to Afghanistan and Central Asia on price less than $450 per metric ton will not be eligible for subsidy.
All exports including those destined for Afghanistan and Central Asian Republics by land route will be subject to receipt of export proceeds by wire transfer through banking channel. Subsidy will be allowed only after full realization of export proceeds against E-Form.
Sugar mills will approach the FEOD, SBP-BSC, Head Office or respective field office of the SBP-BSC, as the case may be, through their AD claiming the subsidy latest by October 31, 2016. No claims will be entertained after aforementioned time period. As per process, the SBP-BSC will scrutinise the claims within 30 days of receipt of subsidy claim.
Discrepant claim will be returned to respective AD and the same must be resubmitted after removing the discrepancies within 30 days of return, after which no such application will be entertained. The SBP said that approved claim will be disbursed to respective AD in its account maintained with the SBP-BSC for onward credit to the exporter”s account within 24 hours of disbursement. Incomplete requests shall not be considered.
Source: Business Recorder