Export of Sugar - EPD Circular Letter No. 10 of 2017


Authorized Dealers (ADs) may find enclosed Ministry of Commerce’s Office Memorandum No. 7(2)/2012-Exp.III dated March 30, 2017 regarding the above subject in terms of which Government of Pakistan has allowed sugar mills to export 200,000 MT sugar as per the terms and conditions mentioned therein.

Accordingly, ADs are advised to process the export of sugar cases as per following mechanism:

  • ADs will forward the requests of sugar mills through their respective Departmental/ Business/Group Heads to the Director, Foreign Exchange Operations Department (FEOD), SBP-Banking Services Corporation (BSC), Head Office, Karachi for approval quoting the reference of this circular letter along with the attested/ authenticated copies of the following documents:
    • Clearance issued by the concerned Cane Commissioner to the effect that concerned sugar mill has cleared outstanding dues of the farmers upto the last season and has started crushing at full capacity.
    • Sugar export contract.
    • Manual Form-E or print out of EFE request in case of electronically generated Form-E through WeBOC.
    • Irrevocable L/C or advance payment voucher, swift message and reporting schedule/credit advice, as the case may be.
  • FEOD will allocate sugar export quota to sugar mills on first come first served basis.
  • ADs will ensure receipt of a minimum 15% of total contract value as advance payment (evidenced by advance payment voucher, swift message and reporting schedule/credit advice) or obtain an irrevocable L/C from the buyer.
  • All exports including those destined for Afghanistan and Central Asian Republics will also be subject to receipt of export proceeds by wire transfer through banking channel.
  • Exporters must ship the sugar within 60 days from the date of FEOD’s approval regarding quota allocation or by May 31, 2017, whichever comes earlier.
  • There will be no export subsidy/ cash support for the export.
  • In case of non-performance within the stipulated time against the quota allocated by FEOD, ADs will:
    • recover a penalty of 15% of total contract value from the exporter and deposit the same with the FEOD, SBP-BSC, Head Office, Karachi through DD/ PO in favor of Government of Pakistan. In case of partial shipment, the penalty shall be recovered by the AD proportionately.
    • obtain prior permission from FEOD, SBP-BSC, Head Office, Karachi for return of advance payment received there against from the importer.
  • ADs will submit sugar export shipment update to the Director, FEOD, SBP-BSC, Head Office, Karachi on weekly basis as per the enclosed reporting format at sugar.epd@sbp.org.pk.

Incomplete requests shall not be considered.

Authorized Dealers are advised to bring the same to the notice of all their constituents.

Encls: As above