ECs can import dollars through cargo or security cos: SBP

KARACHI: The State Bank of Pakistan (SBP) Tuesday night allowed the Exchange Companies (ECs) import of cash US dollars against the value of their export consignments of permissible foreign currencies within five working days, through reputed cargo or security companies.

Previously, ECs were allowed to export the permissible currencies in cash but were required to bring dollars in their bank accounts. Now, with this move, ECs can also bring cash dollars through cargo or security companies, according to Business Recorder.

As per Chapter 5 of Exchange Companies Manual (ECM), ECs are allowed to export permissible foreign currencies other than US dollars through sub-paragraph (6) of para 7 of EPO, 2022, exports from EPZs, manufacturing bonds and export oriented units, except vegetable ghee and cooking oil, were allowed but these exports are not entitled to zero-rating of sales tax, drawback of customs duty, or rebate of federal excise duty.

Moreover, in terms of schedule-II of ibid, export of vegetable ghee/cooking oil was allowed subject to the condition that there shall be a minimum value addition of 15% and printing of labels in Dari and Pashto in case of exports to Afghanistan.

However, exports to Afghanistan were not allowed from manufacturing bonds and export oriented units. Schedule-III of EPO, 2023 contained the negative list of items for export to Afghanistan under duty drawback scheme, wherein vegetable ghee/cooking oil was also included.

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