SBP urged to simplify exports documentation
Karachi: The Union of Small and Medium Enterprises (UNISAME) has invited the attention of the governor State Bank of Pakistan (SBP) Raza Baqir to the impediments in exports to global destinations and urged him to remove the Form “E” and simplify the export documentation as in many countries of the world.
President UNISAME Zulfikar Thaver said many buyers of third world countries of the world have their funds in overseas first class banks due to lack of freedom in their own countries due to foreign exchange deficit in their own countries and they make payments and remittances from their own funds lying abroad. This cannot be treated as unlawful in the exporting country as the exporter is getting value for his goods from whichever bank or country.
Besides some countries are facing sanctions and since sanctions are not applicable on food and medicine they arrange remittances from their accounts in countries where they have their branch offices.
Thaver said the commercial banks are an impediment to exports as they are indulging in matters which is none of their business. As long as it is value for lawful goods, they must accept the remittance from overseas buyers from whichever destination.
UNISAME experts said these are not times to create hurdles but to promote exports of our goods to global destinations. Nowhere in the world exporters are subjected to such forms and all transactions are conducted on the basis of invoice, packing list and the bill of exchange drawn on the buyer.
In fact these days the buyer sends advance payment and balance is paid on the basis of evidence of shipment which is the bill of lading which is scanned to the buyer and when need be verified by the buyer from the shipping company or agent and on receipt of the balance payment the original documents are dispatched to the buyer with title to the goods.
The job of the bank is to receive the payments and credit the account of the exporter and in case of export financing to adjust its loan. In case of discounting of bills and negotiation of documents under letter of credit (L/C) the terms and conditions of the L/C are to be followed totally.
Many banks have set up their compliance department and by virtue of this vigilance they are in a position to verify facts and ascertain that payments received are for value of the goods. It is very unfortunate to observe that banks are behaving like investigation agencies and obstructing exports rather than making it easy for exporters.
In view of the hindrances the SME exporters have urged the governor SBP to do away with the Form “E” and let the exporters to export the goods simply on the basis of contract and related invoice and shipping documents as evidence of exports like in all countries of the world, Thaver concluded. – PPI