EXPORT FINANCE SCHEME

COMMON FEATURES OF EXPORT FINANCE SCHEME (PART I & II)

1. The export finance scheme under part I & II can be utilised by the following types of exporters or businesses: Direct Exporter (DE). DE is the one who actually exports eligible commodities. DE may be working as commercial exporters or a trading company.
Indirect Exporter (IDE). IDE represents manufacturer or supplier of goods or materials that are to be used as inputs for exports.
Small and Medium sized Enterprise (SME). SME is one that reports exports up to equivalent of US$ 2.5 million1 of exports during last fiscal year.
Emerging Direct Exporter (EDE). EDE as indicated by name is a new exporter.
2. The interest rate of this financing facility is 8% 2per annum.
3. However, exporters can not avail the EFS on commodities included in the Negative

List, a copy of which is enclosed in annexure I.

4. State Bank of Pakistan reserves the right to reject application submitted by the bank of any particular exporter. State Bank also has the right to delay sanction of financing facility to any exporter if it is sure that exporter has misused the facility.
Therefore, decision of the State Bank pertaining to this matter will be binding upon banks/exporters.
5. EFS under part I & II together may be utilised by the exporter given that facility availed under one part is not in duplication of the other part of EFS.
6. The maximum period of export credit for direct exporters is 180 days and for indirect exporters it is 120 days. But for exporters of carpets & rugs, specially hand knotted and 'man made' which require more time for manufacturing, it was decided on 24th October,2001 to relax the provision upto 270 days (both pre/post shipment).

1 This is a definition stated by State Bank of Pakistan.
2 The maximum rate of return under EFS vary from time to time. As of August 1st, 2002 it is 8% p.a.
3 BSD Circular NO 40 dated 24th October, 2001

 
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