Electronic Form-E applicable from Nov 02 for export clearance

KARACHI: State Bank of Pakistan (SBP) and Pakistan Customs have jointly developed electronic form of exports (Form E) for realization of foreign exchange. The electronic system will be applicable from November 02, 2015 in two formats.
The SBP on Monday issued Monday FE Circular No. 10 of 2015 under which the authorized dealers or commercial banks have been informed about streamlining the issuance of Form-E.
The central bank said that SBP in collaboration with Pakistan Customs has automated issuance of Form-E. The Electronic Form-E (EFE) module in the Pakistan Customs’ electronic system called WeBOC (Web based One Customs) has been developed in consultation with relevant stakeholders.
At present, majority of goods exported from Pakistan are handled through WeBOC. However, a small percentage of goods such as those exported through land route or categorized as bulk cargo are currently being exported through Pakistan Customs’ previous goods clearance system called ‘One Customs’. Efforts are underway by Pakistan Customs to extend WeBOC system to export of such goods as well, in a phased manner throughout Pakistan.
At present, Form-E is issued manually by Authorized Dealers as per instructions contained in Chapter XII of FE Manual 2002. However, with effect from November 02, 2015, Form-E will be issued in following two formats:
i. Electronic Form-E (EFE)
For exports taking place through WeBOC, EFE will be issued through WeBOC. The request for EFE will be submitted electronically by the exporter in WeBOC and Authorized Dealer will approve or reject EFE electronically in WeBOC.
ii. Manual Form-E
For exports taking place through One Customs, manual Form-E will be issued by Authorized Dealers at the request of exporters as per existing instructions.
Accordingly, paragraph 36 has been added in Chapter XII of FE Manual 2002, which provides regulations for issuance of EFE, as under:
Para 36 – Issuance of Electronic Form-E ( EFE)
i. Forms Prescribed for Declaring Exports
As per Federal Government Notifications No. I(6)-ECS/48 and I(7)ECS/48 both dated the 1st July, 1948, exporters are required to declare their exports to Customs/Postal authorities on Form-E.
In case of exports through WeBOC, electronic Form-E has been prescribed by the State Bank, which will be generated through WeBOC. For exports other than WeBOC, manual Form-E will continue to be issued by Authorized Dealers at the request of the exporters as per already prescribed instructions.
ii. Registration of the Exporters in WeBOC
Registration and deletion of the exporters in WeBOC shall be carried out by Pakistan Customs as per their procedure.
iii. Exporter’s Due Diligence by Authorized Dealers
Authorized Dealers shall continue to perform Customer Due Diligence (CDD)/Know Your Customer (KYC) of the exporters, being their account holders/customers, as per applicable instructions. The Managers/Proprietor/ Partners/Directors etc. of the concerned company/firm etc. (exporter) submitting EFE request, will be held responsible severally and jointly for repatriation of export proceeds into Pakistan.
iv. Addition and Deletion of Authorized Dealers and their Branches in WeBOC
a). Authorized Dealers shall request for addition or deletion of their authorized branches in WeBOC through their respective Group/Business Heads to the Director, Foreign Exchange Operations Department (FEOD), State Bank of Pakistan, Banking Services Corporation (SBP-BSC), Head Office, Karachi.
b). If a new bank is issued license of Authorized Dealer by Exchange Policy Department, SBP, it may also request for its addition in WeBOC and its authorized branches by submitting request through bank’s Group/Business Head to the Director, FEOD, SBP-BSC, Head Office, Karachi.
v. User IDs and Passwords for Authorized Dealers in WeBOC
a). Authorized Dealers shall submit request for issuance of User ID and Password by providing required information as per format to the Director, FEOD, SBP-BSC, Head Office, Karachi, who will forward the same to Pakistan Customs. User ID and Password will be issued and provided to Authorized Dealers directly by Pakistan Customs under intimation to FEOD.
b). For cancellation of User ID and Password, Authorized Dealers shall submit cancellation request signed by their respective Group/Business Heads to the Director, FEOD, SBP-BSC, Head Office, Karachi, who will forward the same to Pakistan Customs for necessary action.
c). All concerned employees and Authorized Dealers shall maintain confidentiality of WeBOC User IDs and Passwords. They shall be responsible for any un-authorized use of their User IDs as per provisions of Chapter XVI-A of the Customs Act, 1969 and rules made thereunder. Further, for all foreign exchange related purposes, all functions performed in WeBOC through User ID of an Authorized Dealer will be construed to have been performed by the Authorized Dealer itself.
vi. Issuance of Electronic Form-E
a). The exporter will submit Form-E request electronically through WeBOC to an Authorized Dealer at a branch of its choice. The Authorized Dealer/branch, as chosen by the exporter, will electronically approve or reject Form-E request as per instructions contained in Para 8, Chapter XII of FE Manual. After electronic approval of Form-E by the Authorized Dealer, the exporter will attach EFE in WeBOC with Goods Declaration (GD) Form to carry out export of goods for which Form-E has been approved.
b). The serial number of EFE for each Authorized Dealer will be generated by WeBOC. Typical format of EFE number will comprise of three components i.e. alpha acronym of Authorized Dealer, calendar year of issuance and system generated serial number. For example, first EFE number for XYZ bank issued in year 2015 will be XYZ-2015-0000000001. At the beginning of each calendar year, serial number for each bank will reset to 0000000001.
vii. Amendment in Electronic Form-E
a). The exporter can amend EFE before it is approved or rejected by the Authorized Dealer. Once Authorized Dealer has approved or rejected Form-E, it cannot be amended by the exporter.
b.) Authorized Dealer cannot amend EFE at any stage.
viii. Cancellation of Electronic Form-E
a). Authorized Dealer can cancel EFE after it is submitted by the exporter.
b). Authorized Dealer can also cancel approved EFE before it is attached to GD Form by the exporter.
ix. Expiry of Electronic Form-E
a). If no action is taken by Authorized Dealer on EFE request submitted by the exporter within 15 days, it will automatically expire in WeBOC.
b). If shipment is not effected by the exporter within 45 days from date of approval of EFE by Authorized Dealer, it will automatically expire in WeBOC.
x. Maintenance of Record of approved Electronic Form-E
a). Complete record of EFE approved by Authorized Dealer through WeBOC shall be kept by respective branches and Head/Principal Office of Authorized Dealers in electronic form. This should be done preferably on weekly basis through acquisition and updation of data from WeBOC.
b). Authorized Dealer can also take print-out of EFE from WeBOC.
xi. Submission of Export Documents to Authorized Dealers
a). Authorized Dealer shall fill in relevant sections of Bank Credit Advice (BCA) for each EFE in WeBOC, including date of lodgment of shipping documents with Authorized Dealer, acceptance received from importer’s bank and realization of export proceeds wherever documents are negotiated or collected through them.
b). In cases where shipping documents are not received by Authorized Dealer within 14 days from the date of shipment, Authorized Dealer shall immediately ensure that shipping documents are submitted to it by the exporter. Where an Authorized Dealer fails to obtain shipping documents from the exporters within 30 days of shipment, it shall report such cases to area office of FEOD, SBP-BSC, Head Office, Karachi on monthly basis latest by 15 th of each month in the prescribed form (Appendix V-12).
xii. Bank to Bank BCA Transfer
a). If payment is being received through an Authorized Dealer other than the one which has approved EFE, the Authorized Dealer which has approved EFE may transfer it to the Authorized Dealer negotiating or collecting export documents through Bank to Bank BCA transfer module in WeBOC.
b). Proper record of EFEs which are transferred as per (a) above shall be maintained by both the Authorized Dealers.
c). If found necessary, the Director, FEOD, SBP-BSC, Karachi may also transfer EFE from one Authorized Dealer to another Authorized Dealer through Bank to Bank BCA transfer module in WeBOC.
xiii. Realization against Electronic Form-E
Authorized Dealer will record proceeds realization against each EFE through BCA module in WeBOC. In case of remittance received in advance for goods to be exported from Pakistan, the same may initially be recorded in remarks column of EFE while approving it and after shipment, advance payment details shall be filled in BCA module in WeBOC for each EFE.
xiv. Submission of Returns
Authorized Dealer shall send a printed copy of EFE to respective area office of FEOD, SBP-BSC, Head Office, Karachi along with monthly returns in which realization of export proceeds is reported. In case of Advance Payment, copy of EFE will be submitted with Advance Payment Voucher (APV) and shipping documents as per existing instructions.
xv. Short Shipment
In cases where the exporter ships a quantity less than that declared on EFE, Authorized Dealer shall negotiate/collect the shipping documents on the basis of value declared in GD Form after verification from WeBOC.
xvi. Shipments Shut-out Entirely
a). In case where a shipment to be made by a particular vessel is temporarily shut-out and reshipped by another vessel, approved EFE shall remain valid.
b). In case where a shipment is entirely shut-out and is not being reshipped by another vessel, approved EFE will be detached by the Customs from the GD Form and can be reused within original validity period.
6. All other instructions on the subject shall remain unchanged.
7. Authorized Dealers are advised to bring the same to the notice of all their constituents and ensure meticulous compliance.