HUMA ANDLEEB

BBA( HONS)
University of Education






Foreign exchange operation department:
1. Foreign exchange monthly returns
2. Export
3. Import
4. Overdue
5. Advance payments
6. DLTL
Foreign exchange return:
Sale and purchase of foreign currencies
Import and export
There are authorized dealers who have license from SBP to deal in import and export. They
have to send the monthly returns of their total import and exports to the SBP. There are 3
copies of license :-
1. 1 for head office
2. 1 for AD
3. 1 for SBP BSC.
These returns must reach 3
rd
of each month otherwise it would be considered as irregularity.
Returns are recorded in:-
1. Watch register
2. S-6 ( foreign currency balance register)
3. Irregularity register
4. Statistics register
5. S-1
6. S-6 register
Watch register:
Checklist of every return is maintained in it.
Register is maintained according to the code issued to ever AD.
S-6:
Purchase and sell of foreign currencies of every AD is maintained in S-6.
Trade maestro: it shows the total currencies purchased+ currency in hand+ currency sold during
the month.
There is deal in six currencies:-
1. American dollar
2. UK pound
3. Euro
4. Saudi Riyal
5. Yen
6. Dirham
Irregularities register:
Mistakes occur in returns are recorded in this register e.g:-
Code number mistake
Enclosure
Covering letter missing
Not receive till 12
th
of month
S-1 includes:
1. E form
2. I form
3. R form
4. LM form
5. IRV form
E form:
This form is of green color
Consists of 7 digits
Denotes in which currency AD is dealing
Name of country in which it is exporting goods
Name of the company
This form should be dually signed
I form:
Consists of 6 digits
This form is issued against E-2/ P-2
This is white in color
LM form:
Denotes miscellaneous documents/ details
This is red in color
Usually issued for foreign scholarships
Issued against E-4/ P-4
R form:
This form is for remittances
This is in white color
Issued against J/ O-3
IRV (inward remittance voucher):
White green
Issue against/ O-3
Advance payment voucher:
White in color
Issue against A-2/ O-2
S-6:
Enclosure same as S-1
It denotes the sell and purchase of currencies.
Export:
Exports should be good export includes:-
Machinery
Cloth
Mango
Documents:
Application form
NIC
Income tax certificate
Chamber of commerce certificate
Contract
Post export:
Bill of lading
Industry membership form
Packing list
Invoice
Report on A-1/ O-1
Overdue:
He will promise that commodity will be send to the importer country within 180 days.
If this will not happen this would be called overdue.
Triplicate report on A-1, O-1.
Utilization period:
1 year of period
DLTL:
Incentive to the exporter in form of repayment of 2% or 3% to encourage them.