KARACHI: State Bank of Pakistan (SBP) on Friday announced to withdraw cash margin requirements on imports from March 31, 2023.
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SBP relaxes cash margin restriction on import
KARACHI: The State Bank of Pakistan (SBP) has relaxed restriction on cash margin requirement on imported items.
According to a circular issued on August 05, 2022, the SBP said that banks were required to maintain 100 percent cash margin against certain items of import (HS codes), regardless of the mode of payment.
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In this regard, it has been decided to relax the 100 percent cash margin requirements where the credit terms of import are more than 90 days; accordingly, the banks shall obtain cash margins as per the revised percentages given in the below table:
Term of Payment from Import Applicable Instructions for Cash Margin Requirement (CMR) 91 to 180 Days 25% 181 Days and above 0% Based on the tiered-approach in Para 2 above, the cash margin requirements shall be applicable on the Rupee equivalent amount of the import transaction.
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It may be noted that the above instructions shall be applicable on all new import transactions initiated by the bank after the issuance date of this circular letter. However, on already initiated import transactions, the instructions may only be applied if the amendments (in terms of payment) are made subsequent to the date of the issuance of instructions in accordance with above table.
The cash margins deposited by importers on all items subject to CMR would be non-remunerative.
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SBP issues list to impose 100% cash margin on import
KARACHI: The State Bank of Pakistan (SBP) on Thursday issued a list of 177 items for imposing 100 per cash margin on import with immediate effect.
In this regard, it has been decided that banks, with immediate effect, shall obtain 100 percent cash margin on the import of items as listed in the enclosed Annexure-A. The cash margins on these specific items will remain in place till December 31, 2022, the central bank said in a circular.
READ MORE: SBP imposes 100% cash margin on imported items
The cash margins deposited by importers on all items shall be non-remunerative.
The SBP further said that to ensure effective monitoring, banks are required to submit details of cash margins, applicable on all items, collected from importers on monthly basis, as per format at Annexure-B.
Data for ongoing month should be reported to Statistics & Data Ware House Department latest by the 10th of the following month.
Further, monthly data for the period September 2020 to March 2022 is required to be submitted on the same format latest by June 30, 2022.
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SBP imposes 100% cash margin on imported items
KARACHI: The State Bank of Pakistan (SBP) on Thursday imposed 100 per cent cash margin restriction on import of additional 114 items.
The SBP in a notification referred to BPRD Circular No. 02 of 2017 and BPRD Circular No. 5 of 2018 on the captioned subject, as amended from time to time.
In that regard, it has been decided that banks, with immediate effect, shall obtain 100 percent cash margin on the import of items listed below.
Furthermore, it has been decided to waive the condition of 100 percent cash margin requirement on imports made against HS Code 8414.8090-Air Pumps and Gas Compressors (S. No. 17 of Annexure-A of BPRD Circular No. 05 of 2018).
All other instructions contained in the aforementioned Circulars shall, however, remain unchanged.
List of Items to be subjected to 100% Cash Margin Requirements
S. No HS Code Description 1 9041110 PEPPER,BLACK,CRUSH NOT GROUND 2 9083120 SMALL CARDAMONS NITHER-CRU/GRO 3 12024200 GROUND-NUTS SHELLED BROKEN/N-B 4 12030000 COPRA 5 14049020 BETAL LEAVES 6 15132900 OTH PALM KERNEL/BABASSU OIL 7 15162010 VEGETABLE FAT & ITS FRACTIONS 8 15179000 OTH MARGARIN,EDIB MIX/PREP ETC 9 23040000 OIL-CAKE/OTH S/RESID SOYABEAN 10 23066000 OIL CAKE/OTH RESIDUE,PALM NUTS 11 23099000 OTH PREPARATION FOR ANIMAL FEE 12 24012000 TOBACO-WHOLY/PARTLY STE/STRIP 13 63014000 BLANKET/TRAVEL RUGS OF SYN FIB 14 69072119 OTH FLAGS,PAVING WAT AB 0.5% 15 69072219 OTH FLAGS,PAV WAT AB >0.5%<10% 16 69072390 OTH,CERAMICS WAT AB >10% 17 70109000 OTH CARBOYS BOTT,FLASK,JAR,POT 18 70134900 O-GL-WARE L-C-EX=5×10 T,0-300C 19 85444990 OTH MULTI CORE CABLE 20 87059000 OTH SPECIAL PURPOSE MOTOR VEHL 21 87082939 BODY PARTS OF OTHER VEHICLES 22 87084090 OTH GEAR BOXES/PART OTH VEHICL 23 87141020 COMPPONNENT FOR VEHICLE-H-8711 24 1019000 OTHER LIVE ANIMALS 25 0805 OTHER SIMILAR CITRUS HYDRIDS (0805.2100,0805.2200,0805.2910,0805.2990) 26 0808 PEARS AND QUINCES, FRESH (0808.3000,0808.4000) 27 9081100 NUTMEG NEITHER CRUSHED/GRO 28 9083110 LARGE CARDAMOMS NITHER-CRU 29 10049000 OTHER OATS 30 10061090 OTH RICE IN HUSK (PADDY/RO 31 10079000 OTHER GRAIN SORGHUM(JAWAR) 32 12024100 OTH GROUND NUTS IN SHELL 33 22029100 NON-ALCOHOLIC BEER 34 22029900 OTH WATER 35 34011910 OTHER BABY WIPES 36 34011990 OTH,SOAP ORG-SURFAC-ACT PR 37 40112011 RADIAL RUBB TYRE FOR LIGHT 38 40112019 OTH RUBB TYRE FOR LIGHT TR 39 40112091 RADIAL TYRE RUBBER FOR BUS 40 40112099 OTH PNEUM TYRE RUBBER FOR 41 40114000 NEW PNEUM TYRE RUBB MOTORC 42 69072111 TILES POLISHED WAT AB 0.5% 43 69072190 OTH,CERAMICS WAT AB 0.5% 44 69072211 TILE POLISHED WAT AB >0.5% 45 69072290 OTH,CERAMICS WAT AB >0.5%< 46 69072319 OTH FLAGS,PAVINGS WAT AB > 47 69073000 MOSAIC CUBES AND SIMLAR AR 48 69074000 FINSHING CEREMICS 49 73211119 OTHER COOKING RANGES 50 84151019 OTH WINDOW/WALL TYPE AC/SP 51 84151029 S-CON AC/SPLIT INER-OUTER 52 84151039 TROPICAL MPS MUL-SYS UNIT> 53 84151099 OTH AC MACH MOTOR DRIVEN F 54 84158190 O-AC INCOR REFRI UNIT VALV 55 84158290 O- AC INCOR REFRIGIRATING 56 84158390 O-AC NOT INCROPO REFRIG UN 57 84181090 OTH COMB REFRIG-FREEZ W-DO 58 84182190 OTH REFRIG H-HOLD COMPRES 59 84182990 OTH REFRIGERATOR HOUSHOLD 60 84183090 OTH FREEZER CHEST TYPE-800 61 84184090 OTH FREZER UPRIGHT TYP-900 62 84191190 OTH INST GAS WATER HEATER 63 84501190 OTH WASHIN MACH FUL-AUT NO 64 84501290 O-MACH BUILT-CENTRIFUGAL D 65 84501919 OTH WASH MACH SEMI AUTO<10 66 84501999 O-MACH DRY LINE CAPA -NOT> 67 84502090 MACHINE DRY LINE CAP EXCE1 68 85165090 MICROWAVE OVENS 69 85287211 LIQUID CRYSTAL DISPLAY(LCD 70 85287219 OTH COLOR TV SETS 71 85287290 OTH RECEPTION APPARAT COLO 72 85393110 ENERGY SAVING LAMPS 73 87081010 BUMPERS (SHET METAL)VEH H- 74 87141010 SADDLES OF MOTORCYCLES,MOP 75 15091000 OLIVE OIL & ITS FRACT (VIR 76 15099000 OTH OLIVE OIL & ITS FRACTI 77 15131100 COCONUT OIL,ITS FRACTION C 78 15131900 OTH COCONUT OIL,ITS FRACTI 79 15171000 MARGARINE,EXCL LIQUID MARG 80 24011000 TOBACCO,NOT STEMMED/STRIPP 81 69149000 OTH CERAMIC ARTICLES O/TH 82 70099100 UNFRAMED GLASS MIRRORS 83 70099200 FRAMED GLASS MIRRORS 84 14049049 OTH VEGE MATE USED FOR BRO 85 15162020 VEGETABLE OILS & ITS FRACT 86 16010000 SAUSE,PROD MEAT-FOOD PREP 87 32089090 OTH PAINT BASED ON SYN.POL 88 35069190 OTH POLYMER BASE ADHESIVE 89 38089110 MOSQUITO COIL, MATE&THE LI 90 38121000 PREPARED RUBBER ACCELERATO 91 39199090 OTH SELF-ADHESIVE FILM,FOI 92 40094190 OTH HOSES MADE OF RUB+OTH- 93 40111000 NEW PNEUM TYRES FOR MOTOR 94 44111200 (MDF)THICKNESS NOT EXCEEDI 95 48025600 OTH PAPER&PAPERBOARD IN SH 96 48026200 OTH PAPER&PAPER BOARD IN S 97 48030000 TOILET FACIAC TISSUE/TOWEL 98 48041100 KRAFTINER UN COATED UN-BLE 99 48042100 SACK KRAFT PAPER,UNBLEACHE 100 48101390 OTH WRIT/READ GRAPHIC IN R 101 48101990 OTH WRITING PAPER/PAPERBOA 102 48132000 CIGRETTE PAPER IN ROLL WTH 103 48139000 OTH CIGARET PAPER,BOOKLET/ 104 63080000 SETS OF WOVEN FABRICS AND 105 64059090 FOOTWEAR OF OTHER MATERIAL 106 68022100 MARBLE,TRAVETINE & AIABAST 107 68022300 GRANITE 108 68022900 OTHER BUILDING STONE CUT/S 109 68029100 OTH MARBL TRAVERTIN&ALABAS 110 68029300 OTHER GRANITE 111 68029900 OTHER STONE 112 70139900 O-GLASSWARE INDOOR DECORAT 113 96190020 SCENT SPRAY SIMI TOILET SP 114 96190030 SCENT SPRAY SIMI TOILET SP -
Imposition of 100% cash margin on imports likely
KARACHI: A 100 per cent cash margin requirement on imports to be imposed in order to discourage rising foreign purchases, market sources said on Wednesday.
The sources said that restriction on cash margin has been imposed to discourage import and support balance of payment.
The rupee is continuously falling and making lows for the past several days. The rupee fell to a new record low of Rs170.48 to the dollar in the interbank foreign exchange market on September 29, 2021.
The sources said that the condition of 100 per cent cash margin requirement on import of some medical items may not apply.