EXPORTERS GRIEVED ON CHANGE OF EXPORT IMPORT RULES….The Financial Daily 04/04/22

The Pakistani SME exporters to Egypt have expressed their grievances on exports to Egypt which are stuck due to abrupt change in import and payment rules which now only allows imports under letter of credits.
The Union of Small and Medium Enterprises (UNISAME) has received request from SME exporters to Egypt to voice their concerns and take up matter with the apex chamber of commerce and industry in Egypt to convince the central bank in Egypt to accommodate the cargo already shipped and either in transit or having reached the destination ports in Egypt.
President UNISAME Zulfikar Thaver said the SME exporters who have already shipped the goods or who have signed contracts for prompt shipments and have made bookings on vessels for shipments in April/May 2022 are in real jeopardy. Secondly it is believed that the Egyptian banks are not establishing letter of credits (L/C) in favour of overseas exporters promptly but taking almost 45 days to establish the L/C.
Thirdly it is also given rise to a serious issue as to how the Egyptian banks will be able to accommodate the goods already shipped under an L/C not yet opened as the documents will indicate the shipment date before the opening date of the L/C whenever opened. This will give rise to a serious discrepancy under banking law and practice.
Zeeshan Nazim, convener of herbs, roots and commodities export of Unisame has written to the president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to take up the issue urgently with their Egyptian counterpart and request them to convince the Egyptian Central Bank to accommodate the earlier contracts under which shipments have already been made and cargo is lying at destination ports in Egypt or in transit or under process in the exporting country or any advance payment has been made.
Hussain Ali Ratnani convener logistics Unisame also regretted this abrupt rule of payment and imports only under L/C and lamented that those SME exporters who have booked their cargo on scheduled vessels and have to cancel their shipments due to L/C conditions will have to face penalties for non shipment and cancellation of container space due to non shipment or delayed shipment as the Egyptian banks are taking 45 days to establish L/Cs in favour of the exporters.
UNISAME Council members complained that it is indeed a sad state of affairs and the SME exporters are in real turmoil and have urged the State Bank of Pakistan to examine the situation and advise the Egyptian Central Bank to take remedial measures to accommodate the badly affected Pakistani exporters.

Posted in: Press Releases