KARACHI: The State Bank on Wednesday lifted the requirement for small exporters to fill out the lengthy Form E in a bid to boost exports amid the Covid-19 pandemic and shifting global consumer markets.
The central bank has issued a detailed regulatory framework to facilitate business-to-consumer (B2C) e-commerce exports from Pakistan.
Under the new regulatory framework, the mandatory “Export” (E) form requirement has been removed, and now an exporter can send goods up to $5,000 per shipment abroad without this document, SBP said.
This move will facilitate small-volume exports directly to consumers. This will also help small business owners and exporters who usually export various commodities in small quantities and find it cumbersome to comply with the detailed requirements of Form E, which is mainly intended for bulk exports.
Move to facilitate small exporters and strengthen the treasury
The Form-E was required for each shipment with a full description of the goods to be exported and was designed with the export of large volumes of homogeneous goods in mind. However, for low-value exports, various items to individuals destined for different jurisdictions (as is the case with B2C e-commerce exports), the existing procedure was not conducive.
The SBP said goods could only be exported from Pakistan until now after the Authorized Dealers (ADs) have certified the electronic or manual Form-E and then customers have submitted the goods declaration to Pakistan Customs.
In early 2000, the SBP issued regulatory guidance to encourage B2C e-commerce – in the Foreign Exchange Manual – with a focus on opening an Internet merchant account to facilitate e-commerce.
However, as technology has advanced, these instructions have had to accommodate current e-commerce business dynamics and therefore had to be replaced, the SBP said.
“The SBP worked with the relevant stakeholders, including the business community, Pakistan Customs, the Ministry of Commerce, courier companies and the banking industry, to develop a regulatory framework that not only meets market needs but also takes regulatory objectives into account,” he said said.
“Global emerging trends, particularly in the consumer market, have seen a major shift from the traditional marketplace to e-commerce due to the emergence of new technologies. An increase in this trend has been seen particularly during the global lockdown due to the Covid-19 pandemic,” the SBP said.
In line with these trends, the SBP focused on facilitating cross-border trade for B2C exports from Pakistan, including small business owners and exporters. This aims to improve the competitiveness and digital connectivity of Pakistani companies with the global market during the e-commerce policy development phase, the central bank added.
Published in Dawn, December 3, 2020
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