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NIBAF Foreign Trade Certificate Cheat Sheet

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Foreign Exchange Laws and Regulations

  • Not published of exam
  • FERA 1947 Essentials Authorized Dealer Duties Export Realization Clocks Import Advance Payment Export Realization Clock 120 Days vs 180 Days

International Trade and Regulation

  • Not published of exam
  • UCP 600 Core Articles UCP 600 Document Rules URC 522 Collections Incoterms 2020 Rules Pakistan Import Terms TBML Typologies

Foreign Currency Remittance Modalities

  • Not published of exam
  • Chapter 10 Remittance Basics Foreign Currency Accounts Non-resident Rupee Accounts Commercial Remittance Caps Private Remittance Rules Account Picker

SBP FE Returns and Applications

  • Not published of exam
  • Summary Statements Export Receipt Schedules Payment and Position Schedules Return Filing Deadlines Code Lists and NTN Schedule Picker

Quick Facts

  • Program Foreign Trade Certificate
  • Owner NIBAF with SBP-BSC FEOD
  • Modules Four official typologies
  • Weights Not published
  • Format Not published
  • Pass mark Not published
  • Fee Not published
  • Entry Bank nomination, no public route
  • Core law FERA 1947, FE Manual
  • Key rules UCP 600, URC 522, Incoterms

Export Clock Ladder FX

  • 45 sight | 120 normal | 135 usance | 180 carve-out
  • 45: DP, CAD, sight 120: general rule 135: 120-day usance 180: discounted or B2B2C

120 Days vs 180 Days FX

General rule

  • Due date or 120
  • Whichever comes earlier
  • F.E. 1/2022-SB

Carve-outs

  • Discounted, sold forward
  • B2B2C platform exports
  • Both 180 days
  • 180 days is exceptional

Export Realization Clock FX

  • Standard firm contract → 120 days ( Or due date )
  • DP, CAD or sight → 45 days ( From shipment )
  • Usance 120 days → 135 days ( From shipment )
  • Discounted, sold forward → 180 days ( Within 14 days )
  • B2B2C platform sale → 180 days ( Overdue at 270 )
  • Proceeds just received → Three working days ( Then sell )
  • Exporter seeks extension → Dealer may allow ( Never past 120 )
  • Already reported overdue → No extension ( FEOD case )

FERA 1947 Essentials FX

  • FERA 1947 Governing foreign exchange statute
  • FE Manual SBP directions issued under FERA
  • FERA section 3 Authorizes dealing in exchange
  • FERA section 3B Withdraws dealer authorization
  • FERA section 4(2) Dealers set own rates
  • FERA section 23K Penal action against dealers
  • Exchange Policy Department Issues dealer licences
  • FEOD SBP-BSC Operations approvals and reporting
  • Spread cap Fifty paisa per dollar Retail only
  • Interbank exempt Spread cap does not apply
  • Licence scope May restrict currencies, transactions

Import Advance Clock FX

  • 120 goods | 730 machinery | 0.1% daily penalty
  • 120 days ordinary goods 730 days plant, machinery 0.1% per delayed day RTGS account 427518

Authorized Dealer Duties FX

  • Pre-transaction declaration Customer must satisfy dealer
  • Refuse and report On refusal or suspected evasion
  • Evasion reporting Immediately, as it arises
  • Returns Filed on prescribed due dates
  • Branch reporting Consolidated by head office
  • Appendix IV List of Authorized Dealers
  • Appendix V All prescribed forms, returns
  • Branch designation Dealer decides, SBP codes
  • Licence refusal No reason need be given

Export Realization Clocks FX

  • General rule Due date or 120 days Earlier wins
  • Authority F.E. 1/2022-SB, 5 January 2022
  • DP, CAD, sight 45 days from shipment
  • 120-day usance terms 135 days from shipment
  • Discounted, sold forward 180 days from shipment
  • Forward-sale deadline Before shipment or 14 days
  • B2B2C platform exports 180 days, overdue at 270
  • Retention on realization Three working days maximum
  • Special Exporters' Account Holds funds during retention
  • IT, freelancer retention USD 5,000 monthly or 50%
  • Extension limit Never beyond 120 days
  • Overdue reporting Fortnightly on V-20, V-21

Import Advance Payment FX

  • Advance limit Up to 100% value
  • Goods deadline 120 days from payment
  • Plant, machinery 730 days from payment
  • Interim penalty 0.1% per delayed day
  • Penalty deposit RTGS account 427518, monthly
  • Appendix V-27A Overdue advances, 10th monthly
  • Importer undertaking Prescribed Appendix V-31 form
  • Final penalty FEAD adjudicates under FERA
  • Dealer exposure Penal action under 23K

UCP Number Line TR

  • 5 examine | 21 present | 110 insure | 39 articles
  • 5 banking days examine 21 days to present 110% insurance cover 39 articles total

UCP 600 vs URC 522 TR

UCP 600

  • Documentary credit
  • Banks examine documents
  • Five banking days
  • Bank undertaking to pay

URC 522

  • Documentary collection
  • Check listing only
  • Advise without delay
  • No bank undertaking
  • Credit pays, collection delivers

Import Payment Mode Picker TR

  • Need bank undertaking → Letter of credit ( UCP 600 )
  • Documents against payment → Documentary collection ( URC 522 )
  • Long-term supply deal → Registered contract ( Financial instrument )
  • Trusted supplier, spares → Open account ( Manufacturers mainly )
  • Supplier demands prepayment → Advance payment ( Appendix V-31 )
  • Clean or transferable credit → Refer FEOD ( Not permissible )

UCP 600 Core Articles TR

  • Article 1 Applies only if incorporated
  • Article 4 Credit separate from contract
  • Article 5 Documents, not goods
  • Article 14(b) Five banking days maximum
  • Article 14(c) 21 days after shipment
  • Article 14(d) Data must not conflict
  • Article 14(j) Same country address suffices
  • Article 14(k) Shipper need not be beneficiary
  • Article 16 Single notice, every discrepancy
  • Article 33 No duty outside banking hours
  • Article 36 Force majeure never extends expiry
  • Total articles 39, ending with assignment

Sea-Only Four TR

  • FAS, FOB, CFR, CIF stay on water
  • FAS: alongside ship FOB: on board CFR: freight paid CIF: freight plus insurance

Honour vs Negotiation TR

Honour

  • Pay, defer or accept
  • Issuing bank included
  • Discharges own undertaking

Negotiation

  • Nominated bank purchases
  • Advances before reimbursement
  • Issuing bank never negotiates
  • Paying is not purchasing

Incoterm Picker TR

  • Containerised, seller delivers early → FCA ( Any mode )
  • Bulk cargo, buyer freight → FOB ( Sea only )
  • Bulk, seller pays freight → CFR ( Risk on board )
  • Bulk, seller insures → CIF ( Clauses C )
  • Container, seller insures → CIP ( Clauses A )
  • Deliver, buyer unloads → DAP ( Any mode )
  • Deliver and unload → DPU ( Replaced DAT )
  • Seller clears import → DDP ( Maximum seller duty )

UCP 600 Document Rules TR

  • Article 18 Invoice in credit currency
  • Invoice description Must correspond with credit
  • Article 14(e) Other documents may generalise
  • Article 20 On-board notation dates shipment
  • Intended vessel Notation must name actual vessel
  • Container transhipment Allowed despite credit prohibition
  • Article 28 110% of CIF or CIP
  • Article 28(e) Cover effective from shipment date
  • Cover notes Never acceptable
  • Article 30(a) About means 10% tolerance
  • Article 30(b) 5% quantity, not packing units
  • Article 30(c) 5% less drawing allowed
  • Article 31(b) Same conveyance is not partial

Six TBML Typologies TR

  • Misprice, misship, misdescribe, or ship nothing
  • Under and over invoicing Short and over shipment Obfuscated goods description Phantom ships nothing

CIF vs CIP TR

CIF

  • Sea and waterway only
  • Institute Cargo Clauses C
  • Risk on board

CIP

  • Any mode of transport
  • Institute Cargo Clauses A
  • Risk at first carrier
  • CIP insures more widely

URC 522 Collections TR

  • Total articles 26, in seven sections
  • Clean collection Financial documents only
  • Documentary collection Commercial documents involved
  • Principal Entrusts the collection
  • Remitting bank Receives from the principal
  • Collecting bank Any bank besides remitting
  • Presenting bank Presents to the drawee
  • Article 7 default Silence releases against payment
  • Article 12 Check listing, not contents
  • Article 20 Interest waivable unless barred
  • Article 21 Charges waivable unless barred
  • Article 26 Advise without delay
  • Sixty days Then documents may return

FOB vs FCA TR

FOB

  • Sea and waterway only
  • Risk when on board
  • Wrong for containers

FCA

  • Any mode of transport
  • Risk at handover
  • Optional on-board bill
  • Containers belong under FCA

Incoterms 2020 Rules TR

  • Rule count Eleven rules, two groups
  • Any mode EXW, FCA, CPT, CIP
  • Any mode delivered DAP, DPU, DDP
  • Sea, waterway only FAS, FOB, CFR, CIF
  • DPU Replaced DAT, seller unloads
  • CIF insurance Institute Cargo Clauses C
  • CIP insurance Institute Cargo Clauses A
  • Insured amount 110% of contract price
  • EXW Maximum obligation on buyer
  • DDP Maximum obligation on seller
  • Export clearance Seller, except under EXW
  • Import clearance Buyer, except under DDP
  • FCA change Optional on-board bill of lading
  • Title Incoterms never transfer ownership

Payment vs Acceptance Release TR

D/P

  • Documents against payment
  • Default when silent
  • Buyer pays first

D/A

  • Documents against acceptance
  • Must be stated
  • Buyer accepts draft
  • Silence means against payment

Pakistan Import Terms TR

  • Permitted terms FOB, FCA, FAS, CFR, CPT
  • EXW condition Pay against documents, insure warehouse
  • Other Incoterms Need prior FEOD permission
  • Import modes Credit, contract, collection, open, advance
  • Clean credits Not permissible, refer FEOD
  • Transferable credits Not permissible, refer FEOD
  • Revolving credits Time-based ones permitted
  • Open account medicines USD 50,000 life-saving items
  • Open account others USD 10,000 essential items
  • PSW instrument Issued before declaration attaches
  • Bank Debit Advice Reports the import payment
  • EIF inaction Expires after 15 days

TBML Typologies TR

  • Under invoicing Priced below fair market value
  • Over invoicing Priced above fair market value
  • Short shipment Ships less than invoiced
  • Over shipment Ships more than invoiced
  • Obfuscation Disguises goods or services
  • Phantom shipment False invoice, nothing shipped
  • Framework source EPD Circular Letter 08, 2025
  • Dual use goods Civil and military application
  • Overdue export bill Proceeds unrealized within period
  • Overdue open-account import Unpaid one year after clearance

Account Family Map RE

  • Rupee: NRAR, NRAN | Value: NRVA, FCVA
  • NRAR: repatriable rupees NRAN: non-repatriable rupees NRVA, FCVA: individuals NRBVA, FCBVA: entities

NRAR vs NRAN RE

NRAR

  • Repatriable balances
  • Usable abroad
  • Overseas card allowed

NRAN

  • Non-repatriable balances
  • Pakistan payments only
  • No overseas card
  • Repatriable or not

Account Picker RE

  • Non-resident wants repatriable rupees → NRAR ( Rupee account )
  • Resident becomes non-resident → NRAN ( Non-repatriable )
  • NRP investing in Pakistan → NRVA ( Individuals only )
  • Foreign entity, NRP owned → NRBVA ( 51% test )
  • NRP wants foreign currency → FCVA ( Individuals only )
  • Foreign entity, currency account → FCBVA ( 51% test )
  • Ordinary depositor → FE-25 account ( Ten currencies )
  • STZA licensed entity → Special STZ account ( No cash )

Chapter 10 Remittance Basics RE

  • Inward remittance Any purchase of foreign currency
  • Outward remittance Any sale of foreign exchange
  • Form I Remittance against imports
  • Form T-1 Exchange sold for travel
  • Form M All other outward remittances
  • Home remittance credit Instant, or 24 hours interbank
  • Delay compensation Sixty-five paisa per thousand daily
  • Approval validity Thirty days unless stated otherwise
  • Cancelled outward remittance Reported as inward remittance
  • Cancelled inward remittance Reported outward on Form M
  • Application route Always through an Authorized Dealer
  • e-PRC Electronic proceeds realization certificate

FCVA vs FCBVA RE

FCVA

  • Individuals only
  • Non-resident or declaring resident
  • Real estate eligible

FCBVA

  • Legal entities only
  • 51% NRP ownership
  • No sole proprietorships
  • Person versus company

Foreign Currency Accounts RE

  • FE-25 currencies Ten currencies permitted
  • Cash deposit check Above USD 10,000 daily
  • Resident cash feeding Filer status required
  • Banned feeding Export proceeds, local services
  • Personal account limit No commercial or business use
  • Lien cap Facilities capped at balance
  • FCVA Individual non-resident or declaring resident
  • FCBVA Foreign entity, 51% owned
  • STZ account STZA licensee, no cash
  • Entity data threshold Above USD 25,000 monthly

Non-resident Rupee Accounts RE

  • NRAR Repatriable non-resident rupee account
  • NRAN Non-repatriable, usable in Pakistan
  • NRVA Individual NRP or POC holder
  • NRBVA Foreign entity, 51% owned
  • Residency test Income tax law, not days
  • NRAR initial deposit Rupees 5,000 from domestic sources
  • Property capital gain Repatriable after three years
  • Valuation tolerance Plus or minus 10%
  • Valuation age Not older than three months
  • Title document Within six months of payment

Commercial Remittance Caps RE

  • Manufacturing royalty Up to 8% net sales
  • Export-related royalty Up to 10% export sales
  • Service sector royalty Up to 5% net sales
  • Brand name only Restricted to 2% sales
  • Financial sector 0.25% of customer billing
  • Digital services USD 400,000 yearly per entity
  • Unlisted providers USD 40,000 of that limit
  • IT services USD 100,000 per invoice
  • Acquired services USD 25,000 without FEOD
  • Designated dealer One bank per agreement
  • Dividends No prior SBP approval needed

Private Remittance Rules RE

  • Family remittance cap Net income less Pakistan expenses
  • Excluded nationals Indian and Afghan nationals
  • Permit basis Yearly and non-cumulative
  • Accumulation limit Two months without SBP approval
  • Social club fees No exchange made available
  • Professional body fees Allowed at actuals
  • Bonus treatment Spread over twelve months
  • Asset transfer Refer to the State Bank
  • Employment certificate Ten years before retirement
  • Residual purposes Form M to SBP-BSC

Return Deadline Run FE

  • 4 portal | 5 office | 17 branches | 12 quarterly
  • 4th: Form E data 5th: head office summaries 17th: Schedules O, P 12th: quarterly Schedule K

Schedule A-1 vs J FE

Schedule A-1

  • Export receipts
  • Certified Form E
  • Country and HS codes

Schedule J

  • All other receipts
  • Form R, IRV
  • Invisible receipt codes
  • Exports never on J

Schedule Picker FE

  • Certified Form E → Schedule A-1 ( Export receipt )
  • Export advance payment → Schedule A-2 ( No Form E )
  • Re-export imported goods → Schedule A-3 ( Export receipt )
  • Receipt, not export → Schedule J ( Form R )
  • Import payment → Schedule E-2 ( Form I )
  • Travel exchange sale → Schedule E-3 ( Form T-1 )
  • Other outward remittance → Schedule E-4 ( Form M )
  • Private non-resident account → Schedule K ( Quarterly )
  • Aid import, no remittance → Schedule LAC-NR ( No payment )

Summary Statements FE

  • S-1 All foreign currency transactions
  • S-4 Non-resident bank rupee accounts
  • S-6 Foreign currency note transactions
  • S-6 copies Submitted in duplicate
  • One currency each Never mix currencies together
  • Balanced abstract Opening and closing balances
  • Single S-4 Covers all non-resident accounts
  • Absent statements No S-2, S-3, S-5

S-1 vs S-4 FE

S-1

  • Foreign currency transactions
  • One statement per currency
  • Excludes note holdings

S-4

  • Non-resident bank rupees
  • One consolidated statement
  • Rupee amounts only
  • Currency versus rupee accounts

Export Receipt Schedules FE

  • A-1 Certified Form E purchases
  • A-2 Advance payments, part realizations
  • A-3 Re-export of imported goods
  • Grand total rule A-2 and A-3 into A-1
  • Nil A-1 Still filed showing nil
  • Schedule J All receipts except exports
  • Form R Above USD 10,000 receipts
  • IRV USD 10,000 or less consolidated
  • Family maintenance Always consolidated on one voucher
  • Receipt branch schedules O-1, O-2, O-3

Payment and Position Schedules FE

  • E-2 Form I import sales
  • E-3 Form T-1 travel sales
  • E-4 Form M other remittances
  • Schedule B Purchases against other currencies
  • Schedule C Purchases from Pakistani dealers
  • Schedule D Bought from, sold to SBP
  • Schedule F Sales against other currencies
  • Schedule G Sales to Pakistani dealers
  • Schedules H, L, M Non-resident bank account movements
  • Schedule N Closing non-resident bank balances
  • Schedule R Credits from other non-resident accounts
  • Schedule K Quarterly private non-resident accounts
  • EL2, EL3 Loan, credit financed imports
  • LAC-NR Aid imports, no remittance
  • Payment branch schedules P-2, P-3, P-4

Return Filing Deadlines FE

  • Branch summaries Third of following month
  • Head office summaries Fifth of following month
  • Form E data Fourth, via Data Acquisition Portal
  • Pending Form I list Fifth, with running serial numbers
  • Schedules O, P Seventeenth of following month
  • Schedule K 12 April, July, October, January
  • Import commitments Fortnightly, by 22nd and 7th
  • Blocked accounts Yearly, reaching SBP 7 January

Code Lists and NTN FE

  • Code-3 Country codes
  • Code-4, Code-6 Replaced by HS classification
  • Code-5 Invisible receipts, Schedule J
  • Code-7 Invisible payments, Schedules E-3, E-4
  • Code-8 Department codes for payments
  • IMF basis Balance of Payments, fifth edition
  • NTN Recorded on E, I, R
  • Supervisory check Rupees 100,000 and above
  • Misreporting Regulatory action under FERA

Common Traps

Realization deadline

  • General rule 120 days ≠ Not 180 days

Which 180 days

  • Discounted, sold forward ≠ Or B2B2C platforms

Insurance clauses

  • CIF uses Clauses C ≠ CIP uses Clauses A

Tolerance article

  • Tolerances live in 30 ≠ Not Article 18

Force majeure

  • Article 36 excuses banks ≠ Expiry never extends

Collection default

  • Silence releases against payment ≠ Not against acceptance

Collection advice

  • Advise without delay ≠ 60 days returns documents

Bank examination

  • UCP checks compliance ≠ URC checks listing only

Schedule choice

  • Exports on A-1 ≠ Never on Schedule J

Incoterms scope

  • Risk and cost only ≠ Never title or ownership

Non-resident test

  • Income tax law governs ≠ Not 183 days

Last Minute

  • 1. Exports realize in 120 days
  • 2. Sight, DP, CAD realize in 45
  • 3. 180 days: only two carve-outs
  • 4. Import advance 120 goods, 730 machinery
  • 5. Late advance costs 0.1% daily
  • 6. UCP examines in 5 banking days
  • 7. Present within 21 days shipment
  • 8. Insure 110%; CIF C, CIP A
  • 9. URC silence means against payment
  • 10. EXW buyer max; DDP seller max
  • 11. Imports: FOB, FCA, FAS, CFR, CPT
  • 12. Clean and transferable credits barred
  • 13. Certified Form E goes to A-1
  • 14. Import Form I goes to E-2
  • 15. Form M remittances land on E-4
  • 16. Branch 3rd, head office 5th
  • 17. S-1 currency; S-4 rupee accounts
  • 18. Non-resident: income tax law test

NIBAF Foreign Trade Certificate Program Examination

  • Practice Questions 162 questions Study Guide 32 topics Cheat Sheet 218 facts Flashcards 50 cards Podcast

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