Irrevocable commercial letter of credit: Transitional rules require export payments to be routed and deducted through commercial LCs only. Transitional rules under Para 1.5 require an irrevocable commercial letter of credit established before the imposition of an export restriction as the principal mode of payment to ensure contractual sanctity and prevent back dated submissions. Standby letters of credit are contingent guarantees, not primary payment instruments; payments under standbys are routed from other accounts. Examinations under the Transitional Arrangements must confirm that export payments are routed and deducted through the specified commercial LC and not through other accounts or channels, otherwise such routing absence constitutes non compliance.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Irrevocable commercial letter of credit: Transitional rules require export payments to be routed and deducted through commercial LCs only.
Transitional rules under Para 1.5 require an irrevocable commercial letter of credit established before the imposition of an export restriction as the principal mode of payment to ensure contractual sanctity and prevent back dated submissions. Standby letters of credit are contingent guarantees, not primary payment instruments; payments under standbys are routed from other accounts. Examinations under the Transitional Arrangements must confirm that export payments are routed and deducted through the specified commercial LC and not through other accounts or channels, otherwise such routing absence constitutes non compliance.
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