Trade credit rules expanded for capital goods imports, longer tenor allowed with shorter contract start period. Companies in all sectors may now avail trade credit up to USD 20 million for import of DGFT classified capital goods for up to five years; the ab initio contract period is reduced to six months. AD Category I banks remain subject to existing terms and conditions but are not permitted to issue LC/guarantees/LoU/LoC for any extended period beyond three years. Other Trade Credit policy aspects remain unchanged and the amendment is effective immediately under regulatory directions.
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Provisions expressly mentioned in the judgment/order text.
Trade credit rules expanded for capital goods imports, longer tenor allowed with shorter contract start period.
Companies in all sectors may now avail trade credit up to USD 20 million for import of DGFT classified capital goods for up to five years; the ab initio contract period is reduced to six months. AD Category I banks remain subject to existing terms and conditions but are not permitted to issue LC/guarantees/LoU/LoC for any extended period beyond three years. Other Trade Credit policy aspects remain unchanged and the amendment is effective immediately under regulatory directions.
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