Trade Credits for Imports into India-Issue of Guarantees Delegation of Powers

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....ber 1, 2004 To All Banks Authorised to Deal in Foreign Exchange Madam/Sirs, Trade Credits for Imports into India -Issue of Guarantees Delegation of Powers Attention of Authorised Dealer (AD) banks is invited to A. P. (DIR Series) Circular No. 87 dated April 17, 2004 wherein ADs have been permitted to approve trade credits for imports into India up to USD 20 million per import transa....

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....nder Foreign Trade Policy (except gold) and up to three years for import of capital goods, subject to prudential guidelines issued by Reserve Bank from time to time. The period of such guarantees/LoUs/LoCs has to be co-terminus with the period of credit, reckoned from the date of shipment. 3. As regards reporting arrangements, AD banks are required to furnish data on issuance of guarantees/LoUs....

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....r has been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, F. R. Joseph Chief General Manager Annex to A. P. DIR Series Circular No. 24 dated November 1, 2004 Guarantees / Letter of Undertaking / Letter of Comfort issued by ADs ....