All Authorised Dealers
in Foreign Exchange,

Dear Sirs,

IMPORTS

In terms of Import Policy Order, 1999-2000 issued by the Ministry of Commerce vide their Notification No. SRO.895(1)/99 dated the 3rd August, 1999, the Industrial establishments registered as importers have been allowed to import spare parts/machinery upto the value of US$ 7,000/- per fiscal year against foreign currency demand draft, without opening letter of credit, provided such import is made by air or by courier. In order to implement this decision, the following sub-paragraph (d) is added in paragraph 32, Chapter XIII of the Foreign Exchange Manual:

"(d) At the request of Industrial establishments registered as importers, Authorised Dealers may issue foreign currency demand draft upto the value prescribed in the Import Policy (currently US$ 7,000 per fiscal year for 1999-2000) for import of spare parts/machinery, without opening of letter of credit, provided such import is made by air or by courier. Authorised Dealers will maintain a record of all such drafts issued by them. They will obtain from the applicant a declaration showing the amount already remitted by him during the current financial year and issue demand draft only upto the extent of the balance entitlement. They will also obtain exchange control copy of Bill of Entry and evidence to the effect that the import was made by air/courier. These records will be retained till the next inspection of the concerned bank branch by the State Bank’s Inspectors."