Attention of the banks
is invited to the revised procedure of the Export Finance
Scheme circulated vide BPRD Circular No. 44 dated December
17, 1998 requiring commercial banks to provide finance to
the indirect Exports (IDE) who supply focal inputs to the
Direct Exports for further processing, provided the Direct
Export has established an Inland Letter of Credit (ILC). In
favour of such Indirect Exporters.
2. In view the
introduction of Standardized Purchase Order (SPO) issued vide
BPRD Circular No. 24 dated June 28, 1999, the words "or
Standardized Purchase Order (SPO)" may be added after
the words "Inland Letter of Credit (ILC)" wherever,
appearing in BPRD Circular No. 44 of December, 1998.
3. The effect
of his will be that Direct Exporter will have the option either
to establish an Inland Letter of Credit (ILC) in favour of
the Indirect Export / issue a Standardized Purchase Order
(SPO) or make payment through cheques. The Indirect Exporter
will however, be able to access the Export Finance Scheme
only if an Inland Letter of Credit (ILC) is established or
Standardized Purchase Order (SPO) is issued by the Direct
Exporter.
Please acknowledge receipt.
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