The Presidents/Chief Executives of all

Authorized Dealers in Foreign Exchange

Dear Sir/Madam,

Amendment in Instructions regarding Advance Payment against Imports

1. Attention of Authorized Dealers is invited to FE Circular No. 06 dated July 14, 2018 in terms of which the facility allowed to Authorized Dealers to make import advance payment against irrevocable letter of credit was withdrawn.
2. In order to facilitate the manufacturing concerns, the above instructions have been modified. Henceforth, Authorized Dealers are allowed to effect import advance payment against irrevocable letter of credit, up to 50% of the value of letter of credit, for import of plant, machinery, spare parts and raw material etc. on behalf of manufacturing concerns for their own use only.
3. All other instructions on the subject matter shall remain unchanged.
4. Authorized Dealers are advised to bring the same to the notice of all their constituents and ensure meticulous compliance of above and other applicable regulatory instructions.