Please refer to Para 7.3 of BSD Circular No. 35 dated September, 28, 2001 along-with other instructions issued from time to time on the captioned subject.
It has been noticed that some of the exporters, instead of submitting Bill of Lading/ Airway Bill, submit House Bill of Lading or House Airway Bill alongwith Forwarder’s Cargo Receipts (FCRs) to their bankers as a confirmation of shipments of their goods against which refinance has been obtained. The said documents are not valid documents presently for showing performance against refinance loans availed under the scheme at pre-shipment stage.
It has now been decided that in cases where Forwarders Cargo Receipts (FCRs) are submitted in lieu of copy of B/L or AWB, the same may be accepted as proof of shipment under the Scheme, provided further that such document is backed by i) Letter of Credit specifically requiring submission of FCRs and ii) Mate’s Receipts (M. R. – where shipment is by sea) or Export General Manifest (EGM – where shipment is by air) and that iii) export proceeds thereof have been realized in relation to the shipment involved. Thus when export proceeds are not realized as per time frame prescribed by our Exchange Policy Department the shipment will be treated as irregular. The existing Para 7.3 has, therefore, been revised and is attached as an Annexure to this circular letter.
Other instructions on the subject shall remain unchanged.
