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All Authorized Dealers Dear Sirs, IMPORTS Attention of the Authorized Dealers is invited F.E. Circular No. 18 dated the 17th February, 1994, on the above subject. 2. In suppression of the instructions constrained in the above F.E. Circular, it has been decided to permit the Authorized Dealers to open letters of credit/register the contracts (the term "contract" includes indents/proforma invoices/purchase orders) against proforma invoices/order issued by the foreign suppliers or indents issued by indentures duly registered as importers under Registration (Importers and Exporters) Order, 1993, provided the indents bear the registration number of the indenture concerned. 3. The procedure for imports by public sector agencies which are provided foreign exchange allocation to meet their import requirement will be the same as outlined in F.E. Circular No. 54 dated the 11th July, 1993. 4. The Import Policy Order further empowers the Authorized Dealers to extend the letters of credit beyond the initial period of 12/24 months mentioned above for a further period of 24 months/36 months in case of items other than machinery/mill work and ‘machinery and mill work’ respectively provided request for revalidation is made before the expiry of initial period of 12/24 months or the extended validity period, on payment of revalidation charges @ 0.25% for each 6 monthly period on the un-utilized valued of letter of credit. 5. Please bring the above to the notice of your constituents. Encl: As above.
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