in Foreign Exchange,
WITH REPUBLICS OF FORMER USSR
of Authorized Dealers is invited to Para 2(ii) of F.E. Circular
No. 6 dated the 14th January, 1992 in terms of
which letters of credit to be opened by the buyers in the
Republics of the former USSR can be advised only if the
same are confirmed by a 1st class bank. The above
restrictions were withdrawn vide F.E.
Circular No. 23 dated the 24th February, 1994
in so for as exports to Azerbaijan, Kazakhstan, Kirghystan,
Tajikistan, Turkmenistan and Uzbekistan are concerned.
It has now been decided by the Government to withdraw the
condition laid down in para 2 (ii) of F.E. Circular No.
6 of 1992 in so far as exports to the Russian Federation/C.I.S.
countries (Commonwealth of Independent States of former
USSR) are concerned. The exports to the said countries can
be made either against the letters of credit opened/confirmed
by a prime bank in the country concerned or on consignment
basis against guarantee from the prime banks operating in
the concerned country. The realized within the prescribed
time limit of 120 days from the date of shipment.
Please bring the above to notice of your constituents.