All
Authorised Dealers
in Foreign Exchange,
Dear
Sirs,
IMPORTS
In
terms of Import Policy Order, 1999-2000 issued by the Ministry
of Commerce vide their Notification No. SRO.895(1)/99 dated
the 3rd August, 1999, the Industrial establishments registered
as importers have been allowed to import spare parts/machinery
upto the value of US$ 7,000/- per fiscal year against foreign
currency demand draft, without opening letter of credit,
provided such import is made by air or by courier. In order
to implement this decision, the following sub-paragraph
(d) is added in paragraph 32, Chapter XIII of the Foreign
Exchange Manual:
"(d)
At the request of Industrial establishments registered as
importers, Authorised Dealers may issue foreign currency
demand draft upto the value prescribed in the Import Policy
(currently US$ 7,000 per fiscal year for 1999-2000) for
import of spare parts/machinery, without opening of letter
of credit, provided such import is made by air or by courier.
Authorised Dealers will maintain a record of all such drafts
issued by them. They will obtain from the applicant a declaration
showing the amount already remitted by him during the current
financial year and issue demand draft only upto the extent
of the balance entitlement. They will also obtain exchange
control copy of Bill of Entry and evidence to the effect
that the import was made by air/courier. These records will
be retained till the next inspection of the concerned bank
branch by the State Bank’s Inspectors."