The Head/Principal Offices of all
Authorized Dealers in Foreign Exchange
Dear
Sirs/Madam
Advance
Payments against Imports
Attention of Authorized Dealers is invited to FE Circular
No. 4 of 2005 in terms of which they are allowed to remit
advance payment upto the amount of US$ 10,000/- or equivalent
thereof in other foreign currencies per invoice against
intended import of spare parts/consumables by manufacturing
and industrial users, for their own use, without the requirement
of L/c or Bank Guarantee from the supplier.
To
further facilitate the importers, it has been decided to
extend the scope of the above permission to all eligible
import transactions upto a maximum of US$ 10,000/- or equivalent
thereof in other foreign currencies, per invoice. Accordingly,
Authorized Dealers are now allowed to process the requests
of the importers for remittances upto a maximum of US$ 10,000/-,
or equivalent thereof in other foreign currencies, on advance
payment basis against all eligible import transactions after
ensuring the bona-fides of the underlying import transaction
and ensuring that related shipping documents are submitted
to them by the importers within four months of the advance
payment.
Please
bring the above to the notice of all your constituents.