Advance Remittances for Imports
AP (DIR Series) (2002-2003) Circular No. 49, dated 16-11-2002
Attention
of authorised dealers is invited to para A.11 of the Annexure to AP (DIR
Series) Circular No.9 dated August 24, 2000, in terms of which authorised
dealers have been permitted to make advance remittances for import of goods.
Sub-para (c) of the said paragraph requires a bank guarantee if the amount of
advance remittance exceeds USD 25,000 or its equivalent.
2. With a
view to simplifying and liberalising the procedure for import, it has been
decided to raise the limit of USD 25,000 to USD 100,000 or its equivalent.
Authorised Dealers may, therefore, allow advance remittances for import of
goods upto USD 100,000 without prior approval of Reserve Bank.
3. In case
importers fail to import the goods within the prescribed time period [including
the extended period as may be permitted by authorised dealer under A.11(d) of
the circular] from the date of advance remittances, the importer would be
required to repatriate the amount remitted immediately. All other conditions
stipulated in Para A.11 of the circular remain unchanged.
4. Authorised
Dealers may bring the contents of this circular to the notice of their
constituents concerned.
5. The
directions contained in this circular have been issued under section 10(4) and
section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).