A.P. (DIR Series) (2003-04) Circular No. 68, dated 11-2-2004
Attention of Authorised Dealers is
invited to paragraph C 20 of Part C to the Annexure to AP (DIR Series) Circular
No. 12 of September 9, 2000 in terms of which they were prohibited from either
accepting for negotiation/collection shipping documents from caution listed
exporters concerning exports declared on GR/SDF/PP/Softex forms or
countersigning PP forms completed by them unless these forms bear approval of
the Reserve Bank.
2. It has
now been decided that any declaration to be furnished to the specified
authority by the caution listed exporters should be submitted to the Authorised
Dealer for prior approval. Accordingly, GR/PP/SDF and Softex forms of exporters
who have been placed on the caution-list may be approved by Authorised Dealers,
if the exporters concerned produce evidence of having received an advance
payment or a valid irrevocable letter of credit in their favour covering the
full value of the proposed exports. Such approval may be given even in cases
where usance bills are to be drawn for the shipment, provided the relative
letter of credit covers the full export value and also permits such drawings
and the usance bills mature for payment within six months from the date of
shipment.
3. A
Notification amending the relevant provisions of Foreign Exchange Management
(Export of Goods and Services) Regulations, 2000 notified vide
Notification No. FEMA 23/RB-2000 dated May 3, 2000 is being issued separately.
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 sections 10(4) and
11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).