A.P. (DIR Series) (2000-2001) Circular No. 27, dated 2-3-2001
Attention
of authorised dealers is invited to paragraph B.5 of the Annexure to A.P. (DIR
Series) Circular No. 12 dated September 9, 2000, in terms of which they may
negotiate House Airways Bills (HAWBs) issued by consolidating Cargo Agents,
only if the relative letter of credit specifically provides for negotiation of
HAWB, in lieu of Airway Bills issued by the airline company. It has now been
decided that authorised dealers may also accept Forwarder’s Cargo Receipts
(FCR) issued by IATA approved agents, in lieu of bill of lading, for
negotiation/collection of shipping documents, in respect of export transactions
backed by letters of credit, only if the relative letter of credit specifically
provides for negotiation of this document, in lieu of bill of lading. Further,
the relative sale contract with the overseas buyer should also provide that FCR
may be accepted in lieu of bill of lading as a shipping document.
2. Authorised
dealers may bring the contents of this circular to the notice of their
constituents concerned.
3. 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). Any
contravention or non-observance of these directions is subject to the penalties
prescribed under the Act.