Regulatory Alerts2013-04-16
Controls related to import operations carried out on the basis of collection documents received in the name of the customer
In reference to the import operations that are based on collection documents issued in the name of the client, which may be issued by the foreign supplier from multiple sources sent to the client, it has been observed that some clients direct the received documents to more than one bank. This may lead to duplication in executing the import operation and further strain on the resources of the free market. To tighten the control over this type of operation, the following controls have been set for banks to adhere to when endorsing such documents: obtaining a written undertaking from the client, formulated by the legal affairs of each bank, stating that the documents related to the import operation have not been dealt with by any other bank; the client provides the bank that endorsed the documents and/or issued Form 4 with a copy of the customs clearance declaration stamped by the Customs Authority, including the name of the bank that executed the operation; if proof of clearance of the goods is not provided by the Customs Authority within one month from the date of execution of the operation, and after the client has been followed up in this regard to no avail, the bank shall notify the Central Bank of Egypt of the name of the client and his group in the sense of the client and the related parties issued by the Central