Regulatory Alerts2024-12-01
Added
FEPD Circular No. 35: Import of Capital Machinery on Usance Term
Paragraph 33(a)(i), chapter 7 of the Guidelines for Foreign Exchange Transactions-2018 is revised to allow Authorized Dealers to permit industrial importers to import capital machinery on a usance term of up to 3 years under supplier’s or buyer’s credit. This revised tenure also applies to capital machinery imports by industrial enterprises operating in export processing zones, private export processing zones, economic zones, hi-tech parks, and other government-designated specialized zones. The cost for the usance period must not exceed the rate permissible for short term import finance under supplier's or buyer’s credit.
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