Regulatory Alerts2020-06-11
Added · Updated
Issuance of letters of credit with realization clause
The Guidelines for Foreign Exchange Transactions (GFET)-2018 are clarified to apply to High Technology Parks (HTP) and other government-approved zones, extending existing permissions for Authorized Dealers to issue import letters of credit with realization clauses. Authorized Dealers are permitted to issue back-to-back or usance letters of credit with realization clauses for exporters operating outside specialized zones, provided they verify export orders, ensure supplier agreement to the clause, and prohibit settlement via net-off arrangements with export proceeds. These measures are effective until December 31, 2020, while standard know-your-customer and anti-money laundering standards remain unchanged.
More like this from BB
BB published 33 documents in the last 30 days. We email you each new one the day it's published.