CAPITAL MACHINERY IMPORTS ON 360 DAYS DEFERRED PAYMENT BASIS. REF: FEPD CIRCULAR NO. 37 DATED 11.11.2014.

Reference is invited to paragraph 33(a), chapter 7 of the guidelines for foreign exchange Transactions-2009, vol-1 and subsequent circulars on the subject, in terms of which authorized Dealers (ads) may establish LCS for import, inter alia, of capital machinery on upto 360 days Deferred payment basis. Ads are hereby reminded that this permission is intended for use only where an importer is actually able and willing to settle payments within 360 days without asking for further rollover of debt. LCs for capital machinery imports requiring payment periods beyond 360 days should be opened only against external borrowing proposals approved by the Board Of Investment (BOI) scrutiny committee.

Please bring the contents of this circular to the notice of all concerned, for meticulous Compliance.

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