Shipping lines/air lines/licensed freight forwarders are allowed to open and maintain foreign currency accounts in terms of FEPD CIRCULAR NO. 09 DATED 24.02.2014.
- This is to clarify that foreign currency deposited in foreign currency accounts of shipping lines/airlines against freight charges on FOB exports from licensed freight forwarders may be used for outward remittances on account of surplus earnings. In this context, collection in foreign currency should be presented in a separate column of relevant statements. As such, Appendix-5/27,5/28,5/29,5/30,5/32,5/33,5/34, 5/35,5/36,5/37,5/38,5/46, 5/47,5/49,5/50,5/51 of Guidelines for Foreign Exchange Transactions’2009 (Vol-I) shall stand amended. Balances held in foreign currency accounts shall first be used for outward remittances before use of local currency fund. However, Authorized Dealer Banks shall get themselves ensured of the encashment of adequate foreign currency by the shipping lines/airlines to meet local expenses in case of shortfall in local currency funds and submit the encashment certificates with the statements.
- Outward remittance supported by encashment certificates against FOB exports shall not be allowed with effect from April, 2015.
Please bring the above instructions to the notice of all your concerned constituents.