TRADE TRANSACTIONS AND FINANCE

A. IMPORT TRANSACTIONS -
1. DIRECT PAYMENT AGAINST IMPORT
2. ADVANCE PAYMENT AGAINST IMPORT
3. DOCUMENT AGAINST PAYMENT
4. IMPORT LC
5. BUYERS CREDIT
6. SUPPLIERS CREDIT
B. EXPORT TRANSACTIONS -
1. DIRECT PAYMENT AGAINST EXPORT
2. ADVANCE PAYMENT AGAINST EXPORT
3. DOCUMENT AGAINST PAYMENT
4. EXPORT LC
5. EXPORT DISCOUNTING TRANSACTIONS
6. EXPORT FINANCE - EBRD
C. INLAND TRANSACTIONS
1. INLAND BUY TRANSACTIONS
2. INLAND SELL TRANSACTIONS
3. INLAND LC TRANSACTIONS
4. INLAND DISCOUNTING TRANSACTIONS
D. BANK GUARANTEE
1. DOMESTIC BANK GUARANTEE
2. FOREIGN BANK GUARANTEE
E. PROJECT FINANCE
1. FDI
2. FII
F. FOREIGN LOAN
1. EXTERNAL COMMERCIAL BORROWINGS
2. SYNDICATE LOAN
3. EURO CURRRENCY LOAN
G. LC TERMS
1. VARIOUS DOCUMENTS
2. UCP-600
3. URC -522
4. URR - 725
H. ANTI MONEY LAUNDERING (AML)
LC LIMIT
BG LIMIT
DISCOUNTING LIMIT

INVISIBALE TRADE
SALE OF SOFTWARE (SMT)
SALE OF SERVICES(SMT)
SOFTEX FORM (E-SOFTEX)
COUNTER TRADE
GOODS AGAINST GOODS
ESCROW ACCOUNT
 MERCHANTING TRADE
A.IMPORTER COUNTRY
B.EXPORTER COUNTRY
C.TRADE FACILITATING COUNTRY
GOODS NOT TO ENTER DTA OF C
NO TRANSFORMATION IN GOODS
HIGH SEA SALES
BUYER WANT TO SELL
HIS GOODS BEFORE
IT REACH TO HIM
PROJECT EXPORT
Setting up of projects overseas
The General Agreement on Tariffs and Trade (GATT) is a legal agreement as construction and/or
between many countries, whose overall purpose was to promote engineering projects
international trade by reducing or eliminating trade barriers such as tariffs or quotas. IMPORT
According to its preamble, its purpose was the "substantial reduction of tariffs ADVANCE PAYMENT AGAINST IMPORT (SMI)
and other trade barriers and the elimination of preferences, DIRECT IMPORT (MDC)
on a reciprocal and mutually advantageous basis." IMPORT BILLS FOR COLLECTION NON LC (MFC)
Signed ###### REALIZATION OF BILLS (MFCR)
Location Geneva Geneva Canton, Switzerland IMPORT DOCUMENTARY CREDIT ISSUANCE(ML
The World Trade Organization (WTO) is an intergovernmental organization DOCUMENTARY CREDIT AMMENDMENT (MLCAM
that regulates and facilitates international trade between nations.[6] IMPORT BILLS UNDER DC(MUB)
Governments use the organization to establish, revise, and enforce IMPORT BILLS UNDER DC REALIZATION(MUBR)
the rules that govern international trade.[6] It officially commenced operations EXPORT DOCUMENT DISPATCH UNDER LC AND
on 1 January 1995, pursuant to the 1994 Marrakesh Agreement, EXPORT BILL NEGOTIATION(XBN)
thus replacing the General Agreement on Tariffs and Trade (GATT) EXPORT PACKING CREDIT(EPC/PCFC)
that had been established in 1948. The WTO is the world's largest EXPORT BILL REALIZATION(XREAL)
international economic organization, with 164 member states EXPORT LC ADVISING(XLC)
representing over 96% of global trade and global GDP.[7][8][9] EXPORT LC CONFIRMATION(XLC)
REGIONAL TRADE BLOC AND AGREEMENT FOREIGN OUTWARD BANK GUARANTEE ISSUAN
A trade bloc is a type of intergovernmental agreement, often part FOREIGN OUTWARD BANK GUARANTEE AMMEN
of a regional intergovernmental organization, where barriers FOREIGN OUTWARD BANK GUARANTEE CANCE
to trade (tariffs and others) are reduced or eliminated among the participating states. FOREIGN INWARD BANK GUARANTEE ADV(FIBG
Trade blocs can be stand-alone agreements between several states INLAND
(such as the North American Free Trade Agreement) or part of LC ISSUANCE(ILC)
a regional organization (such as the European Union). Depending on the level LC AMMENDMENT(ILCAMD)
of economic integration, trade blocs can be classified as preferential trading areas, SENDING DISCRIPANCY/ACCEPTANCE(IBCLC)
free-trade areas, customs unions, common markets, or economic and monetary unions.[ BILLS UNDER LC(OBC)
MAJOR REGIONAL TRADE AGREEMENTS BILLS UNDER LC REALIZATION(OBCLR)
· ASEAN · APEC · BRICS · EU · NAFTA BILLS UNDER LC NON LC DISCOUNTING(LCBD)
· CIS · COMESA · SAARC · MERCOSUR · IOR-ARC INVOICE DISCOUNTING(OBD)
G-7 G-15 G-77 D-8 G-20 FACTORING(OBD)
International Chamber of Commerce INLAND BANK GUARANTEE ISSUANCE(DBG)
Nickname The World Business Organization INLAND BANK GUARANTEE AMMENDMENT(DBG
Formation 1919; 102 years ago FDI
Founded at Atlantic City FII
Type NGO ECB
Purpose Enable business worldwide to secure peace, prosperity and opportunity for all. FCNR
HeadquartersParis, France
HAS ITS PRIMARY OBJECTIVE FACILITATING THE FLOW OF INTERNATIONAL TRADE
AT A TIME WHEN NATIONALISM AND PROTECTIONISM POSED SERIOUS THREATS
TO THE WORLD TRADING SYSTEM
Governing bodies 1. AS AN ADVOCATE FOR POLICIES THAT BENIFITS MEMBERS
World Council IN EVERY AREA OF THE BUSINESS
Executive Board 2. ESTABLISHING RULES THAT HELPS MEMBERS
International Secretariat ACHIVE SUCH POLICIES AND ADHERE TO THEM
National Committees 3. SOLVING DISPUTES BETWEEN THEM
Finance Committee
Dispute resolution services HAS MORE THAN 6 MILLION MEMBERS
Policy and business practices
Code of Advertising and Marketing Communication Practice
World Chambers Federation 1. LC
Aims to facilitate the exchange of best practice and the development of new global products 2. BG
and services for chambers, and foster international partnerships between chambers 3.RISK
and other stakeholders to help local businesses grow. 4. BUYRS CREDIT
Training and events-CDCS ETC 5.SUPPLIERS CREDIT
ICC Publications- UCP INCOTERMS ETC 6. THIRD PARTY
ICC Commercial Crime Services 7. AMLOCK
International Maritime Bureau 8. INSURANCE
Financial Investigation Bureau 9. FOREIGN LOAN
Counterfeiting Intelligence Bureau 10. FOREIGN INVESTMENT
FraudNet 11. LIMIT
Special projects and initiatives
Business Action to Stop Counterfeiting and Piracy (BASCAP)
Business Action to Support the Information Society
Commission on Anti-Corruption
ICC Business World Trade Agenda
ICC and the United Nations
ICC Research Foundation

9
CASH CREDIT LIMIT
ONLY NON-INDIVIDUAL BUSINESS FIRMS/ENTITY CAN TAKE THIS FACILITY FROM BANK ONLY FOR PURCHASING OR KEEPING INVENTORY
A SHORTTERM LOAN COMPANIES CAN TAKE FOR THEIR WORKING CAPITAL REQUIREMENT. BANK ASSIGNS A LIMIT TO EVERY BUSINESS
FOR THIS REQUIREMENT. THIS IS CALLED CC LIMIT. IT IS A SECURED LOAN GIVEN AGAINST CURRENT ASSETS (STOCKS,RECEIBABLES ET
ACCOUNT HAS BEEN GIVEN TO CUSTOMER. WITH NO TRANSACTION LIMIT, WITH A CHEQUE BOOK FACILITY. INTEREST WILLBE CHARGED
ONLY 50-60 % OF THE STOCK/RECEIBABLES CAN BE SCANTIONED AS CC LIMIT. LIMIT IS REVISED YEARLY . CAN BE CHANGED IMMEDIATE
INCREASE OR DECREASE IN INVENTORY. INTEREST RATE IS LOW AS SECURED.

OVERDRAFT LIMIT
BOTH BUSINESS FIRMS AS WELL AS INDIVIDUAL CAN TAKE THIS FACILITY FROM BANK. WITHDRAW MONEY MORE THAN THE BALLANCE IN
(UNSECURED OVERDRAFT) FOR 1 WEEK TO ONE MONTH , OR LOAN AGAINST FINANCIAL INSTRUMENTS LIKE LIC, FD, MF ETC.UPTO 60-85

SECURED LIMIT - GIVEN AGAINST SECURITY

UNSECURED LIMIT - GIVEN WITHOUT SECURITY

FUND BASED - PHYSICAL OUTFLOW OF FUNDS TO CUSTOMER. CASH CREDIT, OVERDRAFT, TERM LOAN
NON FUND BASED- GIVING COMMITMENT ON BEHALF OF CUSTOMER. LETTER OF CREDIT, BANK GUARANTEE

BANK LIMIT/ NON RECOURSE - BANKS ARE SHARING LIMITS BETWEEN EACH OTHERS.
CUSTOMER LIMIT/RECOURSE - CC LIMIT, OD LIMIT

LC LIMIT
LEAD TIME (LT) - TIME FROM ORDER PLACEMENT TO SHIPMENT
TRANSIST PERIOD (TP) - TIME TAKEN TO SHIP THE GOODS TO IMPORTER COUNTRY
USANCE PERIOD (UP) - TIME GIVEN TO IMPORTER TO MAKE THE PYMENT (SIGHT/USANCE)
TOTAL TIME PERIOD (T) - LT+TP+UP
TOTAL ANUAL CONSUMPTION UNDER LC/ LC REQUREMENT (C)
LIMIT= (T*C)/12
ECONOMIC ORDER QUANTITY (EOQ) = MINIMUM QUANTITY TO BE ORDERED.
NO OF LC TO BE OPENED (N)- C/EOQ
FREQUENCY OF LC - 12/N
BG LIMIT
TOTAL VALUE OF TENDERS PARTICIPATED IN ANY POINT OF TIME TO NEXT 12 MONTS 100
SUCCESS STRIKE RATE @ 30 % OF CONTRACT VALUE 30
BID BOND ROTATION = 6 MONTHS =2
BID BOND GUARANTEE 10% OF PARTICIPATED
ACTRUAL BID BOND GUARANTEE REQUI (10%/2)
PERFORMANCE GUARANTEE REQUIRED 10 % OF SUCCESS RATE
ADVANCE REQUREMENT 10
ADVANCE PAYMENT GUARANTEE REQUIREMENT 50% (10/2)
VALUE OF CONTRACT THAT IS EXPECTED TO BE COMOLETE 20
RETENTION 50%
BG FOR MISSLINIOUS PURPOSE
TOTAL BG REQUIRED
OPENING BALANCE OF BG
GUARANTEES EXPIRED THIS YEAR
NET BANK GUARANTEE REQUIREMENT (28+2)-15
 DEEMED
TING COUNTRY EXPORT
NTER DTA OF C
ION IN GOODS

ects overseas

T AGAINST IMPORT (SMI)

COLLECTION NON LC (MFC)

ILLS (MFCR)
TARY CREDIT ISSUANCE(MLC)
REDIT AMMENDMENT (MLCAMD)
ER DC(MUB)
ER DC REALIZATION(MUBR)
NT DISPATCH UNDER LC AND NON LC(XFC)
OTIATION(XBN)
CREDIT(EPC/PCFC)
IZATION(XREAL)

RMATION(XLC)
D BANK GUARANTEE ISSUANCE(FOBG)
D BANK GUARANTEE AMMENDMENT(FOBGAMD)
D BANK GUARANTEE CANCELLATION(FOBGCAN)
BANK GUARANTEE ADV(FIBG)

ANCY/ACCEPTANCE(IBCLC)

EALIZATION(OBCLR)
ON LC DISCOUNTING(LCBD)

RANTEE ISSUANCE(DBG)
RANTEE AMMENDMENT(DBGAMD)
UYRS CREDIT
UPPLIERS CREDIT
HIRD PARTY

OREIGN LOAN
FOREIGN INVESTMENT
 OR KEEPING INVENTORY AND RECEIBABLES,
IMIT TO EVERY BUSINESS ENTITY
STOCKS,RECEIBABLES ETC). A RUNNING
TEREST WILLBE CHARGED IF CUSTOMER USED CC LIMIT.
BE CHANGED IMMEDIATELY IF THERE IS

RE THAN THE BALLANCE IN CURRENT/SAVINGS AC.

C, FD, MF ETC.UPTO 60-85%(SECURED OVERDRAFT)
5
3

10
5
28
2
15
15
INVOICE
1. INVOICE
2. TRANSPORT DOCUMENT
3. CERTIFICATE OF ORIGIN
4. PACKING LIST
5. INSURANCE
6. DRAFT
B. LC OTHER DOCUMENTS
D. DOCUMENTS WISE CHECK
IV) PACKING LIST TERMS
1. PACKING LIST IN ONE
ORIGINAL AND TWO COPIES
SHOWING NO OF PACKAGES
AND CONTENTS OF EACH
PACKAGE SEPARATELY
ALONG WITH GROSS AND
NET WEIGHT
2. PACKING LIST IN 3 COPIES/
IN TRIPLICATE
3. DETAILED PACKING LIST IN
6 FOLD DELAY SIGNED BY
BENEFICIARY
4. PACKING LIST (1 ORIGINAL
PLUS 3 COPIES) SHOWS
DISCRIPANCY OF GOODS,
GROSS WEIGHT AND QUANTITY
5. PACKING LIST AND WEIGHT
LIST IN ONE ORIGINAL AND 4
COPIES
6. PACKING LIST TO BE ISSUED
BY BENEFICIARY IN ORIGINAL
IN TRIPLICATE
V) DRAFT
1. BENEFICIARY DRAFT IN DUPLICATE
DRAWN ON APPLICANT BANK.
FOR FULL INVOICE VALUE
2. BENEFICIARY DRAFT 1 ORIGINAL
1 COPY DRAWN ON ISSUING BANK
QUOTING LC NO AND DATE
3. BENEFICIARY DRAFT DRAWN
ON ICICI BANK AT SIGHT,
FOR 100% OF INVOICE VALUE
BEARING CALUSE DRAWN UNDER
LC NO ... DATED...
ISSUED BY ISSUING BANK NAME.
C. TYPES OF MAIN DOCUMENTS LC TERMS
I) INVOICE TERMS
1.INVOICE SIGNED BY CHEMBER OF COMMRCE
CONTAINS THE DETAILS ITEM NO,QUANTITY,
DESCRIPTION, UNIT PRICE, TOTAL VALUE
2. SIGNED INVOICES IN 6 FOLD SHOWING FOB
VALUE AND FREIGHT SEPARATELY CERTIFYING
MERCHANDISE IS OF INDIAN ORIGIN AND
IMPORTED AGAINST LCAF NO, HS CODE NO(IN)
HS CODE NO(APP),IRC NO, BA AND TIN
3.FOB VALUE,INSURANCE AND FREIGHT
CHARGES SEPARATELY- QUOTING HS CODE NO
FULL NAME AND ADDRESS OF THE APPLICANT
AS PER FIELD 50 AND CERTIFYING THAT
SHIPMENT CONFORMS TO PROFORMA INVOICE
NO............ALL INVOICES SHOULD BE DATED
AND MANUALY SIGNED AND NO PHOTOCOPY
OF SIGNATURE ARE PERMISSIBLE. TOTAL OF THE
FOB VALUE INSURANCE AND FREIGHT CHARGES
SHOULD TALLY WITH THE COMMERCIAL INVOICE
4.BENEFICIARY SIGNED COMMERCIAL INVOICE
(1 ORIGINAL 3 COPIES) THAT THE SHIPPED
GOODS CONFORM TO PROFORMA INVOICE NO
5. SIGNED COMMERCIAL INVOIVE IN 1 ORIGINAL
AND FOUR COPIES SHOWING PRICE TERMS
EXW, KOBRA, INDIA
6.SIGNED COMMERCIAL INVOIVE IN TRIPLICATE
IN FAVOUR OF APPLICANT
7.a. BENEFICIARY SIGNED PROVISSIONAL INVOICE
IN TWO ORIGINALS 3 COPIES SHOWING 98% OF
CFR VALUE OF SHIPMENT AND INDICATING
CONTRACT NO, LC NO, NAME OF CARRING
VESSEL
7.b. BENEFICIARY SIGNED FINAL INVOICE
BASED ON THE TEST RESULT OF THE COPY
OF INSPECTION CERTIFICATE OF QUALITY
ISSUED BY CIQ AT DISCHARGE POST LESS
THE PROVISSIONAL PAYMENT DRAWN UNDER
THIS LC
7.c. BENEFICIARY SIGNED FINAL INVOICE IN
TRIPLICATE FOR THE BALLANCE OF OF THE
CFR SHIPMENT(FINAL SHIPMENT VALUE LESS
PROVISSIONAL PAYMENT) DRAWN UNDER THIS
LC INDICATING THE CONTRACT NO, LC NO
AND NAME OF CARRING VESSEL
 A.INCOTERMS
EXW FROM FACTORY ALL EXPENCES BELONGS TO IMPORTER FOB=EXW
FAS FROM EXPORT PORT ALL EXPENCES BELONGS TO IMPORTER FOB=FAS
FOB FROM IMPORT PORT ALL EXPENCES BELONGS TO IMPORTER FOB=FOB
CFR FREIGHT PREPAID BY EXPORTER FOB=CFR-10%
CIF FREIGHT AND INSURANCE PREPAID BY EXPORTER FOB=CIF-10%
DAP ALL EXPENCES BELONGS TO EXPORTER FOB=DAP-25%
DAT ALL EXPENCESS BELONGS TO EXPORTER FOB=DAT-25%

B.UCP
ARTICLE-1
APPLICABLE ON ALL DC AND SBLC WHEN LC TEXT EXPRESSLY STATES TRANSATION IS SUBJECT TO UCP600 G
ISSUING BANK CAN EXCLUDE SOME OF THE ARTICLES ALSO SHOULD MENTION IN LC
NOT TOTALLY APPLICABLE FOR SBLC AS LC WE DEAL WITH ORIGINAL DOCUMENTS BUT IN SBLC WE DEAL WIT
ARTICLE-2
PARTIES- APPLICANT,ISSUING BANK, BENEFICIARY, ADVISING BANK,CONFIRMING BANK, NOMINATED BANK, PR
TERMS- COMPLYING PRESENTATION, CONFIRMATION, CREDIT, HONOR, NEGOTIATION, PRESENTATION,BANKIN
BANKING DAY - MEANS A DAY ON WHICH BANK IS REGULARLY OPEN AT THE PLACE AT WHICH AN ACT SUBJEC
PRESENTATION ETC) IS TO BE OPENED
ADVISING BANK - ADVISES THE CREDIT AT THE REQUEST OF THE ISSUING BANK
BENEFICIARY- ON WHOSE FAVOUR LETTER OF CREDIT HAS BEEN ISSUED
APPLICANT-ON WHOSE REQUEST LETTER OF CREDIT HAS BEEN ISSUED
COMPLYING PRESENTATION- WHEN DOCS ARE CREDIT COMPLIED (MEANS AS PER LC TERMS AND AS PER UCP
CONFIRMATION-A DEFINITE UNDERTAKING OF CONFIRMING BANK, IN ADDITION TO THE ISSUING BANK, TO HON
CONFIRMING BANK- BANK ADDS ITS CONFIRMATION TO A CREDIT UPON ISSUING BANK AUTHORIZATION OR RE
700 49 FIELD CONFIRM, MAY ADD, WITHOUT MAY ADD CHARGES MAY WILL BE ON BENEFICIARY CONFIRM CHAR
HONOUR-TO PAY AT SIGHT IF THE CREDIT IS AVAILABLE BY SIGHT A DEFFERED PAYMENT UNDERTAKING AND
IF CREDIT IS AVAILABLE BY DEFERED PAYMENT TO ACCEPT A BILL OF EXCHANGE DRAWN BY BENEFICIARY AN
IS ACAILABLE BY ACDEPTANCE AND PAY AT MATURITY IF THE CREDIT IS ACAILABLE BY ACDEPTANCE
HONOUR NOT EQUALS TO NEGOTIATION ISSUNIG BANK CAN ONLY HONOUR BUT CONFIRMING BANK CAN NEGO
ISSUNIG BANK CAN ONLY HONOUR BUT CONFIRMING BANK CAN NEGOTIATE AND HONOUR
CREDIT- MEANS AN ARRANGEMENT THAT IS IRREVOCABLE AND THEREBY CONSTITUTE A DEFINITE UNDERTAK
TO HONOUR ON COMPLYING PRESENTATION
ISSUING BANK-THE BANK THAT ISSUES A CREDIT AT REQUEST OF AN APPLICANT OR ON ITS OWN BEHALF
NEGOTIATION - MEANS PURCHASING OF DRAFT WHEN THE DRAFT IS DRAWN ON OTHER THAN YOU(DRAWEE I
OR DOCUMENTS UNDER COMPLYING PRESENTATION BY ADVANCING THE BENEFICIARY BEFORE THE DUE DAT
NOMINATED BANK - MEANS THE BANK WITH WHICH THE CREDIT IS AVAILABLE FOR NEGOTIATION
PRESENTATION - MEANS DELIVER THE DOCUMENTS OF CREDIT TO THE ISSUING BANK OR NOMINATED BANK
PRESENTER - MEANS A BENEFICIARY,BANK OR OTHER PARTY THAT MAKES THE PRESENTATION
ARTICLE-3
1. IRREVOCABLE EVEN IF NO INDICATION
2. DOCUMENT MAY BE AUTHENTICATED BY SIGNED IN HANDWRITTING, FACSIMILE SIGNATURE, PERFORATED S
SYMBOL OR ANY MECHANICAL OR ELECTRONIC METHOD. WHEN LC SAYS SIGNED IT CAN BE SIGNED IN ANY O
3. BRANCHES OF DIFFERENT BANKS CAN BE CONSIDERED AS SEPARATE BANKS
4. ISSUER OF DOCUMENT OTHER THAN BENEFICIARY- FIRST-CLASS, WELL-KNOWN, QUALIFIED, INDEPENDENT
5. WORD "PROMT", "IMMEDIATELY", OR "AS SOON AS POSSIBLE" ADVISED TO BE AVOIDED
6. ON OR ABOUT TO BE USED FOR EVENT TO OCCUR FOR A SPECIFIED CALENDER PERIOD (5 CALENDER DAYS
7. TO,UNTILL, TILL, FROM, BETWEEN TO BE USED TO INCLUDE THE DATE MENTIONED DETERMINE PERIOD OF S
8. THE WORD BEFORE AND AFTER EXCLUDE THE DATE MENTIONED
9. WORDS FROM OR AFTER TO DETERMINE MATURITY DATE
10. FIRST HALF 1ST TO 15TH SCEOND HALF 15TH TO 30
11. BEGINING 1-10 MIDDLE 11-20 END 21-30/31
ARTICLE-4
CREDIT IS SEPARATE FROM CONTRACT AND INDIPENDENT ANY EFFECT IN CONTRACT DOES NOT AUTOMATICA
BANK HAS ALWAYS PUT AN ATTEMPT TO NOT TO ADD PRO FORMA INVOICE OR CONTRACT AS A INTEGRAL PA
ARTICLE-5
BANK DEAL WITH DOCUMENTS NOT WITH GOODS SERVICES OR PERFORMANCE
ARTICLE-6 - AVAILABILITY
CREDIT MUST STATES-
AVAILABLE WITH BANK , EXPIRY DATE AND PLACE OF PRESENTATION (SHOULD BE AS PER BENEFICIARY COUN
AVAILABLE BY SIGHT PAYMENT,DEFFERED PAYMENT, ACCEPTANCE OR NEGOTIATION
ISSUING BANK ALWAYS TRY TO EXCLUDE DRAFT DRAWN ON THE APPLICANT (BECAUSE IT DECREASE THE VAL
ARTICLE-7 - ISSUING BANK UNDERTAKING
IF CREDIT COMPLIED DOCUMENT PREENTATION TO THE ISSUING BANK BOUND TO HONOUR THE CLAIM
TO ISSUNUG BANK UNDERTAKING IS TO THE BENEFICIARY NOT TO ANY BANK
i. BY SIGHT PAYMENT, DEFFERED PAYMENT, OR ACCEPTANCE TO PAY ON MATURITY
ii. SIGHT PAYMENT WITH A NOMINATED BANK AND THAT NOMINATED BANK DOES NOT PAY
iii. DEFFERED PAYMENT WITH A NOMINATED BANK AND THAT NOMINATED BANK DOES NOT INCUR DEFFERED P
OR HAVE INCUR DEFFERED PAYMENT NOT PAID LAST MATURITY
iv. ACCEPTANCE WITH A NOMINATED BANK, AND THAT NOMINATED BANK DOES NOT ACCEPT A DRAFT ON IT, O
BUT DOES NOT PAY AT MATURITY
THEN BENEFICIARY GOES TO ISSUNIG BANK
ARTICLE-8 - CONFIRMATION
1.IF CREDIT COMPLIED DOCUMENT PREENTATION CONFIRMING BANK BOUND TO HONOUR OR NEGOTIATE TH
2. WHEN NEGOTIATE, NEGOTIATE IT IS ALWAYS WITHOUT RECOURSE2
ARTICLE-9 - ADVISING
1. A CREDIT IS ADVISED TO BENEFICIARY BY ADVISING BANK , ADV BANK NOT CONFIRMING BANK DO NOT HAV
2. IF 49 FIELD CONFIRM AVISING BANK TO MENTION WHILE ADVISING THEY HAVE ADDED CONFIRMATION OR N
3. ADVISING BANK CHECK THE AUTHENTICICY OF THE LC, SOURSE IS AUTHENTIC, NO CHANGES HAVE BEEN M
4. THERE MAY BE TWO ADVISING BANK FOR CONVENIENCE OF THE LC REACH TO BENEFICIARY EARLIER
MUST USE SAME 2 BANKS FOR ADVISING OF AMMENDMENTS OF THE CREDITS
5. IF A BANK IS ELECT NOT TO ADVICE THE CREDIT INFORM THE ISSUING BANK IMMEDIATELY
6. IF ADVISING BANK CANT ABLE TO VERIFY AUTHENTICITY OF THE LC, THEN ALSO HE CAN ADVISE THE LC
MUST INFORM BENEFICIARY THAT THEY CANT ABLE TO VERIFY THE AUTHENTICITY THEY STILL ADVISE, INFOR
ARTICLE-10 - AMMENDMENTS
1. A CREDIT NEITHER BE AMMEND NOR BE CANCELLED WITHOUT AGREEMENT OF THE ISSUING BANK, CONFIR
2. A ISSUNIG BANK IS BOUND TO HONOUR THE CLAIM AS PER AMMENDMEND DONE IF AMMENDED CREDIT COM
3. BENEFICIARY SHOULD PROVIDE ACCEPTANCE OF AMMENDMENT IF FAILS TO PROVIDE ACCEPTANCE AND A
IT WILL BE CONSIDERED AS ACCEPTANCE
4. PARTIAL ACCEPTANCE OF AMMENDMENT IS NOT ALLOWED
5. THERE SHOULD NOT BE ANY CONDITIONAL AMMENDMENT LIKE BENEFICIARY HAS TO ACCEPT WITHIN 5 DAY
ARTICLE-11 - TELETRANSMISSION
1. TELE TRANSMISSION/ PH/MAIL AMMENDMENT OF A CREDIT IS NOT ALLOWED
2. PREVIOUSLY WHEN SWIFT WAS NOT STRONGLY DEVELOPED BANK USED TO DEAL IN TELEX IN UCP 500 IT H
3. IF A ISSUING BANK WILLING TO ISSUE A LETTER OF CREDIT BUT AT THIS POINT OF TIME ISSUING BANK UNAB
BUT TRANSMITING A PRE-ADVISED LETTER OF CREDIT WITH SIMILLAR TERMS AND CONDITIONS
IT BOUNDS THE ISSUING BANK TO ISSUE A LC WITH SAME TERMS AND CONDITIONS OF PRE ADVISED LC
BENEFICIARY WANT TO SHIP THE GOODS UPON RECEIVING THE LC HE IS JUST WANT A COOMITMENT FORM BA
BENEFICIARY START PREPARING THE DOCUMENTS AS SOON AS IT RECEIVE THE PRE ADVISED LC AND WHEN
ARTICLE-12
4. IF - NOMINATION
NOMINATED
1. NOMINATED BANK MAY NOT NEGOTIATE IT IS HIS DECITION NO OBLIGATION IF IT IS NOT CONFIRMING BANK
BANK IS ANY
2. ISSUING BANK AUTHORISE A BANK TO PURCHASE/NEGOTIATE DOCUMENTS IN EXCHANGE OF SIGHT, ACCEP
BANK AND IF
ARTICLE-13
ADVISING - B TO B REIMBURSEMENT
BANK IS STATES REIMBURSEMENT IS SUBJECT TO URR THEN OK
1. CREDIT
WILLING TO
2.
ACTIF AS
CREDIT
A NOT STATES THAT REIMBURSEMENT BANK MUST REIMBURSEMENT AUTHORIZATION NOT SUBJEC
NOMINATED
3. REIMBURSING BANK HAS NO CONNECTION WITH CREDIT TERMS
BANK HE MUST
4. ISSUING BANK WILL BE RESPONSIBLE IF REIMBURSEMENT NOT DONE TIMELY AND FOR THAT LOSS CHARGE
GIVE THE
5. REIMBURSING
WORDING TO CHARGES ARE ON ISSUING BANK IF CREDIT STATES SPECIFICALLY THEN ONLY ON BENE
THE
ARTICLE-14 - EXAMINATION OF DOCUMENTS
BENEFICIARY
1. ISSUING BANK CONFIRMING BANK AND NOMINATED BANK WILL EXAMINE THE DOCUMENTS
2. EACH BANK MUST SCRUTINISE THE DOCUMENTS WITHIN 5 WORKING DAYS FROM RECEIPT OF DOCUMENTS
3. SHIPPING DOCUMENTS SHOULD BE PRESENTED WITHIN 21 DAYS FROM THE SHIPMENT DATE IN FULL SET B

5. IF NOMINATED BANK IS ANY BANK AND IF ADVISING BANK IS WILLING TO ACT AS A NOMINATED BANK HE MU
6. ISSUNIG BANK AND CONFIRMING BANK MUST EXMINE THE DOCUMENTS BUT NOMINATED BANK HAS NO BOU

7. IF DOCUMENTS RECEIPT AT 5.40 TODAY IT WILL BE CONSIDER DOCUMENT RECEIVED TOMORROW DAY 1 WI
8. IF DOCUMENT OTHER THAN INVOICE MENTION GOODS AND DESCRIPTION DIFFERENT IT WILL NOT BE CONS
9. IF CREDIT DOES NOT SPECIFY ISSUER NAME OF ANY CERTIFICATE ACCEPT AS PER LC TERMS
10. A DOCUMENT PRESENTED BUT NOT REQUIRED BY CREDIT CAN BE RETURNED OR IGNORED
11. IF LC CONTAINS A CONDITION WITH OUT DOCUMENT BANK CAN DISCARD THAT CONDITION
12. A DOCUMENT MAY BE DATED PRIOR TO ISSUANCE DATE OF CREDIT BUT MUST NOT BE DATED LATER THAN
13 WHEN ADDRESS OF THE BENEFICIARY AND APPLICANT IS DIFFERENT THAN LC IN OTHER DOCUMENTS EXC
14. TELEX TELEPHONE EMAIL IN ADDRESS WILL BE DISCARDED
15. SHIPPER OR CONSIGNOR OF CREDIT MAY NOT BE THE BENEFICIARY OF THE CREDIT
ARTICLE-15 - COMPLYING PRESENTATION
1. WHEN A ISSUING BANK DETERMINES PRESENTATION IS COMPLYING WITH THE CREDIT IT MUST HONOUR TH
2. WHEN A CONFIRMING BANK DETERMINES PRESENTATION IS COMPLYING WITH
THE CREDIT IT MUST HONOUR OR NEGOTIATE AND FORWARD THE DOCUMENTS TO ISSUING BANK
3. WHEN A NOMINATED BANK DETERMINES PRESENTATION IS CREDIT COMPLIED
AND NEGOTIATE, IT MUST FORWARD THE DOCUMENTS TO ISSUING BANK OR CONFIRMING BANK
ARTICLE-16 - DISCRIPANT DOCUMENT
1. IF NOMINATED BANK DETERMINES THAT DOCS ARE NOT CREDIT COMPLIED REFUSE TO NEGOTIATE
IT IS SOLE JUDGEMENT OF NOMINATED BANK TO SENT THE DOCUMENT TO ISSUING BANK ON APPROVAL BASI
2. IF ISSUING BANK DETERMINES THAT DOCS ARE NOT CREDIT COMPLIED REFUSE
IT MAY ITS SOLE JUDGEMENT APPROACH THE APPLICANT FOR WAIVER OF DISCRIPANCIES
3. WHEN A ISSUING BANK OR NOMINATED BANK REFUCE TO HONOUR THE CLAIM
IT MUST GIVE A NOTICE TO THE PRESENTER WITH IN 5 BANKING DAYS VIA TELECOMMIUMICATION, FAX OR EM
4. NOTICE MUST STATE
i). BANK REFUCE TO HONOUR
ii). EACH DISCRIPANCIES
iii). HOLDING THE DOCUMENTS OR
RETURNING THE DOCUMENTS
iv)ACTING ON PREVIOUS INSTRUCTION RECEIVED
5. WHEN DOCUMENT RECEIVED FROM BENEFICIARY REFUSAL MUST SENT TO BENEFICIARY
WHEN DOCUMENT RECEIVED FROM BANK REFUSAL MUST SENT TO BANK
6. IF REFUSAL IS NOT GIVEN TIMELY THAT MEANS DOCUMENTS HAS BEEN ACCEPTED, AND YOU ARE LIABLE TO
7. THERE IS A WAY IF CLAIMING BANK IS MENTIONING IN ITS CLAIM THAT THIS ARTICLE WILL NOT APPLY
ARTICLE-17 - ORIGINL - COPY
1. CUSTOMER GIVE THE DOCUMENTS TO BRANCH AND BRANCH PERSEN IS ONLY KNOWING WHAT DOCUMENT
2. AT LEAST ONE DOCUMENT HAVE TO BE ORIGINAL OF EACH DOCUMENT STIPULATED IN LC
3. ORIGINAL SIGNATURE,STAMP, MARK OR LEVEL OR LETTER HEAD OF THE ISSUER AND AND WRITTEN,TYPED
4. IF DOCUMEN HAS WRITTEN ORIGINAL DOES NOT MEANS IT ORIGINAL
ARTICLE-18 - COMMERCIAL INVOICE
1. COMMERCIAL INVOICE MUST HAVE TO BE ISSUED BY THE BENEFICIARY ON BEHALF OF APPLICANT IN THE S
NEED NOT BE SIGNED
2. INVOICE AMOUNT CAN BE GREATER THAN LC BUT NOT LESS BUT HONOUR OR NEGOTIATION SHOULD BE ON
3. GOOD DESCRIPTION SHOULD MATCH WITH THE LC
ARTICLE- TRANSPORT DOCUMENT
ARTICLE - 19 - MULTIMODAL TRANSPORT DOCUMENT
ARTICLE - 20 - BILL OF LADING
ARTICLE - 21 - NON NEGOTIABLE SEA WAY BILL
ARTICLE - 22 - CHARTER PARTY BILL OF LADING
ARTICLE - 23 - AIR TRANSPORT DOCUMENT
ARTICLE - 24 - ROAD,RAIL,INLAND WATERWAY TRANSPORT DOCUMENT
ARTICLE - 25 - COURIER RECEIPT, POST RECEIPT, CERTIFICATE OF POSTING
0. TRANSPORT DOCUMENT HAVE TO BE CONSINED AS PER LETTER OF CREDIT
1. TRANSPORT DOCUMENT MUST APPEAR TO INDICATE THE NAME OF THE CARRIER AND SIGNED BY
MUST APPEAR TO INDICATE THE NAME OF THE CARRIER AND SIGNED BY
THE CARRIER OR A NAMED AGENT ON BEHALF OF CARRIER
THE MASTER OR A NAMED AGENT ON BEHALF OF MASTER FOR AWB AND ROAD DOC ONLY CARRIER
2.PORT OF LOADING AND PORT OF DISCHARGE SHOULD BE AS PER LC
3. IF NOT INDICATE THE PORT OF LOADING AND DISCHARGE NOT AS PER LC OR ADD WORD LIKE "INTENDED" O
A NOTATION CONTAINING LC ACCORDING LOADING ,DELIVERY ,VESSEL IS REQUIRED APPLIES FOR PRE-PRINT
OTHERWISE IN ADDITION TRANSPORT DOCUMENT CAN ADD PLACE OF RECEIPT OR FINAL DELIVERY AS DIFFE
4. TRANSPORT DOCUMENT ISSUE DATE= DATE OF DISPATCH IF BL NOT INCLUDE A SHIPPED ON BOARD DATE
FOR PRE-PRINTED TD ON BOARD NOTATION INDICATING DATE OF SHIPMENT AND NAME OF ACTRUAL VESSEL
5. CAN BE SOLE ORIGINAL OR MULTIPLE ORIGINAL
6. CONTAIN TERMS AND CONDITIONS OF CARRIGE OR CONTAIN REFERANCE TO TERMS AND CONDITION OF CA
7. CONTAIN NO INDICATION THAT IT IS SUBJECT TO CHARTER PARTY
8. TRANSSHIPMENT MEANS UNLOADING FROM ONE MEANS OF CONVEYNCE AND RE-LOADING TO ANOTHER ME
9. DIFFERENT MODE OF TRANSPORT CARRIGE FROM THE PLACE OF DISPATCH AND TAKING IN CHARGE STATE
BUT ONE TRASPORT DOCUMENT CAN COVER THE TOTAL CARRIGE TRANSHIPMENT MAY TAKE PLACE EVEN IF
DOCUMENT SHOULD INDICATE THAT, IF GOODS HAVE BEEN SHIPPED IN A CONTAINER TRAILER OR LASH BARG
10. CLAUSE IN BILL OF LADING STATING THAT CARRIER RESERVES THE RIGHT TO TRANSHIP WILL BE DISCARD
13. A BILL OF LADING CONTAINING A INDICATION THAT IT IS SUBJECT TO CHARTER PARTY IS CHARTER PARTY
A BANK WILL NOT EXAMINE CHARTER PARTY CONTRACTS, EVEN IF THEY ARE REQUIRED TO BE PRESENTED B
14. ANY INFORMATION APPARING ON THE AIR TRANSPORT DOCUMENT RELATING TO FLIGHT NO DATE WILL NO
15. A ROAD TRANSPORT DOCUMENT MUST APPEAR TO BE ORIGINAL FOR CONSIGNOR OR SHIPPER OR BEAR
THE DOCUMENT HAVE BEEN PREPARED, A RAIL TRANSPORT DOCUMENT MARKED "DUPLICATE" WILL BE ACCE
DOCUMENT WILL BE ACCEPTED AS AN ORIGINAL WHEATHER MARKED AS ORIGINAL OR NOT
16. COURIER RECEIPT EVIDENCING GOODS, COURIER CO NAME, PORT OF LOADING AND PORT OF DISCHARGE
INDICATED, STAMPED AND SIGNED BY COURIER CO,
17. A POST RECEIPT CERTIFICATE OF POSTING EVIDENCING GOODS STAMPED,SIGNED AND DATED AT THE PL
TO BE SHIPPED
ARTICLE-26- ON DECK - SHIPPER LOAD AND COUNT-
1. A TRANSPORT DOCUMENT MUST NOT INDICATE THAT THE GOODS ARE OR WILL BE LOADED ON DECK. A CLA
MAY BE LOADED ON DECK IS ACCEPTABLE.
2. A CLAUSE SUCH AS SHIPPERS LOAD AND COUNT AND SAID BY SHIPPER TO CONTAIN IS ACCEPTABLE. MAY B
STAMP OR OTHERWISE TO CHARGES ADDITIONAL TO THE FREIGHT
ARTICLE-27-CLEAN TRANSPORT DOCUMENT
A BANK WILL ONLY ACCEPT CLEAN TRANSPORT DOCUMENT, CLEAN MEANS NO CLAUSE OR NOTATION DECLA
CLEAN NEED NOT APPEARED ON THE TRANSPORT DOCUMENT
ARTICLE-28 -INSURANCE DOCUMENT
1. A INSURANCE POLICY,CERTIFICATE/DECLARATION UNDER OPEN COVER, MUST ISSUED AND SIGNED BY INS
OR THEIR PROXIES
2. INSURANCE DOCUMENT INDICATES ISSUED MORE THAN ONE ORIGINAL, ALL ORIGINALS MUST BE PRESENTE
COVER NOTES WILL NOT BE ACCEPTED
3. THE DATE OF INSURANCE DOCUMENT MUST INDICATE THE AMOUNT OF INSURANCE COVERAGE AND BE IN T
4. DATE OF INSURANCE DOCUMENT NOT TO BE LETTER THAN DATE OF SHIPMENT UNLESS IT APPEARS IN INSU
5. MUST INDICATE THE AMOUNT OF INSURANCE COVERAGE IN SEME CURRENCY AS CREDIT
6. INSURANCE COVERAGE IN LC NOT REQUIRED IN AMOUNT BUT IN %
INSURANCE COVERAGE SHOULD BE AT LEAST 110% OF CIF/CIP VALUE
7. WHEN CIF/CIP VALUE CANNOT DETERMINED
THE INSURANCE COVER SHOULD BE HONOUR VALUE OR INVOICE VALUE WHICH EVER IS GREATER
8. MUST INDICATE THE RISKS COVERED AND BETWEEN THE PLACE OF TAKING IN CHARGE
AND DISCHARGE AS STATED IN CREDIT
9. CREDIT SHOULD STATE TYPE OF INSURANCE REQUIRED AND ADDITIONAL RISK IF ANY
10. INSURANCE DOCUMENT NOT METIONED RISKS MENTIONED IS LC INSTEAD OF MENTIONED "USUAL RISKS" A
11.WHEN A CREDIT REQUIRES INSURANCE AGAINST "ALL RISKS" INSURANCE DOCUMENT NOT MENTIONED AN
12. AN INSURANCE DOCUMENT MAY CONTAIN ANY EXCLUSION CLAUSE
13. AN INSURANCE DOCUMENT MAY INDICATE THAT COVER IS SUBJECT TO FRANCHISE OR EXCESS
ARTICLE-29 -HOLIDAY
1. EXPIRY DATE, DATE OF PRESENTATION FALLS ON HOLIDAY, NEXT BANKIG DAY CONSIDERED
2. NOMINATED BANK MUST PROVIDE IN COVERING SCHEDULE TO ISSUING BANK THAT PRESENTATION MADE U
3. THE LDS CAN NOT BE EXTENDED
ARTICLE-30 - TOLLERANCE
1. THE WORD "ABOUT" OR "APPROXIMATELY" IN LC IN CONNECTION TO AMOUNT, QUANTITY OR UNIT PRICE- T
2. LC IS SILENT TOLLERANCE OF 5% IS ALLOWED IN QUANTITY PROVIDED CREDIT DOES NOT STATE THE QUAN
NOT EXCEED AMOUNT OF CREDIT AND GOODS ARE IN INDIVIDUAL PACKING UNITS
3. WHEN PARTIAL SHIPMENTS ARE NOT ALLOWED, TOLLERANCE IS 5% OF AMOUNT IN CREDIT, PROVIDED QUA
ARTICLE-31 - PARTIAL SHIPMENT
1. PARTIAL DRAWINGS OR SHIPMENTS ARE ALLOWED
2. MEANS OF CONVEYENCE SHOULD BE ONE THEN IT WILL NOT BE CONSIDER AS PARTIAL SHIPMENT
3. MULTIPLE TRANSPORT DOCUMENT EVEN IF DIFFERENT SHIPMENT DATE NOT CONSIDERED AS PARTIAL SHIP
4. MORE THAN ONE MEANS OF CONVINIANCE- CONSIDER AS PARTIAL SHIPMENT
5. MULTIPLE COURIER RECEIPT CERTIFICATE NOT CONSIDERED AS PARTIAL SHIPMENT
ARTICLE-32 - INSTALLMENT DRAWINGS
1.SHIPMENT BY INSTALLMENTS WITHIN GIVEN PERIOD IN CREDIT AFTER FIRST INSTALLMENT DONE CREDIT VA
2. ONE INSTALLMENT FAIL SENT LATER 2 DISCRIPANCIES
ARTICLE-33 - HOURS
A BANK HAS NO OBLIGATION TO ACCEPT A PRESENTATION OUTSIDE OF ITS BANKING HOURS
ARTICLE-34 - DISCLAIMER ON EFFECTIVENESS OF DOCUMENTS
A BANK ASSUMES NO LIABILITY OR RESPONSIBILITY FOR THE FORM, SUFFICIENCY, ACCURICY , GENUINENESS
DOCUMENT OR FOR THE GENERAL OR PARTICULAR CONDITION STIPULATED IN A DOCUMENT OR SUPERIMPOS
DESCRIPTION QUANTITY, WEIGHT, QUALITY,CONDITION,PACKING,DELIVERY,VALUE OR EXISTENCE OF THE GO
BY ANY DOCUMENT OR FOR GOOD FAITH OR ACTS OR OMISSION,SOLVENCY,PERFORMANCE OR STANDING RE
GOOD FAITH OR ACTS OR OMMISSION,SOLVENCY,PERFORMANCE OR STANDING OF THE CONSIGNOR,THE CA
OF THE GOODS OR ANY OTHER PERSON
ARTICLE-35 - DISCLAIMER ON TRANSMISSION AND TRANSACTION
1. A BANK ASSUMES NO LIABILITY OR RESPONSIBILITY FOR THE CONSEQUENCES ARISING OUT OF DELAY, LOS
ARISING IN THE TRANSMISSION OF ANY MESSAGES OR DELIVERY OF LETTER OR DOCUMENTS, WHEN SUCH M
OR SENT ACCORING TO REQUIREMENT STATED IN THE CREDIT OR WHEN THE BANK MAY HAVE TAKEN THE IN
2. DELIVERY SERVICE IN THE ABSENCE OF SUCH INSTRUCTIONS IN THE CREDIT
3. IF A NOMINATED BANK DETERMINES THAT A PRESENTATION IS COMPLYING AND FORWARDS THE DOCUMEN
WHEATHER OR NOT THE NOMINATED BANK HAS HONOURED OR NEGOTIATED, AN ISSUING ANK OR CONFIRMI
REIMBURSE THAT NOMINATED BANK, EVEN WHEN THE DOCUMENT LOST IN TRANSIST BETWEEN NOMINATED
ISSUING BANK AND CONFIRMING BANK A BANK ASSUMES NO LIABILITY OR RESPONSIBILITY FOR ERRORS IN T
TERMS AND MAY TRANSMIT CREDIT TERMS WITHOUT TRANSLATING THEM
ARTICLE-36 - FORCE MAJEURE
1. A BANK ASSUMES NO LIABILITY FOR RESPONSIBILITY FOR THE CONSEQUENCES ARISING OUT OF THE INTER
BY ACT OF GOD,RIOTS,CIVIL COMMOTIONS, INSURRECTIONS, WARS, ACT OF TRANSMISSION, OR ANY STRIKES
OR ANY OTHER CAUSES BEYOND ITS CONTROL.
2. A BANK WILL NOT UPON RESUMPTION OF ITS BUSINESS, HONOUR OR NEGOTIATE UNDER A CREDIT THAT EX
OF ITS BUSINESS
ARTICLE - 37 - DISCLAIMER OF ACTS OF AN INSTRUCTED PARTY
1. A BANK UTILIZING SERVICES OF ANOTHER BANK FOR THE PURPOSE OF GIVING EFFECT TO THE INSTRUCTIO
ACCOUNT AND RISK OF THE APPLICANT
2. A ISSUING BANK ASSUMES NO LIABILITY OR RESPONSIBILITY SHOULD THE INSTRUCTIONS IT TRANSMIT TO A
EVEN IF IT HAS TAKEN THE INITIATIVE, IN THE CHOICE OF THE ANOTHER BANK
3. A BANK INSTRUCTING ANOTHER BANK TO PERFORM SERVICES IS LIABLE FOR ANY COMMISSION, FEES, COS
WITH THAT INSTRUCTIONS
A CREDIT STATES THAT CHARGES ARE FOR THE ACCOUNT OF BENEFICIARY AND CHARGES CANNOT BE COLL
REMAIN LIABLE FOR PAYMMENT OF CHARGES
A CREDIT OR AMMENDMENT SHOULD NOT STIPULATE THAT THE ADVISING TOA BENEFICIARY IS CONDITIONAL
SCEOND ADVISING BANK OF ITS CHARGES
4. THE APPLICANT SHALL BE BOUND BY AND LIABLE TO INDEMNIFY A BANK AGAINST ALL OBLIGATIONS AND RE
BY FOREIGN LAWS AND USAGES
ARTICLE - 38 - TRANSFERABLE CREDITS
1. A BANK UNDER NO OBLIGATION TO TRANSFER A CREDIT EXCEPT TO THE EXTENT AND THE MANNER EXPRE
2. LC SHOULD CLEARLY STATE TRASFERABLE
3. WHOLE OR PART TRANSFER ALLOWED FORM 1ST BENEFICIARY TO 2ND BENEFICIARY
4. TRANSFERING BANK MEANS WHO TRANSFER THE CREDIT I.E NOMINATED BANK
5. AN ISSUING BANK MAY BE TRANSFERING BANK
6. TRANSFERED CREDIT MEANS THAT CREDIT WHICH IS MADE AVAILABLE BY TRANSFERING BANK TO SCEOND
7. UNLESS OTHERWISE AGREED AT THE TIME OF TRANSFER ALL CHARGES INCURRED IN RESPECT OF TRASFE
8. A CREDIT CAN BE TRANSFERED TO MORE THAN 1 2ND BENEFICIARIES, PARTIAL SHIPMENTS OR DRAWINGS
9. A TRANSFERED CREDIT CAN NOT BE TRANSFERED AT THE REQUEST OF 2ND BENEFICIARY TO SUBSIQUENT
10. ANY REQUEST OF TRANSFER MUST CLEARLY STATES THE CONDITIONS IN WHICH AMMENDMENT CAN BE T
11. IF A CREDIT IS TRANSFERED TO MORE THAN ONE 2ND BENEFCIARY, REJECTION OF AN AMMENDMENT BY O
ACCEPTANCE OF ANY OTHER BENEFICIARY.
12. THE TRANSFERED CREDIT MUST ACCURATELY REFLECT THE TERMS AND CONDITIONS OF CREDIT INCLUDI
13. THINGS CAN BE CHANGED WHILE TRANSFERING THE CREDIT
a. THE AMOUNT OF THE CREDIT
b. THE UNIT PRICE STATED THERE IN
c. THE EXPIRY DATE
d. THE PERIOD OF PRESENTATION
e. PERIOD OF SHIPMENT/LDS
f. PERCENTAGE OF INSURANCE COVER
g. THE NAME OF THE FIRST BENEFICIARY MAY BE SUBSTITUTED FOR THAT OF THE APPLICANT IN THE CREDIT
h. FIRST BENEFICIARIES INVOICE AND DRAFT WITH 2ND BENEFICIARIES INVOICE AND DRAFT
14. IF FAILS TO PRESENT ON DEMAND
15. PRESENTATION OF DOCUMENTS BY SCEOND BENEFICIARY MUST BE MADE TO TRANSFERRING BANK
ARTICLE - 39 - ASSIGNMENT OF PROCEEDS
IF LC IS NOT TRANSFERRABLE ASSIGNMENT OF PROCEEDS CAN BE DONE BUT NOT ASSIGNMENT OF RIGHT TO
ISBP - 745
PART 1- GENERAL GUIDELINES
1.ABBRIVIATIONS - GENERALLY ACCEPTED ABBRIVIATIONS MAY BE USED IN THE DOCUMENT IN SUBSTITUTION
INTERNATIONAL = INTL , COMPANY = CO , KILOGRAMS = KGS , KILOS = KOS , INDUSTRY = IND, LIMITED = LTD , M
A CREDIT THAT INCLUDES AN ABBRIVIATION IN THE TEXT ALLOW DOCUMENTS TO SHOW THE SAME ABBRIVIAT
SAME MEANING OR TO SHOW THE COMPLETE SPELING OF THE WORD OR VICE VERSA
2.COMMA AND SLASH- VIRGULES IE "/" MARKS, MAY RESULT IN DIFFERENT MEANINGS AND SHOULD NOT BE U
CONTEXT IS APPARENT, THIS WILL ALLOW USE OF ONE OR MORE OF THE OPTIONS. FOR EXAMPLE A CONDITIO
OR BLUE OR BLACK OR ANY COMBINATION
THE USE OF COMMA "," WHEN INDICATING A RANGE OF DATA IN THE CREDIT SUCH AS PORT OF LOADING OR D
DIFFERENT MEANINGS AND SHOULD NOT BE USED AS A SUBSTITUTE FOR A WORD. IF NEVER THE LESS A COM
ALLOW ONE OR MORE OF THE OPTIONS, FOR EXAMPLE WHEN A CREDIT ALLOWS PARTIAL SHIPMENT AND IND
"HAMBURG,ROTTERDAM, ANTWERP" WITH NO FURTHER CLARIFICATION THIS WILL MEAN ONLY HAMBURG ONL
OF THEM
3. CERTIFICATE SIGN - WHEN A CERTIFICATE, CERTIFICATION, DECLARATION OR STATEMENT IS REQUIRED BY
4 . CERTIFICATE DATE- WHEATHER A CERTIFICATE , CERTIFICATION, DECLARATION OR STATEMENT IS REQUIR
WORDING AND WORDING THAT APPEARS WITHIN THE DOCUMENTS
FOR EXAMPLE, IF A CREDIT REQUIRES A CERIFICATE ISSUED BY THE CARRIER THAT THE VESSEL IS NOT 25 YE
INDICATING
a. THE DATE OR YEAR THE VESSEL WAS BUILT AND SUCH DATE OR YEAR IS NOT MORE THAN 25 YEARS PRIOR
SHIPMENT WAS EFFECTED, IN WHICH CASE A DATE OF ISSUANCE IS NOT NECESSERY
b. THE WORDING AS STATED IN THE CREDIT, IN WHICH CASE THE DATE OF ISSUANCE IS REQUIRED, THEREBY
5. NO EXTRA CERTIFICATE REQUIRED- WHEN A CERTIFICATION, DECLARATION , STATEMENT APPEARS IN A DO
OR DATE WHEN THE CERTIFICATION DECLARATION OR STATEMENT APPEARS TO HAVE BEEN GIVEN BY SAME
FOR EXAMPLE, IF LC REQUIRES BENE TO CERTIFY THAT HE IS NOT BANNED IMPORTER BY GOVT OF AFRICA. B
ON PACKING LIST, THEN NO SEPARATE CERTIFICATE IS REQUIRED
6. COPY OF TRANSPORT DOCUMENT- WHEN A CREDIT REQUIRES COPY OF TRANSPORT DOCUMENT COVERED
OTHERWISE ACCORDING TO SUB-ARTICLE 14-F OTHER DOCUMENTS
COPY OF TRANSPORT DOCUMENT NOT CONFLICT WITH ANY DATA WITH OTHER DOCUMENT OR CREDIT. IF LC
COPY OF TRANSPORT DOCUMENT DOES NOT APPLY THE RULE OF OF 21 DAYS PRESENTATION OR ANY PRESE
THE BASIS OF DETERMINIG SUCH PRESENTATION IE BY DATE, ELSE THE EXPIRY DATE CAN BE MET UP TO EXP
7. CORRECTION- ANY CORRECTION IN A DOCUMENT ISSUED BY THE BENEFICIARY, WITH THE EXCEPTIONS OF
WHEN A DOCUMENT ISSUED BY BENEFICIARY HAS BEEN LEGALIZED OR CERTIFIED BY OTHER ENTITIES
ANY CORRECTION OF DATA IS TO BE AUTHENTICATED BY ATLEAST ONE OF THE ENTITIES THAT LEGALISED OR
SUCH AUTHENTICATION IS TO INDICATE THE NAME OF THE ENTITY AUTHENTICATING THE CORRECTION
EITHER BY USE OF A STAMP INCORPORATING ITS NAME OR BY ADDITION OF THE NAME OF AUTHENTICATING E
ACCOMPANIED BY ITS SIGNATURE OR INITIALS
ANY CORRECTION OF DATA IN A DOCUMENT OTHER THAN THE DOCUMENT ISSUED BY BENEFICIARY NEED TO
STAMPED,AUTHENTICATED AND SIGNED BY THE ENTITY OR AGENT OR PROXY (ON BEHAF OF ENTITY STATED)
IF CERIFICATE ISSUED BY OTHER THAN BENEFICIARY IS LEAGLISED THEN IT IS TO BE AUTHENTICATE BY ENTIT
ANY CORRECTION OF DATA IN A COPY DOCUMENT NEED NOT TO BE AUTHENTICATED
8.MORE THAN ONE OCRRECTION- WHEN A DOCUMENT OTHER THAN ONE ISSUED BY THE BENEFICIARY CONTA
TO BE AUTHENTICATED OR ONE AUTHENTICATION SHOULD BE THERE THAT STATES ITS FOR ALL CORRECTION
9. FONT SIZE AND STYLES- THE USE OF MULTIPLE TYPE STYLES, FONT SIZES , OR HANDWRITTING WITHIN THE
10. EVIDENCE OF RECEIPT- WHEN A CREDIT REQUIRES THE PRESENTAION OF A DOCUMENT AS EVIDENCE OF
TO A NAMMED OR DESCRIBED ENTITY IN FORM OF COURIER RECEIPT,CERTIFICATE OF POSTING. SUCH DOCUM
STATED IN THE CREDIT OR AS PER ARTICLE 14 F UCP NOT UNDER ARTICLE 25
11. a. EVEN WHEN A CREDIT DOES NOT EXPRESSLY REQUIRE - i) DRAFTS ARE TO INDICATE A DATE OF ISSUAN
OF ISSUANCE OR EFFECTIVENESS OF INSURANCE COVERAGE iii) ORIGINAL TRANSPORT DOCUMENTS SUBJEC
A DATE OF ISSUANCE, A DATED ON BOARD NOTATION, A DATE OF SHIPMENT, A DATE OF RECEIPT OF SHIPMEN
IN CHARGE OR A DATE OF PICK UP OR RECEIPT, AS APPLICABLE.
11. b. REFERANCE TO DOCUMENT DATE- A REQUIREMENT THAT A DOCUMENT, OTHER THAN A DRAFT, INSURA
BE DATED WILL BE SATISFIED BY THE INDICATION OF DATE OF ISSUANCE OR BY REFERANCE IN THE DOCUME
PART OF SAME PRESENTATION (FOR EXAMPLE BY WORDING THE DATE AS PER BILL OF LADING NUMBER XXX"
OR ITS AGENT) OR A DATE APPEARING ON A STIPULATED DOCUMENT INDICATING THE DATE OF OCCURANCE
INSPECTION BEING INDICATED ON AN INSPECTION CERTIFICATE THATDOES NOT CONTAIN A DATE OF ISSUANC
12. PRE SHIPMENT REQUIREMENT- A DOCUMENT, SUCH AS A CERTIFICATE OF ANALYSIS, INSPECTION CERTIF
THE DATE OF ISSUANCE LATER THAN DATE OF SHIPMENT. WHEN A CREDIT REQUIRES A PRE SHIPMENT CERT
INDICATION OF PRE SHIPMENT OR THE DATE OF SHIPMENT. WHEN A CREDIT REQUIRES A DOCUMENT DOES N
OF PRE SHIPMENT IT CAN BE AFTER SHIPMENT DATE
13. SIGNING DATE- WHEN A DOCUMENT INDICATING A DATE OF ISSUANCE AND LATER DATE OF SIGNING, DATE
14. BEFORE AND AFTER A SPECIFIC DATE - WHEN A CREDIT STATES BEFORE OR AFTER A SPECIFIC DATE FOR
i) NOT LATER THAN SHIPMENT DATE
ii) NOT LATER 2 DAYS PRIOR OR AFTER THE DATE OF SHIPMENT
iii) WITHIN 2 DAYS FROM THE DATE OF SHIPMENT MEANS BEFORE 2 DAYS OR AFTER 2 DAYS
15. FROM AND AFTER A DATE - WHEN USED TO DETERMINE A MATURITY DATE OR PERIOD OF PRESENTATION
THE DATE OF AN EVENT OR THE DATE OF DOCUMENT EXCLUDE THE DATE IN THE CALCULATION.
16. DATE FORMAT- DATE CAN BE EXPRESSED IN ANY FORMAT, IT IS RECOMENDED MOTH TO BE GIVEN IN WOR
17. BLANK FIELD - BANK FIELD OR BOX CAN BE BLANKED
18. NOT TRANSPORT DOCUMENT - DOCUMENTS COMMONLY USED IN RELATION TO TRANSPORTATION OF GOO
CARGO RECEIPT, FORWARDERS CERTIFICATE OF RECEIPT-SHIPMENT-TRANSPORT-CARG RECEIPT AND MATE
IN UCP 19-25 THESE DOCUMENTS ARE TO BE EXAMINED AS PER CREDIT OR AS PER UCP 14 F
FOR THESE DOCUMENTS CONDITION OF A CREDIT THAT PRESENTATION IS TO OCCUR WITHIN A CERTAIN NUM
WILL BE DISREGARDED AND PRESENTATION MAY BE MADE AT ANY TIME, BUT IN ANY EVENT NOT LATER THAN
BUT IF CREDIT REQUIRES PRESENTATION AFTER CERTAIN NUMBER OF DAYS AFTER ISSUANCE OF THE ABOVE
(EXAMPLE CARGO RECEIPT TO BE PRESENTED WITH IN 10 DAYS OF ISSUE)
THE DEFAULT PERIOD OF 21 DAYS IS NOT APPLICABLE FOR THESE ONLY APPLYS IF ORIGINAL TRASPORT DOC
19. THE EXPRESSIONS- " SHIPPING DOCUMENTS", "STALE DOCUMENTS ACCEPTABLE ", "THIRD PARTY DOCUME
"EXPORTING COUNTRY", SHIPPING COMPANY" AND "DOCUMENT ACCEPTABLE AS PRESENTED" SHOULD NOT B
IF THEY ARE USED AND THEIR MEANING IS NOT DEFINED IN THE CREDIT THEY SHALL HAVE THE FOLLOWING M
a. SHIPPING DOCUMENTS - ALL DOCUMENTS REQUIRED BY THE CREDIT, EXCEPT DRAFTS , TELE-TRANSMISSIO
CERTIFICATES OF POSTING EVIDENCING THE SENDING OF DOCUMENTS
b. STALE DOCUMENTS ACCEPTABLE - DOCUMENTS MAY BE PRESENTED LATER THAN 21 DAYS AFTER THE OF
LATER THAN EXPIRY DATE. THIS WILL ALSO APPLY WHEN THE CREDIT SPECIFIES A PERIOD FOR PRESENTATIO
c. "THIRD PARTY DOCUMENTS ACCEPTABLE" - ALL DOCUMENTS FOR WHICH THE CREDIT DO NOT INDICATE AN
OR ENTITY OTHER THAN THE BENEFICIARY
d. "THIRD PARTY DOCUMENTS NOT ACCEPTABLE" - HAS NO MEANING WILL BE DISGARDED
e. "EXPORTING COUNTRY" - THE COUNTRY WHERE THE BENEFICIARY IS DOMICILED OR THE COUNTRY OF ORIG
OR THE COUNTRY FROM WHICH SHIPMENT OR DISPATCH IS MADE
f. "SHIPPING COMPANY" - P WHEN USED IN THE CONTEXT OF THE ISSUER OF A CERTIFICATE, CERTIFICATION O
- ANY ONE OF FOLLOWING: CARRIER, MASTER OR WHEN A CHARTER PARTY BILL OF LADING IS PRESENTED, T
AN AGENT OF ANY ONE OF THE AFOREMENTIONED REGARDLESS OF WHEATHER IT ISSUED OR SIGNED THE P
g. "DOCUMENTS ACCEPTABLE AS PRESENTED"- SUBJECT TO WITHIN EXPIRY AND WITHIN LC AVAILABLE BALLA
FOR COMPLIANCE UNDER THE LC OR UCP, INCLUDING WHEATHER THEY ARE PRESENTED IN THE REQUIRED N
20. ISSUER OF DOUMENT- WHEN CREDIT REQUIRES DOCUMENTS TO BE ISSUED ON THE NAME OF THE ISSUER
IS NOT AVAILABLE IT SHOULD BE ISSUED IN COMPLETE AND SIGNED AND STAMPED
21. LANGUAGE OF THE CREDIT- WHEN A CREDIT STIPULATES THE LANGUAGE OF THE DOCUMENTS TO BE PRE
ARE TO BE IN THAT LANGUAGE. WHEN CREDIT IS SCILENT WITH RESPECT TO THE LANGUAGE DOCUMENTS TO
TWO OR MORE ACCEPTABLE LANGUAGES, A CONFIRMING BANK OR A NOMINATED BANK ACTING ON ITS NOMIN
LANGUAGES AS A CONDITION OF IS INVOLVEMENT IN THE CREDIT, IN SUCH CASE THE DATA CONTAINED IN TH
LANGUAGE OR LANGUAGES. IF ACCEPTS SCRUTINY TO BE DONE IN ALL THE LANGUAGES. BANK DO NOT EXAM
THAT IS ADDITIONAL TO THAT REQUIRED OR ALLOWED IN THE CREDIT. BUT NAME OF THE PERSON OR ENTITY
AND THE PRE-PRINTED TEXT SHOWN ON A DOCUMENT OR HEADINGS MAY BE IN LANGUAGE OTHER THAT THE
22. MATHEMATICAL CALCULATIONS- WHEN THE PRESENTED DOCUMENTS INDICATES MATHEMATICAL CALCUL
OF CRITERIA SUCH AS AMOUNT QUANTITY,WEIGHT OR NUMBER OF PACKAGES DOES NOT CONFLICT WITH THE
23. MISSPELLING OR TYPING ERRORS - A MISSPELLING OR TYPING ERROR THAT DOES NOT EFFECT THE MEA
MAKE A DOCUMENT DISCRIPANT. FOR EXAMPLE, A DESCRIPTION OF THE GOODS SHOWN AS "MASHINE" INSTE
NOT BE REGARDED AS CONFLICT OF DATA UNDER UCP. HOWEVER, A DESCRIPTION SHOWN AS, "MODEL 123" I
OF DATA.
24. MULTIPLE PAGES AND ATTACHMENTS OR RIDERS- WHEN A DOCUMENT CONSIST OF MORE THAN ONE PAG
OF THE SAME DOCUMENT. UNLESS A DOCUMENT PROVIDES OTHERWISE, PAGES WHICH ARE PHYSICALLY BO
INTERNAL CROSS REFERANCES, HOWEVER NAMED OR TITLED WILL MEET THIS REQUIREMENT AND ARE TO BE
ARE REGARDED AS AN ATTACHMENT OR RIDER.
25.SIGNATURE OR ENDORSEMENT- WHEN A SIGNATURE OR ENDORSEMENT IS REQUIRED TO BE ON A DOCUM
OR THE DOCUMENT ITSELF DOES NOT INDICATE WHERE A SIGNATURE OR ENDORSEMENT IS TO APPEAR, THE
ON THE DOCUMENT
26. NON DOCUMENTARY CONDITION AND CONFLICT OF DATA - WHEN A CREDIT CONTAINS A CONDITION WITH
THEREWITH, (NON DOCUMENTARY CONDITION), COMPLIANCE WITH SUCH CONDITION NEED NOT BE EVIDENCE
ON ANY STIPULATED DOCUMENT. HOWEVER, DATA CONTAINED IN A STIPULATED DOCUMENT ARE NOT TO BE
EXAMPLE, WHEN A CREDIT INDICATES "PACKING IN WOODEN CASES". A DOCUMENT CONSISTING STATEMENT
27. ORIGINALS AND COPIES - A DOCUMENT BEARING AN APPARENTLY ORIGINAL SIGNATURE, MARK , STAMP O
ORIGINAL UNLESS IT STATES THAT IT IS A COPY. BANK DOES NOT DETERMINE WHEATHER SUCH A SIGNATURE
A MANUAL OR FACSIMILE FORM AND AS SUCH ANY DOCUMENT BEARING SUCH METHOD OF AUTHENTICATION
28. ORIGINAL DOCUMENT -DOCUMENTS ISSUED IN MORE THAN ONE ORIGINAL MAY BE MARKED "ORIGINAL" "D
WILL DIQUALIFY TO CONSIDER THAT DOCUMENT AS ORIGINAL.
29. NUMBER OF DOCUMENTS - THE NUMBER OF ORIGINALS TO BE PRESENTED IS TO BE AT LEAST THE NUMBE
WHEN A TRANSPORT DOCUMENT OR INSURANCE DOCUMENT INDICATES HOW MANY ORIGINALS HAVE BEEN IS
DOCUMENT IS TO BE PRESENTED, EXCEPT AS STATED IN H12 AND J7. WHEN A CREDIT REQUIRES PRESENTAT
DOCUMENTS, EXAMPLE 2/3 ORIGINAL BILL OF LADING, BUT DOES NOT PROVIDE ANY DISPOSAL INSTRUCTIONS
PRESENTATION MAY INCLUDE 3/3 ORIGINAL BILL OF LADING.
WHEN A CREDIT REQUIRES FOR EXAMPLE INVOICE, ONE INVOICE, INVOICE IN 1 COPY, INVOICE-1 COPY, IT WIL
ORIGINAL INVOICE.
WHEN INVOICE IN 4 COPIES OR INVOICE IN 4 FOLD WILL BE SATISFIED BY THE PRESENTATION OF ONE ORIGIN
PHOTOCPY OF INVOICE OR COPY OF INVOICE WILL BE SATISFIED BY THE PRESENTATION OF EITHER A PHOTO
PHOTOCOPY OF A SIGNED INVOICE WILL BE SATISFIED BY THE PRESENTATION OF EITHER OF PHOTOCOPY OR
OR WHEN NOT PROHIVITED A SIGNED ORIGINAL INVOICE
30. COPY REQUIRED NOT ORIGINAL- WHEN A CREDIT PROHIBITS THE PRESENTATION OF AN ORIGINAL DOCUM
NVOICE - ORIGINAL DOCUMENT NOT ACCEPTABLE IN LIEU OF PHOTOCOPY OR THE LIKE, ONLY A PHOTOCOPY
TO BE PRESENTED WHEN A CREDIT REQUIRES COPY OF TRANSPORT DOCUMENT AND DISPOSAL INSTRUCTIO
NO ORIGINAL TRANSPORT TO BE REQUIRED
31. SIGNING REQUIREMENT - ORIGINAL DOCUMENTS ARE TO BE SIGNED WHEN REQUIRED BY THE CREDIT, TH
OR UCP 600
COPIES OF DOCUMENTS NEED NOT BE SIGNED NOR DATED
32. SHIPPING MARK CREDIT DETAILS- WHEN A CREDIT SPECIFIES THE DETAILS OF A SHIPPING MARK, DOCUME
TO SHOW THOSE DETAILS.THE DATA IN A SHIPPING MARK INDICATED ON A DOCUMENT NEED NOT BE IN THE S
OR IN ANY OTHER DOCUMENT NEED NOT BE IN THE SAME SEQUENCE AS THOSE SHOWN IN THE CREDIT OR IN
33.SHIPPING MARK ADDITIONAL TEXT - A SHIPPING MARK INDICATED ON A DOCUMENT MAY SHOW DATA IN EX
CONSIDERED A "SHIPPING MARK" BY THE ADDITION OF INFORMATION SUCH AS, THE TYPE OF GOODS, WARNIN
OF FRAGILE GOODS OR NET AND GROSS WEIGHT OF THE GOODS
34. SHIPPING MARK CONFLICT OF DATA- TRANSPORT DOCUMENTS COVERING CONTAINERIZED GOODS OFTEN
A SEAL NUMBER, UNDER THE HEADING " SHIPPING MARK" OR SIMILAR. OTHER DOCUMENTS THAT SHOW A MO
THAT REASON.
THE FACT THAT SOME DOCUMENTS SHOW ADDITIONAL INFORMATION AS MENTIONED IN PARAGRAPH A33 AND
CONFLICT OF DATA AS PER UCP 14 D
35. SIGNATURES- A SIGNATURE AS REFFERED TO IN PARAGRAPH A31 NEED NOT BE HANDWRITTEN. DOCUMEN
(FOR EXAMPLE, A PRE PRINTED OR SCANNED SIGNATURE) PERFORATED SIGNATURE, STAMP, SYMBOL (FOR E
METHOD OF AUTHENTICATION.
A REQUIREMENT FOR A DOCUMENT TO BE "SIGNED AND STAMPED" OR A SIMILAR REQUIREMENT IS SATISFIED
OF THE SIGNING ENTITY TYPED, STAMPED, HAND WRITTEN, PRE-PRINTED OR SCANNED ON THE DOCUMENT E
A STATEMENT ON A DOCUMENT SUCH AS " THIS DOCUMENT HAS BEEN ELECTRONICALLY AUTHENTICATED" OR
MEANS AND REQUIRES NO SIGNATURE OR WORDS OF SIMILAR EFFECT DOES NOT, BY ITSELF REPRESENT AN
WITH THE SIGNATURE REQUIREMENTS OF UCP ARTICLE 3.
A STATEMENT ON A DOCUMENT INDICATING THAT AUTHENTICATION MAY BE VERIFIED OR OBTAINED THROUG
A FORM OF ELECTRONIC METHOD OF ELECTRONIC METHOD OF AUTHENTICATION IN ACCORDANCE WITH THE
NOT ACCESS SUCH WEBSITES TO VERIFY OR OBTAIN AUTHENTICATION
36. SIGNATURES 2- A SIGNATURE ON THE LETTERHEAD PAPER OF A NAMED PERSON OR ENTITY IS CONSIDER
UNLESS OTHERWISE STATED. THE NAMED PERSON OR ENTITY NEED NOT BE REPEATED NEXT TO THE SIGNAT
WHEN A SIGNATORY INDICATES IT IS SIGNING FOR OR ON BEHALF OF A BRANCH OF THE ISSUER, THE SIGANT
37- SIGNATURE -3- THE FACT THAT A DOCUMENT HAS A BOX, FIELD OR SPACE FOR A SIGNATURE DOES NOT IN
COMPLETED WITH A SIGNATURE. FOR EXAMPLE, A SIGNATURE IS NOT REQUIRED IN THE SPACE TITLED " SIGN
ON AN AIRWAYBILL OR "SIGNATURE OF SHIPPER" ON A ROAD TRANSPORT DOCUMENT.
38. SIGNATURE - 4 - WHEN A DOCUMENT INCLUDES WORDING SUCH AS " THIS DOCUNENT IS NOT VALID UNLES
OR ENTITY " OR WORDS OF SIMILAR EFFECT THE APPLICABLE BOX, FIELD OR SPACE IS TO CONTAIN A SIGNAT
IS COUNTERSIGNING THE DOCUMENTS
39. TITLE OF DOCUMENTS - DOCUMENTS MAY BE TITLED AS CALLED FOR IN THE CREDIT, BEAR A SIMMILAR TIT
MUST APPEAR TO FULLFILL THE FUNTION OF THE REQUIRED DOCUMENT. FOR EXAMPLE - A REQUIREMENT FO
CONTAINING PACKING DETAILS WHEATHER IT IS TITLED " PACKING LIST", "PACKING NOTE" "PACKING AND WEI
40. SEPARATE DOCUMENTS-DOCUMENTS REQUIRED BY A CREDIT ARE TO BE PRESENTED AS SEPARATE DOC
FOR AN ORIGINAL PACKING LIST AND AN ORIGINAL WEIGHT LIST WILL ALSO BE SATISFIED BY THE PRESENTAT
AND WEIGHT LIST, PROVIDED THAT SUCH DOCUMENT STATE BOTH PACKING AND WEIGHT DETAILS
41. MORE THAN ONE FUNCTION - A DOCUMENT REQUIRED BY A CREDIT THAT IS TO COVER MORE THAN ONE F
OR SEPARATE DOCUMENTS THAT APPEAR TO FULLFILL EACH FUNCTION. FOR EXAMPLE, REQUIREMENT OF CE
BY A PRESENTATION OF A SINGLE DOCUMENT OR BY SEPARATE DOCUMENT
PART - 2 - BILL OF EXCHANGE
1. BASIC REQUIREMENT - A DRAFT WHEN REQUIRED TO BE DRAWN ON THE BANK STATED IN THE CREDIT. BAN
ADRAFT CAN BE ENDORSED, IF NECESSERY.
2. TENOR-
i) THE TENOR STATED ON A DRAFT IS TO BE IN ACCRDANCE WITH THE TERMS OF THE CREDIT.
ii) WHEN A CREDIT REQUIRES A DRAFT TO BE DRAWN AT A TENOR OTHER THAN SIGHT OR
CERTAIN PERIOD AFTER SIGHT, IT MUST BE POSSIBLE TO ESTABLISH THE MATURITY DATE FROM THE DATA IN
iii) WHEN A CREDIT CALLS FOR DRAFT AT A TENOR 60 DAYS AFTER BILL OF LADING DATE AND WHEN THE DAT
" 60 DAYS AFTER BL DATE 13 MAY 2013" OR "60 DAYS AFTER 14 TH MAY 2013" OR "60 DAYS AFTER BL DATE" AN
WHEN BL DATE= DRAFT DATE OR "13 JULY 2013" IE 60 DAYS FROM BL DATE.
iv) WHEN THE TENOR REFERS TO, 60 DAYS FROM BL DATE MEANS ON BOARD DATE NOT BL ISSUE DATE. THE W
MATURITY DATES OF DRAFTS SIGNAFY THAT THE CALCULATION OF MATURITY DATE COMMENCES THE DAY FO
THE DATE OF AN EVENT STIPULATED IN THE CREDIT. FOR EXAMPLE, 10 DAYS AFTER OR FROM 4 MAY IS 14 MA
v) THE WORD FROM AND AFTER WHEN USED TO DETERMINE MATURITY DATES OF DRAFTS SIGNIFY THAT THE
FOLLOWING THE DATE OF THE DOCUMENT, SHIPMENT OR THE DATE OF AN EVENT STIPULATED IN THE CREDIT
vi) WHEN A CREDIT REQUIRES A BL AND DRAFTS ARE TO BE DRAWN, FOR EXAMPLE, AT 60 DAYS FROM OR AFT
UNLOADING AND RELOADING OF THE GOODS FROM ONE VESSEL TO ANOTHER AND SHOWING MORE THAN ON
SHIPMENT WAS EFFECTED, FROM A PORT WITHIN A PERMITTED GEOGRAPHICAL AREA OR RANGE OF PORTS,
CALCULATION OF THE MATURITY DATE. FOR EXAMPLE, A CREDIT REQUIRES SHIPMENT FROM ANY EUROPEAN
"A" FROM DUBLIN ON 14 MAY, WITH TRANSHIPMENT EFFECTED ON BOARD VESSEL "B" FROM ROTTERDAM ON 1
THE EARLIEST ON BOARD DATE IN EUROPEAN PORT I.E 14 MAY.
vii) WHEN A CREDIT REQUIRES A BILL OF LADING AND DRAFT ARE TO BE DRAWN FOR EXAMPLE AT 60 DAYS AF
OF BILL OF LADING IS PRESENTED UNDER ONE DRAFT. THE ON BOARD DATE OF THE LATEST BILL OF LADING W
3.MATURITY DATE- WHEN A DRAFT STATES A MATURITY DATE BY USING AN ACTRUAL DATE, THAT DATE IS TO
i)FOR DRAFT DRAWN FOR EXAMPLE " AT 60 DAYS SIGHT" , THE MATURITY DATE IS ESTABLISHED AS FOLLOWS
IN CASE OF A COMPLYING PRESENTATION, THE MATURITY DATE WILL BE 60 DAYS AFTER THE DAY OF PRESEN
I.E THE ISSUING BANK, CONFIRMING BANK OR A NOMINATED BANK THAT AGREES TO ACT ON ITS NOMINATION
IN THE CASE OF A NON-COMPLYING PRESENTATION
ii) WHEN SUCH DRAWEE BANK HAS NOT PROVIDED ANOTICE OF REFUSAL THE MATURITY DATE WILL BE 60 DAY
iii) WHEN THE DRAWEE BANK IS THE ISSUING BANK AND IT HAS PROVIDED A NOTICE OF REFUSAL AT THE LATE
WAIVER OF THE APPLICANT
iv) WHEN THE DRAWEE BANK IS A BANK OTHER THAN ISSUING BANK AND IT HAS PROVIDED A NOTICE OF REFU
ADVICE OF THE ISSUING BANK, THE UNDERTAKING TO HONOUR ON THE DUE DATE IS THAT OF THE ISSUING B
v)THE DRAWEE BANK IS TO ADVISE OR CONFIRM THE MATURITY DATE OF THE PRESENTER
vi) THE METHOD OF CALCULATION OF TENOR AND MATURITY DATES AS SHOWN ABOVE, ALSO APPLIES TO A C
NEGOTIATION I.E WHEN THERE IS NO REQUIREMENT FOR A DRAFT TO BE PRESENTED BY THE BENEFICIARY.
4. BANKING DAYS, GRACE DAYS , DELAY IN REMITTANCE - PAYMENT IS TO BE ON DUE DATE AT PLACE WHERE
DUE DATE IS A BANKING DAY IN THAT PLACE. WHEN THE DUE DATE IS A NON BANKING DAY, PAYMENT IS DUE
THE REMITTANCE OF FUNDS FOR EXAMPLE, GRACE DAYS - THE TIME IT TAKES TO REMIT FUNDS ETC, ARE NO
AS DEFINED BY THE DRAFT OR DOCUMENTS
5. DRAWING AND SIGNING -
i) A DRAFT IS TO BE DRAWN AND SIGNED BY THE BENEFICIARY AND TO INDICATE A DATE OF ISSUANCE.
ii) WHEN THE BENEFICIARY OR SCEOND BENEFICIARY HAS CHANGED ITS NAME AND THE CREDIT MENTIONS TH
NEW ENTITY PROVIDED THAT IT INDICATES "FORMALY KNOWN AS OLD NAME" OR WORDS OF SIMILAR EFFECT
iii) WHEN A CREDIT INDICATES THE DRAWEE OF A DRAFT BY ONLY STATING THE SWIFT ADDRESS OF THE BANK
OR THE FULL NAME OF THE BANK
iv) WHEN CREDIT IS AVAILABLE BY NEGOTIATION WITH A NOMINATED BANK OR ANY BANK, THE DRAFT IS TO BE
v) WHEN A CREDIT IS AVAILABLE BY ACCEPTANCE WITH ANY BANK, THE DRAFT IS TO BE DRAWN ON THE BANK
TO ACT ON ITS NOMINATION
vi) WHEN A CREDIT IS AVAILABLE BY ACCEPTANCE WITH A NOMINATED BANK OR ANY BANK AND THE DRAFT IS
CONFIRMING BANK ) AND IT DECIDES NOT TO ACT ON ITS NOMINATION, THE BENEFICIARY MAY CHOSE TO-
a.DRAW A DRAFT ON THE CONFIRMING BANK, IF ANY OR REQUEST THAT THE PRESENTATION BE FORWARDED
b. PRESENT THE DOCUMENT TO ANOTHER BANK THAT AGREES TO ACCEPT THE DRAFT DRAWN ON IT AND THE
CREDIT IS AVAILABLE WITH ANY BANK)
c. REQUEST THAT THE PRESENTATION BE FORWARDED TO THE ISSUING BANK IN THE FORM AS PRESENTED W
vi) WHEN A CREDIT IS AVAILABLE BY ACCEPTANCE WITH A CONFIRMING BANK AND THE DRAFT IS TO BE DRAW
NON-COMPLYING AND IT DECIDES NOT TO REINSTATE ITS CONFIRMATION, THE BENEFICIARY MAY REQUEST T
BANK IN THE FORM AS PRESENTED, WITH OR WITHOUT A DRAFT DRAWN ON THE ISSUING BANK.
6.AMOUNTS- A DRAFT TO BE DRAWN FOR THE AMOUNT DEMANDED UNDER THE PRESENTATION. THE AMOUNT
WHEN BOTH ARE SHOWN AND INDICATE THE CURRENCY AS STATED IN THE CREDIT. WHEN THE AMOUNT IN W
IS TO BE EXAMINED AS THE AMOUNT DEMANDED.
7. CORRECTION AND ALTERATION- ANY CORRECTION OF DATA ON A DRAFT IS TO APPEAR TO HAVE BEEN AUT
OR INITIALS OF THE BENEFICIARY. WHEN NO CORRECTION OF DATA IS ALLOWED IN A DRAT, AN ISSUING BANK
8. DRAFT DRAWN ON APPLICANT- A CREDIT MUST NOT BE ISSUED AVAILABLE BY A DRAFT DRAWN ON THE APP
OF A DRAFT ON THE APPLICANT AS ONE OF THE REQUIRED DOCUMENTS , IT IS TO BE EXAMINED ONLY TO THE
ACCORDING TO UCP 14 F.
PART-3- INVOICE
1. TITLE OF INVOICE- WHEN A CREDIT REQUIRES PRESENTATION OF AN "INVOIVE" WITHOUT FURTHER DESCRI
OF INVOICE( COMMERCIAL INVOICE, CUSTOMS INVOICE, TAX INVOICE , FINAL INVOICE, CONSULAR INVOICE ET
OR THE LIKE.
2.COMMERCIAL INVOICE- WHEN A CREDIT REQUIRES PRESENTATION OF A "COMMERCIAL INVOICE" THIS WILL
INVOICE EVEN WHEN SUCH DOCUMENT CONTAINS A STATEMENT THAT IT HAS BEEN ISSUED FOR TAX PURPOS
3.ISSUER OF AN INVOICE- AN INVOICE IS TO APPEAR TO HAVE BEEN ISSUED BY THE BENEFICIARY OR IN THE C
WHEN THE BENEFICIARY OR SCEOND BENEFICIARY HAS CHANGED ITS NAME AND THE CREDIT MENTIONS THE
"FORMALY KNOWN AS OLD NAME" OR WORDS OF SIMILAR EFFECT
4.DESCRIPTION OF GOODS, SERVICES OR PERFORMANCE AND OTHER GENERAL ISSUES RELATED TO INVOIC
i) THE DESCRIPTION OF THE GOODS, SERVICES OR PERFORMANCE SHOWN ON THE INVOICE IS TO CORRESPO
REQUIREMENT FOR A MINOR IMAGE. FOR EXAMPLE, DETAILS OF THE GOODS MAY BE STATED IN A NUMBER O
REPRESENT A DESCRIPTION OF THE GOODS CORRESPONDING TO THAT OF THE CREDIT.
ii) THE DESCRIPTION OF GOODS, SERVICES OR PERFORMANE ON AN INVOICE IS TO REFLECT WHAT HAS ACTR
WHEN THE GOODS DESCRIPTION IN THE CREDIT INDICATES A REQUIREMENT FOR SHIPMENT OF "10 TRUCKS
AN INVOICE MAY INDICATE SHIPMENT OF ONLY 4 TRUCKS PROVIDED THAT THE CREDIT DID NOT PROHIBIT PAR
BEEN SHIPPED(4 TRUCKS) MAY ALSO CONTAIN THE DESCRIPTION OF THE GOODS STATED IN THE CREDIT I.E 1
iii) AN INVOICE SHOWING A DESCRIPTION OF THE GOODS, SERVICES OR PERFORMANCE THAT CORRESPONDS
IN ESPECT OF THE GOODS, SERVICES OR PERFORMANCE PROVIDED THAT THEY DO NOT APPEAR TO REFFER
GOODS AS " IMITATION SUEDE SHOES" OR WHEN THE CREDIT REQUIRES " HYDRAULIC DRILLING RIG" BUT THE
DRILLING RING", THESE DESCRIPTION WOULD REPRESENT A CHANGE IN NATURE, CLASSIFICATION OR CATEG
iv) AN INVOICE IS TO INDICATE-
a) THE VALUE OF THE GOODS SHIPPED OR DELIVERED OR SERVICES OR PERFORMANCE PROVIDED.
b) UNIT PRICES WHEN STATED IN THE CREDIT.
c) THE SAME CURRENCY AS THAT SHOWN IN THE CREDIT.
d) ANY DISCOUNT OR DEDUCTION REQUIRED BY THE CREDIT.
v) AN INVOICE MAY INDICATE A DEDUCTION COVERING ADVANCE PAYMENT, DISCOUNT ETC, THAT IS NOT STAT
vi) WHEN A TRADE TERM IS STATED AS PART OF THE GOODS DESCRIPTION IN THE CREDIT, AN INVOICE IS TO I
TERM IS STATED, THE SAME SOURSE IS TO BE INDICATED. FOR EXAMPLE, A TRADE TERM INDICATED IN THE C
ON AN INVOICE AS "CIF SINGAPORE" OR "CIF SINGAPORE IMCOTERMS". HOWEVER, WHEN A TRADE TERM IS ST
INCOTERMS 2010" OR ANY OTHER REVISION.
vii) ADDITIONAL CHARGES AND COSTS, SUCH AS THOSE RELATED DOCUMENTATION, FREIGHT OR INSURANCE
THE STATED TRADE TERM ON THE INVOICE.
viii) AN INVOICE NEED NOT BE SIGNED OR DATED.
ix) ANY TOTAL QUANTITY OF GOODS AND THEIR WEIGHT OR MEASUREMENT SHOWN ON THE INVOICE IS NOT T
x) AN INVOICE IS NOT TO INDICATE:
a. OVER-SHIPMENT( EXCEPT AS PROVIDED IN UCP 30-B)
b. GOODS, SERVICES OR PERFORMANCE NOT CALLED FOR IN THE CREDIT. THIS APPLIES EVEN WHEN THE INV
SERVICES OR PERFORMANCE AS REQUIRED BY THE CREDIT OR SAMPLES AND ADVERTISING MATERIAL AND A
xi) CREDIT NOT MENTIONED TOLLERANCE BUT INVOICE MENTIONED 5% TOLLERANCE ON QUANTITY ALLOWED
OR STATES THAT QUANTITY IN TERMS OF STIPULATED NUMBER OF PACKING UNITS OR INDIVIDUAL ITEMS.
BUT NOT ALLOWED FOR AMOUNT.
xi) WHEN NO QUANTITY OF GOODS IS STATED IN THE CREDIT, AND PARTIAL SHIPMENTS ARE PROHIBITED, AN
AMOUNT WILL BE CONSIDERED TO COVER THE FULL QUANTITY AND NOT A PARTIAL SHIPMENT.
5.INSTALLMENT DRAWINGS OR SHIPMENTS-
WHEN A DRAWINGS OR SHIPMENTS BY INSTALLMENTS WITHIN GIVEN PERIODS IS STIPULATED IN THE CREDIT
PERIOD ALLOWED FOR THAT INSTALLMENT, THE CREDIT CEASES TO BE AVAILABLE FOR THAT AND ANY SUBSE
OF DATES OR TIMELINES THAT DETERMINE A START AND END DATE FOR EACH INSTALLMENT. FOR EXAMPLE,
IN APRIL IS AN EXAMPLE OF TWO PERIODS OF TIME THAT START ON 1 MARCH AND 1 APRIL AND ENDS ON 31 M
WHEN PARTIAL DRAWINGS OR SHIPMENTS ARE ALLOWED, ANY NUMBER OF DRAWINGS OR SHIPMENTS IS PER
WHEN A CREDIT INDICATES A DRAWING OR SHIPMENT SCHEDULE BY ONLY INDICATING A NUMBER OF LATEST
32 WILL NOT APPLY. THE PRESENTATION IS TO OTHERWISE COMPLY WITH ANY INSTRUCTIONS IN RESPECT OF
WHEN PARTIAL DRAWINGS OR SHIPMENTS ARE ALLOWED, ANY NUMBER OF DRAWINGS OR SHIPMENTS IS PER
PART - 4 - TRANSPORT DOCUMENT -MULTIMODAL / BILL OF LADING / NON NEGOTIABLE BILL OF LADING/ AIRW
1.APPLICATION- A REQUIREMENT IN A CREDIT FOR THE PRESENTATION OF A TRANSPORT DOCUMENT, HOWEV
AT LEAST TWO DIFFERENT MODES OF TRANSPORT MEANS MULTIMODAL TRANSPORT DOCUMENT.
WHEN PORT TO PORT (IN CASE OF AWB AIRPORT TO AIRPORT)SHIPMENT AND THERE IS NO REFERANCE TO P
OR FINAL DESTINATION MEANS ITS BILL OF LADING.
A REQUIREMENT IN A CREDIT FOR THE PRESENTATION OF A TRASPORT DOCUMENT COVERING MOVEMENT O
MEANS THAT UCP600 ARTICLE 24 IS TO BE APPLIED IN THE EXAMINATION OF THAT DOCUMENT.
2. MODE OF TRANSPORT INDICAION IN MULTIMODAL OR COMBINED TRANSPORT DOCUMENT- IS NOT TO INDIC
BY ONLY ONE MODE OF TRANSPORT, BUT IT MAY BE SILENT REGARDING SOME OR ALL OF THE MODES OF TR
3. INDICATION OF CHARTER PARTY- A TRANSPORT DOCUMENT IS NOT TO CONTAIN ANY INDICATION OF A CHA
A TRANSPORT DOCUMENT HOWEVER NAMED CONTAINING ANY INDICATION THAT IT IS SUBJECT TO, OR ANY R
A CHARTER PARTY BILL OF LADING.
A TRANSPORT DOCUMENT, HOWEVER NAMED, INDICATING EXPRESSIONS SUCH AS "FREIGHT PAYABLE AS PE
A DATE) OR "FREIGHT PAYABLE AS PER CHARTER PARTY" WILL BE AN INDICATION THAT IT IS SUBJECT TO CHA
A TRANSPORT DOCUMENT , HOWEVER NAMED, CONTAINING A CODE NAME OR FORM NAME USUALLY ASSOSIA
"CONGENBILL" OR "TANKER BILL OF LADING" WITHOUT ANY FURTHER INDICATION OR REFERANCE TO A CHART
OR REFERANCE TO, A CHARTER PARTY.
4. PORT WITH INLAND PLACE FOR MULTIMODAL TRANSPORT DOCUMENT - WHEN A CREDIT REQUIRES THE PR
AND IT IS CLEAR FROM THE ROUTING OF THE GOODS STATED IN THE CREDIT THAT MORE THAN ONE MODE OF
IS TO BE UTILIZED, FOR EXAMPLE WHEN PORT OF LOADING AND PLACE OF LOADING, PORT OF DISCHARGE AN
IN FACT AN INLAND PLACE AND NOT A PORT UCP ARTICLE 19 WILL BE APPLIED.
5. HEADING NOT REQUIRED - IN ALL PLACES WHERE THE TERM " MULTIMODAL TRANSPORT DOCUMENT" OR "C
IS NOT NECESSERY TO INCLUDE THIS WORDINGS OR HEADINGS IN THE DOCUMENT.
WHEN A BILL OF LADING NEED NOT BE TITLED "MARINE BILL OF LADING" , "OCEAN BILL OF LADING", "PORT TO
NO SUCH WORDING REQUIRED IN THE DOCUMENT.
AIR TRANSPORT DOCUMENT NEED NOT BE TITLED "AIRWAY BILL", "AIR CONSIGNMENT NOTE", OR WORDS OF S
REQUIRED DOCUMENT.
6. ISSUED BY ANY ANTITY- A TRANSPORT DOCUMENT MAY BE ISSUED BY ANY ENTITY OTHER THAN A CARRIER
THAT IT MEETS THE REQUIREMENTS OF UCP
7.SIGNATURE-
i) SIGNING CAPACITY- WHEN A CREDIT INDICATES "FREIGHT FORWARDERS TRANSPORT DOCUMENT IS ACCEP
IS ACCEPTABLE" OR WORDS OF SIMILAR EFFECT, A DOCUMENT MAY BE SIGNED BY ISSUING ENTITY WITHOUT
TO INDICATE THE CAPACITY IN WHICH IT HAS BEEN SIGNED OR THE NAME OF THE CARRIER
ii) CREDIT MENTIONS EXAMINATION PROCESS- A STIPULATION IN A CREDIT THAT "FREIGHT FORWARDERS TRA
OR "HOUSE TRANSPORT DOCUMENTS ARE NOT ACCEPTABLE" OR WORD WITH SIMILAR EFFECT HAS NO MEAN
SPECIFIC REQUIREMENTS DETAILING HOW DOCUMENT IS TO BE ISSUED AND SIGNED. IN THE ABSENCE OF TH
IS TO BE DISGARDED, AND THE TRANSPORT DOCUMENT PRESENTED IS TO BE EXAMINED ACCORDING TO THE
iii) CARRIER SIGNATURE- A MULTIMODAL TRANSPORT DOCUMENT TO BE SIGNED IN THE FORM DESCRIBED IN U
WHEN A MULTIMODAL TRANSPORT DOCUMENT IS SIGNED BY A NAMED BRANCH OF THE CARRIER, THE SIGNAT
iv) CARRIER AGENT SIGNATURE- WHEN AN AGENT SIGNS A MULTIMODAL TRANSPOT DOCUMENT ON BEHALF O
TO INDICATE THAT IT IS SIGNING AS " AGENT FOR (NAME) , THE CARRIER" OR AS "AGENT ON BEFALF OF THE C
v) MASTER SIGNATURE- WHEN THE MASTER (CAPTAIN) SIGNS A MULTIMODAL TRANSPORT DOCUMENT, THE SI
IDENTIFIED AS THE MASTER/CAPTAIN. THE NAME OF THE MASTER/CAPTAIN NEED NOT BE STATED.
vi) MASTER AGENT SIGNATURE- WHEN AN AGENT SIGNS A MULTIMODAL TRANSPORT DOCUMENT ON BEHALF O
NAMED AND IN ADDITION TO INDICATE THAT IT IS SIGNING AS " AGENT FOR THE MASTER/CAPTAIN OR AGENT
OF SIMILAR EFFECT. THE NAME OF THE MASTER/CAPTAIN NEED NOT BE STATED.
vii) A CHARTER PARTY BILL OF LADING IS TO BE SIGNED ONLY BY THE MASTER, OWNER/CHARTER OR THEIR A
viii) MASTER IS NOT APPLICABLE FOR AIRWAY BILL. AND THE CARRIER IS TO BE IDENTIFIED BY ITS NAME INSTE
AIRWAYS INSTEAD OF BA, LUFTHANSA OF LH.
14.DATE OF SHIPMENT-
1. AN AIR TRANSPORT DOCUMENT IS TO INDICATE THAT THE GOODS HAVE BEEN ACCEPTED FOR CARRIGE OR
2. FOR AIR TRANSPORT DOCUMENT DATE OF ISSUANCE OR NOTATION OF ACTRUAL DATE OF SHIPMENT IS TH
ANY OTHER INFORMATION APPEARING ON AN AIR TRANSPORT DOCUMENT FOR EXAMPLE- IN A BOX LABELED
"OR ROUTING AND DESTINATION" IS TO BE DISGARDED IN DETERMINATION OF THE DATE OF SHIPMENT.
2. THE ISSUANCE DATE OF A TRANSPORT DOCUMENT WILL BE DEEMED TO BE - THE DATE OF RECEIPT, DISPAT
OR SHIPMENT ON BOARD FROM THE PLACE, PORT OR AIRPORT STATED IN THE CREDIT. IN THE LATEST EVENT
THE DATE OF SHIPMENT, WHEATHER THAT DATE IS BEFORE OR AFTER THE ISSUANCE DATE OF THE TRANSPO
DATED NOTATION MAY ALSO BE INDICATED IN THE DESIGNATED FIELD OR BOX.
3. WHEN A PRE-PRINTED "SHIPPED ON BOARD" BILL OF LADING IS PRESENTED, ITS ISSUANCE DATE WILL BE D
BEARS A SEPARATE DATED ON BOARD NOTATION. THE ON BOARD DATE MAY ALSO BE INDICATED IN A DESIGN
4. NOTWITHSTANDING THAT A CREDIT MAY REQUIRE A BILL OF LADING TO EVIDENCE A PORT TO PORT SHIPME
WHEN :
i) A BILL OF LADING INDICATES A PLACE OF RECEIPT THAT IS THE SAME AS THE PORT OF LOADING, FOR EXAM
NO INDICATION OF A MEANS OF PRE-CARRIAGE (EITHER IN THE PRE-CARRIGE FIELD OR THE PLACE OF RECEI
ii) A BILL OF LADING INDICATE A PLACE OF RECEIPT DIFFERENT FROM THE PORT OF LOADING , FOR EXAMPLE
ROTTERDAM AND THE IS NO INDICATION OF A MEANS OF PRE-CARRIGE (EITHER IN PRE-CARRIGE FIELD OR PL
THEN:
a) WHEN A BILL OF LADING IS PRE-PRINTED "SHIPPED ON BOARD" , THE DATE OF ISSUE WILL BE DEEMED TO B
NOTATION WILL BE DEEMED TO BE THE DATE OF SHIPMENT. THE ON BOARD DATE MAY ALSO BE INDICATED IN
b) WHEN A BILL OF LADING IS PRE-PRINTED "RECIVED FOR SHIPMENT" A DATED ON BOARD NOTATION IS REQU
DEEMED TO BE THE DATE OF SHIPMENT. THE ON BOARD DATE MAY ALSO BE INDICATED IN A DESIGNATED FIE
4. NOTTHSTANDING THAT A CREDIT MAY REQUIRE A BILL OF LADING TO EVIDENCE A PORT-TO PORT SHIPMEN
i) WHEN BILL OF LADING INDICATES A PLACE OF RECEIPT DIFFERENT FROM THE PORT OF LOADING, FOR EXAM
ROTTERDAM AND THE IS INDICATION OF A MEANS OF PRE-CARRIGE (EITHER IN PRE-CARRIGE FIELD OR PLACE
"SHIPMENT ON BOARD" OR "RECEIVED FOR SHIPMENT", IT IS TO BEAR A DATED ON BOARD NOTATION WHICH A
PORT OF LOADING STATED IN THE CREDIT. SUCH NOTATION MAY ALSO APPEAR IN A DESIGNATED FIELD OR B
DESIGNATED FIELD OR BOX WILL BE DEEMED TO BE THE DATE OF SHIPMENT.
ii) WHEN A BILL OF LADING INDICATES A MEANS OF PRE-CARRIGE (EITHER IN THE PRE-CARRIGE FIELD OR PLA
IS STATED OR WHEATHER IT IS PRE- PRINTED "SHIPPED ON BOARD" OR " RECEIVED FOR SHIPMENT", IT IS TO B
THE NAME OF THE VESSEL AND THE PORT OF LOADING STATED IN THE CREDIT. SUCH NOTATION MAY ALSO A
IN THE ON BOARD NOTATION OR DESIGNATED FIELD OR BOX WILL DEEMED TO BE THE DATE OF SHIPMENT.
5. A BILL OF LADING INDICATES WORDING SUCH AS "ON BOARD" , "LOADED ON BOARD " OR WORD WITH SIMIL
TO BE ON BOARD THE MEANS OF TRANSPORTATION PERFORMING THE CARRIGE FROM THE PLACE OF RECEIP
AND IF IN ADDITION THE PLACE OF RECEIPT BOX IS COMPLETED, A BILL OF LADING IS TO BEAR A DATED ON BO
IS ALSO TO INDICATE THE NAME OF THE VESSEL AND THE PORT OF LOADING STATED IN THE CREDIT. SUCH N
THE DATE APPEARING IN THE DESIGNATED FIELD OR BOX WILL BE TREATED AS DATE OF SHIPMENT
15. PORT OF LOADING IN CREDIT
a) WHEN A CREDIT REQUIRES SHIPMENT TO COMMENCE FROM A PORT, I.E WHEN THE FIRST LEG OF THE JOUR
THE NAMED PORT OF LOADING SHOULD APPEAR IN THE PORT OF LOADING FIELD .
b) HOWEVER, IT MAY ALSO BE STATED IN THE FIELD HEADED "PLACE OF RECEIPT" OR WORDS WITH SIMILAR E
A DATED ON BOARD NOTATION.
c) WHEN A CREDIT STATES PLACE OF RECEIPT/DISCHARGE/TAKING IN CHARGE/PORT OF LOADING/AIRPORT O
IN THE CREDIT WITH COUNTRY, COUNTRY NEED NOT BE STATED IN THE TRANSPORT DOCUMENT.
d) WHEN A CREDIT INDICATES A GEOGRAPHICAL AREA OR RANGE OF PLACES OF RECEIPT, DISPATCH, TAKING
(FOR EXAMPLE, ANY EUROPEAN COUNTRY ), A MULTIMODAL TRANSPORT DOCUMENT IS TO INDICATE A ACTRU
OF LOADING OR AIRPORTS OF DEPURTURE, WHICH IS TO BE, WHICH IS TO BE WITHIN THAT GEOGRAPHICAL A
DOCUMENT NEED NOT INDICATE THE GEOGRAPHICAL AREA.
e) WHEN A BILL OF LADING INDICATES MORE THAN ONE PORT OF LOADING, IT IS TO EVIDENCE AN ON BOARD N
OF LOADING , REGARDLESS OF WHEATHER IT IS PRE-PRINTED "RECEIVED FOR SHIPMENT" OR "SHIPPED ON B
HAS BEEN EFFECTED FROM BRISBANE AND ADELAIDE, A DATED ON BOARD NOTATION IS REQUIRED FOR BOTH
f) FOR AWB, THE AIRPORT OF DEPARTURE AND AIRPORT OF DESTINATION MAY ALSO BE INDICATED BY USE O
THE AIRPORT NAME IN FULL (FOR EXAMPLE, LAX INSTEAD OF LOS ANGELES)
g) FOR RAILWAY,ROAD WAY, INLAND WATERWAY TRANSPORT. THE TERM CARRIER INCLUDES - ISSUING CARR
CONTRACTING CARRIER
h) A RAIL TRANSPORT DOCUMENT MAY BEAR A DATE STAMP BY THE RAILWAY COMPANY OR RAILWAY STATIO
CARRIER, OR A NAMED AGENT SIGNING ON BEHALF OF THE CARRIER.
19.TERMS - SUCH AS " SHIPPED IN APPARENT GOOD ORDER" , " LADEN ON BORD" , " CLEAN ON BOARD" , OR OT
HAVE THE SAME EFFECT AS THE WORDS "SHIPPED ON BOARD" .
20. PORT OF DISCHARGE-
WHEN A CREDIT REQUIRES SHIPMENT TO BE EFFECTED TO A PORT, THE NAMED PORT OF DISCHARGE SHOUL
PORT OF DISCHARGE FIELD. HOWEVER, THE NAMED PORT OF DISCHARGE MAY BE STATED IN THE FIELD HADE
WORD WITH SIMILAR EFFECT. FOR EXAMPLE, WHEN A CREDIT REQUIRES SHIPMENT TO BE EFFECTED TO FELI
THE PLACE OF FINAL DESTINATION INSTEAD OF THE PORT OF DISCHARGE, THIS MAY BE EVIDENCED BY A NOT
GEOGRAPHICAL AREA AND COUNTRY NEED NOT BE STATED, EVEN IF STATED IN THE CREDIT (CHECK POINT 1
21. ORIGINAL- A TRANSPORT DOCUMENT IS TO INDICATE NUMBER OF ORIGINALS THAT HAVE BEEN ISSUED. TR
"SCEOND ORIGINAL" THIRD ORIGINAL" OR "ORIGINAL" "DUPLICATE" "TRIPLICATE" OR SIMILAR EXPRESSIONS AR
AN AIR TRANSPORT DOCUMENT IS TO APPEAR TO BE THE ORIGINAL FOR CONSIGNOR OR SHIPPER. WHEN A C
BY THE PRESENTATION OF AN AIR TRANSPORT DOCUMENT INDICATING THAT IT IS THE ORIGINAL FOR CONSIG
22. STRAIGHT AND TO ORDER- WHEN A CREDIT REQUIRES A MULTIMODAL TRANSPORT DOCUMENT TO EVIDEN
FOR EXAMPLE "CONSIGNED TO NAMED PARTY" I.E STRAIGHT MULTIMODAL TRANSPORT DOCUMENT OR CONS
EXPRESSIONS "TO ORDER" OR "TO ORDER OF" PRECEEDING THE NAME OF THE ENTITY AND WHEN INDICATES
TO INDICATE STRAIGHT CONSIGNED TO NAMED PARTY WHEN A MULTIMODAL TRANSPORT DOCUMENT IS ISSU
IT IS TO BE ENDORSED BY THE SHIPPER. AN ENDORSEMENT MAY BE MADE BY A NAMED ENTITY OTHER THAN
IS MADE ON BEHALF OF THE SHIPPER.
23. NOTIFY PARTY- WHEN A CREDIT STIPULATES THE DETAILS OF ONE OR MORE NOTIFY PARTIES, A MULTIMO
DETAILS OF ONE OR MORE ADDITIONAL NOTIFY PARTIES. WHEN A CREDIT DOES NOT INDICATE THE DETAILS O
DOCUMENT MAY INDICATE THE DETAILS OF NOTIFY PARTY IN ANY MANNER. WHEN A CREDIT DOES NOT STIPU
THE DETAILS OF APPLICANT APPEAR AS NOTIFY PARTY ON A MULTIMODAL TRANSPORT DOCUMENT AND THES
AND CONTACT DETAILS, THEY ARE NOT TO CONFLICT WITH THOSE STATED IN THE CREDIT.
24. ISSUING BANK AND APPLICANT NAME- WHEN A CREDIT REQUIRES A MULTIMODAL TRANSPORT DOCUMEN
OF " ISSUING BANK" OR "APPLICANT" OR NOTIFY "APPLICANT" OR "ISSUING BANK" A MULTIMODAL TRANSPORT
THE ISSUING BANK OR APPLICAT, AS APPLICABLE, BUT NEED NOT INDICATE THEIR RESPECTIVE ADDRESS OR
WHEN THE ADDRESS AND CONTACT DETAILS OF THE APPLICANT IS IN CONSIGNEE/NOTIFY PARTY - THEY ARE
25. TRANSSHIPMENT- IN MULTIMODAL TRANSPORT DOCUMENT TRANSHIPMENT WILL OCCUR. TRANSSHIPMEN
ONE MEANS OF CONVEYANCE(WHEATER OR NOT IN DIFFERENT MODES OF TRANSPORT) DURING THE CARRIG
26. PARTIAL SHIPMENT- SHIPMENT ON MORE THAN ONE MEANS OF CONVEYANCE ( MORE THAN ONE TRUCK, V
EVEN WHEN SUCH MEANS OF CONVEYANCE LEAVES LEAVES ON THE SAME DAYS FOR THE SAME DESTINATIO
WHEN A CREDIT PROHIBITS PARTIAL SHIPMENTS AND MORE THAN ONE SET OF ORIGINAL MULTIMODAL TRANS
TAKING IN CHARGE FROM ONE OR MORE POINTS OF ORIGIN (AS SPECIFICALLY ALLOWED, OR WITHIN A GEOG
EACH SET TO INDICATE THAT IT COVERS THE CARRIGE OF GOODS ON THE SAME MEANS OF CONVEYNANCE A
SAME DESTINATION. IF DIFFERENT DATES OF RECEIPT, DISPATCH, TAKING IN CHARGE OR SHIPMENT IS THERE
WHEN PARTIAL SHIPMENT IS ALLOWED AND MORE THAN ONE SET OF ORIGINAL MULTIMODAL TRANSPORT DO
MADE UNDER ONE COVERING SCHEDULE OR LETTER AND INCORPORATE DIFFERENT DATES OF RECEIPT, ON
DATES TO BE USED FOR THE CALCULATION OF ANY PRESENTATION PERIOD AND EACH OF THE DATE MUT FAL
27. CLAUSE- A MULTIMODAL TRANSPORT DOCUMENT IS NOT TO INCLUDE A CLAUSE OR CLAUSES THAT EXPR
OR THEIR PACKAGING. FOR EXAMPLE, A CLAUSE ON A MULTIMODAL TRANSPORT DOCUMENT SUCH AS " PACK
OR WORDS OF SIMILAR EFFECT IS AN EXAMPLE OF A CLAUSE EXPRESSLY DECLARING A DEFECTIVE CONDITIO
A CLAUSE ON A MULTIMODAL TRANSPORT DOCUMENT SUCH AS " PACKAGING MAY NOT BE SUFFICINT FOR TH
EXPRESSLY DECLARE A DEFECTIVE CONDITION OF THE PACKAGING.
28. CLEAN- IT IS NOT NECESSERY FOR THE WORD "CLEAN" TO APPEAR ON A MULTIMODAL TRANSPORT DOCUM
TRANSPORT DOCUMENT TO BE MARKED "CLEAN ON BOARD" OR "CLEAN".
DETECTION OF THE WORD "CLEAN" ON A MULTIMODAL TRANSPORT DOCUMENT DOES NOT EXPRESSLY DECLA
OR THEIR PACKAGING.
29.GOODS DESCRIPTION- A GOODS DESCRIPTION INDICATED ON A TRANSPORT DOCUMENT MAY BE IN GENER
WITH THE GOODS DESCRIPTION IN THE CREDIT.
32. INDICATION OF NAME AND ADDRESS OF DELIVERY AGENT AT DESTINATION-
WHEN A CREDIT REQUIRES A MULTIMODAL TRANSPORT DOCUMENT TO INDICATE THE NAME, ADDRESS AND C
EFFECT AT OR FOR THE PLACE OF FINAL DESTINATION OR PORT OF DISCHARGE, THE ADDRESS NEED NOT BE
PORT OF DISCHARGE OR WITHIN THE SAME COUNTRY AS THAT OF THE PLACE OF DESTINATION OR PORT OF D
33. CORRECTION- ANY CORRECTION OF DATA ON A MULTIMODAL TRANSPORT DOCUMENT IS TO BE AUTHENT
CARRIER, MASTER OR ANY ONE OF THE NAMED AGENTS, WHO MAY BE DIFFERENT FROM THE AGENT THAT MA
DOCUMENT, PROVIDED THEY ARE IDENTIFIED AS AN AGENT OF THE CARRIER OR MASTER.
NON NEGOTIABLE COPIES OF A MULTIMODAL TRANSPORT DOCUMENT NEED NOT INCLUDE AUTHENTICATION O
THE ORIGINAL.
34.FREIGHT- A STATEMENT APPEARING ON A MULTIMODAL TRANSPORT DOCUMENT INDICATING THE PAYMEN
IN THE CREDIT BUT IS NOT TO CONFLICT WITH DATA IN THAT DOCUMENT, ANY OTHER STIPULATED DOCUMEN
REQUIRES A MULTIMODAL TRANSPORT DOCUMENT TO BE MARKED "FREIGHT PAYBLE AT DESTINATION" IT MA
WHEN A CREDIT STATES THAT COSTS ADDITIONAL TO FREIGHT ARE NOT ACCEPTABLE, A MULTIMODAL TRANS
TO THE FREIGHT HAVE BEEN OR WILL BE INCURRED.
AN INDICATION OF COSTS ADDITIONAL TO THE FREIGHT MAY BE MADE BY EXPRESS REFERANCE TO ADDITION
TO COSTS ASSOCIATED WITH THE LOADING OR UNLOADING OF GOODS, SUCH AS, FREE IN (FI), FREE OUT (FO
REFERANCE IN A MULTIMODAL TRANSPORT DOCUMENT TO COSTS WHICH MAY BE LEVIED FOR EXAMPLE, AS A
THE GOODS HAVE BEEN UNLOADED (DEMURRAGE COSTS) OR COSTS COVERING THE LATE RETURN OF CONT
ADDITIONAL TO FREIGHT.
WHEN A CREDIT REQUIRES A ROAD, RAIL, OR INLAND WATERWAY TRANSPORT DOCUMENT TO INDICATE THAT
AT DESTINATION , THIS WILL ALSO BE FULFILLED BY THE COMPLETION OF BOXES MARKED "FRANCO" (FREIGH
35. RELEASE OF GOODS WITH MORE THAN ONE MULTIMODAL TRANSPORT DOCUMENT TO BE SURRENDERED
A MULTIMODAL TRANSPORT DOCUMENT IS NOT TO EXPRESSLY STATE THAT GOODS COVERED BY THAT MULT
UPON ITS SURRENDER TOGETHER WITH ONE OR MORE OTHER MULTIMODAL TRANSPORT DOCUMENTS, UNLE
DOCUMENTS, FORM PART OF THE SAME PRESENTATION UNDER THE SAME CREDIT.
FOR EXAMPLE, CONTAINER XXXX IS COVERED BY B/L NO YYYY AND ZZZZ AND CAN ONLY BE RELEASED TO A
TRANSPORT DOCUMENT OF THAT MERCHANT" IS CONSIDERED TO BE AN EXPRESS STATEMENT THAT ONE OR
TO THE REFERANCED CONTAINER OR PACKING UNIT, MUST BE SURRENDERED PRIOR TO THE GOODS BEING R
RELEASE OF GOODS IS NOT APPLICABLE FOR NON NEGOTIABLE BILL OF LADING
36. CHARTER PARTY - UNLESS UCP 600 SUB-ARTICLE 22-B SPECIFICALLY EXCLUDED AND THE CREDIT SPECIF
TO WHAT EXTENTBANK DO NOT EXAMINE ANY CONTENT OF CHARTER PARTY CONTRACT, EVEN WHEN SUCH C
UNDER THE CREDIT.
PART - 5 - INSURANCE DOCUMENT
1. APPLICATION- A REQUIREMENT IN A CREDIT FOR THE PRESENTATION OF AN INSURANCE DOCUMENT, SUCH
OR DECLARATION UNDER AN OPEN COVER, MEANS UCP ARTICLE 28 IS TO BE APPLIED FOR EXAMINATION OF D
2. ISSUER, SIGNING AND ORIGINAL OF AN INSURANCE DOCUMENT
i) AN INSURANCE DOCUMENT IS TO APPEAR TO HAVE BEEN ISSUED AND SIGNED BY AN INSURANCE COMPANY
AN INSURANCE DOCUMENT ISSUED AND SIGNED BY " AA INSURANCE LTD" APPEARS TO HAVE BEEN ISSUED BY
ii) WHEN AN ISSUER IS IDENTIFIED AS "INSURER", THE INSURANCE DOCUMENT NEED NOT INDICATE THAT IT IS
iii) AN INSURANCE DOCUMENT MAY ALSO BE ISSUED ON AN INSURANCE BROKER'S STATIONARY, PROVIDED TH
INSURANCE COMPANY OR UNDERWRITER.
iv) AN INSURANCE DOCUMENT SIGNED BY THE AGENT OR PROXY IS TO INDIACTE THE NAME OF THE INSURANC
AGENT OR PROXY IS SIGNING, UNLESS THE INSURANCE COMPANY OR UNDERWRITTER NAME HAS BEEN IDEN
"AA INSURANCE LTD" HAS BEEN IDENTIFIED AS THE INSURER , THE DOCUMENT MAY BE SIGNED " JOHN DOE (B
v) WHEN AN INSURANCE DOCUMENT REQIRES A COUNTERSIGNATURE BY THE ISSUER, THE ASSURED OR A NA
vi) AN INSURANCE DOCUMENT MAY SHOW ONLY THE TRADING NAME OF THE INSURANCE COMPANY IN THE SIG
ELSEWHERE ON THE DOCUMENT, FOR EXAMPLE, WHEN AN INSURANCE DOCUMENT IS ISSUED AND SIGNED "A
AND ITS ADDRESS AND CONTACT INFORMATION IS SHOWS ELSEWHERE IN THE DOCUMENT.
vi) AN INSURANCE DOCUMENT THAT INDICATES THAT COVER IS PROVIDED BY MORE THAN ONE INSURER, MAY
FOR EXAMPLE AAINSURANCE CAN SIGN ON BEHALF OF ITS ALL CO INSURERS, ALSO NEED NOT TO SHOW THE
OF EACH INSURER.
vii) WHEN A CREDIT REQUIRES THE INSURANCE DOCUMENT TO BE ISSUED IN MORE THAN ONE ORIGINAL, OR W
ISSUED IN MORE THAN ONE ORIGINAL, ALL ORIGINALS ARE TO BE PRESENTED AND ARE TO APPEAR TO HAVE
3. DATES
1. AN INSURANCE DOCUMENT IS NOT TO INDICATE AN EXPIRY DATE FOR THE PRESENTATION OF ANY CLAIMS
2. NOT TO INDICATE THAT COVER IS EFFECTIVE FROM A DATE LATER THAN THE DATE OF SHIPMENT.
3. WHEN AN INSURANCE DOCUMENT INDICATES A DATE OF ISSUANCE LATER THAN THE DATE OF SHIPMENT, IT
COVERAGE IS EFFECTIVE FROM A DATE NOT LATER THAN THE DATE OF SHIPMENT.
4. AN INSURANCE DOCUMENT THAT INDICATES COVERAGE HAS BEEN EFFECTED FROM "WAREHOUSE TO WAR
LATER THAN THE DATE OF SHIPMENT.
5. IN ABSENCE OF ANY OTHER DATE STATED TO BE THE ISSUANCE DATE OR EFFECTIVE DATE OF INSURANCE
TO BE EVIDENCE OF THE EFFECTIVE DATE OF THE INSURANCE COVERAGE.
4. AMOUNT OF COVER AND PERCENTAGE -
1. WHEN A CREDIT DOES NOT INDICATE AN AMOUNT TO BE INSURED , AN INSURANCE DOCUMENT IS TO BE ISS
FOR THE AMOUNT INDICATED UNDER UCP . THERE IS NO MAXIMUM PERCENTAGE OF INSURANCE COVERAGE.
2. THERE IS NO REQUIREMENT FOR INSURANCE FOR INSURANCE COVERAGE TO CALCULATE MORE THAN TWO
3. AN INSURANCE DOCUMENT MAY INDICATE THAT COVER IS SUBJECT TO FRANCHISE OR EXCESS (DEDUCTAB
COVER TO BE IRRESPECTIVE OF PERCENTAGE THE INSURANCE DOCUMENT IS NOT TO CONTAIN A CLAUSE ST
FRANCHISE OR AN EXCESS (DEDUCTABLE).AN INSURANCE DOCUMENT NEED NOT STATE "IRRESPECTIVE OF P
4. WHEN IT IS APPARENT FROM THE CREDIT OR FROM THE PRESENTATION THAT THE AMOUNT DEMANDED ON
OF THE GOODS(FOR EXAMPLE, DUE TO DISCOUNTS, PRE PAYMENTS OR THE LIKE OR BECAUSE PART OF THE
CALCULATION OF INSURANCE COVER IS TO BE BASED ON THE FULL GROSS VALUE OF THE GOODS AS SHOWN
TO THE REQUIREMENT OF UCP
5. INSURANCE COVERING THE SAME RISK FOR THE SAME SHIPMENT IS TO BE COVERED UNDER ONE DOCUME
IS PRESENTED INDICATING PARTIAL COVER, AND EACH DOCUMENT CLEARLY REFLECTS, BY PERCENTAGE OR
a. A VALUE OF EACH INSURERS COVER
b. THAT EACH INSURER WILL BEAR ITS SHARE OF THE LIABILITY SEVERALLY AND WITHOUT PRE-CONDITIONS R
BEEN EFFECTED FOR THAT SHIPMENT.
c. THE RESPECTIVE COVERAGE OF ALL THE DOCUMENTS, WHEN TOTALED, EQUALS AT LEAST THE INSURED A
5. RISK TO BE COVERED
a. AN INSURANCE DOCUMENT HAVE TO COVER THE RISKS REQUIRED BY THE CREDIT.
EVEN THOUGH A CREDIT MAY BE EXPLICIT WITH REGARD TO THE RISKS TO BE COVERED, THERE MAY BE A RE
b. WHEN A CREDIT REQUIRES "ALL RISKS" COVERAGE, THIS IS SATISFIED BY THE PRESENTATION OF AN INSUR
OR NOTATION, WHEATHER OR NOT IT BEARS THE HEADING "ALL RISKS" , EVEN WHEN IT IS INDICATED THAT CE
INDICATING THAT IT COVERS INSTITUTE CARGO CLAUSES (A) OR INSTITUTE CARGO CLAUSES (AIR), WHEN DIS
CALLING FOR AN "ALL RISK " CLAUSE OR NOTATION.
6. INSURED PARTY AND ENDORSEMENT -
1. AN INSURANCE DOCUMENT IS TO BE IN THE FORM REQUIRED BY THE CREDIT AND WHERE NECESSERY, BE
TO WHOOM OR TO WHOOM ORDER THE CLAIM IS PAYABLE.
2. A CREDIT SHOULD NOT REQUIRE AN INSURANCE DOCUMENT TO BE ISSUED "TO BEARER" OR "TO ORDER". A
3. WHEN A CREDIT REQUIRES AN INSURANCE DOCUMENT TO BE ISSUED " TO ORDER OF (NAMED ENTITY)". THE
THAT THE NAMED ENTITY IS SHOWN AS THE INSURED PARTY OR CLAIMS ARE PAYABLE TO IT, AND ASSIGNMEN
4. WHEN A CREDIT IS SILENT AS TO THE INSURED PARTY, AN INSURANCE DOCUMENT IS NOT TO EVIDENCE TH
OF, THE BENEFICIARY OR ANY ENTITY OTHER THAN THE ISSUING BANK OR APPLICANT, UNLESS IT IS ENDORS
IN FAVOUR OF THE ISSUING BANK OR APPLICANT.
5. AN INSURANCE DOCUMENT IS TO BE ISSUED OR ENDORSED SO THAT THE RIGHT TO RECEIVE PAYMENT UN
THE DOCUMENTS.
7.GENERAL TERMS AND INSURANCE PREMIOUM -
BANK DO NOT EXAMINE GENERAL TERMS AND CONDITIONS IN AN INSURANCE DOCUMENT.
ANY INDICATION ON AN INSURANCE DOCUMENT REGARDING PAYMENT OF AN INSURANCE PREMIOUM IS TO BE
THAT IT IS NOT VALID OR THE PREMIOUM HAS AVTRUALY BEEN PAID AND THERE IS AN INDICATION THAT THE
PART - 6 - CERTIFICATE OF ORIGIN
1.BASIC REQUIREMENT
1. WHEN A CREDIT REQUIRES THE PRESENTATION OF A CERTIFICATE OF ORIGIN, THIS WILL BE SATISFIED BY T
TO RELATE TO THE INVOICED GOODS AND CERTIFIES THEIR ORIGIN.
2. WHEN A CREDIT REQUIRES THE PRESENTATION OF A SPECIFIC FORM OF CERTIFICATE OF ORIGIN SUCH AS
IS TO BE PRESENTED.
2. ISSUER OF CERTIFICATE OF ORIGIN
a. A CERTIFICATE OF ORIGIN IS TO BE ISSUED BY THE ENTITY STATED IN THE CREDIT. WHEN A CREDIT DOES N
A CERTIFICATE OF ORIGIN.
b. WHEN A CREDIT REQUIRES PRESENTATION OF CERTIFICATE OF ORIGIN ISSUED BY THE BENEFICIARY, CERT
CHAMBER OF INDUSTRY, ASSOCIATION OF INDUSTRY, ECOOMIC CHEMBER, CUSTOM AUTHORITIES AND DEPA
EXPORTER/MANUFACTURERS NAME.
c. WHEN A CREDIT REQUIRES PRESENTATION OF CERTIFICATE OF ORIGIN ISSUED BY A CHAMBER OF COMMER
ISSUED BY ABOVE AUTHORITIES.
3. CONTENT OF CERTIFICATE OF ORIGIN -
1. A CERTIFICATE OF ORIGIN IS TO APPEAR TO RELATE TO THE INVOICED GOODS, FOR EXAMPLE, BY
A GOODS DESCRIPTION THAT CORRESPONDS TO THAT IN THE CREDIT OR A DESCRIPTION SHOWN IN GENER
IN THE CREDIT, OR
REFERRING TO A GOODS DESCRIPTION APPEARING IN ANOTHER STIPULATED DOCUMENT, OR IN A DOCUMEN
OF THE CERTIFICATE OF ORIGIN
2. CONSIGNEE INFORMATION WHEN SHOWN, IS NOT TO CONFLICT WITH THE CONSIGNEE INFORMATION IN THE
REQUIRES A TRANSPORT DOCUMENT TO BE ISSUED "TO ORDER" , "TO ORDER OF SHIPPER" , "TO ORDER OF IS
"CONSIGNED TO ISSUING BANK"- A CERTIFICATE OF ORIGIN MAY SHOW THE CONSIGNEE AS ANY ENTITY NAME
HAS BEEN TRANSFERRED, THE FIRST BENEFICIARY MAY BE STATED TO BE THE CONSIGNEE.
3. A CERTIFICATE OF ORIGIN MAY INDICATE AS THE CONSIGNOR OR EXPORTER AN ENTITY OTHER THAN THE B
IN ANY OTHER STIPULATED DOCUMENT.
4. WHEN A CREDIT INDICATES THE ORIGIN OF GOODS WITHOUT STIPULATING REQUIREMENT OF PRESENTATIO
ON A STIPULATED DOCUMENT IS NOT TO CONFLICT WITH THE STATED ORIGIN. FOR EXAMPLE- WHEN A CREDIT
PRESENTATION OF CERTIFICATE OF ORIGIN, A STATEMENT ON ANY STIPULATED DOCUMENT INDICATING A DIF
CONFLICT OF DATA.
5. A CERTIFICATE OF ORIGIN MAY INDICATE A DIFFERENT INVOICE NO, INCOICE DATE AND SHIPMENT ROUTING
DOCUMENTS, PROVIDED THE EXPORTER OR CONSIGNOR SHOWN ON THE CERTIFICATE OF ORIGIN IS NOT THE
PART - 7- PACKING LIST / WEIGHT LIST
1. WHEN A CREDIT REQUIRES PRESENTATION OF A PACKING LIST, THIS WILL BE SATISFIED BY A DOCUMENT N
FULLFILL THE FUNTION OF PACKING OF GOODS.
2. PACKING LIST HAVE TO BE ISSUED BY THE ENTITY STATED IN THE CREDIT. WHEN A CREDIT DOESNOT INDIC
3. WHEN A CREDIT INDICATES SPECIFIC PACKING REQUIREMENTS, WITHOUT STIPULATING THE DOCUMENTS T
DATA REGARDING PACKING OF GOODS IN PACKING SHOULD COMPLY WITH THIS.
4. A PACKING LIST MAY INDICATE A DIFFERENT INVOICE NO, INCOICE DATE AND SHIPMENT ROUTING TO THAT
DOCUMENTS, PROVIDED THE ISSUER OF PACKING LIST IS NOT THE BENEFICIARY.
5. BANK ONLY EXAMINE TOTAL VALUES, INDICATING, BUT NOT LIMITED TO , TOTAL QUANTITIES , TOTAL WEIGH
THAT THE APPLICABLE TOTAL DOES NOT CONFLICT WITH A TOTAL SHOWN IN THE CREDIT AND ON ANY OTHER
PART - 8 - BENEFICIARY CERTIFICATE
1. SAME AS ABOVE.
2. BENEFICIARY CERTIFICATE TO BE SIGNED BY OR ON BEHALF OF THE BENEFICIARY.
3. DATA ON CREDIT IS NOT CONFLICT WITH DATA IN DOCUMENT.
4. THE DATA OR CERTIFICATION MENTIONED ON A BENEFICIARY CERTIFICATE-
a. NEED NOT BE IDENTICAL TO THAT REQUIRED BY THE CREDIT, BUT ARE TO CLEARLY INDICATE THAT THE RE
BY THE CREDIT HAS BEEN FULLFILLED.
b. NEED NOT INCLUDE A GOODS DESCRIPTION OR ANY OTHER REFERANCE TO THE CREDIT OR ANOTHER STIP
PART - 9 - OTHER CERTIFICATES
(ANALYSIS, INSPECTION, HEALTH , PHYTOSANITARY, QUANTITY, QUALITY AND OTHER CERTIFICATES)
1.BASIC -
1. SAME AS 8
2. WHEN A CREDIT REQUIRES THE PRESENTATION OF A CERTIFICATE THAT RELATES TO AN ACTION REQUIRE
THE CERTIFICATE IS TO INDICATE -
a. A ISSUANCE DATE THAT IS NO LATER THAN THE DATE OF SHIPMENT.
b. WORDING TO THE EFFECT THAT THE ACTION TOOK PLACE PRIOR TO OR ON THE DATE OF SHIPMENT, IN WH
IT MAY BE SUBSEQUENT TO THE SHIPMENT, IT MAY BE SUBSEQUENT TO THE SHIPMENT DATE BUT NOT LATER
c. A TITLE INDICATING THE EVENT, FOR EXAMPLE, PRE SHIPMENT INSPECTION CERTIFICATE.
2. ISSUER OF A CERIFICATE
1.SAME AS 7.2
2. WHEN A CREDIT MAKES REFERANCE TO AN ISSUER OF A CERTIFICATE IN THE CONTEXT OF ITS BEING "INDE
EFFECT, A CERTIFICATE MAY BE ISSUED BY ANY ENTITY EXCEPT THE BENEFICIARY.
3. CONTENTS OF A CERTIFICATE
1. A CERTIFICATE MAY INDICATE
a. THAT ONLY A SAMPLE OF THE REQUIRED GOODS HAS BEEN TESTED, ANALYZED OR INSPECTED.
b. A QUANTITY THAT IS GREATER THAN THAT STATED IN THE CREDIT OR ON ANY OTHER STIPULATED DOCUME
c. MORE HOLD, COMPARTMENT OR TANK NUMBERS THAT STATED ON THE BL OR CHARTER PARTY BL.
2. SAME AS 7-3
3. WHEN A CREDIT IS SILENT ABOUT

URC-522
1. BANK HAVE NO OBLIGATION TO HANDLE COLLECTION INSTRUCTION BUT MUST INFORM THE PARTY FROM W
2. COLLECTION MEANS COLLECTION INSTRUCTION RECEIVED FROM EXPORTER BANK THAT DOCUMENTS TO B
OF ACCEPTANCE OF PAYMENT ON DUE DATE OR AGINST PAYMENT FROM IMPORTER.
3. "DOCUMENTS" MEANS FINANCIAL DOCUMENTS OR COMMERCIAL DOCUMENTS. FINANCIAL DOCUMENTS MEA
OR OTHER SIMILAR INSTRUMENTS FOR OBTAINING THE PAYMENT. AND COMMERCIAL DOCUMENTS MEANS INV
TITLE OR OTHER SIMILAR DOCUMENTS.
4. CLEAN COLLECTION MEANS FINANCIAL DOCUMENTS NOT ACCOMPLISHED BY COMMERCIAL DOCUMENTS. A
DOCUMENTS ACCOMPANNIED BY COMMERCIAL DOCUMENTS, BUT COMMERCIAL DOCUMENTS NOT ACCOMPAN
5. PRINCIPAL- PARTY CONSTRUCTING THE HANDLING OF A COLLECTION TO A BANK.
REMITTING BANK - BANK WHICH THE PRINCIPAL HAS ENTRUSTED.
COLLECTING BANK - OTHER BANK INVOLVES.
PRESENTING BANK - MAKING PRESENTATION TO THE DRAWEE.
DRAWEE - TO WHOOM PRESENTATION IS TO BE MADE IN ACCORDANCE WITH THE COLLECTION INSTRUCTION.
6. THE COLLECTION INSTRUCTION SHOULD OBTAIN THE FOLLOWING ITEMS OF INFORMATION
a) DETAILS OF THE BANK FROM WHICH THE COLLECTION WAS RECEIVED INCLUDING FULL NAME, POSTAL AND
AND REFERANCE.
b) DETAILS OF PRINCIPAL INCLUDING FULL NAME, POSTAL ADDRESS ETC.
c) DETAILS OF THE DRAWEE
d) DETAILS OF PRESENTING BANK
e) AMOUNT AND CURRENCY TO BE COLLECTED
f) LIST OF DOCUMENTS AND COUNT
g) TERMS OF PAYMENT/ACCEPTANCE AGAINST DOCUMENT
h) CHARGES TO BE COLLECTED
i) INTEREST TO BE COLLECTED IF APPLICABLE
j) RATE OF INTEREST INTEREST PERIOD AND AND BASIS OF COLLECTION IF APPLICABLE
k) METHOD OF PAYMENT AND FROM OF THE PAYMENT ADVICE
l) INSTRUCTION IN CASE OF NEW PAYMENT
m) IF WRONG ADDRESS PROVIDED NO RESPONSIBILITY OF THE BANK
7. a) PRESENTATION IS THE PROCEDURE WHEREBY THE PRESENTING BANK MAKES THE DOCUMENT AVAILABL
b) THE COLLECTION INSTRUCTION SHOULD STATE EXACT PERIOD OF TIME WITHIN WHICH ANY ACTION IS TO B
c) EXPRESSION SUCH AS "FIRST" PROMPT" "IMMEDIATE" SHOULD NOT BE USED IN CONNECTION WITH PRESEN
d) DOCUMENTS ARE TO BE PRESENTED TO THE DRAWEE IN THE FORM IN WHICH THEY ARE RECEIVED EXCEPT
e) IN ABSENCE OF PRINCIPAL INSTRUCTION ABOUT THE COLLECTING BANK, REMITING BANK WILL PICK BY ITS
f) THE DOCUMENT AND COLLECTION INSTRUCTION MAY BE SENT DIRECTLY BY REMITTING BANK TO COLLECTI
g) IF THE REMITTING BANK DOES NOT NOMINATE A SPECIFIC PRESENTING BANK, THE COLLECTING BANK MAY
8. COLLECTION INSTRUCTION WITH DP SHOULD NOT CONTAIN BOE WITH FUTURE DATE. BUT IN DA IT IS POSSI
9. WHERE THE REMITTING BANK INSTRUCTS THAT EITHER THE COLLECTING BANK OR DRAWEE IS TO CREATE
IN THE COLLECTION.
10. GOODS SHOULD NOT BE DISPATCHED DIRECTLY TO THE ADDRESS OF A BANK. IF SO, SUCH BANK HAS NO
BUT IF BANK IS WILLING TO TAKE RESPONSIBILITY THE BANK CAN TAKE THAT. ALL CHARGES REGARDING GOO
11. BANK HAVE NO LIABILITY REGARDING - 1.FALSIFIBLE DOCUMENTS 2. DISPUTED GOODS 3. DELAY 4. LOST IN
12. BANK SHOULD EFFECT THE PAYMENT OF AMOUNT COLLECTED IN FAVOUR OF REMITTING BANK ONLY WITH
13. PAYMENT CAN BE MADE IN LOCAL CURRENCY OR FOREIGN CURRENCY AND PARTIAL PAYMENT ALSO ALLO
FULL PAYMENT. UNLESS OTHERWISE STATED IN COLLECTION INSTRUCTION.
14. INTEREST CHARGES AND EXPENSES ARE TO BE COLLECTED IF COLLECTION INSTRUCTION STATED BUT IT
BUT IF COLLECTION INSTRUCTION SAYS " INTEREST CHARGES CANNOT BE WAIVED" DOCUMENT WILL BE DELI
15. PRESENTING BANK IS RESPONSIBLE FOR SEEING ONLY THE FORM OF THE ACCEPTANCE OF BOE APPEARS
FOR THE GENUINENESS OF ANY SIGNATURE OF ACCEPTANCE.
16. THE COLLECTION INSTRUCTION SHOULD CONTAIN SPECIFIC INSTRUCTION REGARDING PROTEST. IF NOT S
WILL BE IN THE ACCOUNT OF THE PARTY.
17. COLLECTION INSTRUCTION SHOULD MENTION CASE OF NEED , IF NOT, BANK NOT LIABLE TO ACCEPT ANY I
18. COLLECTING BANK MUST SENT WITHOUT DELAY, THE ADVICE OF PAYMENT/ ACCEPTANCE OR NON-PAYME

URR-725
1. ISSUING BANK, REIMBURSING BANK, REIMBURSEMENT AUTHORIZATION, REIMBURSEMENT AMMENDMENT, C
REIMBURSEMENT CLAIM REIMBURSEMENT UNDERTAKING, REIMBURSEMENT UNDERTAKING AMMENDMENT.
2. BRANCHES OF BANK IN DIFFERENT COUNTRY IS CONSIDERED AS DIFFERENT BANKS.
3. A REIMBURSEMENT AUTHORIZATION IS SEPARATE FORM CREDIT.
4. ALL REIMBURSEMENT AUTHORIZATION OR AMMENDMENT MUST BE ISSUDED IN THE FORM OF AN AUTHENTI
IS AMMENDED AND REIMBURSEMENT AUTHORIZATION NEED TO BE AMMENDED, ANY MAIL CONFIRMATION SHO
5. AN ISSUING BANK NOT REQUIRED TO SENT COPY OF CREDIT TO REIMBURSING BANK, ALSO REIMBURSEMEN
DOCS ARE CREDIT COMPLIED OR NOT.
6. A REIMBURSEMENT AUTHORIZATION MUST STATE THE FOLLOWING - i) CREDIT NUMBER ii) CURRENCY AND A
iv) CLAIMING BANK CAN BE ANY BANK IN CASE OF FREELY AVAILABLE CREDIT v) PARTIES RESPONSIBLE FOR C
7. IF A REIMBURSING BANK IS REQUESTED TO PAY A TIME DRAFT, THE REIMBURSEMENT AUHORIZATION MUST
i) TENOR OF DRAFT TO BE DRAWN
ii) DRAWER
iii) PARTY RESPONSIBLE FOR ACCEPTANCE AND DISCOUNTING CHARGES
8. ANY REQUIREMENT FOR PRE NOTIFICATION OF A REIMBURSEMENT CLAIM TO ISSUING BANK MUST BE INDIC
AND ANY PRE-DEBIT NOTIFICATION ALSO.
9.IF THE REIMBURSING BANK IS NOT PREPARED TO ACT FOR ANY REASON AS PER REIMBURSEMENT AUTHOR
BANK WITHOUT DELAY.
10. REIMBURSEMENT AUTHORIZATION SHOULD NOT HAVE ANY EXPIRY DATE.
11. EXCEPT WHERE THE ISSUING BANK HAS AUTHORISED OR REQUESTED THE REIMBURSING BANK TO ISSUE
ISSUE A REIMBURSEMENT AUTHORIZATION AMMENDMENT, CANCELLATION AT ANY TIME AND SEND NOTICE TO
12. AN AUTHORIZATION OR REQUEST BY THE ISSUING BANK TO REIMBURSEMENT BANK TO ISSUE A REIMBURS
6 AND 7.
13. IF REIMBURSING BANK IS REQUESTED TO ISSUE REIMBURSEMENT UNDERTAKING TO CLAIMING BANK BUT
14. A REIMBURSEMENT UNDERTAKING MUST INDICATE-
a. TERMS AND CONDITIONS OF UNDERTAKING
b. CREDIT NO
c. NAME OF THE ISSUING BANK.
d. THE CURRENCY AND AMOUNT OF REIMBUSEMENT
e. LAST DATE OF PRESENTATION OF CLAIM INCLUDING USANCE PERIOD
f. IF REIMBUSEMENT CHARGES NOT ON ISSUNIG BANK
15. THE LATEST DATE FOR PRESENTATION OF A CLAIM FALLS UNDER A DATE WHEN REIMBURSING BANK IS CL
16. A REIMBURSING BANK IS BOUND TO HONOUR THE REIMBURSEMENT CALIM IF IT ISSUES A REIMBURSEMEN
17. WHEN A REIMBURSEMET UNDERTAKING IS THERE A REIMBURSEMENT AUTHORIZATION BECOME IRREVOC
WITH OUT AGREEMENT OF REIMBURSING BANK
18. A REIMBURSEMENT UNSERTAKING CAN NOT BE AMMENDED OR CANCELLED WITHOUT AGREEMENT OF TH
19. THE CLAIM MUST BE SENT VIA TELE TRANSMISSION UNLESS SPECIALY PROHIVITED BY REIMBURSEMENT A
20. A REIMBURSEMENT CLAIM MUST INCLUDE -
a. CREDIT NUMBER AND THE ISSUING BANK.
b. MUST SEPARATELY INDICATE PRINCIPAL AMOUNT CLAIMED
c. MUST NOT BE A COPY OF CLAIMING BANK ADVICE OF PAYMENT, DEFFERED PAYMENT , ACCEPTANCE OR NE
d. MUST NOT INCLUDE MULTIPLE REIMBURSEMENT CLAIM UNDER ONE TRANSMISSION
21. WHEN A TIME DRAFT IS DRAWN ON THE REIMBURSING BANK. THE CLAIMING BANK MUST FORWARD THAT D
CLAIM. AND THE CLIM SHOULD INCLUDE-
a.GENERAL DESCRIPTION OF GOODS AND SERVICES
b. COUNTRY OF ORIGIN
c. PLACE OF DESTINATION OR PERFORMANCE AND THE TRANSACTION COVERS THE SHIPMENT OF MERCHAND
d. DATE OF SHIPMENT
e. PLACE OF SHIPMENT
22. A REIMBURSING BANK SHALL HAVE A MAXIMUM OF THREE BANKING DAYS FOLLOWING THE DATE OF RECE
A REIMBURSEMENT CLAIM RECEIVED OUTSIDE BANKING HOURS WILL BE DEEMED TO BE RECEIVED ON NEXT B
23. IF THE REIMBURSING BANK DETERMINES NOT TO HONOUR A CLAIM. IT MUST GIVE A NOTICE TO CLAIMING
24. A REIMBURSING BANK WILL NOT PROCESS A REQUEST FOR BACK VALUE FORM THE CLAIMING BANK
25. WHEN A REIMBURSEMENT BANK HAS NOT ISSUED A REIMBURSEMENT UNDERTAKING AND REIMBURSEMEN
MUST SPECIFY A PREDETERMINED REIMBURSEMENT DATE. THE CLAIM SHOULD NOT BE MADE TO BEFORE 10
OBLIGATION TO PAY BEFORE THAT PREDETERMINED DATE.
26. AN ISSUING BANK MUST NOT UPON RECEIPT OF DOCUMENTS, SENT ANOTHER REIMBURSEMENT AUTHORIZ
OF PREVIOUS ONE. IF ANY CONCEQUENCES HAPPENED DUE TO DUPLICACY, WILL BE ON THE ISSUING BANK.
27. THE ISSUING BANK SHALL BE BOUND BY AND LIABLE TO INDEMNIFY THE REIMBURSING BANK AGAINST ALL
IMPOSED BY FOREIGN LAWS AND USAGES.
28. A REIMBURSING BANK ASSUME NO LIABILITY OR RESPONSIBILITY FOR CONSEQUENCES ARISING FROM DE
DELIVERY OF LETTERS, DOCUMENTS ARE TRANSMITTED OR SENT ACCORDING TO THE REQUIREMENT STATED
BUT HAVE RESPONSIBILITY TOWARDS THE REIMBURSEMENT AUTHORIZATION, REIMBURSEMENT CLAIM.
29. REIMBURSING BANK ASSUMES NO LIABILITY OR RESPONSIBILITY FOR CONSEQUENCES ARISING FROM ACT
30. REIMBURSEMENT CHARGES EITHER ON ISSUING BANK OR BENEFICIARY. WHILE HONOURING REIMBURSEM
THAT AS PER REIMBURSEMENT AUTHORIZATION. IF OF BENEFICIARY THEN DEDUCTED FROM THE AMOUNT CL
ISSUING BANK.
31. ANY LOSS OF INTEREST, LOSS OF VALUE, DUE TO EXCHANGE RATE FLUCTUATION BETWEEN ISSUING BAN
IN THAT UNLESS IT IS STATED IN REIMBURSEMENT AUTHORIZATION.
II) TRANSPORT DOCUMENT TERMS III) CERTIFICATE OF ORIGIN
1. FULL SET OF SHIPPED ON BOARD 1. CERTIFICATE OF ORIGIN
OCEAN BILL OF LADING AND TWO IN ONE ORIGINAL AND 3 COPIES
NON-NEGOTIABLE COPIES CONSIGNED ISSUED AND STAMPED BY
TO THE ORDER OF APPLICANT BANK CHEMBER OF COMMERCE
SHOWING FREIGHT PREPAID SHOWING THE NAME OF
AND MARK NOTIFY a. APPLICANT BANK MANUFACTURERS/SUPPLIERS
b. APPLICANT CERTIFYING THAT THE GOODS
2. ORIGINAL TRUCK RECEIPT PLUS 3 NON ARE OF INDIAN ORIGIN
NEGOTIABLE COPY OF MARKED FREIGHT 2. CERTIFICATE OF ORIGIN
PREPAID CONSIGNED TO APPLICANT BANK IN DUPLICATE FROM CHEMBER
NOTIFYING APPLICANT AND ISSUING BANK OF COMMERCE OR GOVT
3. FULL SET CLEAN ON BOARD MARINE BILL APPROVED AGENCY OF
OF LADING CONSIGNED TO UNDER OF EXPORTING COUNTRY
APPLICANT BANK QUOTING OUR DOC CREDIT
3. CERTIFICATE OF ORIGIN
MARKED FREIGHT PREPAID, NOTIFY APPLIC SHOWS GOODS OF INDIAN
AS PER FIELD 50 ORIGIN ISSUED BY CHAMBER
4. TRUCK RECEIPT CONSIGNED TO APPLICA OF COMMERCE OR BENEFICIARY
BANK EVIDENCING "FREIGHT PREPAID" AND IN 6 COPIES
NOTIFY i)APPLICANT ii) APPLICANT BANK iii) 4. CERTIFICATE OF ORIGIN
PROJECT DIRECTOR ISSUED BY BENEFICIARY OR
5. CONSIGNEE COPY OF ROAD CONSIGNMENMANUFACTURERS.
NOTE OR LORRY RECEIPT ALONG WITH ONE5. CERTIFICATE OF ORIGIN
COPY MADE OUT TO ORDER OF APPLICANT IN 1 ORIGINAL AND 3 COPIES
BANK MARKED FREIGHT PAYABLE AT DESTINTO BE ENDORCED ISSUED BY
LORRY RECEIPT MUST INDICATE NAME AND BENEFICIARY
ADDRESS OF APPLICANT AS NOTIFY PARTY 6. CERTIFICATE OF ORIGIN
6. FULL SET OF CLEAN ON BOARD OCEAN ISSUED BY RELATED GOVT
BILL OF LADING MADE OUT TO ORDER AND AGENCY OR THE RELATED
BLANK ENDORCED MARKED FREIGHT PREPAGOVT APPROVED AUTHORITY
NOTIFY APPLICANT OR CHAMBER OF COMMERCE
7. COPY OF LORRY RECEIPT MADE OUT TO OF EXPORTING COUNTRY
ORDER OF ISSUING BANK AND NOTIFY CERTIFYING GOODS ARE OF
APPLICANT BANK QUOTING OUR DOC CREDIT
INDIAN ORIGIN
8. COMPLETE OR FULL SET INCLUDING 3/3
ORIGINAL AND 3 COPIES OF CLEAN ON BOARD
SHIPPED BILL OF LADING MADE OUT TO ORDER
AND BLANK ENDORCED, MARKED "FREIGHT
PAYABLE AS PER CHARTER PARTY" NOTIFYING
TO ORDER
VI) CERTIFICATE
1. A CERTIFICATE FORM CARRIER, AGENT OR
MASTER OF VESSEL IN ONE ORIGINAL AND ONE
COPY STATING THE FOLLOWING :
a. THIS IS TO CERTIFY
P

SUBJECT TO UCP600 GUIDELINES IF SILENT WE SHOULD CONSIDER UNDER UCP

IN SBLC WE DEAL WITH COPY OF THE DOCUMENTS

NOMINATED BANK, PRESENTER

PRESENTATION,BANKING DAY
WHICH AN ACT SUBJECT TO THESE RULES( ISSUNING,NEGOTIATION,

ERMS AND AS PER UCP 600 AND ISBP)

ISSUING BANK, TO HONOUR OR NEGOTIATE A COMPLYING PRESENTATION
AUTHORIZATION OR REQUEST
FICIARY CONFIRM CHARGES MAY WILL BE ON APPLICANT
NT UNDERTAKING AND PAY AT MATURITY
WN BY BENEFICIARY AND PAY AT MATURITY IF THE CREDIT
ACDEPTANCE
RMING BANK CAN NEGOTIATE AND HONOUR

A DEFINITE UNDERTAKING OF THE ISSUING BANK

N ITS OWN BEHALF

R THAN YOU(DRAWEE IS NOT YOU BUT SOME OTHER BANK)
BEFORE THE DUE DATE

OR NOMINATED BANK

ATURE, PERFORATED SIGNATURE, STAMP, SYMBOL OR STAMP

N BE SIGNED IN ANY OF THE GIVEN FORMAT

LIFIED, INDEPENDENT, OFFICIAL, COMPETENT OR LOCAL USED

OD (5 CALENDER DAYS)
ETERMINE PERIOD OF SHIPMENT

DOES NOT AUTOMATICALLY EFFECTS LC IT HAS TO BE AMMENDED

ACT AS A INTEGRAL PART OF THE LC

ER BENEFICIARY COUNTRY)

IT DECREASE THE VALUE OF THE LC)

OUR THE CLAIM

OT INCUR DEFFERED PAYMENT

CEPT A DRAFT ON IT, OR HAVING ACCEPT A DRAFT ON IT

UR OR NEGOTIATE THE CLAIM

NG BANK DO NOT HAVE ANY UNDERTAKING TO HONOUR OR NEGOTIATE1.

D CONFIRMATION OR NOT
HANGES HAVE BEEN MADE AND RECEIVED ACURATELY, AND SIGNIFIES LC
FICIARY EARLIER

AN ADVISE THE LC
EY STILL ADVISE, INFORM ISSUING BANK ALSO FOR THE SAME

SSUING BANK, CONFIRMING BANK, AND BENEFICIARY(EXCEPT TRANSFERABLE LC)

MMENDED CREDIT COMPLIED DOCUMENTS ARE RECEIVED
E ACCEPTANCE AND AMMENDED CREDIT COMPLIED DOCUMENTS RECEIVED

ACCEPT WITHIN 5 DAYS OTHERWISE IT WILL CAME INTO FORCE AUTOMATICALY

 TELEX IN UCP 500 IT HAS A GOOD ROLE
ME ISSUING BANK UNABLE TO ISSUE

PRE ADVISED LC
COOMITMENT FORM BANK THAT THEY ARE ISSUING THE LC
DVISED LC AND WHEN RECEIVES LC IMMEDIATELY DISPATCH THE DOCUMENTS

OT CONFIRMING BANK
ANGE OF SIGHT, ACCEPTANCE, DEFFERED PAYMENT UNDER TAKING OR BOE

RIZATION NOT SUBJECT TO EXPIRY

R THAT LOSS CHARGE OR COMPENSATION

EN ONLY ON BENE

CEIPT OF DOCUMENTS IN THEIR COUNTER

NT DATE IN FULL SET BUT NOT LETTER THAN EXPIRY OF THE CREDIT

MINATED BANK HE MUST GIVE THE WORDING TO THE BENEFICIARY

TED BANK HAS NO BOUND

TOMORROW DAY 1 WILL STARTS AT DAY AFTER TOMORROW

IT WILL NOT BE CONSIDERED AS CONFLICTING WITH DC TERMS

BE DATED LATER THAN ITS DATE OF PRESENTATION

HER DOCUMENTS EXCEPT BL THAT IS ACCEPTABLE BUT COUNTRY SHOULD BE SAME

T IT MUST HONOUR THE CLAIM

UING BANK

TO NEGOTIATE
NK ON APPROVAL BASIS

UMICATION, FAX OR EMAIL(EVIDENCE EXPIDITIATE MEANS)

 ND YOU ARE LIABLE TO PAY
WILL NOT APPLY

WING WHAT DOCUMENT IS ORIGINAL AND WHAT DOCUMENT IS COPY

D AND WRITTEN,TYPED,BY THE ISSUER THEN ITS ORIGINAL

F APPLICANT IN THE SAME CURRENCY AS INVOICE

TIATION SHOULD BE ON LC VALUE

D SIGNED BY

AD DOC ONLY CARRIER

ORD LIKE "INTENDED" OR SIMILAR QUALIFICATION

PPLIES FOR PRE-PRINTED BL
AL DELIVERY AS DIFFERENT
PED ON BOARD DATE
OF ACTRUAL VESSEL REQUIRED

AND CONDITION OF CARRIGE AND ACCEPTED FOR CARRIGE

ADING TO ANOTHER MEANS OF CONVEINCE WHEN EVER

KING IN CHARGE STATED IN CREDIT
Y TAKE PLACE EVEN IF THE LC PROHIBITS
RAILER OR LASH BARGE AS EVIDENCE BY BILL OF LADING
SHIP WILL BE DISCARDED
TY IS CHARTER PARTY BILL OF LADING
D TO BE PRESENTED BY THE TERMS OF THE CREDIT
IGHT NO DATE WILL NOT BE CONSIDERED IN DETERMINING DATE OF SHIPMENT
OR SHIPPER OR BEAR NO MARKING INDICATING FOR WHOOM DOCUMENT
LICATE" WILL BE ACCEPTED AS ORIGINAL, A RAIL OR WATERWAY TRANSPORT

D PORT OF DISCHARGE AS PER LC, COURIER CHARGES PREPAID OR TO BE PAID

AND DATED AT THE PLACE FROM WHICH THE CREDIT STATES THE GOODS ARE

OADED ON DECK. A CLAUSE ON TRANSPORT DOCUMENT STATING THAT GOODS

IS ACCEPTABLE. MAY BEAR A REFERANCE

OR NOTATION DECLARING A DEFECTIVE CONDITION OF GOODS. THE WORD

ED AND SIGNED BY INSURANCE CO, AN UNDERWRITER OR THEIR AGENTS

LS MUST BE PRESENTED TO BANK

COVERAGE AND BE IN THE SAME CURRENCY AS THE CREDIT

SS IT APPEARS IN INSURANCE DOCUMENT COVER FROM EARLIER DATE

S GREATER

IONED "USUAL RISKS" AND "CUSTOMARY RISK" IS ACCEPTED

NT NOT MENTIONED ANY RISK ACCEPTED

OR EXCESS

RESENTATION MADE UNDER THIS ARTICLE

TITY OR UNIT PRICE- TOLLERANCE ALLOWED 10%

NOT STATE THE QUANTITY DRAWINGS

REDIT, PROVIDED QUANTITY OF GOODS STATED IN CREDIT

AL SHIPMENT
ERED AS PARTIAL SHIPMENT (SAME DESTINATION,MEANS OF CONVINIANCE, JOURNY)

MENT DONE CREDIT VALUE CEASES FOR REMANING INSTALLMENTS

URICY , GENUINENESS, FALSIFICATION OR LEGAL EFFECT OF ANY

MENT OR SUPERIMPOSED THEREON NOR IT HAS ANY LIABILITY FOR
EXISTENCE OF THE GOODS,SERVICES,OR OTHER PERFORMANCE REPRESENTED
ANCE OR STANDING REPRESENTED BY ANY DOCUMENT OR FOR THE
E CONSIGNOR,THE CARRIER, THE CONSIGNEE OR THE INSURER

NG OUT OF DELAY, LOST IN TRANSIST, MULTILATION OR OTHER ERRORS

MENTS, WHEN SUCH MESSAGES, LETTERS OR DOCUMENTS ARE TRANSMITTED
AY HAVE TAKEN THE INITIATIVE IN THE CHOICE OF THE DELIVERY

WARDS THE DOCUMENTS TO THE ISSUING BANK OR CONFIRMING BANK ,

NG ANK OR CONFIRMING BANK MUST HONOUR OR NEGOTIATE OR
BETWEEN NOMINATED BANK AND ISSUING BANK OR BETWEEN
LITY FOR ERRORS IN TRANSACTION OR INTERPRETATION OF TECHNICAL

ING OUT OF THE INTERRUPTION OF ITS BUNINESS

SION, OR ANY STRIKES OR LOCKOUTS

DER A CREDIT THAT EXPIRED DURING SUCH INTERRUPTION

CT TO THE INSTRUCTIONS OF THE APPLICANT DOES SO FOR THE

IONS IT TRANSMIT TO ANOTHER BANK NOT BE CARRIED OUT

OMMISSION, FEES, COST OR EXPENCES INCURRED BY THE BANK IN CONNECTION

GES CANNOT BE COLLECTED OR DEDUCTED FROM PROCEEDS, THE ISSUING BANK

CIARY IS CONDITIONAL UPON THE RECEIPT BY THE ADVISING BANK OR

L OBLIGATIONS AND RESPONSIBILITIES IMPOSED

D THE MANNER EXPRESSLY TOLD TO THE BANK.

RING BANK TO SCEOND BENEFICIARY

N RESPECT OF TRASFER PAID BY FIRST BENEFICIARY
MENTS OR DRAWINGS ARE ALLOWED
CIARY TO SUBSIQUENT BENEFICIARY
MMENDMENT CAN BE TRANSFERED TO 2ND BENEFICIARY
AN AMMENDMENT BY ONE OR MORE 2ND BENEFICIARY DOES NOT EFFECT THE

NS OF CREDIT INCLUDING CONFIRMATION

LICANT IN THE CREDIT

SFERRING BANK

SIGNMENT OF RIGHT TO PERFORM UNDER THE CREDIT

MENT IN SUBSTITUTION OF A WORD OR VICE VERSA.

= IND, LIMITED = LTD , MANUFACTURE = MFG , METRICTON = MT
W THE SAME ABBRIVIATION OR ANY OTHER ABBRIVIATION THAT HAS THE

AND SHOULD NOT BE USED AS A SUBTITLE FOR A WORD. IF NEVER THE LESS A VIRGUE IS USED AND
R EXAMPLE A CONDITION IN A CREDIT STATING RED/BLACK/BLUE MEANS EITHER RED

ORT OF LOADING OR DISCHARGE OR COUNTRIES OF ORIGIN MAY RESULT IN

NEVER THE LESS A COMMA IS USED AND NO CONTEXT IS APPARENT THIS WILL
AL SHIPMENT AND INDICATE THE PORT OF LOADING INFORMATION AS
N ONLY HAMBURG ONLY ROTTERDAM ONLY ANTWERP OR ANY OF THE COMBINATION

MENT IS REQUIRED BY A CREDIT, IS TO BE SIGNED.

STATEMENT IS REQUIRED TO BE DATED WILL DEPEND ON THE TYPE OF THE CERTIFICATE,ITS REQUIRED

E VESSEL IS NOT 25 YEARS OLD, THE CERTIFICATE MAY EVIDENCE COMPLIANCE BY

 THAN 25 YEARS PRIOR TO THE DATE OF SHIPMENT OR THE YEAR IN WHICH THE

REQUIRED, THEREBY CERTIFYING THAT AS OF THE DATE VESSEL IS NOT MORE 25 YR

MENT APPEARS IN A DOCUMENT WHICH IS TO BE SIGNED AND DATED IT DOES NOT REQUIRE A SEPARATE SIGNATURE
BEEN GIVEN BY SAME ENTITY THAT ISSUED AND SIGNED THE DOCUMENT
BY GOVT OF AFRICA. BENE MENTIONS THE SAME IN THE PACKING LIST AND SIGNED

DOCUMENT COVERED BY UCP 600 REQURED ARICLE 19-25 NOT APPLY. EXAMINED, AS PER STATED IN THE CREDIT

ENT OR CREDIT. IF LC SAYS COAL COPY BL SHOULD NOT SAY DIAMOND

TATION OR ANY PRESENTATION PERIOD UNEESS SPECIFICALLY STATES IN LC
CAN BE MET UP TO EXPIRY DATE OF THE CREDIT
H THE EXCEPTIONS OF DRAFT NEED NOT TO BE AUTHENTICATED.
OTHER ENTITIES
ES THAT LEGALISED OR CERTIFIED THE DOCUMENT
HE CORRECTION
OF AUTHENTICATING ENTITY

BENEFICIARY NEED TO BE
AF OF ENTITY STATED)
UTHENTICATE BY ENTITY + ENTITY LEGALISED

E BENEFICIARY CONTAINS MORE THAN ONE CORRECTION EACH CORRECTION NEEDS

S FOR ALL CORRECTIONS NAMED 1,2,3
DWRITTING WITHIN THE SAME DOCUMENT, NOT NEEDS A CORRECTION
MENT AS EVIDENCE OF SENDING DOCUMENTS, NOTICES AND THE LIKE
POSTING. SUCH DOCUMENT IS TO BE EXAMINED ONLY TO THE EXTENT EXPRESSLY

ATE A DATE OF ISSUANCE ii) INSURANCE DOCUMENTS ARE TO INDICATE THE DATE
T DOCUMENTS SUBJECT TO EXAMINATION UNDER UCP 19-25, ARE TO INDICATE
F RECEIPT OF SHIPMENT, A DATE OF DISPATCH OR CARRIGE , A DATE OF TAKING

HAN A DRAFT, INSURANCE DOCUMENT OR ORIGINAL TRANSPORT DOCUMENT

ANCE IN THE DOCUMENT TO THE DATE OF ANOTHER DOCUMENT FORMING
LADING NUMBER XXX" APPEARING ON A CERTIFICATE ISSUED BY A CARRIER
DATE OF OCCURANCE OF AN EVENT(FOR EXAMPLE, BY DATE OF
AIN A DATE OF ISSUANCE)
S, INSPECTION CERTIFICATE OR FUMIGATION CERIFICATE MAY INDICATE
A PRE SHIPMENT CERTIFICATE DOCUMENT CAN SHOW IT BY DIRECT
S A DOCUMENT DOES NOT CONSTITUTE A REQUIREMENT

ATE OF SIGNING, DATE OF SIGING IS CONSIDERED AS DATE OF ISSUE

R A SPECIFIC DATE FOR A DOCUMENT-
OD OF PRESENTATION FOLLOWING THE DATE OF SHIPMENT,

H TO BE GIVEN IN WORDS

NSPORTATION OF GOODS SUCH AS DELIVERY NOTE, DELIVERY ORDER,

RG RECEIPT AND MATE'S RECEIPT ARE NOT TRANSPORT DOCUMENTS AS DEFINED

WITHIN A CERTAIN NUMBER OF DAYS AFTER THE DATE OF SHIPMENT

VENT NOT LATER THAN THE EXPIRY DATE OF THE CREDIT
SUANCE OF THE ABOVE CERTIFICATES THEN CONDITIONS WILL BE APPLIED

GINAL TRASPORT DOCUMENTS ALONG WITH THESE DOCUMENTS REQUIRED BY CREDIT

THIRD PARTY DOCUMENTS ACCEPTABLE", "THIRD PARTY DOCUMENTS NOT ACCEPTABLE",
ENTED" SHOULD NOT BE USED IN A CREDIT, AS THEY ARE NOT DEFINED IN UCP.
AVE THE FOLLOWING MEANING UNDER INTERNATIONAL STANDARD BANKING PRACTICE
TS , TELE-TRANSMISSION REPORTS AND COURIER RECEIPTS, POSTAL RECEIPTS OR

1 DAYS AFTER THE OF SHIPMENT AS LONG AS THEY ARE PRESENTED NOT LATER
IOD FOR PRESENTATION TOGETHER WITH CONDITION "STALE DOCUMENTS ACCEPTABLE"
T DO NOT INDICATE AN ISSUER, EXCEPT DRAFT, MAY BE ISSUED BY NAMED PERSON

THE COUNTRY OF ORIGIN OF THE GOODS OR THE COUNTRY OF RECEIPT BY THE CARRIER

CATE, CERTIFICATION OR DECLARATION RELATING TO A TRANSPORT DOCUMENT

DING IS PRESENTED, THE MASTER, OWNER OR CHARTER OR ANY ENTITY IDENTIFIED
UED OR SIGNED THE PRESENTED TRANSPORT DOCUMENT
N LC AVAILABLE BALLANCE OTHERWISE THE DOCUMENTS WILL NOT BE CONSIDERED
ED IN THE REQUIRED NUMBER OF ORIGINALS OR COPIES.
E NAME OF THE ISSUER, IT SHOULD BE ISSUED OF HIS LETTERHED WHEN LETTER HEAD

OCUMENTS TO BE PRESENTED, THE DATA REQUIRED BY THE CREDIT OR UCP

UAGE DOCUMENTS TO BE ISSUED IN ANY LANGUAGE. WHEN A CREDIT ALLOWS
K ACTING ON ITS NOMINATION MAY RESTRICT THE NUMBER OF ACCEPTABLE
ATA CONTAINED IN THE DOCUMENTS ARE ONLY TO BE IN THE ACCEPTABLE
ES. BANK DO NOT EXAMINE DATA THAT HAVE BEEN INSERTED IN A LANGUAGE
HE PERSON OR ENTITY, ANY STAMPS, LEGALIZATION , ENDORSEMENTS OR SIMILAR
AGE OTHER THAT THE LANGUAGE REQUIRED IN CREDIT
MATHEMATICAL CALCULATIONS BANKS ONLY DETERMINE THE STATED TOTAL IN RESPECT
OT CONFLICT WITH THE CREDIT OR ANY OTHER STIPULATED DOCUMENT
NOT EFFECT THE MEANING OF A WORD OR SENTENCE IN WHICH IT OCCURS DOES NOT
N AS "MASHINE" INSTEAD OF "MACHINE" OR "MODLE" INSTEAD OF "MODEL" WOULD
OWN AS, "MODEL 123" INSTEAD OF "MODEL 321" WILL BE REGARDED AS A CONFLICT

F MORE THAN ONE PAGE, IT MUST BE POSSIBLE TO DETERMINE THAT PAGES ARE PART
H ARE PHYSICALLY BOUND TOGETHER, SEQUENTIALLY NUMBERED OR CONTAIN
EMENT AND ARE TO BE EXANINED AS ONE DOCUMENT, EVEN IF SOME OF THE PAGES

ED TO BE ON A DOCUMENT CONSISTING OF MORE THAN ONE PAGE AND THE CREDIT

NT IS TO APPEAR, THE SIGNATURE OR ENDORSEMENT MAY APPEAR ANYWHERE

NS A CONDITION WITHOUT STIPULATING A DOCUMENT TO INDICATE COMPLIANCE

EED NOT BE EVIDENCED ON ANY STIPULATED DOCUMENT ARE NOT TO BE EVIDENCED
MENT ARE NOT TO BE IN CONFLICT WITH THE NON-DOCUMENTARY CONDITION. FOR
NSISTING STATEMENT " PACKING IN PLASTIC CASES" IS CONFLICT OF DATA.
TURE, MARK , STAMP OR LEVEL OF THE ISSUER WILL BE CONSIDERED TO BE AN
ER SUCH A SIGNATURE, MARK STAMP OR LEBEL OF ISSUER HAS BEEN APPLIED IN
D OF AUTHENTICATION WILL SATISFY THE REQUIREMENTS OF UCP 600 ARTICLE 17
MARKED "ORIGINAL" "DUPLICATE " "TRIPLICATE" "FIRST ORIGINAL" "SCEOND ORIGINAL" ETC. NONE OF THESE

AT LEAST THE NUMBER REQUIRED BY THE CREDIT OR UCP 600

RIGINALS HAVE BEEN ISSUED, THE NUMBER OF ORIGINALS STATED ON THE
REQUIRES PRESENTATION OF LESS THAN A FULL SET OF ORIGINAL TRANSPORT
SPOSAL INSTRUCTIONS FOR THE REMAINING ORIGINAL BILL OF LADING, A

NVOICE-1 COPY, IT WILL BE UNDERSTOOD TO BE A REQUIREMENT FOR AN

ATION OF ONE ORIGINAL AND 3 COPY

N OF EITHER A PHOTOCOPY, COPY OR WHEN NOT PROHIBITED AN ORIGINAL INVOICE
ER OF PHOTOCOPY OR COPY OF ORIGINAL INVOICE THAT WAS APPARENTLY SIGNED

F AN ORIGINAL DOCUMENT BY STATING, FOR EXAMPLE- PHOTOPY OF I

, ONLY A PHOTOCOPY OF AN INVOICE OR AN INVOICE MARKED COPY IS
DISPOSAL INSTRUCTION IS PRESENT AGAINST THIS THEN DOCUMENT IS

ED BY THE CREDIT, THE DOCUMENT ITSELF (EXCEPT AS STATED IN PARA A37)

IPPING MARK, DOCUMENTS MENTIONING THE SHIPPING MARK ARE

NEED NOT BE IN THE SAME SEQUENCE AS THOSE SHOWN IN THE CREDIT
N IN THE CREDIT OR IN ANY OTHER STIPULATED DOCUMENT.
MAY SHOW DATA IN EXCESS OF WHAT WOULD NORMALLY BE
PE OF GOODS, WARNINGS CONCERNING THE HANDLING

NERIZED GOODS OFTEN ONLY SHOW A CONTAINER NUMBER WITH OR WITHOUT

NTS THAT SHOW A MORE DETAILED MARKING WILL NOT BE IN CONFLICT FOR

N PARAGRAPH A33 AND A34, WHILE OTHERS DO NOT, NOT CONSIDERED AS

NDWRITTEN. DOCUMENTS MAY ALSO BE SIGNED WITH A FACSIMILE SIGNATURE

TAMP, SYMBOL (FOR EXAMPLE A CHOP) OR ANY MECHANICAL OR ELECTRONIC
 IREMENT IS SATISFIED BY A SIGNATURE AS MENTIONED ABOVE AND THE NAME
ON THE DOCUMENT ETC
LY AUTHENTICATED" OR " THIS DOCUMENT HAS BEEN PRODUCED BY ELECTRONIC
ITSELF REPRESENT AN ELECTRONIC METHOD OF AUTHENTICATION IN ACCORDANCE

OR OBTAINED THROUGH A SPECIFIC REFERANCE TO A WEBSITE CONSTITUTES

CORDANCE WITH THE SIGNATURE REQUIREMENTS OF UCP 600 3. BANK WILL

R ENTITY IS CONSIDERED TO BE THE SIGNATURE OF THAT NAMED PERSON OR ENTITY

D NEXT TO THE SIGNATURE.
E ISSUER, THE SIGANTURE WILL BE CONSIDERED TO BE THAT OF THE ISSUER.
GNATURE DOES NOT IN ITSELF MEAN THAT SUCH BOX FIELD OR SPACE IS TO BE
E SPACE TITLED " SIGNATURE OF SHIPPER" COMMONLY FOUND

NT IS NOT VALID UNLESS COUNTERSIGNED OR SIGNED BY NAME OF THE PERSON

TO CONTAIN A SIGNATURE AND THE NAME OF THE PERSON OR ENTITY THAT

T, BEAR A SIMMILAR TITLE OR BE UNTITLED. THE CONTENT OF A DOCUMENT

E - A REQUIREMENT FOR A " PACKING LIST" WILL BE SATISFIED BY A DOCUMENT
TE" "PACKING AND WEIGHT LIST" ETC OR BEARS NO TITLE.
ED AS SEPARATE DOCUMENTS. HOWEVER, AND AS AN EXAMPLE, A REQUIREMENT
ED BY THE PRESENTATION OF TWO ORIGINAL COMBINED PACKING
HT DETAILS
VER MORE THAN ONE FUNCTIONS MAY BE PRESENTED AS A SINGLE DOCUMENT
E, REQUIREMENT OF CERTIFICATE OF QUALITY AND QUANTITY WILL BE SATISFIED

ED IN THE CREDIT. BANK ONLY EXAMINE A DRAFT TO THE EXTENT DESCRIBED HERE.

ATE FROM THE DATA IN THE DRAFT ITSELF.

E AND WHEN THE DATE OF BILL OF LADING IS 13 MAY 2013, THE TENOR IS TO BE INDICATED IN THE DRAFT
YS AFTER BL DATE" AND MENTION BL DATE INDRAFT SEPARATELY OR "60 DAYS DATE"

T BL ISSUE DATE. THE WORDS FROM AND AFTER WHEN USED TO DETERMINE
OMMENCES THE DAY FOLLOWING THE DATE OF THE DOCUMENT, SHIPMENT OR
R FROM 4 MAY IS 14 MAY.
FTS SIGNIFY THAT THE CALCULATION OF MATURITY DATE COMMENCES THE DAY
ULATED IN THE CREDIT, FOR EXAMPLE 10 DAYS FROM 4 MAY IS 14 MAY
60 DAYS FROM OR AFTER BL DATE AND A BILL OF LADING IS PRESENTED EVIDENCING
OWING MORE THAN ONE DATED ON BOARD NOTATION AND INDICATING THAT EACH
OR RANGE OF PORTS, THE EARLIEST OF THESE DATES IS TO BE USED FOR
FROM ANY EUROPEAN PORT AND BILL OF LADING EVIDENCES ON BOARD VESSEL
ROM ROTTERDAM ON 16 MAY. THE DRAFT SHOULD REFLECT 60 DAYS AFTER

XAMPLE AT 60 DAYS AFTER OR FROM THE BILL OF LADING DATE AND MORE THAN ONE SET
TEST BILL OF LADING WILL BE USED FOR THE CALCULATION OF MATURITY DATE
ATE, THAT DATE IS TO REFLECT THE TERMS OF THE CREDIT
BLISHED AS FOLLOWS:
R THE DAY OF PRESENTATION TO THE BANK ON WHICH THE DRAFT IS DRAWN
CT ON ITS NOMINATION (DRAWEE BANK)

Y DATE WILL BE 60 DAYS AFTER THE DAY OF PRESENTATION TO IT.

REFUSAL AT THE LATEST 60 DAYS AFTER THE ISSUNIG BANK ACCEPTS THE

DED A NOTICE OF REFUSAL, AT THE LATEST 60 DAYS AFTER THE DATE OF THE ACCEPTANCE
HAT OF THE ISSUING BANK.

ALSO APPLIES TO A CREDIT ACAILABLE BY DEFFERED PAYMENT OR IN SOME CASES

BY THE BENEFICIARY.
DATE AT PLACE WHERE DRAFT OR DOCUMENTS ARE PAYABLE, PROVIDED THAT SUCH
DAY, PAYMENT IS DUE ON THE FIRST BANKING DAY AFTER THE DUE DATE. DELAY IN
T FUNDS ETC, ARE NOT TO BE IN ADDITION TO THE STATED OR AGREED DUE DATE

E OF ISSUANCE.
E CREDIT MENTIONS THE FORMER NAME, A DRAFT MAY BE DRAWN IN THE NAME OF THE
DS OF SIMILAR EFFECT.
ADDRESS OF THE BANK, THE DRAFT MAY SHOW THE DRAWEE WITH THE SAME DETAILS

NK, THE DRAFT IS TO BE DRAWN ON THE BANK OTHER THAN THE NOMINATED BANK
E DRAWN ON THE BANK THAT AGREES TO ACCEPT THE DRAFT AND IS THEREBY WILLING

ANK AND THE DRAFT IS TO BE DRAWN ON THAT NOMINATED BANK (WHICH IS NOT A
RY MAY CHOSE TO-
ATION BE FORWARDED TO THE CONFIRMING BANK IN THE FORM AS PRESENTED.
DRAWN ON IT AND THEREBY ACT ON ITS NOMINATION (APPLICABLE ON LY WHEN THE

ORM AS PRESENTED WITH OR WITHOUT A DRAFT DRAWN ON THE ISSUING BANK

DRAFT IS TO BE DRAWN ON THAT CONFIRMING BANK AND THE PRESENTATION IS
CIARY MAY REQUEST THAT THE PRESENTATION BE FORWARDED TO THE ISSUING

NTATION. THE AMOUNT IN WORDS IS TO ACCURATELY REFLECT THE AMOUNT IN FIGURES

HEN THE AMOUNT IN WORDS AND FIGURES ARE IN CONFLICT, THE AMOUNT IN WORDS

AR TO HAVE BEEN AUTHENTICATED WITH THE ADDITION OF THE SIGNATURE

RAT, AN ISSUING BANK SHOULD HAVE INCLUDED A SUITABLE STIPULATION IN ITS CREDIT
FT DRAWN ON THE APPLICANT. HOWEVER, WHEN A CREDIT REQUIRES THE PRESENTATION
XAMINED ONLY TO THE EXTENT EXPRESSLY STATED IN THE CREDIT , OTHERWISE
OUT FURTHER DESCRIPTION, THIS WILL BE SATISFIED BY THE PRESENTATION OF ANY TYPE
CONSULAR INVOICE ETC.) HOWEVER, AN INVOICE CANT BE PROVISIONAL , PROFORMA INVOICE

AL INVOICE" THIS WILL ALSO BE SATISFIED BY THE PRESENTATION OF A DOCUMENT TITLED

SUED FOR TAX PURPOSES
NEFICIARY OR IN THE CASE OF A TRANSFERRED CREDIT THE SCEOND BENEFICIARY.
CREDIT MENTIONS THE FORMER NAME OF THE NEW ENTITY PROVIDED THAT IT INDICATES

S RELATED TO INVOICES
OICE IS TO CORRESPOND WITH THE DESCRIPTION SHOWN IN THE CREDIT. THERE IS NO
TATED IN A NUMBER OF AREAS WITHIN THE INVOICE WHICH, WHEN READ TOGETHER,

FLECT WHAT HAS ACTRUALY BEEN SHIPPED, DELIVERED OR PROVIDED. FOR EXAMPLE,
MENT OF "10 TRUCKS AND 5 TRACTORS" AND ONLY 4 TRUCKS HAVE BEEN SHIPPED
DID NOT PROHIBIT PARTIAL SHIPMENT. AN INVOICE INDICATING WHAT HAS ACTRUALLY
ED IN THE CREDIT I.E 10 TRUCKS AND 5 TRACTORS.
E THAT CORRESPONDS WITH THAT IN THE CREDIT MAY ALSO INDICATE ADDITIONAL DATA
OT APPEAR TO REFFER TO A DIFFERENT NATURE, CLASSIFICATION OR CATEGORY OF
DRILLING RIG" BUT THE INVOICE DESCRIBES THE GOODS AS " SCEOND HAND HYDRAULIC
SIFICATION OR CATEGORY OF THE GOODS.

E PROVIDED.

ETC, THAT IS NOT STATED IN THE CREDIT.

DIT, AN INVOICE IS TO INDICATE THAT TRADE TERM AND WHEN THE SOURCE OF THE TRADE
M INDICATED IN THE CREDIT AS "CIF SINGAPORE INCOTERMS 2010" IS NOT TO BE INDICATED
EN A TRADE TERM IS STATED IN THE CREDIT AS "CIF SINGAPORE" OR " CIF SINGAPORE

REIGHT OR INSURANCE COSTS, ARE TO BE INCLUDED WITHIN THE VALUE SHOWN AGAINST

THE INVOICE IS NOT TO CONFLICT WITH THE SAME DATA APPEARING ON OTHER DOVUMENTS.

S EVEN WHEN THE INVOICE INCLUDES ADDITIONAL QUANTITIES OF GOODS,

ISING MATERIAL AND ARE STATED TO BE FREE OF CHARGE.
N QUANTITY ALLOWED. SUBJECT TO LC SHOULD NOT MENTION QUANTITY SHOULD NOT EXCEED
INDIVIDUAL ITEMS.

ARE PROHIBITED, AN INVOICE ISSED FOR AN AMOUNT UP TO 5% LESS THAN THE CREDIT
ULATED IN THE CREDIT AND ANY INSTALLMENT IS NOT DRAWN OR SHIPPED WITHIN THE
R THAT AND ANY SUBSEQUENT INSTALLMENT. GIVEN EXAMPLE PERIODS ARE A SEQUENCE
MENT. FOR EXAMPLE, A CREDIT REQUIRING SHIPMENT OF 100 CARS IN MARCH AND 100 CAR
RIL AND ENDS ON 31 MARCH AND 30 APRIL RESPECTIVELY.
OR SHIPMENTS IS PERMITTED WITHIN EACH INSTALLMENT.
A NUMBER OF LATEST DATES AND NOT GIVEN PERIODS. THIS IS NOT AS PER UCP AND ARTICLE
CTIONS IN RESPECT OF THE DRAWING OR SHIPMENT SCHEDULE AND UCP ARTICLE 31
OR SHIPMENTS IS PERMITTED ON OR BEFORE EACH LATEST DATE
BILL OF LADING/ AIRWAY BILL/CHARTER PARTY/ ROAD TRANSPORT DOCUMENT
RT DOCUMENT, HOWEVER NAMED, COVERING MOVEMENT OF GOODS UTILIZING
OCUMENT.
NO REFERANCE TO PLACE OF RECEIPT, TAKING IN CHARGE,

VERING MOVEMENT OF GOODS BY EITHER ROAD OR RAIL OR INLAND WATERWAY

MENT- IS NOT TO INDICATE THAT SHIPMENT OR DISPATCH HAS BEEN EFFECTED

OF THE MODES OF TRANSPORT UTILIZED.
Y INDICATION OF A CHARTER PARTY.
SUBJECT TO, OR ANY REFERANCE TO, A CHARTER PARTY IS DEEMED TO BE

EIGHT PAYABLE AS PER CHARTER PARTY DATED (WITH OR WITHOUT MENTIONING

IT IS SUBJECT TO CHARTER PARTY.
AME USUALLY ASSOSIATED WITH A CHARTER PARTY BILL OF LADING FOR EXAMPLE :
EFERANCE TO A CHARTER PARTY, IS NOT BY ITSELF AN INDICATION OF,

EDIT REQUIRES THE PRESENTATION OF A TRANSPORT DOCUMENT

RE THAN ONE MODE OF TRANSPORT
ORT OF DISCHARGE AND PLACE OF DELIVERY IS USED IN THE CREDIT WHICH IS

ORT DOCUMENT" OR "COMBINED TRANSPORT DOCUMENT" IS USED IT

OF LADING", "PORT TO PORT BILL OF LADING"

NOTE", OR WORDS OF SIMILAR EFFECT EVEN WHEN THE CREDIT SO NAMES THE

THER THAN A CARRIER OR MASTER PROVIDED

T DOCUMENT IS ACCEPTABLE" OR "HOUSE TRANSPORT DOCUMENT

UING ENTITY WITHOUT IT BEING NECESSERY

GHT FORWARDERS TRANSPORT DOCUMENTS ARE NOT ACCEPTABLE"

EFFECT HAS NO MEANING UNLESS THE CREDIT PROVIDES
N THE ABSENCE OF THESE REQUIREMENTS, SUCH A STIPULATION
ED ACCORDING TO THE REQUIREMENTS OF UCP
FORM DESCRIBED IN UCP - 19 AND TO INDICATE NAME OF THE CARRIER, IDENTIFIED AS THE CARRIER.
 CARRIER, THE SIGNATURE IS CONSIDERED TO HAVE BEEN MADE BY THE CARRIER
CUMENT ON BEHALF OF THE CARRIER, THE AGENT IS TO BE NAMED AND IN ADDITION,
T ON BEFALF OF THE CARRIER" WITHOUT NAMING THE CARRIER AGAIN.
RT DOCUMENT, THE SIGNATURE OF THE MASTER/CAPTAIN IS TO BE
BE STATED.
OCUMENT ON BEHALF OF THE MASTER/CAPTAIN, THE AGENT IS TO BE
R/CAPTAIN OR AGENT ON BEFALF OF THE MASTER/CAPTAIN" OR WORDS

/CHARTER OR THEIR AGENTS ON BEHALF OF THEM

IED BY ITS NAME INSTEAD OF AN IATA AIRLINE CODE, FOR EXAMPLE, BRITISH

PTED FOR CARRIGE OR WORDS OF SIMILAR EFFECT.

TE OF SHIPMENT IS THE DATE OF SHIPMENT.
LE- IN A BOX LABELED "FOR CARRIER USE ONLY", "REQUIRED FREIGHT DATE"
E OF SHIPMENT.
TE OF RECEIPT, DISPATCH , TAKING IN CHARGE
IN THE LATEST EVENT, SUCH DATE WILL BE DEEMED TO BE
DATE OF THE TRANSPORT DOCUMENT. A SEPARATE

ANCE DATE WILL BE DEEMED TO BE THE DATE OF SHIPMENT UNLESS IT

NDICATED IN A DESIGNATED FIELD OR BOX.
PORT TO PORT SHIPMENT,

F LOADING, FOR EXAMPLE, PLACE OF RECEIPT ROTTERDAM AND THERE IS

THE PLACE OF RECEIPT FIELD) OR
ADING , FOR EXAMPLE- PLACE OF RECEIPT AMSTERDAM AND PORT OF LOADING
-CARRIGE FIELD OR PLACE OF RECEIPT FIELD,

WILL BE DEEMED TO BE THE DATE OF SHIPMENT AND NO FURTHER ON BOARD

ALSO BE INDICATED IN A DISIGNATED FIELD OR BOX
ARD NOTATION IS REQUIRED AND THE DATE APPEARING IN THE NOTATION WILL BE
D IN A DESIGNATED FIELD OR BOX.
RT-TO PORT SHIPMENT
OF LOADING, FOR EXAMPLE PLACE OF RECEIPT AMSTERDAM AND PORT OF LOADING
RRIGE FIELD OR PLACE OF RECEIPT FIELD), REGARDLESS OF WHEATHER PREPRINTED
RD NOTATION WHICH ALSO INDICATES THE NAME OF THE VESSEL AND
SIGNATED FIELD OR BOX. THE DATE APPEARING IN THE ON BOARD NOTATION OR

CARRIGE FIELD OR PLACE OF RECEIPT FIELD), NO MATTER IF NO PLACE OF RECEIPT

R SHIPMENT", IT IS TO BEAR A DATED ON BOARD NOTATION WHICH ALSO INDICATES
NOTATION MAY ALSO APPEAR IN A DESIGNATED FIELD OR BOX. THE DATE APPEARING
DATE OF SHIPMENT.
OR WORD WITH SIMILAR EFFECT SHALL BE DEEMED
THE PLACE OF RECEIPT TO PORT OF LOADING" IS DONE
O BEAR A DATED ON BOARD NOTATION. THE DATED ON BOARD NOTATION
N THE CREDIT. SUCH NOTATION MAY ALSO TO APPEAR IN A DESIGNATED FIELD OR BOX.
F SHIPMENT

IRST LEG OF THE JOURNEY,

WORDS WITH SIMILAR EFFECT, PROVIDED THERE

F LOADING/AIRPORT OF DEPARTURE STATED

OCUMENT.
IPT, DISPATCH, TAKING IN CHARGE, PORTS OF LOADING OR AIRPORTS OF DEPERTURE
TO INDICATE A ACTRUAL PLACE OF RECEIPT, DISPATCH , TAKING IN CHARGE , PORT
HAT GEOGRAPHICAL AREA OR RANGE OF PLACES. A MULTIMODAL TRANSPORT

DENCE AN ON BOARD NOTATION WITH RELEVANT ON BOARD DATE FOR EACH PORT
NT" OR "SHIPPED ON BOARD". WHEN A BILL OF LADING INDICATES THAT SHIPMENT
S REQUIRED FOR BOTH.
E INDICATED BY USE OF IATA CODES INSTEAD OF EVIDENCING

LUDES - ISSUING CARRIER, ACTRUAL CARRIER, SUCCEEDING CARRIER, AND

Y OR RAILWAY STATION OF DEPARTURE WITHOUT INDICATING THE NAME OF THE

EAN ON BOARD" , OR OTHER PHRASES THAT INCORPORATE "SHIPPED" OR "ON BOARD"

OF DISCHARGE SHOULD APPEAR IN THE

TED IN THE FIELD HADED "PLACE OF FINAL DESTINATION" OR THE
BE EFFECTED TO FELIXSTOWE, BUT FELIXSTOWE IS SHOWN AS
E EVIDENCED BY A NOTATION STATING " PORT OF DISCHARGE FELIXSTOWE".
REDIT (CHECK POINT 15)
HAVE BEEN ISSUED. TRANSPORT DOCUMENT MARKED "FIRST ORIGINAL"
ILAR EXPRESSIONS ARE ALL ORIGINALS.
OR SHIPPER. WHEN A CREDIT REQUIRES A FULL SET OF ORIGINALS, THIS IS SATISFIED
ORIGINAL FOR CONSIGNOR OR SHIPPER.
DOCUMENT TO EVIDENCE THAT GOODS ARE CONSIGNED TO A NAMED ENTITY,
DOCUMENT OR CONSIGNMENT, IT IS NOT TO CONTAIN THE
AND WHEN INDICATES TO ORDER OF NAMED PARTY, THEN NOT
RT DOCUMENT IS ISSUED " TO ORDER " OR "TO ORDER OF THE SHIPPER".
D ENTITY OTHER THAN THE SHIPPER , PROVIDED THE ENDORCEMENT

Y PARTIES, A MULTIMODAL TRANSPORT DOCUMENT MAY ALSO INDICATE THE

DICATE THE DETAILS OF ANY NOTIFY PARTY, A MULTIMODAL TRANSPORT
REDIT DOES NOT STIPULATE THE DETAILS OF NOTIFY PARTY, BUT
DOCUMENT AND THESE DETAILS INCLUDE THE APPLICANT ADDRESS

RANSPORT DOCUMENT TO EVIDENCE GOODS CONSIGNED TO OR TO THE ORDER

LTIMODAL TRANSPORT DOCUMENT IS TO INDICATE THE NAME OF
PECTIVE ADDRESS OR ANY CONTACT DETAILS THAT MAY BE STATED IN THE CREDIT.
IFY PARTY - THEY ARE NOT TO CONFLICT WITH THOSE STATED IN THE CREDIT.
CCUR. TRANSSHIPMENT IS THE UNLOADING AND RELOADING OF GOODS FROM
T) DURING THE CARRIGE OF THOSE GOODS FROM LOADING TO DESTINATION.
RE THAN ONE TRUCK, VESSEL , AIRCRAFT ETC) IS A PARTIAL SHIPMENT,
THE SAME DESTINATION.
AL MULTIMODAL TRANSPORT DOCUMENT IS PRESENTED COVERING RECEIPT, DISPATCH,
ED, OR WITHIN A GEOGRAPHICAL AREA OR RANGE OF PLACES STATED IN THE CREDIT) ,
S OF CONVEYNANCE AND SAME JOURNEY AND GOODS ARE DESTINED FOR THE
OR SHIPMENT IS THERE LATEST DATE TO BE CONSIDER.
ODAL TRANSPORT DOCUMENTS ARE PRESENTED AS PART OF SINGLE PRESENTATION
ATES OF RECEIPT, ON DIFFERENT MEANS OF CONVEYNANCE, THE EARLIEST OF THESE
OF THE DATE MUT FALL ON OR BEFORE LDS STATED IN THE CREDIT.
R CLAUSES THAT EXPRESSLY DECLARE A DEFECTIVE CONDITION OF GOODS
MENT SUCH AS " PACKAGING IS NOT SUFFICIENT FOR THE SEA JOURNEY"
A DEFECTIVE CONDITION OF PACKAGING.
BE SUFFICINT FOR THE SEA JOURNEY" OR WORDS WITH SIMILAR EFFECT DOES NOT

AL TRANSPORT DOCUMENT, EVEN IF CREDIT REQUIRES THE MULTIMODAL

NOT EXPRESSLY DECLARE A DEFEVTIVE CONDITION OF THE GOODS

ENT MAY BE IN GENERAL TERMS NOT IN CONFLICT

NAME, ADDRESS AND CONTACT DETAILS OF A DELIVERY AGENT OR WORDS OF SIMILAR

DDRESS NEED NOT BE ONE THAT IS LOCATED AT THE PLACE OF DESTINATION OR
INATION OR PORT OF DISCHARGE.
ENT IS TO BE AUTHENTICATED. SUCH AUTHENTICATION IS TO APPEAR TO HAVE BEEN MADE BY THE
M THE AGENT THAT MAY HAVE ISSUED OR SIGNED A MULTIMODAL TRANSPORT

UDE AUTHENTICATION OF ANY CORRECTIONS THAT MAY HAVE BEEN MADE ON

DICATING THE PAYMENT OF FREIGHT NEED NOT BE IDENTICAL TO THAT STATED

TIPULATED DOCUMENT OR THE CREDIT. FOR EXAMPLE, WHEN A CREDIT
T DESTINATION" IT MAY BE MARKED "FREIGHT COLLECT"
A MULTIMODAL TRANSPORT DOCUMENT IS NOT TO INDICATE THAT COSTS ADDITIONAL

FERANCE TO ADDITIONAL COSTS OR BY THE USE OF TRADE TERMS WHICH REFER

E IN (FI), FREE OUT (FO), FREE IN AND OUT (FIO) AND FREE IN AND OUT STOWED (FIOS).
ED FOR EXAMPLE, AS A RESULT OF A DELAY IN UNLOADING THE GOODS, OR AFTER
ATE RETURN OF CONTAINERS (DETENTION COSTS) IS NOT AN INDICATION OF COSTS

ENT TO INDICATE THAT FREIGHT HAS BEEN PREPAID OR FREIGHT IS TO BE COLLECTED

ED "FRANCO" (FREIGHT PREPAID) OR "NON-FRANCO" (FREIGHT TO BE COLLECTED)
 TO BE SURRENDERED -
OVERED BY THAT MULTIMODAL TRANSPORT DOCUMENT WILL ONLY BE RELEASED
RT DOCUMENTS, UNLESS ALL OF THE REFERENCED MULTIMODAL TRANSPORT

LY BE RELEASED TO A SINGLE MERCHANT UPON PRESENTATION OF ALL MULTIMODAL

TEMENT THAT ONE OR MORE OTHER MULTIMODAL TRANSPORT DOCUMENTS, RELATED
O THE GOODS BEING RELEASED.

D THE CREDIT SPECIFICALLY INDICATES THE DATA THAT ARE TO BE EXAMINED AND
T, EVEN WHEN SUCH CONTRACT IS REQUIRED AS A STIPULATED DOCUMENT

NCE DOCUMENT, SUCH AS AN INSURANCE POLICY, INSURANCE CERTIFICATE

FOR EXAMINATION OF DOCUMENT

INSURANCE COMPANY OR UNDERWRITER OR THEIR AGENT OR PROXY. FOR EXAMPLE,

HAVE BEEN ISSUED BY AN INSURANCE COMPANY.
T INDICATE THAT IT IS AN INSURANCE COMPANY OR UNDERWRITTER.
TIONARY, PROVIDED THE INSURANCE DOCUMENT HAS BEEN SIGNED BY AN

AME OF THE INSURANCE COMPANY OR UNDERWRITER ON BEHALF OF WHICH THE

NAME HAS BEEN IDENTIFIED ELSEWHERE IN THE DOCUMENT. FOR EXAMPLE -
SIGNED " JOHN DOE (BY PROXY) ON BEHALF AA INSURANCE.
THE ASSURED OR A NAMED ENTITY, IT MUST BE COUNTER SIGNED.
E COMPANY IN THE SIGNING FIELD, PROVIDED IT IS IDENTIFIED AS THE INSURANCE
SSUED AND SIGNED "AA" IN THE SIGNING FIELD BUT SHOWS "AA INSURANCE LTD"

AN ONE INSURER, MAY BE SIGNED BY A SINGLE AGENT ON BEHALF OF ALL INSURER.

ED NOT TO SHOW THE NAMES OF THE EACH INSURER OR THE PERCENTAGE OF COVER

AN ONE ORIGINAL, OR WHEN THE INSURANCE DOCUMENT INDICATES THAT IT HAS BEEN
E TO APPEAR TO HAVE BEEN SIGNED.

ATION OF ANY CLAIMS THEREUNDER.

F SHIPMENT.
DATE OF SHIPMENT, IT IS TO CLEARLY INDICATE BY ADDITION OR NOTE THAT

"WAREHOUSE TO WAREHOUSE" OR WORDS OF SIMILAR EFFECT FROM A DATE NOT

E DATE OF INSURANCE COVERAGE , A COUNTERSIGNATURE DATE WILL BE DEEMED

OCUMENT IS TO BE ISSUED IN THE CURRENCY OF AND AS A MINIMUM ,

SURANCE COVERAGE.
ULATE MORE THAN TWO DECIMAL PLACES.
OR EXCESS (DEDUCTABLE). HOWEVER, WHEN A CREDIT REQUIRES THE INSURANCE
 CONTAIN A CLAUSE STATING THAT THE INSURANCE COVER IS SUBJECT TO A
E "IRRESPECTIVE OF PERCENTAGE"
MOUNT DEMANDED ONLY REPRESENTS A CERTAIN PART OF THE GROSS VALUE
ECAUSE PART OF THE VALUE OF THE GOODS IS TO BE PAID AT A LATER DATE), THE
THE GOODS AS SHOWN ON THE INVOICE OR THE CREDIT AND SUBJECT

D UNDER ONE DOCUMENT UNLESS MORE THAN ONE INSURANCE DOCUMENT

S, BY PERCENTAGE OR OTHERWISE:

OUT PRE-CONDITIONS RELATING TO ANY OTHER INSURANCE COVER THAT MAY HAVE

LEAST THE INSURED AMOUNT REQUIRED BY THE CREDIT OR UCP.

D, THERE MAY BE A REFERENCE TO EXCLUSION CLAUSES IN THE INSURANCE DOCUMENT

ENTATION OF AN INSURANCE DOCUMENT EVIDENCING ANY "ALL RISKS" CALUSE
IS INDICATED THAT CERTAIN RISKS ARE EXCLUDED. AN INSURANCE DOCUMENT
AUSES (AIR), WHEN DISPATCH IS EFFECTED BY AIR SATISFIES A CONDITION IN A CREDIT

HERE NECESSERY, BE ENDORSED BY THE ENTITY,

RER" OR "TO ORDER". A CREDIT SHOULD INDICATE THE NAME OF AN INSURED PARTY.
F (NAMED ENTITY)". THE DOCUMENT NEED NOT INDICATE "TO ORDER" PROVIDED
TO IT, AND ASSIGNMENT BY ENDORSEMENT IS NOT EXPRESSLY PROHIBITED.
NOT TO EVIDENCE THAT CLAIMS ARE PAYABLE TO THE ORDER OF, OR IN FAVOUR
UNLESS IT IS ENDORSED BY THE BENEFICIARY OR THAT ENTITY IN BLANK OR

RECEIVE PAYMENT UNDER IT PASSES UPON OR PRIOR TO THE RELEASE OF

CE PREMIOUM IS TO BE DISGARDED UNLESS THE INSURANCE DOCUMENT INDICATES

NDICATION THAT THE PREMIOUM HAS NOT BEEN PAID.

WILL BE SATISFIED BY THE PRESENTATION OF A SIGNED DOCUMENT THAT APPEARS

E OF ORIGIN SUCH AS A GSP FORM A, ONLY A DOCUMENT IN THAT SPECIFIC FORM

WHEN A CREDIT DOES NOT INDICATE THE NAME OF AN ISSUER ANY ENTITY MAY ISSUE

HE BENEFICIARY, CERTIFICATE MAY BY PRESENTED ISSUED BY CMEMBER OF COMMERCE

UTHORITIES AND DEPARTMENT OF TRADE, PROVIDED THEY INDICATES BENEFICIARY
CHAMBER OF COMMERCE, THIS CONDITION WILL ALSO BE SATISFIED A CERTIFICATE

EXAMPLE, BY
ION SHOWN IN GENERAL TERMS NOT IN CONFLICT WITH THE GOODS DESCRIPTION

NT, OR IN A DOCUMENT THAT IS ATTACHED TO, AND FORMING AN INTEGRAL PART

E INFORMATION IN THE TRANSPORT DOCUMENT. HOWEVER WHEN A CREDIT

PER" , "TO ORDER OF ISSUING BANK", "TO ORDER OF NOMINATED BANK" OR
E AS ANY ENTITY NAMED IN THE CREDIT EXCEPT THE BENEFICIARY. WHEN A CREDIT

ITY OTHER THAN THE BENEFICIARY OF THE CREDIT OR THE SHIPPER AS SHOWN

MENT OF PRESENTATION OF CERTIFICATE OF ORIGIN,ANY REFERANCE TO THE ORIGIN

AMPLE- WHEN A CREDIT INDICATES " ORIGIN OF GOODS -GERMANY" WITHOUT REQUIRING
MENT INDICATING A DIFFERENT ORIGIN OF THE GOODS IS TO BE CONSIDERED AS

ND SHIPMENT ROUTING TO THAT INDICATED ON ONE OR MORE OTHER STIPULATED

OF ORIGIN IS NOT THE BENEFICIARY.

IED BY A DOCUMENT NAMED PACKING LIST OR SATISFIED BY A NO HEADING DOCUMENT

REDIT DOESNOT INDICATE ANY ENTITY MAY ISSUE.

NG THE DOCUMENTS TO INDICATE COMPLIANCE WITH THESE REQUIREMENTS, ANY

NT ROUTING TO THAT INDICATED ON ONE OR MORE OTHER STIPULATED

NTITIES , TOTAL WEIGHTS , TOTAL MEASUREMENTS OR TOTAL PACKAGES, TO ENSURE

DIT AND ON ANY OTHER STIPULATED DOCUMENT.

NDICATE THAT THE REQUIREMENT PRESCRIBED

EDIT OR ANOTHER STIPULATED DOCUMENT.

CERTIFICATES)

O AN ACTION REQUIRED TO TAKE PLACE ON OR PRIOR TO THE DATE OF SHIPMENT,

E OF SHIPMENT, IN WHICH EVENT WHEN AN ISSUANCE DATE IS ALSO INDICATED,

T DATE BUT NOT LATER THAN THE DATE OF PRESENTATION OF THE CERTIFICATE.

XT OF ITS BEING "INDEPENDENT" , "OFFICIAL", "QUALIFIED", OR WORDS OF SIMILAR

NSPECTED.
R STIPULATED DOCUMENT
TER PARTY BL.

RM THE PARTY FROM WHOM RECEIVED VIA ANY MEANS ABOUT UNABLE TO HANDLE.
HAT DOCUMENTS TO BE DELIVERED TO IMPORTER IN EXCHANGE

CIAL DOCUMENTS MEANS BILL OF EXCHANGE, PROMISSIONARY NOTES, CHEQUE,

OCUMENTS MEANS INVOICES, TRANSPORT DOCUMENT, DOCUMENT OF

ERCIAL DOCUMENTS. AND DOCUMENTARY COLLECTION MEANS FINANCIAL

MENTS NOT ACCOMPANIED BY FINANCIAL DOCUMENTS.

ECTION INSTRUCTION.

LL NAME, POSTAL AND SWIFT ADDRESS, TELEX,TELEPHONE, FACSIMILE NUMBERS

E DOCUMENT AVAILABLE TO THE DRAWEE AS INSTRUCTED.
CH ANY ACTION IS TO BE TAKEN BY THE DRAWEE.
NECTION WITH PRESENTATION. IF USED BANK SHOULD DISGARD THEM.
ARE RECEIVED EXCEPT THE STAMP AND SIGNATURE OF BANK.
BANK WILL PICK BY ITS OWN.
NG BANK TO COLLECTING BANK. OR THROUGH ANOTHER BANK AS INTERMEDIARY.
OLLECTING BANK MAY UTILIZE A PRESENTING BANK OF ITS CHOICE.
BUT IN DA IT IS POSSIBLE. IF ANY DISCRIPANCY DP SHOULD BE FOLLOWED.
RAWEE IS TO CREATE DOCUMENTS (BOE, PN, TR, LOU) THAT WERE NOT INCLUDED

O, SUCH BANK HAS NO OBLIGATION REGARDING STORAGE AND INSURANCE OF GOODS.

RGES REGARDING GOODS HANDLING IS ON ACCOUNT OF REMITTING BANK.
DS 3. DELAY 4. LOST IN TRANSIST 5. ACT OF GOD WAR ETC.
TTING BANK ONLY WITHOUT DELAY, UNLESS OTHERWISE STATED IN COVERING.
L PAYMENT ALSO ALLOWED BUT DOCUMENTS WILL BE RELEASED ONLY AFTER THE

UCTION STATED BUT IT HAS NO RELATION WITH THE DOCUMENT.

CUMENT WILL BE DELIVERED. ONLY AFTER COLLECTING INTEREST.
ANCE OF BOE APPEARS TO BE COMPLETE AND CORRECT BUT IS NOT RESPONSIBLE

NG PROTEST. IF NOT SO BANK HAVE NO OBLIGATION. ALL CHARGES FOR PROTEST

ABLE TO ACCEPT ANY INSTRUCTION FROM CASE OF NEED -IN CASE OF DA.
TANCE OR NON-PAYMENT/NON-ACCEPTANCE TO THE REMITTING BANK.

MENT AMMENDMENT, CLAIMING BANK,

KING AMMENDMENT.

FORM OF AN AUTHENTICATED SWIFT OR SIGNED LETTER. WHEN A CREDIT

AIL CONFIRMATION SHOULD BE DISGARDED.
ALSO REIMBURSEMENT AUTHORIZATION NOT HAVE ANY RELATION THAT

ER ii) CURRENCY AND AMOUNT iii) ADDITIONAL AMOUNT PAYABLE AND TOLLERANCE
S RESPONSIBLE FOR CHARGES
T AUHORIZATION MUST STATES THE FOLLOWING-

G BANK MUST BE INDICATED IN CREDIT NOT IN REIMBURSEMENT AUTHORIZATION.

MBURSEMENT AUTHORIZATION OR AMMENDMENT, IT MUST INFORM THE ISSUING

RSING BANK TO ISSUE A REIMBURSEMENT UNDERTAKING. THE ISSUING BANK MAY
E AND SEND NOTICE TO REIMBURSING BANK TO EFFECT THAT.
TO ISSUE A REIMBURSEMENT UNDERTAKING IS IRREVOCABLE AND MUST CONTAIN

O CLAIMING BANK BUT IT NOT WANT TO DO SO , INFORM ISSUING BANK WITHOUT DEALY.

MBURSING BANK IS CLOSED -NEXT BANKING DAY.

UES A REIMBURSEMENT UNDERTAKING.
ION BECOME IRREVOCABLE AND CAN NOT BE AMMENDED OR CANCELD,

UT AGREEMENT OF THE CLAIMING BANK.

BY REIMBURSEMENT AUTHORIZATION

T , ACCEPTANCE OR NEGOTIATION TO THE ISSUING BANK.

UST FORWARD THAT DRAFT TO THE REIMBURSING BANK WITH THE REIMBURSEMENT

IPMENT OF MERCHANDISE

NG THE DATE OF RECEIPT.

E RECEIVED ON NEXT BANKING DAY.
NOTICE TO CLAIMING BANK AND ISSUING BANK WITHIN 3 DAYS WITH REASEN.
CLAIMING BANK
G AND REIMBURSEMENT IS DUE ON A FUTURE DATE, THE REIMBURSEMENT AUTHORIZATION
E MADE TO BEFORE 10 DAYS OF THAT DATE. REIMBURSING BANK HAS NO

BURSEMENT AUTHORIZATION BUT CAN SENT A AMMENDMENT OR CANCELLATION

N THE ISSUING BANK.
NG BANK AGAINST ALL OBLIGATION AND RESPONSIBILITIES

CES ARISING FROM DELAY IN TRANSMISSION OF MESSAGES,

REQUIREMENT STATED IN THE CREDIT.
RSEMENT CLAIM.
CES ARISING FROM ACT OF GOD, CIVIL COMMOTIONS, WARS ETC.
NOURING REIMBURSEMENT CLAIM REIMBURSEMENT BANK SHOULD CONSIDER
FROM THE AMOUNT CLAIM. IF NOTHING STATES ON AUTHORIZATION IT IS ON

ETWEEN ISSUING BANK AND CLAIMING BANK. REIMBURSING HAVE NO INTEREST

E IS USED AND

CATE,ITS REQUIRED
QUIRE A SEPARATE SIGNATURE

S PER STATED IN THE CREDIT

ETC. NONE OF THESE
CATED IN THE DRAFT
OT EXCEED
AS THE CARRIER.
MADE BY THE
1. SCANTIONED COUNTRIES CASE STUDIES
FATF BLACK LIST Morocco OFAC SCANTION COUNTRIES MOCK
NORTH KOREA Myanmar (Burma) Afghanistan
FATF GREY LIST Nicaragua Central African
Albania Panama The Republic Democratic Republic of the Congo
Barbados Philippines Democratic People’s Republic of Korea COUNTRY EMBARGOED LIST
Burkina Faso Senegal Iran COMBINED, THE TREASURY DEPARTMENT, THE COMMERCE DEPA
Cambodia South Sudan ISIL and Al-Qaida AND THE STATE DEPARTMENT LIST EMBARGOES AGAINST 29 COU
Cayman Islands Syria Libya OR TERRITORIES: AFGHANISTAN, BELARUS, BURUNDI, CENTRAL A
Jamaica Turkey Mali REPUBLIC, CHINA (PR), CÔTE D'IVOIRE, CRIMEA REGION, CUBA, CY
Jordan Uganda Somalia DEMOCRATIC REPUBLIC OF THE CONGO, ERITREA, HAITI, IRAN, IR
Haiti Yemen Sudan KYRGYZSTAN, LAOS, LEBANON, LIBERIA, LIBYA, MYANMAR, NORT
Malta Zimbabwe Yemen PALESTINIAN TERRITORIES, RUSSIA, RWANDA, SOMALIA, SOUTH S
Mali Pakistan , SRI LANKA, SUDAN, SYRIA, VENEZUELA, YEMEN, ZIMBABWE.
2.RED FLAGS
REDFLAG 1 - STUDY BOTH CLIENTS AND TRAY TO DETECT SOURCE OF FUNDS
REDFLAG 2 - IN CRISIS COUNTRIES COMPANIES AND INDIVIDUALS WANT TO TRANSFER THEIR FUNDS TO A STABILIZED COUNTRY.
REDFLAG 3 - DISCRIPANCY IN DESCRIPTION QUANTITY, QUALITY PRICE OF GOODS WITH INVOICE AND ORIGINAL CUSTOM DOCUMENT AND TRAN
REDFLAG 4 - PARENT COMPANY AND SISTER CONCERN
REDFLAG 5 - PRICE OF THE COMMODITY IS LESS OR MORE THAN THE FAIR PRICE
REDFLAG 6 - SIZE OF THE SHIPMENT APPEARS IN-CONSISTENT WITH THE SCALE OF THE EXPORTER OR IMPORTER REGULAR BUSINESS ACTIVITIES.
REDFLAG 7 - THE TYPE OF THE COMMODITIES BEING SHIPPED IS DESIGNATED AS "HIGH RISK" FOR MONEY LAUNDERING ACTIVITIES.
REDFLAG 8 - THE SHIPMENT DOES NOT MAKE ECONOMIC SCENCE.
REDFLAG 9 - A COMMODITY IS SHIPPED FROM A JURIDICTION DESIGNATED AS "HIGH RISK" FOR MONEY LAUNDERING ACTIVITIES.
REDFLAG 10 - COMMODITY IS TRANSSHIPED THROUGH ONE OR MORE JURIDICTION FOR NO APPARENT ECONOMIC REASON.
REDFLAG 11 - THE METHOD OF PAYMENT APPEARS INCONSISTENT WITH THE RISK CHARACTERISTICS OF THE TRANSACTION.
REDFLAG 12 - THE TRANSACTION INVOLVES THE RECEIPT OF CASH FROM THIRD PARTY ENTITIES THAT HAVE NO APPARENT CONNECTION WITH
REDFLAG 13 - THE TRANSACTION INVOLVES USE OF REPEATEDLY AMMENDED OR FREQUENTLY EXTENDED LETTER OF CREDIT
REDFLAG 14- TRANSACTION INVOLVES THE USE OF FRONT OR SHELL COMPANIES.
CUSTOMS- CUSTOM AGENCIES MAKE USE OF MORE TARGETED INFORMATION THAT RELATES TO SPECIFIC EXPORTING, IMPORTING OR SHIPPING COMPANIES
IN ADDITION, RED FLAG INDICATORS CAN ALSO BE USED TO DETECT OTHER METHODS OF MONEY LAUNDERING, COULD BE USEFUL FOR CUSTOMS.
FOR EXAMPLE - HIGH VALUE LOW VOLUME GOODS, USE OF FORTY FOOT CONTAINER TO TRANSPORT A SMALL AMOUNT OF
RELATIVELY LOW VALUE GOODS, THE USE OF AN ADVANCE PAYMENT FOR A SHIPMENT FROM A NEW SUPPLIER IN A HIGH RISK COUNTRY
3. NAME SCREENING
A. BASIC
# THE PROCESS OF DETERMINING WHEATHER ANY OF THE BANKS CUSTOMER OR COUNTER PARTY, ARE PART OF ANY APPLICABLE
REGULATRY LIST (NEGATIVE LIST DATABASE) OR HIGH RISK CATAGORY.
1. UNLIST/UAPA
2. SCANTION LIST
3. FATF COUNTRY LIST
4. OTHER REGULATORY LIST(RBI/MAS/SEBI/IRDA ETC)
5. INTERNAL/ADHOC LIST
6. PEP MATCH
# IF ANY MATHES FOUND BANK IS REQUIRED TO REPORT SUCH MATCHES TO DESIGNATED FIU-IND/RBI/RESPECTIVE REGULATORS
FOR OVERSEAS BRANCHES AND NOT TO CUSTOMER
# IF OUR PARTY DATA NOT AVAILABLE IN THE SCREENING SOFTWARE THEN STR REPORTING TO BE DONE. DUE DILIGENCE TO BE PERFORMED.
# IF FOREIGN PARY DATA NOT AVAILABLE STR FILING,IN THE SCREENING, DUE DILIGENCE TO BE PERFORMED, ASK FOR KYC DETAILS FROM FOREIGN BANK.
# TOUCHPOINT IS THE PLACE WHERE NAME SCREENING ACTIVITY NEED TO BE PERFORMED.
# SCREENING UNIVERSE SPECIFIES THE FIELDS TO BE SCREENED FOR A PARTICULAR TYPE OF TRANSACTION.
# EITHER SCREENING NEEDS TO BE DONE ON PRE-TRANSACTION BASIS OR POST TRANSACTION BASIS BASED ON SCENARIOS.
B. PROCESS
1. POSITIVE MATCH IS i) MATCH ON FIRST TOW PARTS OF THE NAME ii) SPELLING MISMATCH iii) INTERCHANGE WITH FIRST AND LAST NAME iv) MIDDLE AND SUR
v) FIRST NAME MATCH vi) SPELLING MISMATCH AND MIDDLE NAME MATCH vii) INITIALS MATCH
NEGATIVE MATCH IS FIRST NAME MISMATCH
2. NAME MATCHES WHICH ARE NOT PERFECT MATCHES BUT ARE SIMILAR SPELT TO BE ON NEGATIVE LIST. BUT IT WILL COME FALSE POSITIVE.
WHEN AN ACTRUAL MATCH IS NOT DETECTED BY THE SYSTEM , THEN IT WILL BE FALSE NEGATIVE.
WHEN A PERSON IDENTITY MATCHES WITH THE PERSON ON THE NEGATIVE LIST, ON THE BASIS OF UNIQUE IDENTIFIERS LIKE DOB, PASSPORT NO ETC IS TRUE
3. WHEN THERE IS FALSE POSITIVE/DATA NOT AVAILABLE MATCH, WE HAVE TO PERFORM CDD, THEN WE CAN PROCESS THE TRANSACTION. STR TO BE DONE
WHEN THERE IS TRUE NEGATIVE MATCH, THEN WE CAN PROCESS THE TRANSACTION.
WHEN THERE IS TRUE POSITIVE MATCH WE SHOULD REJECT THE TRANSACTION.
IF TRUE MATCH IS FOUND FOR THE FOREIGN BANK CUSTOMER STR TO BE FILED
4. IF ANY ONE OF PRIMARY IDENTIFIERS SSN,DOB,AGE,GENDER ETC MATCHES IT WILL BE CONSIDERED AS A TRUE MATCH.
SCEONDARY IDENTIFIERS PLACE OF BIRTH, CITY, DRIVING LICENCE, PASSPORT NO, NATIONALITY WILL BE CONSIDERED WHEN PRIMARY IDENTIFIERS NOT MAT
IF ANY OF THE SCEONDARY IDENTIFIERS ALSO MATCHES, THEN ALSO IT WILL BE CONSIDERED AS A TRUE MATCH.
5. FOR ORGANIZATION /COMPANY, IF ADDRESS,COUNTRY OF INCORPORATION MATCHES, IT WILL BE CONSIDERED AS A TRUE MATCH.
FOR MATCHING ADDRESS OR COUNTRY IF PRIMARY IDENTIFIER OR SCEONDARY IDENTIFIERS FLAG,OWNER OF THE SHIP, SHIPPING AGENT ETC.
MATCHES IT WILL BE CONSIDERED AS A TRUE MATCH.
6. RBI CAUTION LIST IS NOT PART OF THIS. THAT IS A DIFFERENT ONCEPT.
7. AMLOCK SEARCH ENGINE DEPLOYS A FUZZY MATCHING LOGIC IN COMBINATION WITH PHONETIC LOGIC. THIS WILL SEARCH FOR THE MATCH ALSO THE POSI
OF THE POSITION OF THE CHARACTER. EVERY MATCH IDENTIFIED BY THE ENGINE HAS A SCORE ASSOCIATED WITH IT. BASED ON THE NEARNESS OF OF THE M
IT WILL GIVE A SCORE OF 1-100. A MATCH SCORE OF 100 INDICATES AN EXACT MATCH.
C. FIELDS TO BE CAPTURED
1.APPLICANT/BENEFICIARY/BUYER/SELLER/IMPORTER/EXPORTER/DRAWER/DRAWEE
2. ORDERING CUSTOMER IF OTHER THAN APPLICANT/BENEFICIARY
3. CONSIGNEE IF OTHER THAN BENEFICIARY
4. COUNTER/ FOREIGN PARTY IN CASE OF FOBG
5. ALL COUNTRY OTHER THAN INDIA
6. COUNTRY OF ORIGIN
7. APPLICANT BANK/BENEFICIARY BANK
8. INTERMEDIARY BANK WHENEVER APPLIABLE
9. ADVISING BANK/CONFIRMING BANK/NOMINATED BANK IN CASE OF LC
10. LENDING BANK INCASE OF BUYERS CREDIT
11. PRESENTING BANK IN CASE OF BILLS
12. REMITTING BANK IN CASE OF IRM
13. RECIPENT BANK IN CLIENT EXPORT CS
16. INSURANCE
14. SHIPMENT
COMPANY ROUTE - AIRTPORT/PORT OF LOADING/DEPURTURE/DISCHARGE/DESTINATION
NAME
WITH CLAIM CO NAME WITH VESSEL AND CARRIER AGENT
15. SHIPPING
SETTLING AGENT

4. DUE DILIGENCE
1. CUSTOMER DUE DILIGENCE
# BASIC
CDD IS THE PROCESS OF IDENTIFYING YOUR CUSTOMER AND MAKING SURE THEY ARE WHO THEY SAY THEY ARE.
IT IS PERFORMED ON THE CUSTOMER TO ENSURE THAT THEY ARE PROPERLY RISK ASSESSED BEFORE BEING ONBOARDED.
A SOUND CDD PROCESS IS ONE OF THE BEST PROCESS TO PREVENT MONEY LAUNDERING AND OTHER FINANCIAL CRIME.
# WHEN CDD TO BE PERFORMRD
ESTABLISHING BUSINESS RELATIONSHIP
EXISTING CLIENT WANT TO ONBOARD ANOTHER PRODUCT
WHILE PERFORMING PERIODIC REVIEW TO ENSURE CUSTOMER INFORMATION IS UPADTED
CARRING OUT OCATIONAL TRANSACTION UNDER CERTAIN CIRCUMSTANCES
THERE IS A SUSPICION OF MONEY LAUNDERING OR TERRORIST FINANCING
THE FINANCIAL INSTITUTION HAS DOUBT ABOUT ADVOCACY OF PREVIOUSLY OPTING CUSTOMER IDENTIFICATION DATA
# ELEMENTS
1. CUSTOMER IDENTIFICATION
FULL IDENTIFICATION OF A CUSTOMER INCLUDING SOURCE OF FUNDS AND WEALTH WHEN APPROPRIATE.
NAME, BOB, ADDRESS (PERMANENT ADDRESS, CORRESPONDENT ADDRESS, MAILING ADDRESS), PASSPORT NO, DRIVING LICENCE NO,
FULL DATA OF THE CUSTOMER NEED TO BE VERIFIED.
ISTTITUTION SHOULD ENSURE THAT THERE IS A PROCESS IN PLACE TO UPDATE AND MAINTAIN CURRENT CLIENT INFORMATION.
2. CUSTOMER ACCEPTANCE
DEFINATION AND EXPLICIT CRITERIA FOR ACCEPTANCE OF CUSTOMER
BASICS ON WHICH BANKS ENTERS INTO RELATIONSHIP.
3. TRANSACTION PROFILE
DEVELOPEMENT OF TRANSACTION AND ACTIVITY PROFILE FOR EACH CUSTOMER
PROFILE SHOULD CONTAIN SUFFICIENT INFORMATION TO ALLOW FOR REVIEWS OF ANTICIPATED VERSUS ACTRUAL ACCOUNT ACTIVITY
4. RISK RATING
ASSESSMENT AND GRADING OF RISK PRESENTED BY CUSTOMER'S ACCOUNT RELATIONSHIP.
FACTORS TO BE CONSIDERD TO DETERMINING THE RISK
RISK CANBE GEOGRAPHICAL RISK , CLIENT TYPE, PRODUCT AND SERVICES RISK,
5. DOCUMENTATION
DOCUMENTATION OF FINDINGS AS EVIDENCE OR TO PROVIDE A RECORD OF ACTIONS PERFORMED
6. MONITORING AND INVESTIGATION
ACCOUNT AND TRANSACTION BASED MONITORING ON THE RISK PRESENTED
INVESTIGATE USUAL CUSTOMER OR ACCOUNT ACTIVITY.
2. STANDARD DUE DILIGENCE (NON INDIVIDUAL- ENTITY)
STANDARD DUE DILIGENCE IS THE PROCESS OF IDENTIFYING YOUR CUSTOMER AND MAKING SURE THEY ARE WHO THEY SAY ARE.
A BANK SHOULD NOT ESTABLISH BANKING RELATIONSHIP OR CARRYOUT TRANSACTIONS, UNTILL THE IDENTITY OF THE CUSTOMER HAS BEEN
SATISFACTORILY ESTABLISHED AND VERIFIED.
# FIELDS TO BE CAPTURED
1. NAME, LEGAL FORM OF STATUS AND PROOF OF INCORPORATION
2. PERMANENT ADDRESS MAILING AND REGISTERED ADDRESS.
3. IDENTIFY OF NATURAL PERSON WHO ARE AUTHORISED TO OPERATE THE ACCOUNT.
4. CONTACT TELEPHONE NUMBER
5. OFFICIAL IDENTIFICATION NUMBER (MAY BE TAX IDENTIFICATION NO)
6. IDENTIFY OF THE BENEFICIARY OWNER (MAY BE 25 % SHARE HOLDING)
7. NATURE OF THE BUSINESS
8. FINANCIAL SITUATION OF THE ENTITY (SOURCE OF FUND)
9. EXPECTED USE OF ACCOUNT
# DOCUMENTARY EVIDENCE
1. COPY OF COI, MOA, AOA, PARTNERSHIP AGREEMENT, TRUST DEED OR ANY OTHER DOCUMENT CERTIFYING THE EXISTANCE OF THE ENTITY.
2. FOR ESTABLISHED CORPORATE ENTITIES REWIEWING A COPY OF FINANCIAL STATEMENT AUDITED BY AN INDIPENDENT AUDITOR.
# NON DOCUMENTARY VERIFICATION.
1. UNDERTAKING A COMPANY SEARCH OR OTHER COMMERCIAL ENQUIARY TO ASCERTAIN THAT AN ENTITY IS IN THE PROCESS OF BEING, RESOL
2. ACCESSING PUBLIC CORPORATE REGISTER , PRIVATE DATA-BASES, OR OTHER RELIABLE INDEPENDENT SOURCES
3. VISITING CORPORATE ENTITY
3. ENHANCE DUE DILIGENCE
ENHANCED DUE DILIGENCE TO BE PERFORMED ON HIGH RISK CUSTOMERS. THERE CAN BE MULTIPLE FACTORS AND CIRCUMSTANCES
WHERE THE RISK OF MONEY LAUNDERING OR TERRORIST FINANCING IS HIGHER AND ENHANCED CDD MEASURES HAVE TO BE TAKEN.
# CUSTOMER RISK FACTOR
CASH INTENSIVE BUSINESSES
OWNERSHIP STRUCTURE OF THE COMPANY IS COMPLEX AND UNUSUAL
NON RESIDENT CUSTOMER
COMPANIES THAT HAVE NOMINEE SHARE HOLDER OE SHARE IN BEARER FORM
# COUNTRY RISK FACTOR
COUNTRIES NOT HAVING ADEQUATE AML OR CFT SYSTEMS
COUNTRIES SUBJECT TO SCANTIONS
COUNTRIES HAVING SIGNIFICANT LEVEL OF DRUG TRAFICKING, CORRUPTION OR OTHER CRIMINAL ACTIVITY
COUNTRIES PROVIDING FUNDING OR SUPPORT FOR TERRORIST ACTIVITIES.
# PRODUCT OR SERVICE RISK FACTORS
PRIVATE BANKING
ANONYMOUS TRANSACTIONS
NON FACE TO FACE BUSINESS RELATIONSHIP
# ADDITIONAL DATAFIELDS TO BE CAPTURED
BENEFICIAL OWNERSHIP UPTO 10%
IDENTIFYING INFORMATION ON INDIVIDUALS WITH CONTROL OVER THE ACCOUNT
ADVERSE MEDIA CHECK ON CUSTOMER AND AND ITS ASSOCIATED PARTIES
SOURSE OF FUNDS AND WEALTH
DESCRIPTION OF BUSINESS OPERATIONS, THE ANTICIPATED VOLUME OF CURRENCY.
4. SIMPLIFIED DUE DILIGENCE
THIS TYPE OF DUE DILIGENCE TO BE PERFORMED WHEN CUSTOMERS PROCESS A NEGLIGIBLE OR LOW RISK OF MONEY LAUNDERING.
GOVERNMENT OWNED ENTITIES AND ORGANIZATIONS
OTHER REGULATED ENTITIES IN A COUNTRY OR EQUIVALENT JURIDICTION HAVING EFFECTIVE AML OR CFT SYSTEMS
5. DUE DILIGENCE PROCESS
1. CHECK THE VALUE OF TRANSACTION
2. ASK FOR BANK GUARANTEE/SBLC AVAILABLE AGAINST OUR RISK
3. IF OVERSEAS PARY IS A FORTUNE 500, FROBES INTERNATIONAL 500, ASIA WEEK 1000 COMPANY
4. IF D&B REPORT OF OVERSEAS PARY IS GOOD
5. IF KYC OF OVERSEAS PARTY IS RECEIVED FROM OVERSEAS BANK.
6. ENHANCE DUE DILIGENCE PROCESS
1. STANDARD DUE DILIGENCE AND CUSTOMER DUE DILIGENCE AND ENHANCE DUE DELIGINCE PROCESS AS PER A HIGH RISK
2. BOE/SB DATA OF OUR PARTY AND OVERSEAS PARTY TRANSACTION RELATED TO
3. LAST 5 COMMODITY CODES 1.INTANGIBLES(CODES,PINS,S
4. CHECK CONTRACT IS VALID AS PER LOGIC 2. PRECIOUS MTALS
5. GENUINENESS AND ECONOMIC SCENCE OF UNDERLYING TRANSACTION 3. DUAL USE OF GOODS
6. BALLANCESHEET TURNOVER, CREDIT SUMMETION AND TURNOVER RATIO (ENGINEERING GOODS, PART
7. SEARCH FOR CLIENT CREDIT RELATIONSHIP WITH BANKS HIGH GRADE ALLOYS, BALLS,
8. CURRENT ACCOUNT NO AND AVERAGE MONTHLY BALLANCE BEARINGS, FILTERS, GRAPHA
9. TRACK RECORD PUNKS, PRE-CURSOR, CHEMIC
7. FINANCIAL INSTRUMENTS USED ARMS/AMMUNITION ETC)
8. TYPE OF PAYMENTS USED DIRECT,LC ETC. RISK FLAG
9. VALUE AND VOLUME AND CURRENCY OF TRANSACTIONS PREVIOUSLY DEALT WITH 1. HIGH PORTION OF ADVANC
10. CLIENTS OUR PARTY OR OVERSEAS PARTY DEALT WITH 2. UNDERLYING GOODS AND S
11. EXISTING LINE OF PRODUCTS/SERVICES OF OUR PARTY AND FOREIGN PARTY ARE NOT WITH CUSTOMERS P
12. PRODUCT/SERVICE OF UNDERLYING TRANSACTION MATCH WITH THE EXISTING OF OUR PARTY AND FOREIGN P 3.AMOUNT DEBITED THEN IMM
13. NAME AND ADDRESS OF FOREIGN PARY MATCH WITH INVOICE AND WEB CREDITED AND VICE-VERSA
14. WEBSITE ADDRESS IN THE PROFORMA INVOICE CHECK IN WEB 4. FUNDS SENT OUT GOODS N
15. VINTAGE OF OUR PARTY/OVERSEAS PARTY 5. CLIENT OPERATING FROM R
16. NEGATIVE NEWS ON OUR PARTY/ FOREIGN PARTY ADDRESS
17. VAT CERTIFICATE,MOA,AOA 6. TRADE OF SIMILAR ITEMS B
18. VISIT FACTORY/GODOWN/OFFICE FIRMS IS A RED FLAG
# ADDITIONAL DUE DILLIGENCE TO BE DONE FOR ROUGH AND POLISED DIAMOND IMPORTERS 7. COUNTRY OF OVERSEAS PA
ON HALF YEARLY OR QUARTERLY BASIS ABOUT VINTAGE OF CLIENT, BUSINESS PERFORMANCE, MARKET REPORTIS A RISKY COUNTRY
7. AMLOCK/CDD/EDD WHEN TO BE DONE
1. CONFIRMED EXPORT LC TO BE DONE AT THE TIME OF CONFIRMATION. SO, NOT REQUIRED AT THE TIME OF LODGEMENT/DISCOUNTING/REALIZ
2. UNCONFIRMED LC/NON LC TO BE DONE AT KODGEMENT, SO NO EDD TO BE DONE AT DISCOUNTING AND REALIZATION
3. EPC/PCFC EDD IS MANDATORY
4. FOBG/DBG INCLUDING SBLC REQURED AT THE TIME OF ISSUANCE
5. MLC/ILC/ MLCAMD/ILCAMD REQUIRED
6. MUBMFB/IBCLC/OBCL NOT REQUIRED IF DONE AT THE TIME OF ISSUANCE
7. MFCL/ IBCNL/ OBCL REQUIRED AT THE TIME OF INLAND AND IMPORT BILL LODGEMENT
8. XREAL/MUBMFBR/IBCLCR/IBCLR/OBCLR NOT REQUIRED AS IT IS DONE AT LODGEMENT
9. GR WAIVER EDD IS REQUIRED AT ISSUANCE
10. IS REQUIRED AT THE TIME OF ISSUANCE OF APPROVAL FOR HIGHER WAREHOUSES ABROAD
11. IS REQUIRED FOR ISSUING PEM APPROVAL FOR PROJECT EXPORT
12. AMLOCK IS NOT REQUIRED FOR INLAND TRANSACTION
13. NOT REQUIRED FOR ODI/ECB
14. NOT REQUIRED FOR TCT APPROVAL FCTRS/LAPE
15. NOT REQUIRED FOR REDUCTION IN INVOICE VALUE/EXTENTION OF EXPORT BILL, EXPORT BILL WRITE OFF, EXPORT CLAIMS
16. FOR EXPORT BILL REGULARIZATION (XFM) IF SHIPMENT (LODGEMENT) AND REALIZATION HAPPENING AT SAME TIME THEN EDD IS REQUIRED.
8. D & B REPORT INTERPRETATION
TO UNDERSTAND THE EXISTANCE OF OVERSEAS PARTY AND HIS LINE AND STREANTH OF BUSINESS. THINGS AVAILABLE THIS REPORT
NAME ADDRESS LINE OF BUSINESS DATE OF INCORPORATION NAME OF DIRECTOR PROMOTERS (AMLOCK CHECK TO BE DONE) CREDIT RATING
OF THE OVERSEAS PARTY
IF UNABLE TO LOCATE THE COMPANY/BRANCH, COMPANY REFUSE TO PROVIDE INFORMATION,CASES FILED AGAINST COMPANY, FINANCIAL STRE
RISK INDICATOR IS GIVEN AS UNDEFINED, OVER SEAS SUPPLIERS HAVING INDICATER OTHER THAN 1-2 - APPROVAL IS REQUIRED AND EDD TO BE
(RISK INDICATORS - 1,2,3,4,5,0,1, NQ, N,ER)
5.TRADE BASED ANTI MONEY LAUNDERING - FATF
1. METHODS OF MONEY LAUNDERING
# THERE ARE 3 METHODS BY WHICH CRIMINAL ORGANIZATIONS AND TERRORIST FINANCERS TRY TO HIDE THE ORIGIN OF THE BLACK MONEY AND
GENERAL WHITE MONEY OF A FORMAL ECONOMY.
# 1ST PUSH THE BLACK MONEY INTO FINANCIAL SYSTEM BY CHEQUE/WIRE TRANSFER
# 2ND PHYSICAL MOVEMENTS OF BANKNOTES BY CASH COURIERS AND BULK CASH SMUGGLING
# 3RD FALSE DOCUMENTATION AND DECLARATION OF TRADED GOODS AND SERVICES
# EACH OF THIS METHODS INVOLVES MOVEMENT OF HUGE VOLUMES OF FUNDS AND CAN OPERATE AT DOMESTIC AND INTERNATIONAL LEVEL.
# THE MAIN FOCUS OF THIS STUDY IS TRADE BASED ANTI MONEY LAUNDERING INVOLVING THE INTERNATIONAL EXCHANGE OF GOODS
# PREVIOUSLY, FATF WAS FOCUSING ON ONLY FIRST 2 METHODS OF MONEY LAUNDERING. NOW IT IS FOCUSING ON THE THIRD METHOD WHICH I
# RESEARCH HAS SHOWN WHEN GOVT HAS TAKEN ACTION AGAINST ONE METHOD CRIMINALS ARE MOVES FOR OTHER METHODS.
# SO AGGRASIVE POLICY ACTION AND RULES ENFORCEMENT MEASURES HAVE TO BE TAKEN.
2. INTERNATIONAL TRADE SYSTEM
INTERNATIONAL TRADE SYSTEM IS SUBJECT TO A WIDE RANGE OF RISKS AND VULNERABILITIES, WHICH PROVIDE CRIMINAL ORGANIZATIONS
A OPPERTUNITY TO LAUNDER THE PROCEEDS OF CRIME AND PROVIDE FUNDING TO TERRORIST ORGANIZATIONS, WITH A RELATIVELY LOW RISK
THE INTERNATIONAL TRADE IS ASSOCIATED WITH-
a. THE HUGE VOLUME OF TRADE FLOWS, WHICH BRINGS DOWN THE IMPORTANCE OF INDIVIDUAL TRANSACTIONS AND PROVIDE ABUNDANT OPPE
CRIMINAL
EVEN, MOST ORGANIZATIONS
CUSTOM TO TRANSFER VALUE ACROSS BORDERS.
b. THE COMPLEXITY
AGENCIES INSPECTS ASSOCIATED WITH FOREIGN EXCHANGE TRANSACTIONS AND DIVERSE FINANCING ARRANGEMENTS
5%
c. OF ADDITIONAL
THE THEIR COMPLEXITY IS TO MIXING INLEGAL FUNDS WITH THE FUNDS OF A LEGAL BUSINESS.
SHIPMENTS
d. LIMITED RESOURCES OF VERIFICATION PROCEDURES OR PROGRRAMS TO EXCHANGE CUSTOMS DATA BETWEEN COUNTRIES
ENTERING OR
e. LIMITED
LEAVING RESOURCES THAT MOST CUSTOMS AGENCIES HAVE AVAILABLE TO DETECT INLEGAL TRADE TRANSACTION
THE
JURIDICTION.
3. ABUSE OF INTERNATIONAL TRADE
# TRADE SYSTEM CAN BE USED TO MOVE INLEGAL MONEY AND GOODS WITH LESS INVOLVEMENT OF GOVERMENT AUTHORITIES.
# MOREOVER, IT CAN BE THE CAUSE OF INCREASE TAX AVOIDANCE AND EVIATION AND CAPITAL FLIGHT.
# SHIFT TAXABLE INCOME FROM ONE JURIDICTION WITH RELATIVELY HIGH TAX RATES TO ANOTHER JURIDICTION WITH RELATIVELY LOW TAX RATES.
INORDER TO MINIMISE INCOMETAX PAYMENT, THIS IS CALLED TAX AVOIDANCE/EVIATION
# IN CRISIS COUNTRIES COMPANIES AND INDIVIDUALS WANT TO TRANSFER THEIR FUNDS TO A STABILIZED COUNTRY. THEY CAN DO IT BY
OVER INVOICING IMPORTS AND UNDER INVOICING EXPORTS. THIS IS CALLED CAPITAL FLIGHT.
# SHIFT OF INLEGAL MONEY FROM ONE COUNTRY TO ANOTHER THROUGH UNDER OR OVER INVOICING OR OTHER METHODS
CALLED TRADE BASED MONEY LAUNDERING.
4. TRADE BASED MONEY LAUNDERING TECHNIQUES
# THE PROCESS OF DISGUISING THE PROCEEDS OF CRIME AND MOVING VALUE THROUGH USE OF TRADE TRANSACTIONS TO HIDE THEIR ORIGIN.
# THIS CAN BE ACHIEVED BY MANUPULATION OF PRICE , QUANTITY, QUALITY OF IMPORT EXPORT TRANSACTIONS.
# THS CAN ALSO INVOLVE THE ABUSE OF THE FINANCIAL SYSTEM INVOLVING A RANGE OF MONEY TRANSMISSION INSTRUMENTS, SUCH AS WIRE
# BASIC TECHNIQUES OF MONEY LAUNDERING INCLUDES :
1. OVER AND UNDER INVOICING OF GOODS AND SERVICES-
MANUPULATION OF PRICE OF GOODS IN ORDER TO TRANSFER OF ADDITIONAL VALUE BETWEEN IMPORTER AND EXPORTER.
WHEN EXPORTER IS SELLING GOODS AT LOWER PRICE THAN "FAIR PRICE" TO THE IMPORTER AND IMPORTER SELL THIS GOODS AT HIGHER PRIC
AND A % OF SALES IMPORTER KEPT ON THE NAME OF THE EXPORTER. SIMILARLY, BY INVOICING THE GOODS AT HIGHER PRICE EXPORTER IS ABL
EXTRA FUNDS, WHICH HE CAN KEPT ON NAME OF IMPORTER. EITHER, THEIR IS PRE AGREEMENT BETWEEN THEM OR THEY AR PERENT,SISTER CO
2. MILTIPLE INVOICING OF GOODS AND SERVICES -
ISSUING MORE THAN ONE INVOICE FOR SAME INTERNATIONAL TRADE TRANSACTION. BY INVOICING THE SAME GOOD OR SERVICES MORE THAN O
MONEY LAUNDERER CAN MAKE MULTIPLE PAYMENTS FOR SAME GOODS. SELECTING MULTIPLE BANKS FOR PAYMENT WILL INCREASE MORE COM
IF IT IS DETECTED, THERE IS MULTIPLE EXPLANATIONS IS THERE LIKE- FOR AMMENDMENT OF PAYMENT TERMS ADDITIONAL INVOICE RAISED, CO
PREVIOUS PAYMENT ETC.
3. OVER AND UNDER SHIPMENT OF GOODS AND SERVICES
A MONEY
THE LAUNDERER
SHIPPING AND CAN OVERSTATE OR UNDERSTATE THE QUANTITY OF GOODS BEING SHIPPED, IN CASE THE EXPORTER MAY NOT SHIP THE
AND AGREEMENT
CUSTOM DOCUMENTWITH THE IMPORTER TO ARRANGE ALL SHIPPING AND CUSTOM DOCUMENTS ASSOCIATED WITH THIS. THIS IS CALLED PHANTOM
AND WHAT IS
4. FALSELY DESCRIBED GOODS AND SERVICES
ACTRUALY SHIPPED.
A MONEY LAUNDERER CAN MANUPULATE THE QUANTITY AND TYPE OF THE GOODS/SERVICES. AN EXPORTER MAY SHIP A RELATIVELY INEXPENS
THIS IS CALLED
AND
FALLS FALSELY INVOICE IT AS A MORE EXPENSIVE ITEM OR AN ENTIRELY DIFFERENT ITEM. THIS CREATES DISCRIPANCY BETWEEN WHAT APPEARS
DESCRIPTION
OF GOODS.
5. COMPLEX TRADE BASED MONEY LAUNDERING TECHNIQUES
# STRATIGIES TO LAUNDER MONEY USUALY COMBINE SEVERAL DIFFERENT TECHNIQUES. OFTEN THIS INVOLVE ABUSE OF BOTH FINANCIAL AND
TRADE SYSTEM.
# BLACK MARKET PESO EXCHANGE ARRANGEMENTS PROVIDES A USUFULL ILLUSTRATION HOW A NUMBER OF DIFFERENT MONEY LAUNDERING
COMBILES INTO A SINGLE CRIMINAL OPERATION.
# FOR EXAMPLE IN 1980s COLOMBIA BECAME THE DOMINANT EXPORTER OF COCAINE INTO THE UNITED STATES. THIS INLEGAL DRUG SALES GENERATES ABOU
$10 BILLION A YEAR FOR COLOMBIAN DRUG CARTELS OUT OF WHICH $4 BILLION A YEAR WAS LAUNDERED THROUGH BLACK MARKET PESSO ARR
STEPS OF THIS ARRANGEMENT ARE -
FIRST, COLOMBIAN DRUG CARTEL SMUGGLES INLEGAL DRUGS INTO US AND SELL THEM FOR $.
SCEOND, THE DRUG CARTEL ARRANGE TO SALE $ AT A DISOUNT TO A PESO BROKER.
THIRD , THE PESO BROKER PAYS THE DRUG CARTEL WITH PESOS FROM HIS BANK ACCOUNT IN COLOMBIA. (DRUG CARTEL ELIMINITES HERE)
FORTH, THE PESO BROKER STRUCTURES THE US CURRENCY INTO THE US BANKING SYSTEM TO AVOID REPORTING REQUIREMENTS
AND CONSOLIDATE THE MONEY IN US BANK AC
FIFTH, THE PESO BROKER IDENTIFIES A COLOMBIAN IMPORTER THAT NEEDS US DOLLAR TO PURCHASE GOODS FROM US
SIXTH , PESO BROKER ARRANGES FOR PAYMENT TO US EXPORTER ON BEHALF OF COLOMBIAN IMPORTER, FROM HIS US BANK ACCOUNT.
SEVENTH, US EXPORTER SHIPS THE GOODS TO COLOMBIA.
FINALY, THE COLOMBIAN IMPORTER SELLS THE GOODS AND REPAYS THE PESO BROKER.
THIS TRANSACTION
AND TRADE BASED COMBILED A NUMBER OF DIFFERENT INLEGAL ACTIVITIES, SUCH AS DRUG SMUGLING, MONEY LAUNDERING THROUGH THE FI
MONEY LAUNDERING.
6. SOLLOUTION- DATA ANALYTICS SOFT WARE, DATA SHARING, TRADE TRANSPARANCY UNITS
6. BASIC CONCEPTS
1) MEANING,DEFINATION AND ORIGIN
# IT IS THE PROCESS BY WHICH INLEGAL FUNDS AND ASSETS ARE CONVERTED INTO LEGITIMATE FUNDS AND ASSETS.
IN SIMPLE WORDS PERSONS BLACK/INLEGAL MONEY WILL BE CONVERTED INTO LEGAL/WHITE MONEY
CRIMINALS USE IT TO WASH THEIR "TAINTED" MONEY TO MAKE IT "CLEAN"
# MONEY LAUNDERING IS A PROCESS OF CREATING THE APPEARANCE THAT LARGE AMOUNT OF MONEY OBTAINED FROM SERIOUS CRIMES,
SUCH AS DRUG TRAFFICKING OR TERRORIST ACTIVITY ORIGINATED FROM A LEGITIMATE SOURCES
# WHOSEOVER DIRECTLY OR INDIRECTLY ATTEMPTS TO, INDULGE OR , KNOWINGLY ASSIST OR KNOWINGLY IS A PARTY OR
FIRST TIME MONEY
IS ACTRUALY INVOLVED IN ANY PROCESS/ACTIVITY CONNECTED WITH THE PROCEEDS OF CRIME
LAUNDERING WORD
INCLUDING ITS CONCEALMENT, POSSESSION, ACQUISITION OR USE, AND PROJECTING OR CLAIMING IT AS UNTAINTED PROPERTY
IS USED IN
SHALL BE GUILTY
WATERGATE- THEOF THE OFFENCE OF MONEY LAUNDERING.
# FIRST MONEY LAUNDERING HAPPENED IN US THROUGH WATER GATE SCANDAL IN 1972
GURDIAN (A BRITISH
NEWS PAPER)
2) METHODS OF MONEY LAUNDRING
a. CASH SMUGGLING -MOVING CASH FROM ONE LOCATION TO ANOTHER OR DEPOSITING THE CASH IN SWISS BANK.
b. SHELL COMPANY -NO COMPANY IS THERE ONLY IN PAPER. A NON TRADING COMPANY USED AS A VEIVHLE FOR VARIOUS FINANCIAL MANOEUVR
FOR FUTURE USE IN SOME OTHER COMPANY.
c. STRUCTURING - CASH IS BROKEN DOWN INTO FORMAL RECEIPTS TO BUY MONEY ORDERS ETC. SMALLER AMOUNT ARE HARD TO DETECT.ALSO
KNOWN AS SMURFING IN BANKING INDUSTRY JARGON, IS THE PRACTICE OF EXECUTING FINANCIAL TRANSACTIONS (SUCH AS THE MAKING OF BA
IN A SPECIFIC PATTERN CALCULATED TO AVOID THE CERTAIN RECORDS AND REPORTS REQUIRED BY THE LAW.
EXAMPLE - BELOW THRASEHOLD LIMIT THEY WILL DO THE TRANSACTION
d. LAUNDERING VIA REAL-ESTATE: BUYING A LAND FOR MONEY AND THEN SELLING IT MAKING THE PROFITS LEGAL.
e. STOCK MARKET SCAMS
f. CREATING BOGUS COMPANIES AND BOOKING FALSE INCOMES
g. DRUG TRAFFICKING
h.BRIBERY AND CORUPTION, KIDNAPING AND EXTORTION
i. HAWALA- IS A ARABIC WORD MEANING TRANSFER - IS AN INFORMAL VALUE TRANSFER SYSTEM BASED ON THE PERFORMANCE AND HONOUR O
MONEY BROKERS, PRIMARILY LOCATED IN MIDDLE EAST, NORTH AFRICA, THE HORN OF AFRICA ,AND THE INDIAN SUBCONTINENT, OPERATING OU
TO, TRADITIONAL BANKING FINANCIAL CHANNELS AND REMITTANCE SYSTEMS.
3. LAYERS IN MONEY LAUNDERING
a. PLACEMENT- INCLUSION OF MONEY INTO BANKS, FINANCIAL INSTITUTION
b. LAYERING - DOING COMPLEX TRANSACTION.
c. INTEGRATION - BUYING LEGAL THINGS, INVESTING IN CAPITAL MARKETS ,ASSETS ETC
4. ANTI MONEY LAUNDERING
SET OF PROCEDURES, LAWS OR REGULATIONS, DESIGNATED TO STOP THE THE PRACTICE OF GENERATING INCOME THROUGH INLEGAL ACTIONS
5. INTERNATIONAL ENTITIES
a. FATF
b. EGMONT GROUP
c. WOLFSBERG PRINCIPALS
d. US ACTS, AML SUPPORTING BODIES
6. EGMONT GROUP -1995
- EGMONT ARENBERG PALACE IN BRUSSELS, BELGIUM
- FIGHT AGAINST MONEY LAUNDERING AND TERRORIST FINANCING
- IT FOCUSES ON ONLY DOMESTICALY
- ADVISE EVERY COUNTRY TO CREATE ONE FIU
- EGMONT WEB SECURE
-PRINCIPALS
7. WOLFSBERG PRINCIPLES
- AN ASSOCIATION OF 13 GLOBAL BANKS WHICH AIMS TO DEVELOP FRAMEWORKS AND GUIDANCE FOR THE MANAGEMENT OF FINANCIAL CRIME R
PARTICULARLY WITH RESPECT TO KNOW YOUR CUSTOMER, ANTI MONEY LAUNDERING AND COUNTER TERRORIST FINANCING POLICIES.
- MAINLY FOCUS ON PRIVATE BANKING AND CORRESPONDENT BANKING . A CORRESPONDENT BANK IS A FINANCIAL INSTITUTION THAT PROVIDES
ON BEHALF OF ANOTHER, EQUAL OR UNEQUAL, FINANCIAL INSTITUTION. IT CAN FACILITATE WIRE TRANSFERS , CONDUCT BUSINESS TRANSACTIO
AND GATHER DOCUMENTS ON BEHALF OF ANOTHER FINANCIAL INSTITUTION.
-PRINCIPALS
8. USA FREEDOM ACT-2015
THE ACT IMPOSES SOME NEW LIMITS ON THE BULK COLLECTION OF TELECOMMUNICATION METADATA ON U S CITIZENS BY AMERICAN INTELLIGE
INCLUDING THE NATIONAL SECURITY AGENCY. IT ALSO RESTORES AUTHORIZATION OF ROVING WIRETAPS AND TRACKING LONE WOLF TERRORIS
9. THE OFFICE OF FOREIGN ASSETS CONTROL (OFAC)
IS A FINANCIAL INTELLIGENCE AND ENFORCEMENT AGENCY OF THE U.S TREASURY DEPARTMENT CHARGED WITH PLANING AND EXECUTION OF E
TRADE SCANTIONS IN SUPPORT OF U.S. NATIONAL SECURITY AND FOREIGN POLICY OBJECTIVES. UNDER PRESIDENTIAL NATIONAL EMERGENCY P
OFAC CARRIES OUT ITS ACTIVITIES AGAINST FOREIGN STATES AS WELL AS A VARIETY OF PROBLEMATIC ORGANIZATIONS AND INDIVIDUALS, LIKE
GROUPS, DEEMED TO BE A THREAT ON US NATIONAL SECURITY.
OFAC PUBLISHES THE SPECIALY DESIGNATED NATIONS LIST(SDN), WHICH LISTS PEOPLE, ORGANIZATIONS AND VESSELS WITH WHOOM UNITED S
AND PERMANENT RESIDENTS ARE PROHIBITED FROM DOING BUSINESS. THIS LIST DIFFERS FROM THE LIST MAINTAINED THROUGH USA PATRIOT
10. FINANCIAL INTELLIGENCE UNIT – INDIA (FIU-IND)
- IS AN ORGANISATION UNDER THE DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA WHICH COLLECTS FINANCIAL INTELLIGENCE
ABOUT OFFENCES UNDER THE PREVENTION OF MONEY LAUNDERING ACT, 2002. IT WAS SET UP IN NOVEMBER 2004 AND REPORTS DIRECTLY
- TO THE ECONOMIC INTELLIGENCE COUNCIL (EIC) HEADED BY THE FINANCE MINISTER.
- THE FUNCTIONS OF FIU-IND ARE:
COLLECTION OF INFORMATION: FIU-IND IS THE NODAL AGENCY FOR RECEIVING THE FOLLOWING REPORTS FROM VARIOUS REPORTING ENTITIES.
CASH TRANSACTION REPORTS (CTRS)
NON-PROFIT ORGANISATION TRANSACTION REPORTS (NTRS)
CROSS BORDER WIRE TRANSFER REPORTS (CBWTRS)
REPORTS ON PURCHASE OR SALE OF IMMOVABLE PROPERTY (IPRS)
SUSPICIOUS TRANSACTION REPORTS (STRS)
ANALYSIS OF INFORMATION: TO UNCOVER PATTERNS OF TRANSACTIONS SUGGESTING SUSPICION OF MONEY LAUNDERING AND RELATED CRIMES.
SHARING OF INFORMATION: WITH NATIONAL INTELLIGENCE/LAW ENFORCEMENT AGENCIES, NATIONAL REGULATORY
AUTHORITIES AND FOREIGN FINANCIAL INTELLIGENCE UNITS.
ACT AS CENTRAL REPOSITORY: TO MAINTAIN THE NATIONAL DATA BASE ON THE BASIS OF REPORTS RECEIVED FROM REPORTING ENTITIES.
COORDINATION: COORDINATE AND STRENGTHEN COLLECTION AND SHARING OF FINANCIAL INTELLIGENCE THROUGH AN EFFECTIVE
NATIONAL, REGIONAL AND GLOBAL NETWORK TO COMBAT MONEY LAUNDERING AND RELATED CRIMES.
RESEARCH AND ANALYSIS: MONITOR AND IDENTIFY STRATEGIC KEY AREAS ON MONEY LAUNDERING TRENDS, TYPOLOGIES AND DEVELOPMENTS.
PUNITIVE ACTION: THE AGENCY CAN ALSO TAKE PUNITIVE ACTION FOR VIOLATIONS OF THE PMLA. IN DECEMBER 2020,
IT IMPOSED A FINE OF RS. 96 LAKH (9,600,000) ON PAYPAL.
11. UNLAWFULL ACTIVITIES PREVENTION ACT -1967
IS AN INDIAN LAW AIMED AT EFFECTIVE PREVENTION OF UNLAWFUL ACTIVITIES ASSOCIATIONS IN INDIA. ITS MAIN OBJECTIVE WAS TO MAKE POW
FOR DEALING WITH ACTIVITIES DIRECTED AGAINST THE INTEGRITY AND SOVEREIGNTY OF INDIA - 1967
12. PREVENTION OF ANTI- MONEY LAUNDERING ACT- 2002
- ACT CAME INTO FORCE TO PREVENT MONEY LAUNDERING AND TO PROVIDE CONFISCATION OF PROPERTY DERIVED FROM OR INVOLVED IN MO
SECTION-11(A)
EVERY REPORTING ENTITY SHALL VERIFY THE IDENTITY OF ITS CLIENTS AND BENEFICIAL OWNER BY ----
a. AUTHENTICATION UNDER AADHAAR IF REPORTING ENTITY IS A BANKING COMPANY.
b. OFFLINE VERIFICATION UNDER AADHAR
c. PASSPORT
d. OTHER OFFICIALY VALID DOCUMENT ISSUED BY CENTRAL GOVT
SECTION- 12
PROVIDES FOR THE OBLIGATION OF BANKING COMPANIES, FINANCIAL INSTITUTIONS AND INTERMEDIARIES I.E THE REPORTING ENTITY TO MAINT
OF ALL TRANSACTIONS AND FURNISH TO ED WHENEVER REQUIRED.
1. CONFIDENTIALITY
2. TRANSACTION RECORDS- FOR 5YEARS
3. DOCUMENTS DECORDS - TILL 5 YEARS EITHER BUSINESS CLOSED OR BANK RELATIONSHIP WITH THAT BUSINESS CLOSED
SECTION -12AA -ENHANCE DUE DILIGENCE
SECTION-13 - IMPOSE OF FINE
13. TERRORIST FINANCING -
METHOD USED TO FUND TERRORISM FROM LEGAL OR ILLEGAL SOURSE WHICH MIGHT BE GENERATED BY
USE OF CHARITY, BUSINESS , NON-GOVERNMENTAL ORGANIZATIONS (NGOs) AS A FRONT COMPANY.
COLLECT A LARGE SUM OF DONATIONS OR PAYMENTS FROM NON EXISTENT SERVICES
WIRE FUNDS TO ACCOUNTS IN LOCATIONS OF CONFLICT.
14. RISKS INVOLVED IN MONEY LAUNDERING
1. REPUTATIONAL RISK
THE POTENTIAL THAT ADVERSE PUBLICITY REGARDING A BANKS BUSINESS PRACTICES, WHEATHER ACCURATE OR NOT, WILL CAUSE A LOSS OF
INTEGRITY OF THE INSTITUTION
A MAJOR THREAT TO BANKS AS CONFIDENCE OF DEPOSITORS, CREDITORS AND GENERAL MARKET PLACE HAS TO BE MAINTAINED.
2. OPERATIONAL RISK
PROCESS -PEOPLE- SYSEM -THE RISK OF DIRECT OR INDIRECT LOSS RESULTING FROM INADEQUATE OR FAILED INTERNAL PROCESSES,
PEOPLE AND SYSTEMS OR FROM EXTERNAL EVENTS.
WEAKNESSES IN IMPLEMENTATION OF BANKS PROGRAMS, IN-EFFECTIVE CONTROLL PROCEDURES, AND FAILURE TO PRACTICE DUE DILIGENCE.
3. CONCENTRATION RISK
CONCENTRATION RISK IS THE POTENTIAL FOR LOSS RESULTING FROM TOO MUCH CREDIT OR LOAN EXPOSURE TO ONE BORROWER. LACK OF KN
PARTICULAR CUSTOMER OR WHO IS BEHIND THE CUSTOMER, OR WHAT THE CUSTOMER'S RELATIONSHIP IS TO OTHER BORROWERS, CAN PLACE A BANK AT RIS
THIS REGARD.
4. LEGAL RISK
LEGAL SUITS IS THE POTENTIAL FOR LAW SUITS, ADVERSE JUDGEMENTS, UNFORCEABLE CONTRACTS, FINES AND PENALTIES GENERATING LOOS
FOR AN INSTIUTION, OR EVEN CLOSURE OF SUCH AN INSTITUTION
5. SANCTION RISK
IF BANK MAKES PAYMENT TO THE SCANTIONED COUNTRIES, IT MAY HAVE TO PAY HUGE AMOUNT OF PENALTY.
15. KNOW YOUR CUSTOMER
# KYC IS A FRAMEWORK FOR BANKS WHICH ENABLES THEM TO KNOW/UNDERSTAND THE CUSTOMERS
AND THEIR FINANCIAL DEALINGS TO BE ABLE TO SERVE THEM BETTER.
# ALL BANKS HAVE BEEN ADVISED BY RBI TO FOLLOW KYC GUIDELINES
# CUSTOMER IS A INDIVIDUAL OR BUSINESS THAT PURCHASES THE GOODS OR SERVICES PRODUCED BY A BUSINESS.
# SEMI CUSTOMER/WALKING CUSTOMERS USES DD,BC,TEMPORARY SERVICES
# CAP DESIDES WHEATHER AN INDIVIDUAL/ENTITY IS ELIGIBLE TO BE ACCEPTED BY BANK ON THE BASIS OF NATURE OF BUSINESS, LOCATION OF
AND HIS CLIENTS, MODE OF PAYMENT, VOLUME OF TURNOVER, SOCIAL AND FINANCIAL STATUS ETC TO ENABLE CATEGORIZATION OF CUSTOMER
OF HIGH RISK. HIGH LEVEL OF MONITORING FOR PEP IS REQUIRED.
# CIP PRESCRIBES THE PROCESS BY WHICH CUSTOMER IS IDENTIFIED.
# MOITORING TRANSACTIONS ACCORDING TO CUSTOMERS RISK PROFILE AND DETAILS OF REPORTS
TO BE SUBMITED TO FIU,IND TO FULLFILL THE OBLIGATION CAST ON THE BANK UNDER UNDER PMLA,2002 HELPS IN RISK MANAGEMENT.

16. REPORTING
4.NON PROFIT
1. CASH TRANSACTION REPORT(CTR) 10 L
SEEKING
2. COUNTERFEIT CURRENCY REPORTS (CCRS)
ORGANIZATION
3. SUSPICIOUS TRANSACTIONS REPORT(STRS)
TRANSACTION
REPORT(NPOS) 10L
KYC DOCUMENTS, ROLES AND RESPONSIBILITY OF A AMLO, RISK TYPES, MAINTAINANCE OF RECORDS, SMALL ACCOUNTS
7. FINANCIAL ACTION TASK FORCE (FATF)
1. IS AN INTER-GOVERNMENTAL BODY ESTABLISHED IN 1989 BY MINISTERS ITS MEMBERS JURIDICTIONS.
THE MANDATE OF THE FATF IS TO SET STANDARDS AND TO PROMOTE EFFECTIVE IMPLEMANTATION OF LEGAL, REGULATORY AND OPERATIONAL MEASURES FO
COMBACTING MONEY LAUNDERING, TERRORRIST FINANCING AND THE FINANCING OF PROLIFERATION AND OTHER RELATED THREADS TO THE INTEGRITY OF T
INTERNATIONAL FINANCIAL SYSTEM.
2. THE FATF IDENTIFIES JURIDICTIONS WITH STRATAGIC DEFICIENCY IN THEIR FRAMEWORK TO COMBACT MONEY LAUNDERING AND
FINANCING OF TERRORRISM AND PROLIFERATION IN COLABORATION WITH OTHER INTERNATIONAL STAKE HOLDERS.
THE FATF ALSO WORKS TO IDENTIFY NATIONAL LEVEL VULNERABILITIES WITH THE AIM TO PROTECT THE INTERNATIONAL FINANCIAL SYSTEM FORM MISSUSE
THE 40 FATF RECOMENDATIONS TO SET-OUT A COPREHENSIVE AND CONSISTENT FRAMEWORK OF MEASURES THAT A COUNTRY SHOULD IMPLEMENT
IN ORDER TO COMBACT MONEY LAUNDERING AND TERRORIST FINANCING AS WELL AS FINANCING OF PROLIFERATION OF WEAPONS OF MASS DISTRACTION
COUNTRIES HAVE DIVERSE LEGAL,ADMINISHTRATIVE AND OPERATIONAL FRAMEWORK AND DIFFERENT FINANCIAL SYSTEMS
AND SO CANNOT TAKE IDENTICAL MEASURES TO CALCULATE THESE THREADS.
3. FATF RECOMENDATION THEREFORE SETTING INTERNATIONAL STANDARDS WHICH COUNTRIES SHOULD IMPLEMENT TROUGH MEASURES ADOPTED
TO THEIR PARTICULAR CIRCUMSTANCES.
THE FATF RECOMENDATIONS HAVE THE COMMON ESSENTIAL MEASURES THAT COUNTRIES SHOULD HAVE TAKE INTO CONSIDERATIONS -
a. IDENTIFY THE RISK AND DEVELOP POLICIES AND DOMESTIC CO-ORDINATION
b. PREVENT MONEY LAUNDERING AND TERRORIST FINANCING AND FINANCING OF PROLIFERATION
c. APPLY PREVENTIVE MEASURES FOR FINANCIAL SECTORS AND OTHER DESIGNATED SECTORS
d. ESTABLISH POWER AND RESPONSIBILITIES FOR THE COMPETENT AUTHORITIES (INVESTIGATIVE, LAW ENFORCEMENT AND SUPERVISORY AUTHORITIES
AND OTHER INSTITUTIONAL MEASURES)
e. ENHANCE THE TRANSPERANCY AND AVAILABILITY OF OFFICIAL OWNERSHIP INFORMATION AND LEGAL PROCEEDINGS,ARRANGEMENTS AND FACILITATE
INTERNATIONAL COOPERATION
4. THE ORIGINAL FATF 40 RECOMANDATION IS DRAWN-UP IN 1990 AS AN INITIATIVE TO COMBACT THE MISUSE OF FINANCIAL SYSTEMS
BY PERSONS LAUNDERING DRUG MONEY. IN 1996 THE RECOMENDATIONS WARE REVISED FOR THE FIRST TIME TO REFLECT EVOLVING MONEY
LAUNDERING TRENDS AND TECHNIQUES TO PREVENT NEW TECHNIQUES OF MONEY LAUNDERING.
IN OCTOBER 2001 THE FATF EXPANDED ITS MANDATE TO DEAL WITH THE ISSUE OF THE FUNDING OF TERRORIST ACTS AND TERRORIST
ORGANIZATIONS AND TOOK THE IMPORTANT STEP OF CREATING 9 SPECIAL RECOMENDATIONS.
THE FATF RECOMENDATION IS REVISED 2ND TIME IN 2003. AND THESE TOGETHER WITH THE SPECIAL RECOMENDATIONS AND THESE HAVE BEEN
ENDORSED BY OVER 180 COUNTRIES AND UNIVERSALY RECOGNISED AS THE INTERNATIONAL STANDARD FOR ENTIRE MONEY LAUNDERING
AND COUNTERING THE FINANCING OF TERRORISM.
AML OR CFT COORDINATION
RECOMANDATION 1 - ASSESSING RISK AND DEFINE A RISK BASED APPROACH
COUNTRIES SHOULD IDENTIFY PROCESS AND UNDERSTAND THE MONEY LAUNDERING AND TERRORIST FINANCING RISKS FOR THE COUNTRY. AND SHOULD TA
INCLUDING DESIGNATING AND AUTHORITY OR MECHANISM TO CO-ORDINATE ACTIONS TO ACCESS RISKS AND DEPLOY RESOURCES END UP ENSURING RISKS A
MEDICATED EFFEVTIVELY.
RECOMANDATION 2 - NATIONAL CO-OPERATION AND CO-ORDINATION
COUNTRIES SHOULD ENSURE THE POLICY MAKERS, THE FIUS , LAW ENFORCEMENT AUTHORITIES, SUPERVISORS IN OTHER RELEVANT COMPETANT AUTHORITI
AT POLICY MAKING AT OPERATIONAL LEVEL, AND EFFECTIVE MECHANISM ENABLES THEM TO CO-OPERATE AND CO ORDINATE DOMESTICALLY
OF EACH OTHER CONSERNING THE DEVELOPEMENT AND IMPLEMENTATION OF POLICIES AND ACTIVITIES TO COMBACT MONEY LAUNDERING
MONEY LAUNDERING AND CONFISCATION
RECOMANDATION 3- MONEY LAUNDERING OFFENCE
COUNTRIES SHOULD CRIMILISE MONEY LAUNDERING, COUNTRIES SHOULD APPLY THE CIME OF MONEY LAUNDERING TO ALL SERIOUS OFFENCES , WITH A VIEW
INCLUDING WIDEST RANGE OF OFFENCES
RECOMANDATION- 4 - CONFISCATION AND PROVISSIONAL MEASURES
COUNTRIES SHOULD ADOPT MEASURES TO FREAZE OR SEEZE AND CONFISICATE THE FOLLOWING
1. PROPERTY LAUNDERING
2. PROCEEDS OR INSTRUMENTALITES TO BE CONFISCATED INTENDED TO USED IN MONEY LAUNDERING OR OFFENCES
3. PROPERTY THAT IS THE PROCEEDS OF OR USE IN OR INTENDED OR ALOCATED FOR USE IN FINANCING OF TERRORISM, TERRORIST ACTS OR TERRORIST OR
4. PROPERTY OF CORRESPONDING VALUE
TERRORIST FINANCING AND FINANCING OF PROLIFERATION
RECOMANDATION - 5 - TERRORIST FINANCING OFFENCE
COUNTRIES SHOULD CRIMINALISE TERRORIST FINANCING ON THE BASIS OF TERRORIST FINANCING CONVENTION
RECOMANDATION - 6 - TARGETED FINANCIAL SANCTIONS RELATED TO TERRORISM OR TERRORIST FINANCING
COUNTRIES SHOULD IMPLEMENT TARGETED FINANCIAL SCANTIONS TO COMPLY WITH UNITED NATIONS SECURITY COUNSILS RESOLUTIONS
RECOMANDATION - 7 - TARGETED FINANCIAL SCANTIONS RELATED TO PROLIFERATION
COUNTRIES SHOULD IMPLEMENT TARGETED FINANCIAL SCANTIONS TO COMPLY WITH UNITED NATIONS SECURITY COUNSILS RESOLUTIONS
RELATING TO PROLIFERATION
COUNTRIES SHOULD IMPLEMENT TARGETED FINANCIAL SCANTIONS TO COMPLY WITH UNITED NATIONS SECURITY COUNSILS RESOLUTIONS
RELATTING TO PREVENTION, SUPPRESSION AND DISTRUCTION OF PROLIFERATION OF WEAPON OF MASS DESTRUCTION AND ITS FINANCING
RECOMANDATION - 8 - NON PROFIT ORGANIZATIONS
COUNTRIES SHOULD REVIEW THE ADEQUACY OF LAWS AND REGULATIONS THAT RELATES TO ENTITIES THAT CAN BE ABUSED FOR THE FINANCING OF TERROR
NON PROFIT ORGANIZATIONS ARE PARTICULARLY VOUNERABLE, AND COUNTRIES SHOULD ENSURE THAT THEY CANNOT BE MISUSED
PREVENTIVE MEASURES
RECOMENDATION - 9 - FINANCIAL INSTITUTION SECRECY LAWS
COUNTRIES SHOULD ENSURE THAT FINANCIAL INSTITUTIONS SECRACY LAWS DO NOT INHIBIT IMPLEMENTATION OF FATF RECOMANDATION
RECOMENDATION - 10 - CUSTOMER DUE DILIGENCE
FINANCIAL INSTITUTIONS SHOULD BE PROHIBITED FROM KEEPING ANNONIMUS ACCOUNTS OR ACCOUNTS IN OVIOUSLY FICTICIOUS NAMES.
FINANCIAL INSTITUTIONS SHOULD BE REQUIRED TO UNDERTAKE CUSTOMER DUE DILEGENCE MEASURES.
RECOMENDATION - 11 - RECORD KEEPING
FINANCIAL INSTITUTIONS IS REQUIRED TO MAINTAIN FOR AT LEAST 5 YEARS ALL NECESSERY REFERANCE ON TRANSACTIONS BOTH DOMESTIC AND INTERNATI
TO ENABLE THEM TO COMPLY EASILY WITH THE INFORMATION REQUEST FROM THE COMPETENT AUTHORITY
RECOMENDATION - 12 - POLITICALY EXPOSED PERSONS
FINANCIAL INSTUTIONS SHOULD TAKE REASONABLE MEASURES TO DETERMINE WHEATHER A CUSTOMER OR A BENEFICIAL OWNER IS A DOMESTIC PA.. PERSO
WHO HAVE BEEN INTEREST IN A PROMINENT FUNTIONS BY INTERNATIONAL ORGANIZATIONS
RECOMENDATION - 13 - CORRESPONDENT BANKING
FINANCIAL INSTITUTION SHOULD BE PROHIVITED FROM ENTERING INTO OR CONTINUING A CORRESPONDENT BANKIG RELATION WITH SHELL BANKS
FINANCIAL INSTITUTION SHOULD BE REQUIRED TO SATISFY THEMSELVES THAT RESPONDENT INSTITUTIONS DO NOT PERMIT THEIR ACCOUNTS USED BY SHELL
RECOMENDATION -14 - MONEY OR VALUE TRANSFER SERVICES
COUNTRIES SHOULD TAKE MEASURES TO ENSURE THE NATURAL OR LEGAL PERSONS THAT PROVIDE MONEY OR VALUE TRANSFER SERVICES
ARE LICENCED AND REGISTERED AND SUBJECT TO EFFECTED SYSTEMS FOR MONITORING AND ENSURING RELEVANT MEASURES CALLED FOR IN FATF RECOM
RECOMENDATION - 15 - NEW TECHNOLOGY
COUNTRIES AND FINANCIAL INSTITUTIONS SHOULD IDENTIFY MONEYLAUNDERING AND TERRORIST FINANCING RISK THAT MAY ARISE IN RELATION TO
1. DEVELOPEMENT OF NEW PRODUCT AND NEW BUSINESS PRACTICES INCLUDING NEW DELIVERY MECHANISMS
2. THE USE OF NEW OR DEVELOPING TECHNOLOGIES FOR BOTH NEW AND PRE-EXISTING PRODUCTS
RECOMENDATION - 16 - WIRE TRANSFERS
COUNTRIES SHOULD ENSURE THE FINANCIAL INSTITUTIONS SHOULD INCLUDE REQUIRED ORIGINATED INFORMATION AND REQUIRE BENEFICIARY INFORMATION
ON WIRE TRANSFERS AND RELATED MESSAGES AND THAT THE INFORMATION REMAINS WITH THE WIRE TRANSFER AND RELATED MESSAGES
THROUGH OUT THE PAYMENT CHAIN
RECOMENDATION - 17 - RELIANCE ON THIRD PARTIES
REQUIREMENTS WILL BE MADE AVAILABLE WITH THE THIRD PARTY REQUEST WITHOUT ANY DELAY
FINANCIAL INSTITUTION SHOULD SATISFY ITSELF THAT THE THIRD PARTY IS REGULATED SUPERVISED AND MONITERED FOR AND HAS MEASURES AND PLACE F
COMPLIANCE WITH CDD AND RECORD KEEPING REQUIREMENTS
RECOMENDATION - 18 - INTERNAL CONTROL AND FOREIGN BRANCHES AND SUBSIDIARIES
FINANCIAL GROUPS SHOULD BE REQUIRED TO IMPLEMENT GROUP WISE PROGRRAMES AGAINST MONEY LAUNDERING AND TERRORIST FINANCING
INCLUDING POLICIES AND PROSEDURES FOR SHARING INFORMATION WITHIN THE GROUP FOR AML-CFT PURPOSES
RECOMENDATION - 19 - HIGHER RISK COUNTRIES
FINANCIAL INSTITUTIONS SHOULD BE REQUIRED TO APPLY ENHANCE DUE DELIGENCE MEASURES TO BUSINESS RELATIONSHIPS AND TRANSACTIONS WITH NA
AND LEGAL PERSONS AND FINANCIAL INSTITUTIONS OF COUNTRIES PROVIED BY THE FATF
RECOMENDATION - 20 - REPORTING OF SUSPISIOUS TRANSACTIONS
IF A FINANCIAL INSTITUTION SUSPECTS WHO HAVE REASONABLE GROUNDS TO SUSPECT THAT FUNDS ARE THE PROCEEDS OF CRIMINAL ACTIVITY
OR RELATED TO TERRORIST FINANCING IT SHOULD BE REQUIRED BY LAW TO REPORT PROMPTLY TO FIU
RECOMENDATION - 21 - TIPPING OFF AND CONFIDENTIALITY
FINANCIAL INSTITUTIONS, DIRECTORS, OFFICERS AND EMPLOYEES SHOULD BE
1. PROTECTED BY LAW FROM CRIMINAL AND CIVIL LIABILITY FOR BREACH OF ANYDISCLOSURE OF INFORMATION IMPOSED BY CONTRACTS
OR BY ANY LEGISTRATIVE REGULATORY OR ADMINISHTRATIVE PROVISION IF THEY REPORT THEIR SUSPISITIONS IN GOOD FAITH TO THE FIU,
EVEN THEY DIDNOT KNEW PRESISELY THE UNDERLINED CRIMINAL ACTIVITY WAS REGARDLESS WHEATHER A LEGAL ACTIVITY ACTRUALY OCCURED
2. PROHIVITING BY LAW FROM DISCLOSING TO BE KNOWN THAT A SUSPICIOUS TRANSACTION REPORT STR AND RELATED INFORMATION HAS BEEN FILED WITH
RECOMENDATION - 22 - DESIGNATED NON FINANCIAL BUSINESSES AND PROFESSIONS -CUSTOMER DUE DELIGENCE
THE CDD AND RECORD KEEPING REQUIREMENTS SHOULD APPLY TO DNBP'S IN THE FOLLOWING SITUATIONS
1.CASINOS
2.REAL-ESTATE AGENTS
3.DEALERS IN PRECIOUS METALS AND STONES
4. LAWYERS , NOTARIES, OTHER INDEPENDENT PROFESSIONALS AND ACCOUNTENTS
5. TRUST AND COMPANY SERVICE PROVIDERS
RECOMENDATION - 23 - DFBP'S OTHER MEASURES
THE REQUIREMENTS SAID OUT IN RECOMENDATION 18-21 APPLIED TO ALL DFBP'S
TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL PERSONS AND ARRANGEMENTS
RECOMENDATION - 24 - TRANSPERANCY AND BENEFICIAL OWNERSHIP OF LEGAL PERSONS
COUNTRY SHOULD TAKE MEASURES TO PREVENT THE MISUSE OF LEGAL PERSON FROM MONEY LAUNDERING OR TERRORIST FINANCING
COUNTRIES SHOULD ENSURE THAT THERE IS ADEQUATE ACCURATE AND TIMELY INFORMATION ON BENEFICIAL OWNERSHIP AND CONTROLL ON LEGAL PERSO
THAT CAN BE OBTAINED OR ACCESSED IN A TIMELY ACTION BY COMPETENT AUTHORITIES
RECOMENDATION -25 - TRANSPERANCY AND BENEFICIAL OWNERSHIP OF LEGAL ARRANGEMENTS
COUNTRY SHOULD TAKE MEASURES TO PREVENT THE MISUSE OF LEGAL ARRANGEMENTS FROM MONEY LAUNDERING OR TERRORIST FINANCING
POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES AND OTHER INSTITUTIONAL MEASURES
RECOMENDATION - 26 - REGULATION AND SUPERVISION OF FINANCIAL INSTITUTIONS
COUNTRIES SHOULD ENSURE THAT THE FINANCIAL INSTITUTION ARE SUBJECT TO ADEQUATE REGULATION AND SUPERVISION AND THEY ARE EFFECTIVELY
IMPLEMENTINGTHE EFFECT OF FATF RECOMENDATIONS
RECOMANDATIO - 27 - POWERS OF SUPERVISORS
SUPERVISORS SHOULD HAVE ADEQUATE POWER TO SUPERVISE OR MONITOR AND ENSURE COMPLIANCE BY FINANCIAL INSTITUTIONS WITH REQUIREMENT TO
MONEY LAUNDERING AND TERRORIST FINANCING INCLUDING AUTHORITY TO CONDUCT INSPECTIONS
RECOMENDATION - 28 - REGULATION AND SUPERVISION OF DNFBPS
DNFBPS SHOULD BE SUBJECT TO REGULATION AND SUPERVISORY MEASURES
RECOMENDATION - 29 - FINANCIAL INTELLIGENCE UNIT
COUNTRIES SHOULD ESTABLISH A FIU THAT SERVES AS A NATIONAL CENTRE FOR RECEIVE AND ANALYSIS OF
1. STR
2. OTHER INFORMATION REALATED TO MONEY LAUNDERING ASSOCIATE OFFENCE AND TERRORIST FINANCING
AND EXAMINATION OF RESULTS OF THAT ANALYSIS
RECOMENDATION - 30 - RESPONSIBILITIES OF LAW ENFORCEMENT AND INVESTIGATIVE AUTHORITIES
COUNTRIES SHOULD ENSURE THAT DESIGNATED LAW ENFORCEMENT AUTHORITIES HAVE RESPONSIBILITY FOR MONEY LAUNDERING, TERRORIST FINANCING
INVESTIGATION WITHIN THE FRAMEWORK OF INTERNATIONAL AML AND CFT POLICY.
RECOMMENDATION 31: POWERS OF LAW ENFORCEMENT AND INVESTIGATIVE AUTHORITIES
WHEN CONDUCTING INVESTIGATION OF MONEY LAUNDERING AND TERRORIST FINANCING, COMPETENT AUTHORITIES SHOULD BE ABLE TO ACCESS RAW NESS
RAW NESSEARY DOCUMENTS AND INFORMATION FOR USE IN THOSE INVESTIGATIONS AND IN POCEQUTION AND RELATED ACTIONS
RECOMMENDATION 32: CASH COURIERS
COUNTRIES SHOULD HAVE METHODS AND PLACE TO DETECT THE PHYSICAL CROSSBORDER TRANSFER OF CURRENCY AND BEAR A NEGOTIABLE INSTRUMENT
INCLUDING THROUGH A DECORATION SYSTEM OR DISCLOSURE SYSTEM
RECOMMENDATION 33: STATISTICS
COUNTRY SHOULD MAINTAIN COMPREHENSIVE STATISTICS ON MATTERS RELEVANT TO THE EFFECTIVENESS AND EFFICIENCY OF THE
AML OR CFT SYSTEMS
RECOMMENDATION 34: GUIDANCE AND FEEDBACK
THE COMPETENT AUTHORITIES, SUPERVISORY AND SELF REGULATORY BODIES SHOULD ESTABLISH GUIDELINES AND PROVIDE FEEDBACK
WHICH WILL ASSIST FINANCIAL INSTITUTION AND DESIGNATED NON FINANCIAL BUSINESS AND PROFESSIONS IN APPLYING NATIONAL MEASURES TO COMPLY W
MONEY LAUNDERING AND TERRORIST FINANCING AND IN PARTICULAR IN DETECTING AND REPORTING SUSPISIOUS TRANSACTION
RECOMMENDATION 35: SANCTIONS
COUNTRIES SHOULD ENSURE THAT THERE IS A RANGE OF EFFECTIVE, PROPORTIONATE AND DISSUASIVE SANCTIONS, WHETHER CRIMINAL,
CIVIL OR ADMINISTRATIVE, AVAILABLE TO DEAL WITH NATURAL OR LEGAL PERSONS COVERED BY RECOMMENDATIONS 6, AND 8 TO 23,
THAT FAIL TO COMPLY WITH AML/CFT REQUIREMENTS.
INTERNATIONAL COOPERATION
RECOMMENDATION 36: INTERNATIONAL INSTRUMENTS
COUNTRIES SHOULD TAKE IMMEDIATE STEPS TO BECOME PARTY TO AND IMPLEMENT FULLY THE VIENNA CONVENTION, 1988;
THE PALERMO CONVENTION, 2000; THE UNITED NATIONS CONVENTION AGAINST CORRUPTION, 2003; AND THE TERRORIST FINANCING CONVENTION, 1999.
WHERE APPLICABLE, COUNTRIES ARE ALSO ENCOURAGED TO RATIFY AND IMPLEMENT OTHER RELEVANT INTERNATIONAL CONVENTIONS,
SUCH AS THE COUNCIL OF EUROPE CONVENTION ON CYBERCRIME, 2001; THE INTER-AMERICAN CONVENTION AGAINST TERRORISM, 2002;
AND THE COUNCIL OF EUROPE CONVENTION ON LAUNDERING, SEARCH, SEIZURE AND CONFISCATION OF THE PROCEEDS FROM CRIME
AND ON THE FINANCING OF TERRORISM, 2005.
RECOMMENDATION 37: MUTUAL LEGAL ASSISTANCE
COUNTRIES SHOULD RAPIDLY, CONSTRUCTIVELY AND EFFECTIVELY PROVIDE THE WIDEST POSSIBLE RANGE OF MUTUAL LEGAL ASSISTANCE
IN RELATION TO MONEY LAUNDERING, ASSOCIATED PREDICATE OFFENCES AND TERRORIST FINANCING INVESTIGATIONS, PROSECUTIONS,
AND RELATED PROCEEDINGS. COUNTRIES SHOULD HAVE AN ADEQUATE LEGAL BASIS FOR PROVIDING ASSISTANCE AND, WHERE APPROPRIATE,
SHOULD HAVE IN PLACE TREATIES, ARRANGEMENTS OR OTHER MECHANISMS TO ENHANCE COOPERATION.
RECOMMENDATION 38: MUTUAL LEGAL ASSISTANCE: FREEZING AND CONFISCATION
COUNTRIES SHOULD ENSURE THAT THEY HAVE THE AUTHORITY TO TAKE EXPEDITIOUS ACTION IN RESPONSE
TO REQUESTS BY FOREIGN COUNTRIES TO IDENTIFY, FREEZE, SEIZE AND CONFISCATE PROPERTY LAUNDERED;
PROCEEDS FROM MONEY LAUNDERING, PREDICATE OFFENCES AND TERRORIST FINANCING; INSTRUMENTALITIES USED IN,
OR INTENDED FOR USE IN, THE COMMISSION OF THESE OFFENCES; OR PROPERTY OF CORRESPONDING VALUE.
RECOMMENDATION 39: EXTRADITION
COUNTRIES SHOULD CONSTRUCTIVELY AND EFFECTIVELY EXECUTE EXTRADITION REQUESTS IN RELATION TO MONEY LAUNDERING
AND TERRORIST FINANCING, WITHOUT UNDUE DELAY. COUNTRIES SHOULD ALSO TAKE ALL POSSIBLE MEASURES TO ENSURE
THAT THEY DO NOT PROVIDE SAFE HAVENS FOR INDIVIDUALS CHARGED WITH THE FINANCING OF TERRORISM, TERRORIST ACTS OR TERRORIST ORGANISATIO
RECOMMENDATION 40: OTHER FORMS OF INTERNATIONAL COOPERATION
COUNTRIES SHOULD ENSURE THAT THEIR COMPETENT AUTHORITIES CAN RAPIDLY, CONSTRUCTIVELY AND EFFECTIVELY
PROVIDE THE WIDEST RANGE OF INTERNATIONAL COOPERATION IN RELATION TO MONEY LAUNDERING, ASSOCIATED
PREDICATE OFFENCES AND TERRORIST FINANCING.
FATF 9 SPECIAL RECOMMENDATIONS ON TERRORIST FINANCING
RECOMMENDATION I. RATIFICATION AND IMPLEMENTATION OF UN INSTRUMENTS
EACH COUNTRY SHOULD TAKE IMMEDIATE STEPS TO RATIFY AND TO IMPLEMENT FULLY THE 1999 UNITED NATIONS INTERNATIONAL CONVENTION FOR
THE SUPPRESSION OF THE FINANCING OF TERRORISM.COUNTRIES SHOULD ALSO IMMEDIATELY IMPLEMENT THE UNITED NATIONS RESOLUTIONS
RELATING TO THE PREVENTION AND SUPPRESSION OF THE FINANCING OF TERRORIST ACTS, PARTICULARLY UNITED NATIONS SECURITY COUNCIL RESOLUTION
RECOMMENDATION II. CRIMINALISING THE FINANCING OF TERRORISM AND ASSOCIATED MONEY LAUNDERING
EACH COUNTRY SHOULD CRIMINALISE THE FINANCING OF TERRORISM, TERRORIST ACTS AND TERRORIST ORGANISATIONS. COUNTRIES SHOULD
ENSURE THAT SUCH OFFENCES ARE DESIGNATED AS MONEY LAUNDERING PREDICATE OFFENCES.
RECOMMENDATION III. FREEZING AND CONFISCATING TERRORIST ASSETS
EACH COUNTRY SHOULD IMPLEMENT MEASURES TO FREEZE WITHOUT DELAY FUNDS OR OTHER ASSETS OF TERRORISTS, THOSE WHO FINANCE
TERRORISM AND TERRORIST ORGANISATIONS IN ACCORDANCE WITH THE UNITED NATIONS RESOLUTIONS RELATING TO THE PREVENTION
AND SUPPRESSION OF THE FINANCING OF TERRORIST ACTS.
EACH COUNTRY SHOULD ALSO ADOPT AND IMPLEMENT MEASURES, INCLUDING LEGISLATIVE ONES, WHICH WOULD ENABLE THE COMPETENT
AUTHORITIES TO SEIZE AND CONFISCATE PROPERTY THAT IS THE PROCEEDS OF, OR USED IN, OR INTENDED OR ALLOCATED FOR USE IN,
THE FINANCING OF TERRORISM, TERRORIST ACTS OR TERRORIST ORGANISATIONS.
RECOMMENDATION IV. REPORTING SUSPICIOUS TRANSACTIONS RELATED TO TERRORISM
IF FINANCIAL INSTITUTIONS, OR OTHER BUSINESSES OR ENTITIES SUBJECT TO ANTI-MONEY LAUNDERING OBLIGATIONS, SUSPECT
OR HAVE REASONABLE GROUNDS TO SUSPECT THAT FUNDS ARE LINKED OR RELATED TO, OR ARE TO BE USED FOR TERRORISM,
TERRORIST ACTS OR BY TERRORIST ORGANISATIONS, THEY SHOULD BE REQUIRED TO REPORT PROMPTLY THEIR SUSPICIONS TO THE COMPETENT AUTHORIT
RECOMMENDATION V. INTERNATIONAL CO-OPERATION
EACH COUNTRY SHOULD AFFORD ANOTHER COUNTRY, ON THE BASIS OF A TREATY, ARRANGEMENT OR OTHER MECHANISM FOR MUTUAL LEGAL
ASSISTANCE OR INFORMATION EXCHANGE, THE GREATEST POSSIBLE MEASURE OF ASSISTANCE IN CONNECTION WITH CRIMINAL,
CIVIL ENFORCEMENT, AND ADMINISTRATIVE INVESTIGATIONS, INQUIRIES AND PROCEEDINGS RELATING TO THE FINANCING OF TERRORISM,
TERRORIST ACTS AND TERRORIST ORGANISATIONS.
COUNTRIES SHOULD ALSO TAKE ALL POSSIBLE MEASURES TO ENSURE THAT THEY DO NOT PROVIDE SAFE HAVENS FOR INDIVIDUALS
CHARGED WITH THE FINANCING OF TERRORISM, TERRORIST ACTS OR TERRORIST ORGANISATIONS, AND SHOULD HAVE PROCEDURES
IN PLACE TO EXTRADITE, WHERE POSSIBLE, SUCH INDIVIDUALS.
RECOMMENDATION VI. ALTERNATIVE REMITTANCE
EACH COUNTRY SHOULD TAKE MEASURES TO ENSURE THAT PERSONS OR LEGAL ENTITIES, INCLUDING AGENTS, THAT PROVIDE
A SERVICE FOR THE TRANSMISSION OF MONEY OR VALUE, INCLUDING TRANSMISSION THROUGH AN INFORMAL MONEY OR VALUE
TRANSFER SYSTEM OR NETWORK, SHOULD BE LICENSED OR REGISTERED AND SUBJECT TO ALL THE FATF RECOMMENDATIONS
THAT APPLY TO BANKS AND NON-BANK FINANCIAL INSTITUTIONS. EACH COUNTRY SHOULD ENSURE THAT PERSONS
OR LEGAL ENTITIES THAT CARRY OUT THIS SERVICE ILLEGALLY ARE SUBJECT TO ADMINISTRATIVE, CIVIL OR CRIMINAL SANCTIONS.
RECOMMENDATION VII. WIRE TRANSFERS
COUNTRIES SHOULD TAKE MEASURES TO REQUIRE FINANCIAL INSTITUTIONS, INCLUDING MONEY REMITTERS, TO INCLUDE ACCURATE AND MEANINGFUL
ORIGINATOR INFORMATION (NAME, ADDRESS AND ACCOUNT NUMBER) ON FUNDS TRANSFERS AND RELATED MESSAGES THAT ARE SENT,
AND THE INFORMATION SHOULD REMAIN WITH THE TRANSFER OR RELATED MESSAGE THROUGH THE PAYMENT CHAIN.
COUNTRIES SHOULD TAKE MEASURES TO ENSURE THAT FINANCIAL INSTITUTIONS, INCLUDING MONEY REMITTERS,
CONDUCT ENHANCED SCRUTINY OF AND MONITOR FOR SUSPICIOUS ACTIVITY FUNDS TRANSFERS WHICH DO
NOT CONTAIN COMPLETE ORIGINATOR INFORMATION (NAME, ADDRESS AND ACCOUNT NUMBER).
RECOMMENDATION VIII. NON-PROFIT ORGANISATIONS
COUNTRIES SHOULD REVIEW THE ADEQUACY OF LAWS AND REGULATIONS THAT RELATE TO ENTITIES THAT CAN BE ABUSED FOR
THE FINANCING OF TERRORISM. NON-PROFIT ORGANISATIONS ARE PARTICULARLY VULNERABLE, AND COUNTRIES SHOULD ENSURE
THAT THEY CANNOT BE MISUSED:
(I) BY TERRORIST ORGANISATIONS POSING AS LEGITIMATE ENTITIES;
(II) TO EXPLOIT LEGITIMATE ENTITIES AS CONDUITS FOR TERRORIST FINANCING, INCLUDING FOR THE PURPOSE OF ESCAPING ASSET FREEZING MEASURES; AN
(III) TO CONCEAL OR OBSCURE THE CLANDESTINE DIVERSION OF FUNDS INTENDED FOR LEGITIMATE PURPOSES TO TERRORIST ORGANISATIONS.
RECOMMENDATION IX. CASH COURIERS
COUNTRIES SHOULD HAVE MEASURES IN PLACE TO DETECT THE PHYSICAL CROSS-BORDER TRANSPORTATION OF CURRENCY AND BEARER
NEGOTIABLE INSTRUMENTS, INCLUDING A DECLARATION SYSTEM OR OTHER DISCLOSURE OBLIGATION.
COUNTRIES SHOULD ENSURE THAT THEIR COMPETENT AUTHORITIES HAVE THE LEGAL AUTHORITY TO STOP OR RESTRAIN CURRENCY
OR BEARER NEGOTIABLE INSTRUMENTS THAT ARE SUSPECTED TO BE RELATED TO TERRORIST FINANCING OR MONEY LAUNDERING,
OR THAT ARE FALSELY DECLARED OR DISCLOSED.
COUNTRIES SHOULD ENSURE THAT EFFECTIVE, PROPORTIONATE AND DISSUASIVE SANCTIONS ARE AVAILABLE TO DEAL
WITH PERSONS WHO MAKE FALSE DECLARATION(S) OR DISCLOSURE(S). IN CASES WHERE THE CURRENCY
OR BEARER NEGOTIABLE INSTRUMENTS ARE RELATED TO TERRORIST FINANCING OR MONEY LAUNDERING, COUNTRIES
SHOULD ALSO ADOPT MEASURES, INCLUDING LEGISLATIVE ONES CONSISTENT WITH RECOMMENDATION 3
AND SPECIAL RECOMMENDATION III, WHICH WOULD ENABLE THE CONFISCATION OF SUCH CURRENCY OR INSTRUMENTS.
ARTMENT
UNTRIES
AFRICAN
CYPRUS,
RAQ,
TH KOREA,
H SUDAN

Alternative remittance systems (ARS) -- are operations to transfer money outside of the formal banking system. These include unregulated network
Cash couriers -- are individuals that transport currency or bearer-negotiable instruments from one country to another country for the purpose of lau
Commingling -- is the process of combining the proceeds of illicit activities with the earnings of legitimate businesses for the purpose of disguising t
ANSPORT DOCUMENT
Front company -- is a corporate vehicle that can be used to obscure the beneficial ownership of an organisatio
Shell Company -- is a company that is incorporated but has no significant assets or operations.
Smurfing (or structuring) -- is a money laundering technique, which involves the splitting up of a large bank deposit into a number of smaller deposi
Trade Transparency Units -- are arrangements to promote the sharing of trade data between cooperating customs agencies for the purpose of dete

H TRANSACTION

ES.
URNAME MATCH

E MTCH
NE.

TCHING.
SITION
MATCH
OLVED OR TERMINATED
 ,SOFTWARE ETC)

TS,
S,
AITE,
MICALS,

CE PAYMENT
SERVICES
PROFILE
MMEDIATELY

NOT IMPORTED
RESIDENTIAL
BY A GROUP OF

PARTY

ZATION

REANTH IS UNDISCLOSED,
E DONE

6. fatf
7. egmont group
ND CONVERT IT TO
9. pmla act
 10. operating guidelines

12. customer risk categorization

13. kyc

IS TBML ALSO.

K OF DETECTION.

PERTUNITY FOR

ANTIQUE GOODS

E TRANSFER.

CE.
BLE TO RECEIVE
CONCERN.
 ONCE
OMPLEXITY.
ORRECTION OF

E GOODS AT ALL.
OM SHIPMENT.

SIVE GOODS
S ON

D INTERNATIONAL

G TECHNIQUES

OUT
RANGEMENTS.

FINANCIAL SYSTEM,
VRES OR KEPT DORMAT

SO
ANK DEPOSITS)

OF A HUGE NETWORK OF
OUTSIDE OF OR PARALLEL

NS.
 RISKS,

ES SERVICES
IONS, ACCEPT DEPOSITS

ENCE AGENCIES,
ISM.

ECONOMIC AND
POWERS,
E TERRORISTS

STATES CITIZENS
T ACT.

WERS AVAILABLE
ONEY LAUNDERING.

TAIN RECORDS

F CONFIDENCE IN THE

KNOWLEDGE ABOUT A
RISK IN

OSES, INCREASED EXPENSES

OF THE CUSTOMERS
ER IS ON LOW, MEDIUM
FOR
THE

AKE ACTION
ARE

TIES
EW TO

RGANIZATIONS

ORISM.

TIONAL.

SON

LL BANKS
MENDATIONS

ON

FOR

ATURAL

H FIU
ONS

O COMBACT

SESSARY

NTS

WITH
ONS.

ON 1373.
TIES.

AND
 ated networks (e.g. underground banks) and regulated operations (e.g. money service businesses).*
rpose of laundering the proceeds of crime or financing terrorist activities.
f disguising the source of these illicit funds and complicating the money trail.

maller deposits to evade the suspicious activity reporting requirements of financial institutions.
rpose of detecting and analysing suspicious trading activities.
PART 1 - LC ISSUANCE, ADVISING. DOCUMENT DISPATCH, REALIZATION
SCENARIO 1 - APPLICANT IS OUR CUSTOMER WANT TO USE LC FACILITY
1. ISSUNCE OF INLAND LC (ILC)
2. AMMENDMENT OF INLAND LC (ILCAMD)
3. CANCELLATION OF INLAND LC (ILCCAN)
4. RECEIPT OF DOUCUMENT UNDER LC
5. SENDING ACCEPTANCE /DISCRIPANCY FOR DOCUMENTS UNDER LC (IBCLC)
6. REALIZATION ON DUE DATE FROM APPLICANT UNDER LC
7. PAYMENT TO BENEFICIARY
SCENARIO 2 - BENEFICIARY IS OUR CUSTOMER
1. ADVICE THE LC TO THE BENEFICIARY (ALC)
2. RECEIPT OF DOCUMENT UNDER LC FROM BENE
4. DISPATCH THE DOCUMENTS NOT DISCOUNTS (OBC)
4. RECEIPT OF ACCEPTANCE FROM APPLICANT BANK
6. RECEIPT OF PAYMENT ON DUE DATE FROM APPLICANT
7. REALIZE THE OBC/OBD BILL
SCENARIO 3 - WE ARE ONLY DISPATCHING THE DOCUMENTS
1. LODGE OBC BILL
2. RECEIPT ACCEPTANCE OF DOCUMENTS
3. RECEIPT PAYMENT ON DUE DATE FROM APPLICANT
4. PAYMENT TO BENEFICIARY
IMPORT OPERATIONS
PART 2 - DISCOUNTING
SCENARIO 1 - APPLICANT IS OUR CUSTOMER WANTS TO DISC
AND MAKE PAYMENT TO BENEFICIARY
WE CAN DISCOUNT ON BANK LIMIT WHEN DOCUMENTS ARE CREDIT
ACCEPTED BY APPLICANT
SCENARIO 2 - BENEFICIARY IS OUR CUSTOMER WANTS TO DISCOUNT
WE CAN ONLY DISCOUNTS THE BILL ON BANK LIMIT POST RECEIPT O
ANYWAY, BENEFICIARY CAN DISCOUNTS THE BILL ON PRE ACCEPTAN
ON HIS LIMIT
SCENARIO 3 - WE ARE ONLY DISCOUNTING THE BILL WE ARE N
OR BENEFICIARY BANK - APPLICANT CAME TO US
WE CAN ONLY DISCOUNTS THE BILL IF DOCS ARE CREDIT COM
SCENARIO 4 - WE ARE ONLY DISCOUNTING THE BILL WE ARE N
OR BENEFICIARY BANK - BENEFICIARY CAME TO US
WE CAN ONLY DISCOUNTS THE BILL AFTER ACCEPTANCE CAM
HOWEVER, PRE ACCEPTANCE IS POSSIBLE ON CLIENT LIMIT.
EXPORT OPERATIONS

1. ISSUANCE OF INLAND LC
A. CONCEPT AND DOCUMENTS AND CHECKLIST
BUYER CAMES TO US FOR ISSUANCE OF LC TO HIS SELLER, BOTH ARE FROM INDIA BUT MAY BE DIFFERENT STATES OR SAME STATES.
WE CAN ISSUE THE LC AS PER LIMITS AVAILABLE TO THE BUYER OR FD BACKED LIMITS.
DOCUMENTS REQUIRED
1. CRL
2. LC APPLICATION
3. PI/PO/CONTRACT
4. FD NOS IF FD BACKED
5. INSURANCE POLICY/COVER IF IT IS ON APPLICANT.
CHECKLIST
1. WHEATHER FUNDS AVAILABLE IN LIMITS, MARGIN AND FOR CHARGES.
2. IS MFA EXECUTED, IS CAL VALID OR EXPIRED.
3. IF CAL OR LIMIT IS EXPIRED WHEATHER APPROVAL ATTACHED.
4. IF LDN IS BEYOND LIMIT EXPIRY APPROVAL ATTACHED.
5
CUSTOMER WANTS TO DISCOUNT THE BILL

WHEN DOCUMENTS ARE CREDIT COMPLIED OR

USTOMER WANTS TO DISCOUNT THE BILL

ON BANK LIMIT POST RECEIPT OF ACCEPTANCE
NTS THE BILL ON PRE ACCEPTANCE

OUNTING THE BILL WE ARE NOT APPLICANT BANK

NT CAME TO US
LL IF DOCS ARE CREDIT COMPLIED
OUNTING THE BILL WE ARE NOT APPLICANT BANK
IARY CAME TO US
LL AFTER ACCEPTANCE CAME.
POSSIBLE ON CLIENT LIMIT.

AME STATES.
 EXPORT
EXPORT MEANS TAKING OUT GOODS OUTSIDE INDIA, PROVIDING SERSVICE FROM INDIA TO A PERSON OUTSIDE INDIA. TYPES OF EXPORT TRANSACT
1. EXPORT LC
2. DOCUMENTARY COLLECTION

3. EXPORT FINANCE

4. ADVANCE PAYMENT AGAINST EXPORT

5. REALIZATION REPORTING AND SETTLEMENT

6. PROJECT EXPORT

7. MERCHENTING TRADE

8. DIFFERENT CONCEPTS

VARIOUS TRANSACTIONS

PART - 1 - EXPORT LC
1. EXPORT LC ADVISING
A. MEANING
1. ADVISING HAS NO LIBILITY IT IS ONLY FORWARING THE LC TO THE BENEFICIARY.
2. LC RECEIVED BY A BANK NAMED ADVISING BANK FROM ISSUING BANK IN THE FORM OF MT700(AUTHENTICATED) BY POST,OR MAIL (NOT AUTHENTI
3. ADVISING BANK SHOULD ENSURE THAT LC IS CAME FROM AUTHENTICATED SOURCE AND GIVE IT TO THE BENEFICIARY.
B. CHECKLIST
1. LC SHOULD MENTION SUBJECT TO LATEST ICC
2. BENEFICIARY IS IN INDIA
3. SHIPMENT DATE IS NOT AFTER THE EXPIRY DATE AND ISSUE DATE IS NOT LATER THAN THE LC RECEIPT DATE
4. COMPLETE ADDRESS OF THE BENEFICIARY
5. IF BENEFICIARY IS NOT A CUSTOMER OF ICICI BANK TAKE APPROVAL AND MENTION UCP600 37(C) INSTRUCTED PARTY IS N/A
6. CHECK FOR ADVISING CHARGES INSTRUCTION ON LC
7.COMPLETE DETAILS OF APLICANT, BENEFICIARY AND ISSUING BANK IS MENTIONED
8. GOODS DESCRIPTION MENTION IN THE LC TEXT SHOULD BE CLEAR AND MATCH WITH THE BENE AND APPLICANT LINE OF BUSINESS
C. PHYSICAL LC RECEIVED AT BRANCH
1. BRANCH RECEIPT THE LC FORM CUSTOMER OR NON CUSTOMER AND ACKNOWLEDGE BY SIGN STAMP DATE AND TIME.
2. CONTACT LOCAL BRANCH OF LC ISSUING BANK FOR SIGNATURE VERIFICATION.
3. SCAN THE LC IN XLC AND SENT IT TO TSU.
4. TSU WILL SCRUTINIZE THE LC AS PER GUIDELINES
5. TSU WILL LODGE XLC AND RETURN THE CASE TO BRANCH
6. BRANCH CAN NOW DOWNLOAD ADVISING LETTER FROM XLC
7. PUT STAMP AND XLC NO ON ALL PAGES OF ADVISING LETTER
8. PRINT OUT LC , CHARGES DEBIT ADVICE AND ADVISING LETTER AND FORWARD TO CUSTOMER
9. LC CAN BE GIVEN TO BENEFICIARY ONLY AFTER COLLECTING ADVISING CHARGES
10. CHECK ISSUING BANK OR 1ST ADVISING BANK RATING ON IFIG PROVIDED LIST
D. SWIFT LC RECEIVED AT TSU
1. TSU TO SEND THE LC TO NEAREST BRANCH OR BENEFICIARY BRANCH.
2. BRANCH ACKNOWLEDGE BY SIGN STAMP DATE AND TIME.
3. 3-10 SAME AS ABOVE
E. ADVISING AS SCEOND ADVISING BANK
1. IF ISSUING BANK OR IST ADVISING BANK IS THE KEY RELATIONSHIP BANK THEN KYC NOT REQUIRED
2. OTHERWISE, ADVISING CAN BE DONE EITHER BY BASED ON VALID KYC OR BY DUE DILIGENCE
3. IFIG TEAM WILL PUBLISH LIST OF ISSUING BANK AND 1ST ADVISING BANK FOR WICH LC CAN BE ADVISED ON THE BASIS OF DUE DILIGENCE OR ONL
OR NOYHING REQUIRED
4. IF NOT ON THE LIST RAISE SR TO IFIG
F. RE-ADVISING OF DUPLICATE EXPORT LC
1. LC IS LOST PRE-DELIVERY TO BENEFICIARY
RECEIVE WRITTEN INFORMATION FROM COURIER COMPANY ABOUT LOST OF EXPORT LC AND GET DETAILS OF FIR. THEN LODGE NEW XLC
2. LC IS LOST POST DELIVERY TO BENEFICIARY
REQUEST RECEIVED ROM BENEFICIARY FOR RE-ADVISING OF DUPLICATE EXPORT LC WITH INDEMNITY STAMPED.
3. ICICI IS FIRST ADV BANK LC LOST BY SCEOND ADV BANK
INDEMNITY TO BE TAKEN FROM 2ND ADVISING BANK.
4. LC LOST BY ICICI BANK, ICICI WILL ISSUE THE INDEMNITY TO ISSUING BANK OR 1ST ADVISING BANK.
G. ADVISING CHARGES COLLECTION
IF CUSTOMER ACCOUNT HAVE BALANCE ADV CHARGES IS TO BE COLLECTED IMMEDIATELY.
IF CUSTOMER ACCOUNT DON’T HAVE BALANCE DEDIT SAADCOMM ACCOUNT
ADV CHARGES OF RETURNED LCS CLAIM TO BE SENT TO APPLICANT
H. UNABLE TO DELIVER LC TO BENEFICIARY
SOMETIMES COURIER CO IS UNABLE TO DELIVER LC DUE TO ADDRESS NOT FOUND.
IF NAME OF SCEOND ADV BANK IS MENTIONED IN THE LC, DELIVER IMMEDIATELY TO 2ND ADV BANK.
ICICI BANK TRY TO CATCH THE BENEFICIARY IF FOUND REDISPATCH.
IF THIS IS NOT POSSIBLE SEND SWIFT/SFMS/LETTER TO ISSUING BANK OR FIRST ADVISING BANK.
IF BENEFICIARY IS IN A URGENT NEED OF LC BRANCH CAN SENT TO NEAREST LOCATION AS CONFIRMED BY BENEFICIARY
IF ISSUNIG BANK SENT SFMS TO RETURN THE LC OR BENEFICIARY IS UNTRACEBLE RETURN THE LC
2. EXPORT LC CONFIRMATION
A. MEANING -
CONFIRMATION OF LC CONSTITUTES AN UNDERTAKING OF THE CONFIRMING BANK TO PAY TO THE NEGOTIATING BANK OR BENEFICIARY WITHOUT R
ARE PRESENTED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE LC. THIS UNDERTAKING IS ADDITIONAL OF THE UNDERTAKING PROVID
A LC TO WHICH A CONFIRMING BANK ADDS ITS PLEDGE TO PAY IN THE EVENT OD DEFAULT OF THE ISSUING BANK.IS KNOWN AS LC CONFIRMATION. W
700 49 FIELD IS CONFRM OR MAY ADD THEN BENEFICIARY CAN REQUST THE ADV BANK FOR CONFIRMATION. IF 700 49 FIELD IS WITHOUT THEN SCILEN
BE ADDED ON REQUEST OF BENEFICIARY.
B. BASIC
1. CONFIRMATION OF EXPORT LC i) ADVISED BY ICICI BANK ii) ADVISED BY OTHER BANKS NOT HAVING ACCOUNT WITH US
iii) FOR SERVICES/SOFTWARE/SBLC iv) MERCHANTING TRADE OF OUR BANK CUSTOMER AS WELL AS OTHER BANK CUSTOMER v) LC WHERE NO REIMB
BANK IS MENTIONED, SO THERE IS NO REIMBURSEMENT AUTHORIZATION IN LC
2. CONFIRMATION OF LC CANBE DONE WITH DEVIATION/APPROVAL WHEN i) WHICH DO NOT PROVIDE VALID TRANSPORT DOCUMENT THAT GIVES TIT
NO TRANSPORT DOCUMENT (SOFTWARE/SERVICES)
3. CONFIRMATION OF LC CANBE DONE WITHOUT ANY APPROVAL WHEN i) TRANSPORT DOCUMENT NOT CONSIGNED TO ISSUING BANK OR BLANK END
TRANSPORT DOCUMENT SUCH AS LORRY RECEIPT, TRUCK RECEIPT, ROAD CONSIGNMENT NOTE, DELICERY CHALLAN, GOODS RECEIPT NOTE iii) LC B
PARTY BL/ BLANK BACKED BL iv) BUSINESS CHEMICAL COMMODITIES - CHLOR ALKALIES, PETROCHEMICALS, FERTILIZERS v) ENERGY SECTOR - COAL
NATURAL GAS, GASHOLINE, BY-PRODUCTS, CO-PRODUCTS ETC. vi) AGRO COMMODITY - SUGER CANE, SUGAR, RICE, GRAINS SOYABINS, PLAM OIL,CO
vii). METAL STEEL PRODUCTS, ALUMINIUM, IRON, IRON-ORE viii). NEW PARISABLE COMMODITY CEMENT, TIMER ETC.
5. CONFIRMATION OF EXPORT LC HAVING ESCALLATION AND DE ESCALLATION CLAUSE, TSU TO BLOCK LIMITS 10% OVER AND ABOVE THE LC VALUE
6. APPROVALS RELATED TO FIELD 41 (A/D) - AVAILABLE WITH, 42 (A/D) DRAWEE WHERE LC IS AVAILABLE BY NEGOTIATION, ACCEPTANCE, PAYMENT.
i) ORIGINAL DOCUMENT ARE ROUTED THROUGH ICICI BANK. THE SAME SHOULD ALSO APPEAR CLEARLY ON THE LC.
ii) CONFIRMATION ADVICE/LETTER GIVEN TO THE CUSTOMER. iii) FIELD 41 TO BE READ AS ANY BANK OR ICICI iv) FIELD 42 TO BE READ AS ICICI OR ISSU
7. LIMITS TO BE BLOCKED BY OF ISSUING BANK FOR THE LC AMOUNT BY IFIG
8. SWIFT TO BE SENT TO ISSING BANK THAT WE HAVE ADDED CONFIRMATION
9. IF LC IS UNDER ESCALLATION -DEESCALLATION CLAUSE, AMOUNT OF LC MAY VARRY.
C. CHECKLIST
CRL -
1. XLC NUMBER AND AMOUNT, OTHERBANK REFERANCE NO AND AMOUNT, IF LC IS NOT ADVISED BY US. ISSUING BANK AND ADVISING BANK NAME AN
2. DEBIT AUTHORITY FROM BENEFICIARY, IN CASE CHARGES ARE ON ACCOUNT OF BENEFICIARY WHO IS OUR CUSTOMER
3. IN CRL BENE SHOULD MENTION DOCUMENT AND COMMUNICATION TO PRESENTING BANK, SHALL BE CONSIDERED AS EQUIVALENT
TO HAVE BEEN COMMIUNICATED TO BENEFICIARY
4. VERIFY SIGNATURE ON REQUEST LETTER.
5. NNL DECLARATION
CLIENT PROFILE AND VISIT REPORT -
FOR CUSTOMER NOT HOLDING CURRENT AC WITH ICICI BANK.
KYC HAVE TO BE DONE VALID FOR 1 YEAR.
DETAILED KYC TO BE DONE AS PER INTERNATIONALLY ISSUED GUIDELINES
TDD SHOULD BE PERFORMED WHEN VALUE IS MORE THAN USD 5 L
FOR MTT- CRL, IMPORT CONTRACT FOR IMPORT LEG TRAN, EXPORT CONTRACT FOR EXPORT LEG TRAN
D. RISK IN CONFIRMATION
1. IF LC DOES NOT BEAR THE REIMBURSEMENT CLAUSE, THEN ICICI AS A CONFIRMING BANK, MAY NOT BE ABLE TO CLAIM REIMBURSEMENT FROM IS
2. CONFIRMATION OF LC, WHICH DO NOT PROVIDE VALID TRANSPORTATION DOCUMENTS, WHICH GIVES TITLE OF GOODS
3. CONFIRMATION OF LC WHERE NO TRANSPORT DOCUMENT IS AVAILABLE.
E. PROCESS OF CONFIRMATION
1. RECEIVE CRL FROM CUSTOMER. RAISE TRACK IN "TMISC XLC CONFIRMATION"
2. IN CASE AMMENDMENT IS REQUIRED IN LC SEND SWIFT TO ISSUING BANK, RECEIVE REPLY AND ACT ACCORDINGLY.
3. TAKE BENEFICIARY CONCENT FOR ADDING CONFIRMATION IN CASES OF "MAY ADD"
4 IF REQUEST RECEIVED FROM FIRST ADVISING BANK, SEND LETTER TO FIRST ADVISING BANK TO INFORM ISSUING BANK ABOUT CONFIRMATION ADD
5. IF CHARGES ARE ON APPLICANT ACCOUNT DEBIT "SALCCOMN" ACCOUNT AND CREDIT CONFIRMATION CHARGES AC AND SENT MAIL TO IFIG TEAM.
F. SILENT CONFIRMATION
1. IF 49 FIELD IS SAID WITHOUT THEN ALSO ICICI CAN CONFIRM THE LC.
2. IS AN UNDERTAKING BY ICICI TO NEGOTIATE DOCUMENTS UNDER SIGHT, USANCE OR DEFFERED PAYMENT
4. SILENT CONFIRMATION WILL BE A SEPARATE CONTRACT BETWEEN ICICI AND BENEFICIARY.
5. ICICI BANK WILL ACCEPT ALL THE NOMINATION TO NEGOTIATE THE DOCUMENTS
6. SUCH LC WILL BE AVAILABLE FOR NEGOTIATION WITH ANY BANK OR RESTRICTED TO ICICI.
7. THIS CONTRACT BETWEEN ICICI BANK AND BENEFICIARY TO BE COVERED BY "LETTER OF INDEMNITY"
8. TSU TO VERIFY THE INDEMNITY PROVIDED BY CLIENT.
G. EXPORT LC CONFIRMATION PROCESS WITH ESCALLATION DE-ESCALLATION CLAUSE
ESCALLATION DE-ESCALLATION CLAUSE IS APPLICABLE TO THE EXPORT LC WHERE COMMODITY LIKE OIL IS INVOLVED. UNDER THIS CASE DOCUMEN
ISSUING BANK WITH AMOUNT LOWER THAN LC OR HIGHER THAN LC.
1. AT THE TIME OF LC CONFIRMATION LC VALUE TO BE ENHANCED BY PERCENTAGE AS QUOTED IN CRL. AND UPDATE INSTRUCTION ACCORDINGLY
2. IF % IS NOT MENTIONED THEN NO NEED TO ENHANCE LC VALUE.
H. PAYMENT OF EXPORT LC BILLS UNDER CONFIRMED LC
FOR EXPORT BILLS LODGED UNDER CONFIRMED LC ICICI BANK IS LIABLE TO EFFECT THE PAYMENT ON DUE DATE IF THE EXPORT PROCEDS ARE NO
ISSUING BANK OR REIMBURSING BANK, SUBJECT TO i) EXPORT BILLS ARE BOOKED UNDER LC CONFIRMED BY ICICI BANK.ii) SUCH BILLS ARE NOT NE
iii) DOCS ARE CREDIT COMPLIED
OTHERWISE PAYMENT WILL BE MADE ONLY AFTER RECEIPT OF FUNDS FROM ISSING BANK
3. TRANSFER OF EXPORT LC
A. MEANING
THE FIRST BENEFICIARY OF LC MAY REQUEST FOR TRANSFER OF CREDIT TO SCEOND BENEFICIARY. THIS IS ALLOWED AS PER UCPDC. CERTAIN CLA
SUBSTITUTED ON THE REQUEST OF FIRST BENEFICIARY, SUBJECT TO CERTAIN CONDITIONS STIPULATED ON CREDIT. THE LC SHOULD CLEARLY NOM
THE LC A TRANSFER CAN BE IN PART OR WHOLE, AS PER THE REQUEST OF THE BENEFICIARY.
B. CHECKLIST FOR EXPORT LC TRANSFER
CRL - DEBIT AUTHORITY FROM BENEFICIARY IN CASH DD/PO, SIGNATURE VERIFICATION, TRANSFER INSTRUCTION, NAME AND ADDRESS OF THE SUBS
2ND BENEFICIARY SHOULD BE IN INDIA
ORIGINAL LC - LC SHOULD BE RESTRICTED TO ICICI BANK OR ANY BANK, LC ISSUANCE DATE SHOULD NOT BE THE FUTURE DATE, LC EXPIRY DATE S
SHIPMENT DATE, RELATED LC SHOULD BE ADVISED BY ICICI BANK OR ELSE WE CAN DUMMY ADVISE THE LC, TO CREATE RECORD OF LC IN I-CORE, LC
BE IN INDIA. IF RELATED LC IS ADVISED BY OTHERTHAN ICICI BANK SIGNATURE OF SAID BANK OFFICER REQUIRED, ENSURE EXPORT IS DONE FROM
C. PROCESS
1.RECEIVE REQUEST FROM FIRST BENEFICIARY FOR TRANSFER OF EXPORT LC, ACKNOWLEDGE THE SAME WITH STAMP,DATE,TIME.
2. VERIFY CUSTOMERS SIGNATURE.
3. SCAN DOCUMENTS TO TMISC XLC TRANSFER
4. CHECK FOR FUND SIGNTED IN NOSTRO
5. IF FUNDS SIGHTED THE RAISE ORM TRACK TO TRANSFER THE FUNDS TO SCEOND BENEFICIARY
4. CLOSURE OF EXPORT LC
MEANING-
GENERALLY LC IS CLOSED ON EXPIRY DATE. BUT IF ADV BNK RECEIPT REQUEST OF CLOSURE FROM BENEFICIARY THEN ALSO IT CAN BE CLOSED.
CHECKLIST-
SIGNATURE VERIFICATION OF CUSTOMER
DEBIT AUTHORITY IF CHARGES ARE ON ACCOUNT OF BENEFICIARY
CLOSURE CHARGES CASH/DD/PO
PROCESS -
1. RECEIVE MT799 FROM ISSUING BANK FOR CLOSURE OF EXPORT LC
2. RECEIPT OF ORIGINAL LC FROM THE BENEFICIARY ALONG WITH CANCELLATION REQUEST

PART - 2 - DOCUMENTS SENT ON COLLECTION BASIS

1. EXPORT BILLS SENT ON COLLECTION BASIS -
1.FINANCIAL AND COMMERCIAL DOCUMENTS SEND BY BANKS TO BUYER ON INSTRUCTION RECEIVED FROM SELLER i) TO OBTAIN ACCEPTANCE ii) TO
DEFFERED PAYMENT RERMS.
2. IN CASE BOE OR DRAFT ARE DRAWN ON SIGNT OR USANCE BAIS. ALL NECESSERY DOCUMENTS NEED TO BE ATTACHED TO IT.
3. DOCUMENTS CAN BE SENT AGAINST ADVANCE REMITTANCE RECEIVED TO THE EXPORTER
2. PROCESS
1. RECEIPT CRL MARK DATE AND TIME
2. CHECK DOCUMENTS AS PER CHECKLIST
3. CHECK MTT AND PROJECT EXPORT APPLICABILITY
4. RAISE A TRACK IN QXFC
3. CHECKLIST
SAME AS XBN
4. PART DRAWINGS/UNDRAWN BALLANCES
1. FOR EXPORT OF CERTAIN GOODS IT IS IN PRACTICE TO LEAVE SMALL PART OF THE EXPORT VALUE UNDRAWN DUE TO DIDDERANCE IN WEIGHT, QU
2. AN UNDERTAKING FROM EXPORTER ON DUPLICATE EDF THAT BALANCE WILL BE REALIZED WITHIN PERIOD PRESCRIBED FOR REALIZATION
3. IF EXPORTER IS UNABLE TO REALIZE THE VALUE BANK SHOULD CHECK EXPOTER ATLEAST REALIZED 90% OF THE BILL VALUE
5. CONSIGNMENT EXPORT
1. WHEN GOODS ARE SENT ON COMSIGNMENT BASIS BANK WHILE FORWARDING THE SHIPPING DOCUMENT TO HIS CORRESPONDENT BANK OVERSEA
DELIVER THE THE SHIPPING DOCUMENTS TO AGENTS, AGAINST TRUST RECEIPT/ UNDERTAKING TO SUBMIT THE SALE PROCEEDS WITHIN DUE DATE.
2. THE AGENT CONSIGNEE MAY DEDUCT STORAGE LANDING CHARGES ETC WHILE SUBMITTING SALE PROCEEDS.
3. ACCOUNT SALES RECEIVED FROM CONSIGNEE MAY TO BE VERIFIED BY THE BANK
4. FREIGHT AND MARINE INSURANCE TO BE ARRANGED IN INDIA
5. UNSOLD ITEMS CANBE DEDUCTED FROM ACCOUNT SALES
6. DIRECT DISPATCH OF DOCUMENTS
A. BANK CAN DIRECTLY DISPATCH SHIPPING DOCUMENTS TO THE CONSIGNEE SUBJECT TO -
ADVANCE PAYMENT OR IRREVOCABLE LC HAS BEEN RECEIVED FOR THE FULL VALUE AND CONTRACT/LC INDICATE - DISPATCH TO CONSIGNEE
OR REGULAR CUSTOMER OF BANK HAVING GOOD TRACK RECORD
BANK CAN ALSO ALLOW STATUS HOLDER EXPORTER, UNITS IN FTP, UNITS IN SEZ TO DISPATCH SHIPPING DOCUMENTS DIRECTLY TO CONSIGNEE SUB
DECLARATION THAT EXPORT PROCEEDS WILL BE REPATRIATED THROUGH THE BANK IN EDF
DUPLICATE COPY OF EDF TO BE SUBMITTED TO THE BANK WITHIN 21 DAYS FROM SHIPMENT
B. BANK MAY REGULARIZE SHIPPING DOCUMENTS WHICH EXPORTER DIRECTLY DISPATCH TO HIS CONSIGNEE OVERSEAS UP TO $ 10 LAKH, SUBJECT
i) EXPORT PROCEEDS HAVE BEEN REALIZED IN FULL
ii) EXPORTER IS A REGULAR CUSTOMER OF BANK ATLEAST FOR A PERIOD OF 6 MONTHS
iii) EXPORTER ACCOUNT WITH BANK FULLY COMPLIANT WITH RBI,AML,KYC REGULATIONS
iv) BONAFIED TRANSACTION
v) ANY SUSPICIOUS TRANSACTION SHOULD REPORTS TO FIU-IND

PART- 3 - EXPORT FINANCE

1. EXPORT PRE SHIPMENT CREDIT
A. MEANING
1. EXPORT PACKING CREDIT(EPC) - LOANS AND ADVANCES IN INR CURRENCY FOR PURCHASE OF RAW MATERIALS, EXPENSES FOR RENDERING SERV
AND ALL OTHER WORKING CAPITAL EXPENSES INCLUDING PACKING OF GOODS. GIVEN ON THE BASIS OF LC OR A CONFIRMED EXPORT ORDER. IT IS A
EXPORTABLE STOCKS. INTEREST RATE IS MCLR OR REPO RATE PLUS SPREAD.
2. PRE SHIPMENT CREDIT IN FOREIGN CURRENCY (PCFC) - ANY LOAN OR ADVANCE GRANTED OR ANY CREDIT PROVIDED BY BANK IN FOREIGN CURRE
FOR DOMESTIC PURCHASE AS WELL AS FOR IMPORT OF RAW MATERIALS FOR MANUFACTURING AND OTHER WORKING CAPITAL EXPENCES. INTERES
IS LIBOR PLUS SPREAD. AGAINST LC OR CONFIRMED EXPORT ORDER.
B. FEATURES
1. 3 TYPES- i) RUNNING ACCOUNT ii) ORDER BASIS iii) EXISTING ORDER BASIS
2. FOB=EXW=FCA FOB=CFR/CPT-10% FOB =CIF-15% FOB= DDP/DAP-25%
3. DUE DATE IS EARLIER OF OF THESE 3 - i) REQUESTED TENOR ii) TENOR AS PER CAL iii) LDN = LDS+21 (HERE, LDS= ORDER DATE +SHIPMENT TERMS)
4. AMOUNT IS LESSER AS PER 3 BELOW - i) FOB-MARGIN AS PER CAL ii) REQUESTED AMOUNT iii) AVAILABLE LIMIT
5. INTEREST RATE - AS PER CAL + CONFIRMATION FROM BRANCH
6. END USE - FROM PURCHASE OF RAW MATERIALS TO SHIPMENT OF GOODS
7. EPC REQUEST CAN BE PROCESSED FROM LOWER OF THESE VALUES.
i) (SCANTIONED LIMIT/DP - CURRENT DISBURSEMENT TILL DATE)
ii) (LATEST STOCK STATEMENT VALUE - CURRENT DISBURSEMENT TILL DATE)
C. DOCUMENTS
1. CRL
2. ORDER/LC
3. FEMA SECTION 5 CHAPTER 3
4. RM RECLARATION FOR IES (FOR INR)
5. CA CERTIFICATE FOR IES (FOR INR)
6. ECGC WHEN CAL SAYS TO BE OBTAINED, WHEN SAYS WAVED OR NOTHING MENTIONED IN CAL NOT REQUIRED
7. OVERDUE APPROVAL 0-30 DAYS
8. OVERDUE APPROVAL MORETHAN 30 DAYS
9. BSMG APPROVAL FOR PCFC ABOVE USD 1 MILLION AND EPC INR 50 MILLION
10. IF CAL CONDITION DIFFERS APPROVAL REQUIRED
11. AMLOCK
12. LIMIT AND RATE CONFIRMATION
D. CRL AND ORDER
CRL FOR RUNNING ACCOUNT CRL FOR ORDER BASIS SHOULD BE CHECKED AS PER ORDER
1. ANNEXURE 1A 1. ANNEXURE 1B
2. AMOUNT REQUESTED 2. NAME OF BUYER
3. CREDIT AC NO 3. BUYERS COUNTRY
4. EXPORTER COMPANY LETTERHEAD/SIGNATURE/STAMP OF EXPORTER 4. COMMODITY
5. SIGNATURE/STAMP OF BRANCH 5. LDS
6. IE CODE 6. ORDER VALUE
7. UNDERTAKING 10 POINTS 7. INCOTERM
8. NOT SISTER CONSERNS 8. END-USE
ORDER 9. IE-CODE
1. PO/PI SIGNED BY BOTH PARTY 10. ALL OF RUNNING ACCOUNT
2. CHECK DETAILS AS PER CRL ORDER BASIS DISBURSEMENT 11. ORDER CAN BE EITHER ORIGINAL OR IN ELECTRONIC FORM
3. LC SHOULD BE IRREVOCABLE
4. IF ORDER BASED FACILITY ORDER SHOULD BE SELF ASSESTED BY CLIENT IF ELECTRONICALLY RECEIVED
APPROVAL
BSMG APPROVAL
OVERDUE ORDER
CAL CONDITION APPROVAL
E. GENERAL CHECK POINTS
1. EXPORTER IS NOT IN CAUTION LIST OF RBI OR ECGC
2. PARTY HOLD NECESSERY EXPORT QUOTA LICENCE
3. PARTY HOLDS ECGC POLICY IF APPLICABLE
4. PARTY HAS NOT AVAILED PACKING CREDIT FROM ANY OTHER IN RESPECT OF THIS ORDER
5. PARTY IS AGREED UPON COMMERCIAL INTEREST RATE IN CASE OF NOT LIQUADATED IN DUE DATE
6. CHECK VALIDITY AND AVAILIBILITY OF LIMITS IN FINACLE
7. IN CASE OF OVERDUE APPROVAL UPER PSAM IS REQUIRED
8. IN CASE OF RUNNING ACCOUNT BASIS CHECK ODRDER HAVE BEEN SUBMITTED WITHIN 30 DAYS
9. IN CASE OF ORDER OR LC BASED DISBURSEMENT MAKE SURE DISBURSEMENT IS ON FOB BASIS
10. DEVIATION MATRIX TO BE FOLLOWED FOR ANY DEVIATION
F. OTHER CHECKLIST
1. MAKE SURE LIMIT IS AVAILABLE LNTL
3. RYPES OF FACILITY - RUNNING ACCOUNT OR ORDER BASIS
4. TYPE OF DISBURSEMENT REQUESTED - EPC OR PCFC
7. CAL IS VALID OR EXPIRED
9. IS ORDER IS UPDATED FOR RUNNING ACCOUNT FACILITY HXPCI
E. EPC TYPES
1. PACKING CREDIT IN EXCESS OF ORDER
i) WHERE BY PRODUCT CAN BE EXPORTED
ii) WHERE PARTIAL DOMESTIC SALE IS INVOLVED
iii) EXPORT OF DEOILED/DEFATTED CAKES
2. EPC FOR EXPORT OF SERVICES ADDITIONAL CHECKPOINTS
i) GENUINENESS OF THE PROPOSAL
ii) RM DECLARATION THAT ITEM OF SERVICE EXPORT IS COVERED UNDER APPENDIX 10 OF HBPV 1
iii) EXPORTER IS REGISTERED UNDER ELECTRONIC AND SOFTWARE EPC
OR SERVICES EPC OR WITH FEDARATION OF INDIAN EXPORT ORGANIZATIONS AS PER APPLICABILITY
iv) EXPORT CONTRACT FOR EXPORT OF SERVICE
v) VALID TIMEGAP BETWEEN ORDER AND PAYMENT RECEIVED
vi) CHECK CAL FOR SERVICE EXPORT PCFC AVAILIBILITY
vii) ENSURE THERE IS NO DOUBLE FINANCING
viii) CHECK CREDIT GRANTED DOES NOT EXCEED FOREIGN EXCHANGE EARNED
LESS MARGIN, IF ANY REQUIREMENT ADVANCE PAYMENT OR CREDIT RECEIVED.
3. LIMIT TAKEOVER
1. CAL SPECIALY PERMITS TAKEOVER OF PACKING CREDIT WITH NAMED BANK AND LIMIT
2. ORDER/LC SHOULD BE ENDORSED TO ICICI
3. LETTER FROM BANK HAVING FULL DISBURSEMENT DETAILS ALONG WITH OUTSTANDING INTEREST
4. PCFC AGAINST RAWMATERIALS SUPPLIED TO SEZ BY DTA
1. CAL SHOULD SPECIALY PERMIT WITH THIS CONDITION
2. SELF CERTIFIED COPY OF APPROVAL ISSUED BY DEVELOPMENT COMMISSIONER THAT ALLOWS SEZ TO PROCURE GOODS FROM DTA
3. NOT A SISTER CONCERN
4. UNDERTAKING BORROWER CLIENT " WE SHALL MAKE SHIPMENT OF GOODS AS PER SHIPMENT SCHEDULE AND SUBMIT DOCUMENTS WITHIN 5 DAY
5. TRANSPORT DOCUMENT TO BE CONSIGNED TO ICICI OR BANKER OF SEZ UNIT
6. IF BUYER AND SELLER ARE LOCAL THEN IT IS ALLOWED AGAINST LC ONLY.
5.RUPEE PRE-SHIPMENT CREDIT TO CONSTRUCTION CONTRACTORS
TO MEET THEIR INITIAL WORKING CAPITAL REQUIREMENTS FOR EXECUTION OF CONTRACTS ABROAD
FINANCE IS REQUIRED BY THEM FOR INCURRING PRILIMINARY EXPENSES EXAMPLE :
i) TRANSPORTING NECESSERY TECHNICAL STAFF
ii) PURCHASE OF CONSUMABLE ARTICLES
FOR EXECUTION OF CONTRACTS ABROAD
PROJECT EXPORT GUIDELINES IS APPLICABLE ON THIS
6. PRE SHIPMENT CREDIT FOR FLORICULTURE, GRAPES AND OTHER AGRO BASED PRODUCTS
GROWING OF FLOWERS,GRAPES AND PURCHASE OF FERTILIZER PRESTICIDES ETC.
1. SHOULD BE EXPORT RELATED
2. NOT COVERED UNDER ANY FINANCE SCHEMES OF NABARD OR ANY OTHER AGENCY
3. EXPORT CREDIT SHOULD NOT BE EXTENDED FOR INVESTMENT, IMPORT OF FOREIGN TECHNOLOGY EQUIPMENT, LAND DEVELOPMENT ETC.
7. EXPORT CREDIT TO PROCESSORS/EXPORTERS - AGRI EXPORT ZONES
THESE PEOPLE HAVE CONTRACT FARMING WITH FARMERS
AND SUPPLY QUALITY SEEDS, PRESTICIDES AND OTHER RAW MATERIALS TO FARMERS
FOR THIS PURPOSE PRE-SHIPMENT CREDIT CAN BE AVAILED
FINAL PRODUCT TO BE EXPORTED TO FOREIGN BUYER
8. EPC TO SUB-SUPPLIER OR MANUFACTURER
1. INLAND LC ON SIGHT BASIS ISSUED BY EOH BANK IN FAVOUR OF SUB-SUPPLIER AGAINST THE EXPORT ORDER LC RECEIVD FROM FOREIGN BY EOH
2. LC SHOULD CLEARLY MENTIONED AGAINST THE EXPORT ORDER
3. LIMIT = SUBSUOO-PARTY NAME/EPC
4. UNDERTAKING THAT NO ADVANCE RECEIVED FROM EOH IF ANY SHOULD BE CREDITED TO EPC ACCOUNT
5. LETTER FROM EOH THAT HE SHOULD NOT OBTAIN PACKING CREDIT FOR THE SAME PORTION
6. CAL SHOULD PERMIT CLIENT INLAND LC EPC ROUGHTED THROUGH STC/MMTC/OTHER EXPORT HOUSES/ AGENCIES/TRADING HOUSES/STAR TRADI
OR AS A MANUFACTURER EXPORTER
7. NO RUNNING ACCOUNT FACILITY TO SUB-SUPPLIER
8. PERIOD OF CREDIT IS PACKING CREDIT TAKEN AGAINST INLAND LC TO DISPATCH OF SHIPPING DOCUMENTS BY EOH
9. PAYMENT RECEIVED UNDER THIS LC IS USED FOR LIQUIDATION OF PACKING CREDIT
10. MULTIPLE INLAND LC CAN BE OPENED TO DIFFERENT SUB SUPPLIERS
11. TOTAL OF ALL INLAND LC VALUE DOES NOT EXCEED THE ORIGINAL EXPORT ORDER VALUE
12. EPC AND PCFC CAN BE SHARED BETWEEN MANUFACTURER AND EOH SUBJECT TO PORTION/PERCENTAGE
F. PCFC TYPES
1. PCFC CAN BE AVAILED IN ANY CURRENCY DESPITE OF INVOICE CURRENCY
2. GENERALY FOR 180 DAYS MAXIMUM RATE IS LIBOR+350 BPS
3. AND FOR 180 DAYS MORE AT ADDITIONAL 200 BPS
4. AFTER 360 DAYS OR NON EXECUTION OF EXPORT ORDER PCFC WILL BE RECOVERED AT PENAL RATE OF INTEREST
5. IF SUPPLIERS CREDIT IS AVAILED PCFC CAN BE AVAILED FOR ONLY DOMESTIC PAYMENT BUT NOT IMPORT PAYMENTS
6. PCFC CAN BE GIVEN FOR DEEMED EXPORT IN FOREIGN CURRENCY BUT IN POST SUPPLY STAGE IT SHOULD BE LIQUIDATED WITHIN 30 DAYS
7. FORWARD DEAL CAN BE BOOKED IN EXCHANGE OF CONFIRMED EXPORT ORDER PRIOR TO AVAIL PCFC
8. REFINANCE IS NOT AVAILABLE FOR PCFC
9. EXPORT PROCEEDS AFTER SETTLING PCFC WILL BE CREDITED TO CLIENT CURRENT ACCOUNT NOT TO SETOFF IMPORT BILLS
10. PCFC GIVEN TO DDA ACCOUNT HOLDER CAN BE LIQUIDATED THROUGH DDA ACCOUNT
11. ORDER SUBMISSION UNDER PCFC CAN BE SUBSTITUTED WITH HIGHER AUTHORITY APPROVAL
12. ECGC IN INR FOR PCFC IS ALLOWED
13. SOURCES OF FUNDS FOR BANKS FOR PCFC - EEFC, RFC, FCNR AC, ESCROW ACCOUNT, BORROW FROM ABROAD, LINE OF CREDIT FROM FOREIGN
14. PCFC IS PERMITTED TO ACU COUNTRIES
15. BANK CAN COLLECT INTEREST ON PCFC AT MONTHLY INTERVALS OUTOFF BALLANCES IN EEFC ACCOUNT
16. PCFC CAN BE AVAILED AGAINST SUPPLIES OF ONE EOU/EPZ/SEZ UNIT TO ANOTHER EOU/EPZ/SEZ UNIT SUBJECT TO LIQUIDATED IN FOREIGN EXCH
17. IT HAS BEEN OBSERVED THAT WHENEVER THERE IS DEPRECIATION IN INDIA RUPEE THE UNAVAILED FOREIGN CURRENCY COMPONENT OF EXPOR
THEN AVAILED PORTION ALSO TO BE REVALUED
G. OTHER PROCESS
1. EPC LIQUIDATION
1. FROM EEFC ACCOUNT
2. PRE SHIPMENT TO POST SHIPMENT
3. EXPORT PROCEEDS
4. CURRENT ACCOUNT WITH PROFF OF EXPORT PROCEEDS
2. EPC ORDER UPDATION
1. CHECK PAYMENT TERMS
2. DUE DATE = LDS + PAYMENT TERMS
3. REVISED ORDER IF PREVIOUS DUE DATE IS MORE THAN THIS DUE DATE
4. IF NOT ABLE TO SUBMIT ROLLOVER
5. ANNEXURE 1 TO BE SUBMITTED FOR ALL ORDER CAPTURED
3. EPC DUE DATE EXTENTION AND OVERDUE
1. IF CUSTOMERS INTERNAL RATING IS BBB AND BELOW FINANCIAL DIFFICULITY TESTING TO BE DONE
2. IF BBB AND ABOVE CUSTOMER DECLARATION FOR DELAY IN EXECUTION OF EXPORT ORDER WITH EXPECTED DATE OF SHIPMENT
3. REVISED ORDER AS PER EXTENDED TENOR TOTAL TENOR SHOULD NOT EXCEED CAL AND MAXIMUM TENOR
4. I-MEMO WITH 2 PERSONS APPROVALS - ONE OF THEM IS CREDIT MANAGER CREDIT AND POLICY GROUP ANOTHER ONE AS PER CAAM
5. POST APPROVAL NOT PROCESSED FOR 30 DAYS APPROVAL ONE GRADE HIGHER
4. SIGNING OF ORDER
2. EXPORT POST SHIPMENT CREDIT
A. TYPES
1. DISCOUNTING WITHOUT RECOURSE
CONFIRMED LC WHEN CREDIT COMPLIED DOCUMENTS
FOR NON CONFIRMED LC AVAILABLE WITH ICICI OR ANY BANK ON RECEIPT OF ACCEPTANCE OR IF CREDIT COMPLIED WITH APPROVAL FROM HIGHER
2. DISCOUNTING WITH RECOURSE
IF CUSTOMER HAVE CREDIT FACILITY WITH ICICI CAN DISCOUNT THE LC BEFORE ACCEPTANCE CAME
3. DISCOUNTING BOE
DISCOUNTING CAN BE DONE ON THE BASIS OF BOE IN FAVOUR OF ICICI BANK AVAILED BY OVERSEAS BANK
B. DOCUMENTS
1. CRL
2. FEMA DECLARATION OR ONETIME FEMA DECLARATION
3. DOCUMENTS REQUESTED IN LC
4. DOCUMENTS TO BE SUBMITTED IN ORIGINAL
5. ORIGINAL SHIPPING BILL/GR/SDF/SOFTEX/EDF
WHERE AD BANK IS ICICI PROCESS AS PER EDPMS
CHECK DETAILS IN ICEGATE AND UPLOAD SCREENSHOT
IF DETAILS NOT MATCHED REPORT TO STR
6. ORIGINAL EXPORT LC DULY ENCLOSED
7. IF INCOTERMS IS CIF, THEN INSURANCE POLICY CERTIFICATE IS NEEDED.
8. CONSISTENCY OF NAME, TENOR, INCOTERM, VALUE WITH RESPECT TO COVERING LETTER,INVOICE, BOE, SB/GR AND SUCH
9. IN CASE OF DIFFERENCE IN VALUE DUE TO PRICE VARIATION/FREIGHT/INSURANCE CUSTOMER SHOULD GIVE NECESSERY EXPLANATION
10. IN CASE OF SHORT SHIPMENT SHORTSHIPMENT NOTICE TO BE ATTACHED OR GR TO BE AMMENDED TO READ CORRECT AMOUNT,
IN CASE OF DELAY IN OBTAINING CERTIFIED SHORT SHIPMENT NOTICE FROM CUSTOMS, EXPORTER SHOULD GIVE AN UNDERTAKING THAT WILL BE F
11. CONSIGNEE NAME IN INVOICE AND GR SHOULD MATCH, IN CASE OF DIFFERENCE IN SPALING CUSTOMER EXPLANTION NEEDED.
12. IN CASE OF LATE PRESENTATION IE BEYOND 21 DAYS FROM THE SHIPMENT DATE, CUSTOMER EXPLANATION AND BRANCH APPROVAL IS NEEDED
13. IN CASE OF WITHOUT RECOURSE TRANSACTION CONFIRMATION FROM RM THAT PRICE OF COMMODITY IS IN ORDER AND THERE IS NO VARIANCE
IN CASE OF VARIANCE APPROVAL REQUIRED
14. IN CASE OF RECOURSE DISCOUNTING IF CLIENT IS NOT WILLING TO GIVE UNDERTAKING, BANK MAY RECOVER ANY MONEY DISBURSED IF LC ISSU
TO MAKE PAYMENT DUE TO ANY LEGAL ACTION OR DUE TO DETECTION OF FRAUD, APPROVAL WAIVER FROM GROUP PRESIDENT TO BE OBTAINED.
15. IN CASE OF DIRECT RATES TAKEN BY CUSTOMER FETCH DEAL NO IN DRA AND UPLOAD SCREENSHOT
C. DOCUMENT WISE CHECKLIST
CRL-
1. AMOUNT, CURRENCY,NAME OF EXPORTER, ACCOUNT NO, COLLECTION/PURCHASE/NEGOTIATION/DISCOUNTING, NO OF ORIGINAL AND DUPLICATE
WHICH AMOUNT TO BE CREDITED, NAME AND ADDRESS OF IMPORTER AND HIS BANK,
2. WHILE HANDLING THIRDPARTY DOCUMENTS UNDER RESTRICTED LC, ENSURE THAT ALONG WITH DOCUMENTS, OTHER BANK WILL STATE ON THE C
THEY HAVE RETAINED THE ORIGINAL GR AND HAVE DULY INFORMED RBI, KYC VERIFICATION OF BENEFICIARY IS DONE, AND TRANSACTION IS CARRIE
BOE-
AMOUNT AND CURRENCY, AMOUNT IN FIGURE AND WORDS, AMOUNT MATCHES WIH INVOICE, DULY SIGNED BY EXPORTER, PAYEE BANK IS SPECIFIE
BILL HAS BEEN DRAWN AS PER LC TERMS AND DATED.
LC-
i) ORIGINAL LC HAS BEEN SUBMITTED WITH THE BILLS.
ii) NAME AND ADDRESS OF APPLICANT BENEFICIARY IS CORRECT
iii) DC IS SUBJECT TO UCP 600 AND DC MENTIONED IT
iv) LC ISSUING BANK IS A PRIME BANK
IF NO WHEATHER THE LC IS CONFIRMED.
WHEATHER CONFIRMING BANK IS A PRIME BANK.
v) WHEATHER COUNTRY OF EXPORT IS FALLING UNDER RCC COUNTRY OF ECGC
IF YES WHEATHER PAYMENT ARRANGEMENT IS MADE THROUGH THIRD PARTY COUNTRY
vi) WHEATHER REIMBURSEMENT AGREEMENT IS PROHIVITED
vii) WHEATHER BOE IS DRAWN AS PER LC TERMS
viii) WHEATHER DOCUMENTS RECEIVED ARE AS PER TERMS OF DELIVERY MENTIONED IN THE LC
ix) REQUIRED DOCUMENTS AS PER LC ARE SUBMITTED BY THE EXPORTER.
x) CHECK WHEATHER DOCUMENTS ARE CREDIT COMPLIED
xi) IF DOCUMENTS ARE DISCRIPANT, WHEATHER AUTHORITY/APPROVAL OF CUSTOMER IS THERE TO SEND THE DOCUMENT ON APPROVAL BASIS/CO
xiii) AVAILIBILITY OF LIMITS
xiv) WHEATHER LC IS FREELY AVAILABLE FOR NEGOTIATION.
xv) ENSURE ADHERANCE TO UCP/ISBP AND URR GUIDELINES.
INVOICE-
INVOICE IS DULY SIGNED EVEN IF NOT SPECIFIED IN LC.
INVOICE SHOULD BE IN THE NAME OF THE APPLICANT, UNLESS EXPRESSLY SPECIFIED IN THE LC.
THE CURRENCY AND AMOUNT OF THE INVOICE SHOULD BE COMPARED THAT OF THE LC AND GR.
CHECK FOR ADDITIONAL COST OF THE GOODS LISTED IN THE INVOICE, WHICH ARE NOT MENTIONED IN THE LC.
INCOTERMS MENTIONED IN THE INVOICE
GOODS IN INVOICE=GOODS IN LC
GR/SDF/SOFTEX -
AMOUNT ON THE GR/SDF/SOFTEX FORM TALLIES WITH THE INVOICE AMOUNT, VARIANCE ALLOWED AS PER COMMODITY
NAME OF THE IMPORTER AS WELL AS EXPORTER MENTIONED.
COMPARE THE PORT OF LOADING AND DESTINATION AS PER BL.
CHECK IF THE GR/SDF/SOFTEX FORM IS SIGNED BY CUSTOMS OFFICIAL OR OFFICIAL OF STP(SOFTEX).
IN CASE OF GR SHIPPING BILL IS ASSIGNED TO DIFFERENT BANK, NOC FROM THAT BANK IS REQUIRED
INSURANCE CERTIFICATE -
CHECK THAT INSURANCE CERTIFICATE HAS NOT BEEN DATED AFTER THE DATE OF DISPATCH.
IF YES CHECK FOR SPECIFIC COVERAGE START DATE IS MENTIONED AND BEFORE SHIPMENT
GOODS ARE INSURED FOR THE SAME VALUE PROVIDED IN LC OR ATLEAST FOR CIF/CIP +10%
BILL OF LADING -
CHECK WHEATHER DOCUMENTS HAVE BEEN RECEIVED AT BRANCH WITHIN 21 DAYS FROM THE BL
IF NO REASON DECLARATION FROM CUSTOMER + APPROVAL REQUIRED.
CHECK WHEATHER ADDRESS OF THE IMPORTER AND EXPORTER BANK IS PROPERLY WRITTEN
DESCRIPTION OF GOODS MATCHES WITH THE INVOICE AND GR.
THE PORT OF LOADING AND DISCHARGE AS PER INVOIVE
CHECK CORRECT INVOICE NO AND GR NO MENTIONED IN THE BL
ENSURE BL IS SIGNED AS PER UCP
PACKING LIST -
THE CONSISTENCY OF PACKING LIST WITH THE BL AND INVOICE
OTHER -
ENSURE THAT LC ADV LETTER IS SCANNED
CHECK AVAILIBILITY AND VALIDITY OF BILL DISCOUNTING BANK
IN CASE OF OVERDUE APPROVAL REQUIRED
CHECK WHEATHER BILLS ARE DRAWN UNDER THE LC
D. DIFFERENT SCENARIOS
1. TRANSIST LIMIT-
CLIENT NAME/ PSFTL
DISCOUNTING BEFORE ACCEPTANCE CAME
ONLY CONFIRMED LC IS ALLOWED
IRREVOCABLE AND SUBJECT TO UCP 600
IDENTIFIED IMPORTER AND IDENTIFIED GOODS ONLY
GOLD JEWELLERY GEMS PRECIOUS SEMI PRECIOUS STONES NOT ALLOWED
VALUE OF SINGLE BILL DOES NOT EXCEED USD 250000
POST RECEIPT OF ACCEPTANCE LIMIT SHIFTED TO BANK LINE
IN CASE OF DISCRIPANCY SEND THEM TO ISSUING BANK VIDE 750
IF ACCEPTANCE CAME DISCOUNTS THEM WITHOUT RECOURSE BASIS
IF ACCEPTANCE NOT CAME DISCOUNT THEM ON TRANSIST LIMIT IF DISCRIPANCIES ARE MINOR WITH USANCE PERIOD OF 20 DAYS
IF DISCRIPANCIES ARE MAJOR RETURN DOCUMENTS TO THE EXPORTER FOR RE-SUBMISSION
LC HAVE TO BE RESTRICTED TO ICICI OR ANY BANK
ALL DOCUMENTS SHOULD HAVE LC REFERANCE NO
LC DRAFT SHOULD NOT HAVE ANY CONDITION THAT NEGOTIATION WITHOUT RECOURSE TO BUYER
SHIPMENT SHOULD BE DONE BEFORE LDS
DOCUMENT MUST BE PRESENTED WITHIN PRESENTATION PERIOD
VALUE DRAWN WITHIN THE OVERALL VALUE OF THE LC
ORIGINAL SHIPPING DOCUMENTS SHOULD BE PRESENTED
2. CEYSTALIZATION AND RECOVERY
EXPORTERS ARE LIABLE FOR REPATRIATION OF EXPORT PROCEEDS OF EXPORT BILLS NEGOTIATED OR SENT ON COLLECTION BASIS.
IF EXPORT BILL PURCHASED/DISCOUNTED/NEGOTIATED NOT REALIZED ON DUE DATE (IN CASE OF SIGHT BILLS NTP, IN CASE OF USANCE BILLS NOT
TO BE CRYSTALIZED AFTER 30 DAYS OF DUE DATE.
EXPORTERS FOREIGN EXCHANGE LIABILITY TO BE CONVERTED INTO RUPEE LIABILITY AS PER POLICY OF THE BANK, TO AVOID EXCHANGE RISK/ RE
AND TO CRYSTALIZE THE LIABILITY OF THE EXPORTER INTO RUPEES. FOR CRYSTALIZATION BANK TO APPLY ITS RUPEE SELLING RATE.
3. CONCESSIONAL INTEREST RATE
IN CASE OF EXPORT BILL PAYABLE AT SIGHT, CONCESSIONAL INTEREST RATE FOR NORMAL TRANSIST PERIOD IS APPLICABLE.
IN CASE OF NORMAL USANCE BILL IT IS NOT APPLICABLE.
BUT IF USANCE BILL PAYABLE AFTER 90 DAYS OF NORMAL TRANSIST PERIOD THEN CONCESSIONAL RATE IS APPLICABLE
4. EXPORT BILL RE-DISCOUNTING
1.BANKS ARE PERMITTED TO RE-DISCOUNT EXPORT BILLS ABROAD AT LIBOR RATES AT POST SHIPMENT STAGE . RE DISCOUNTING CAN BE DONE AGA
OR ON A BILL BY BILL BASIS.
2. BANK MAY ARRANGE "BANKERS ACCEPTANCE FACILITY(BAF)" FOR REDISCOUNTING OF EXPORT BILLS, WITHOUT ANY MARGIN AND DULY COVERED
EACH BANK HAVE ITS OWN BAF LIMITS FIXED WITH OVERSEAS BANK, REDISCOUNTING AGENCY OR FACTORIG AGENCY ON WITHOUT RECOURSE BAS
3. ICICI BANK CAN BORROW FROM ITS OWN OVERSEAS BRANCHES, SUBSIDIARY OR FOREIGN BANKS
4. THIS BORROWING IS NOT PART OF FOREIGN CURRENCY BORROWINGS LIMIT PRESCRIBED BY RBI FOR BANKS.
5. CAN BE AVAILED IN ANY CONVIRTIBLE CURRENCY, ON "RECOURSE" OR "WITHOUT REOURSE" BASIS.
6. THIS SCHEME IS MAINLY COVER EXPORT BILL WITH A PERIOD UPTO 180 DAYS FROM THE DATE OF SHIPMENT (INCLUDING NORMAL TRANSIST PERIO
7. THERE IS NO BAR TO INCLUDE DEMAND BILLS, IF OVERSEAS INSTITUTION HAS NO OBJECTION ON IT.
8. THE BORROWER IS ELIGIBLE TO DRAW USANCE BILLS FOR PERIOD EXCEEDING 180 DAYS AS PER EXTANT INSTRUCTION OF FED UNDER EBR SCHEM
9. BANK MAY AVAIL FOR LINE OF CREDIT FROM OTHER BANKS IN INDIA, SUBJECT TO CONDITION THAT ULTIMATE COST TO THE EXPORTER SHOULD NO
EXCLUDING WITHHOLDING TAX AS REVISED BY RBI TIME TO TIME.
10. IN THE EVENT OF EXPORT BILL NOT BEING PAID, IT IS THE LIABILITY OF THE BANK TO REMIT THE AMOUNT EQUIVALENT TO VALUE OF BILL EARLIER
WITHOUT THE PRIOR APPROVAL OF RBI.
5. REDISCOUNTING OF PORTFOLIO BILLS UNDER BANKERS ACCEPTANCE FACILITY
1. CHECK FOR ELIGIBLE FOREIGN CURRENCY EXPORT CREDIT BOOK FOR REFINANCING.
2. FINALIZING THE ASSET TENOR AND PRISING
3. ENTER DEAL IN MUREX TO CALCULATE AMOUNT
4. COVER RATIO - BAOS UNDER THIS ROUTE TOTAL AMOUNT OF FOREIGN CURRENCY/ BA ELIGIBLE ASSETS
5. SEPATATE COVER RATIO WILL BE CALCULATED FOR PCFC AND PSCFC. CURRENTLY TOTAL COVER RATIO IS 70%
PROCESS -
1. ACCESS AND IDENTIFY ELIGIBLE FOREIGN CURRENCY EXPORT CREDIT BOOK FOR RE-FINANCING
THIS REPORT WILL LIST SEPARATELY PCFC AND PSCFC OUTSTANDING BOOK ASS WELL AS OVERDUE BOOK.
EVERY FRIDAY REPORT WILL BE SENT TO RBI ON REFINANCING RETURN FORM
2. IDENTIFY THE FOREIGN CURRENCY EXPORT CREDIT ASSETS ELIGIBLE FOR RE- FINANCING
FINALIZE THE AMOUNT AND TENOR OF RE-FINANCING, CONSIDERING THE COVER RATIO
CURRENTLY IT SHOULD NOT EXCEED 70 %
3. SHARE THE LIST OF IDENTIFIED ASSETS FOR SEEKING ADDITIONAL DETAILS AS REQUIRED BY BA LENDER/REFINANCING INSTITUTION
4. WITH THE COMPLETE DEAL DETAILS, COMMUNICATE THE AMOUNT AND TENOR TO IFIG TEAM
5. PROCESSING NEGOTIATION OF BA
6. IFIG TO INSTRUCT OPERATIONS TEAM TO SEND SWIFT TO LENDER, FOR AVAILING THE FACILITY
7. AN AMMENDMENT SWIFT IS REQUIRED BY THE LENDER IS SENT TO OPERATIONS TEAM ON REQUEST OF IFIG.
8. THE FORMAT OF SWIFT REQUIRED BY THE LENDER WILL BE SHARED BY IFIG TEAM.
9. TFOG ON INSTRUCTION FROM IFIG TEAM, DEALS WILL BE ENTERED AS NORMAL BORROWING DEALS USING LNBR SCREEN AS "BAF" "EBRD-BAF" (BA
ASSETS)
10. CHECK DEAL IN MUREX AND EMAIL CONFIRMATION FROM IFIG AND VALIDATE THE TRADE
6. LIMIT TAKEOVER
POST SHIPMENT EXPORT FINANCE OUTSTANDING OF OTHER BANK CAN BE TAKENOVER BY ICICI BANK SUBJECT TO -
1. CAL SPECIALY PERMITS TAKEOVER WITH NAME OF BANK WHICH LIMITS CAN BE TAKEN OVER
2. LC ORDER TO BE ENDORSED TO ICICI
3. LETTER TO BE TAKEN FROM BANK ABOUT DISBURSED AMOUNT, INTEREST, RATE ETC.
EITHER, FOR OUTSTANDING POST SHIPMENT FINANCE BANK SHOULD SEND SWIFT MESSAGE TO FOREIGN BANK RELATED TO OUTSTANDING BILLS CO
OF ICICI. WE SHOULD RECEIVE AUTHENTICATED MESSAGE FROM FOREIGN BANK REGARDING CHANGE IN THERIR PAYMENT INSTRUCTIONS.
OR, UNDERTAKING FROM OUTSTANDING BANK THAT THEY WILL REMIT AFTER PROCEEDS RECEIVED.
7. RUPEE POST SHIPMENT CREDIT -
A.DUTY DRAW-BACK SCHEME
1. BANK MAY GRANT POST SHIPMENT ADVANCES TO EXPORTERS AGAINST THEIR DUTY DRAWBACK ENTITLEMENTS.
2. ADVANCE AGAINST DUTY DRAWBACK RECEIBABLES, CAN ALSO BE MADE AVAILABLE TO EXPORTERS AGAINST EXPORT PROMOTION COPY OF SHIP
ISSUED BY CUSTOMS.
3. THE FINANCING BANK MAY HAVE ITS LIEN NOTED WITH THE DESIGNATED BANK AND ARRANGEMENTS MAY BE MADE WITH DESIGNATED BANK TO TR
BANK WHEN DUTY DRAWBACK IS CREDITED TO CUSTOMS.
B. ECGC WHOLE TURNOVER POST SHIPMENT GUARANTEE
THIS SCHEME PROVIDE PROTECTION TO BANKS AGAINST NON PAYMENT OF POST SHIPMENT CREDIT BY EXPORTERS.
COST OF PREMIOUM TO BE PAID BY BANKS
C. EXPORT CREDIT DTA TO SEZ UNITS
GOODS AND SERVICES SHIPPED FROM DTA TO SEZ TO BE TREATED AS EXPORTS. SO EXPORT CREDIT CAN BE AVAILED.
D. DEEMED EXPORT- RUPEE EXPORT CREDIT
BANKS ARE PERMITTED TO EXTEND RUPEE PRE SHIPMENT AND POST SHIPMENT CREDIT TO PARTIES AGAINST ORDER, FOR SUPPLIES IN RESPECT O
BILATERAL/MULTILATERAL AGENCIES/FUNDS (INCLUDING WORLD BANK,IBRD,IDA) AS NOTIFIED FROM TIME TO TIME BY DOEA,MOF UNDER DEEMED EX
PACKING CREDIT CANBE SETTLED IN EEFC AC THROUGH FOREIGN EXCHANGE.
POST SHIPMENT CREDIT UPTO PERIOD OF 30 DAYS
AFTER 30 DAYS RATE PRESCRIBED BY "ECNOS" POST SHIPMENT
7. LUT
8. RUPEE ADVANCE

PART- 4 - ADVANCE PAYMENT AGAINST EXPORT

A. BASIC -
1. IN TERMS OF REGULATION 16 WHERE EXPORTER RECEIVES ADVANCE PAYMENT FROM BUYER OUTSIDE INDIA, SHIPMENT OF GOODS ALSO TO BE D
DATE OF RECEIPT OF ADVANCE PAYMENT, THE RATE OF INTEREST IF PAYABLE ON ADVANCE PAYMENT SHOULD NOT EXCEED LIBOR+100 BPS AND DO
SHOULD BE ROUTED THROUGH BANK FROM WHICH ADVANCE PAYMENT IS RECEIVED.
2. IN THE EVENT OF EXPORTER NOT SHIPPED THE GOODS WITHIN 1 YEAR, NO REMITTANCE CAN BE REFUNDED WITHOUT APPROVAL OF RBI.
3. EXPORTERS SHOILD HAVE A 3 YEARS OF SATISFACTORY TRACK RECORD TO RECEIVE LONGTERM EXPORT ADVANCE UPTO MAXIMUM TENOR OF 10
FOR EXECUTION OF LONGTERM SUPPLY CONTRACTS FOR EXPORT OF GOODS SUBJECT TO CONDITIONS -
i) FIRM IRREVOCABLE SUPPLY ORDER
ii) COMPANY CAPACITY SYSTEM, PROCESS
iii) NO ADVERSE NOTICE OF ED OR NOT CAUTION LISTED
iv) ADVANCES SHOULD ADJUSTED WTH FUTURE EXPORTS
v) RATE OF INTEREST PAYABLE IF ANY SHOULD NOT EXCEED LIBOR+2
vi) DOCUMENT TO BE ROUTED THROUGH SAME BANK
vii) COMPLIANCE WITH AML GUIDELINES
viii) NOT TO USE TO REPAY RUPEE LOAN CLASSIFIED AS NPA
ix) DOUBLE FINANCING AGAINST ONE EXPORT ORDER SHOULD BE AVOIDED
x) RECEIPT OF SUCH ADVANCE IF USD 100 MN SHOULD BE REPORTED TO RBI
xi) BG SBLC CAN BE ISSUED FOR A TENOR OF 2 YEAR WITH ROLLOVER ALLOWED FOR 2 YEARS ON REDUCING BALANCE BASIS
4. FOR REFUNDING THE ADVANCE BANK MAY ALLOW PURCHASE OF FOREIGN EXCHANGE FROM MARKET AFTER FULL UTILIZATION OF EEFC ACCOUNT
5. EXPORT OF GOODS OF MANUFACTURING PERIOD MORE THAN 1 YEAR MAY ALLOWED FOR SHIPMENT MORE THAN 1 YEAR.
i) KYC AND DUE DILIGENCE TO BE DONE
ii) BANK SHOULD ENSURE EXPORT ADVANCE RECEIVED FROM EXPORTER TO BE UTILIZED TO EXECUTE EXPORT AND TRANSACTION IS BONAFIED
iii) POGRESS PAYMENT IF ANY TO BE RECEIVED DIRECTLY FROM OVERSEAS BUYER
iv) RATE OF INTEREST SHOULD NOT EXCEED LIBOR+1 BPS
v) THERE SHOULD BE NO REFUND OF MORE THAN 10% IN TOTAL OF LAST 3 YEARS
vi) DOCUMENT TO BE ROUTED THROUGH SAME BANK
B. PROCESS -
1. RECEIPT OF REQUEST LETTER FROM THE CUSTOMER WITH DOCUMENTS
2. CHECK DOCUMENTS ARE AS PER CHECKLIST.
3. DETAILS OF INWARD SXR,GRS NUMBER AMOUNT.
4. IN CASE OF EXPORT ARE UNDER PROJECT EXPORT, PEM APPROVAL NUMBER
CHECK WHEATHER GR IS SUPERSCRIBED WITH THE PEM APPROVAL
C. DOCUMENTS -
1. CRL WITH SIGNATURE DULY VERIFIED WITH DEBIT AUTHORITY AND FEMA.
2. INVOICE .
3. PACKNG LIST AND BOE .
4. SIGNED AND ENDORSED FULL SET OF ORIGINAL BL/AWB/RWR/RTB SUBHECT TO ORIGINALITY AND ENDORCEMENT BY SHIPPER IF THE BL IS ISSUED
5. CUSTOM DOCUMENT AS XBN
6. INSURANCE AS PER XBN
7. IF DIRECT DISPATCH DONE BY CUSTOMER (C TO C) OR (B TO C) - THEN STATUS HOLDEROR/SEZ CERTIFICATE/ENDORCED INVALIDATION LETTER FR
OF THE PARTIES (FOR DEEMED EXPORT)
FOR CUSTOMERS OTHERTHAN STATUS HOLDER/SEZ, I-MEMO APPROVED BY AUTHORITY FOR DIRECT DISPATCH OF SHIPPING DOCUMENTS BY EXPOR
OF EXPORT PROCEEDS
8. ADVANCE PAYMENT REFERANCE NO OR IF FIRC ISSUED FIRC NO.
9. IF REMITTANCES CAME FROM OTHER THAN BUYER/CONSIGNEE THEN THIRD PARTY GUIDELINES TO BE FOLLOWED.
10. IF IT IS LATE PRESENTABLE I.E BEYOND 21 DAYS FROM THE SHIPMENT
THE CUSTOMER EXPLANATION AND APPROVAL NEEDED.
FROM SHIPMENT DATE AS PER TRANSPORT DOCUMENT AND THE DOCUMENT PRESENTATION DATE IN BANK COUNTER.
11. CHECK CONSISTENCY OF NAME, TENOR, INCOTERM, VOLUME ETC
12. DIFFERENCE IN VALUE AS PER XBN
13. SHORT SHIPMENT AS PER XBN
14. PAYMENT TERM SHOULD NOT EXCEED 12 MONTHS , IF EXCEEDS THEN GUIDELINES FOR LONG TERM ADVANCES TO BE FOLLOWED.
15. IN CASE OF SOFTWARE EXPORT FOLLOWING DOCUMENTS TO BE TAKEN - CRL, SOFTEX FORM, ADVANCE REMITTANCE DETAILS STPI, CERTIFICATE
16. FOR REGULARIZATION DIRECT DISPATCH TRANSACTIONS ABOVE USD 1 MILLION, APPROVAL FROM HIGHER AITHORITY TO BE OBTAINED, RBI APPR
D. TYPES ADVANCE RECEIPT FOR EXPORT
1. SHORT TERM ADVANCE PAYMENT RECEIPT AGAINST EXPORT OF GOODS (SAPE)
2. MIDEOUM TERM ADVANCE PAYMENT RECEIVED AGAINST EXPORT OF GOODS (MAPE)
3. LONG TERM ADVANCE PAYMENT RECEIVED AGAINST EXPORT OF GOODS (LAPE)
E. INWARD REMITTANCE FOR ADVANCE
1. IT IS REQUIRED TO OBTAIN DISPOSAL INSTRUCTION FROM BENEFICIARY TO SETTLE ANY TYPE OF INWARD REMITTANCE.
2. FOLLOWUP MECHANISM FOR SUBMISSION OF SHIPPING DOCUMENTS AFTER SHIPMENT ASPER GUIDELINES.
3. IF OVERDUE EPC/PCFC IS THERE FOR THAT CUSTOMER THEN TAKE DISPOSAL INSTRUCTION FROM CUSTOMER TO SETTLE THIS.
4. AUDITOR TO PREPARE REPORT OF ALL INWARDS OF $50000 AND ABOVE TO ENSURE ADHEREANCE WITH THE GUIDELINES.
F. REGULARIZATION OF SHIPPING DOCUMENTS
1. DOCUMENTS TO BE SUBMITTED - CRL,SWIFT COPY OF INWARD REMITTANCE HIGHLIGHTING UNIQUE REFERANCE NO, COPY OF BRC HIGHLIGHTING
COPY OF FIRC IF ISSUED HIGHLITING REFERANCE NO, COPY OF FIRM IRREVOCABLE SUPPLY ORDER/CONTRACT/AGREEMENT, A CA CERFICATE CONF
AGAINST EXPORT REFLECTS A LIABILITY OF EXPORTER TOWARDS OVERSEAS BUYER
2. OBTAIN CLIENT DECLARATION STATING THAT NO FURTHER SHIPMENT TO BE DONE , HE HAD NOT APPROACHED ANY BANK FOR REFUND OF ADVAN
VARIANCE DUE TO BUSINESS REASONS
3. 2 % OF INWARD REMITTANCES RECEIPT FOR ADVANCE AGAINST EXPORT MAXIMUM UPTO $ 500 OR EQUIVALENT PER REMITTANCE ONLY CLIENT DI
4. FOR MORE THAN $500 CLIENT DECLARATION SHOULD BE APPROVED BY HIGHER AUTHORITY
G. ISSUANCE OF GUARANTEE FOR ADVANCE
A BANK CAN GIVE GUARANTEE IN RESPECT OF ANY DEBT OBLIGATION OR OTHER LIABILITY INCURRED BY A EXPORTER RESIDENT IN INDIA AND OWED
OUTSIDE INDIA. GUARANTEE CAN BE GIVEN SUBJECT TO BONAFIED TRANSACTION, COVERED BY A COUNTER GUARANTEE OF A INTERNATIONALY REP
COUNTER GUARANTEE ISSUED BY BRANCH OR CORRESPONDENT OUTSIDE INDIA.
1. BG OR SBLC CAN BE ISSUED AGAINST LAPE.
2. BANK SHALL PROVIDE FINANCIAL GUARANTEE OR PERFORMANCE GUARANTEE TO CUSTOMERS
3. BANK SHOULD ENSURE THAT CUSTOMER SHOULD BE IN A POSITION TO REIMBURSE THE BANK
4. CREDIT APPRISAL PROCESS OF OF NONFUND BASED IS SIMILAR AS FUNDBASED FACILITIES.
5. QUANTUM OF BG/SBLC TO BE BASED ON FACTORS - LIMITS, ORDER BOOK, TENOR & VALIDITY, NO OF PROJECTS FOR WHICH BID IS EXPECTED, PE
MARKET REPUTATION HISTORY, SECURITY PROVIDED, FINANCIAL STRENTH
6. FIRST CONFIRM WHEATHER ANY SHOWCAUSE NOTICE FROM ED OR OTHER LAW AGENCIES HAS BEEN RECEIVED IN THE NAME
OF THE CLIENT. IN SUCH CASES DISPATCH A LETTER TO ED BEFORE ISSUANCE OF BG/SBLC. PROFF OF DISPATCH IS ALSO REQUIRED FOR ISSUANCE

7. BANK WILL CLASSIFY ALL ADVANCE PAYMENT GUARANTEE DIFFERENTLY FROM GENERAL GUARANTEE.
8. TSU-TCT APPROVAL IS MUST FOR ISSUANCE OF BG/SBLC
9. FOR RENEWAL OF BG/SBLC - TSU-TCT APPROVAL, SELF CERTIFIED COPY OF EXPORT ORDER, POGRESS/PERFORMANCE REPORT, PERFORMANCE O
H. LONG TERM ADVANCE PAYMENT AGAINST EXPORT (LAPE)
1. EXPORTER SHOULD HAVE MINIMUM 3 YEARS SATISFACTORY TRACK RECORD TO AVAIL LAPE GUARANTEE UPTO 10 YEARS
SUBJECT TO - FIRM/IRREVOCABLE SUPPLY ORDER, COMPANY CAPACITY, NOT IN ADVERSE NOTICE OF ED, ADJUSTED THROUGH FUTURE EXPORT, RO
DOCUMENT SHOULD BE ROUTED THROUGH SAME BANK, COMPLIANCE WITH AML/KYC, DD FOR THE OVERSEAS SUPPLIER, ADVANCES SHALL NOT BE U
CLASSIFIED AS NPA, NO DOUBLE FINANCING OF WORKING CAPITAL
2. RECEIPT OF ADVANCES OF USD 100 MN AND ABOVE SHOULD IMMEDIATELY REPORTED TO RBI.
3. WHEN BANK IS REQUIRED TO ISSUE BG/SBLC FOR EXPORT PERFORMANCE, SUBJECT TO - REGULAR EVALUATION, BASED ON APPROVED POLICY, N
AT A TIME AND THEREAFTER ROLLOVER OF 2 YEARS IN ALLOWED ON REDUCING BALANCE BASIS, BG ISSUANCE FROM INDIA IN FAVOUR OF OVERSEA
BE DISCOUNTED BY OVERSEAS BRANCH/SUBSIDIARY OF BANK IN INDIA, BANK SHOULD MONITOR THE POGRESS OF THE EXPORTER AND ANNUAL POG
SUBMITTED TO RBI.
I. DELAY IN UTILIZATION/REGULARIZATION OF ADVANCE AGAINST EXPORT
RBI HAS ADVISED BANKS TO REPORT ED ON QUARTERLY BASIS . PARAMETER ARE DEFINED FOR REPORTING OF CHRONIC DEFAULTERS TO ED. OUTS
RECEIVED AGAINST EXPORT NOT REGULARIZSED FOR MORE THAN 2 YEARS.
SXR,GRS,IRM OUTSTANDING FOR MORE THAN 1 YEAR SHALL BE ELIGIBLE FOR ED REPORTING
J. CLAIMING ADVANCE AGAINST EXPORT LC
1. RECEIVE REQUEST LETTER FROM CUSTOMER IN ORDER TO CLAIM ADVANCE AGAINST EXPORT UNDER LC
2. ENSURING THE AUTHENTICATION OF THE LC, SCAN THE DOCUMENT IN TMISC LODGE
3. SCAN THE CASE TO IRM TEAM IN TMISC REAL BY GIVING THE REFERANCE OF THE SXR NO LODGED EARLIER
4. REALIZE THE SXR MENTION THE SAME IN THE MESSAGE SCREEN "ADVANCE RECEIVED AGAINST CLAIM"
5. TRANSACTION TO BE SETTLED UNDER PURPOSECODE P0103. IE ADVANCE RECEIVED AGAINST EXPORT CONTRACTs
WHICH WILL BE COVERED LETTER BY GR/PP/SOFTEX/SDF
6. IN CASE OF SHIPMENT DOES NOT HAPPEN UNDER LC, FOLLOW UP PROCESS WILL BE FOLLOWED.
J. PROCESSING TRANSACTION FOR LCS CONTAINING ADVANCE PAYMENT CLAUSE
1. WHEN A LC CONTAINS ADVANCE PAYMENT CLAUSE PARTIAL CONFIRMATION HAVE TO BE ADDED FOR ADVANCE PAYMENT PORTION.
2. RECEIVE REQUEST FROM CUSTOMER FOR PARTIAL CONFIRMATION.
THIS REQUEST TO INCLUDE THE CLAIIM REQUEST ALSO.
2. ENSURE AUTHENTICATION OF THE LC IN TMISC XLC CONFIRMATION
3. SCRUTINY OF DOCUMENTS AND AMLOCK CHECK.
4. PROCESS CONFIRMATION REQUEST IN I-CORE, AND UPDATE SELF MESSAGE SCREEN WITH PARTIAL CONFIRMATION DETAILS
5. CLAIM FOR ADVANCE AMOUNT TO BE SENT THROUGH SWIFT AND SXR TO BE LODGED IN CORE AND KEPT OPEN STATUS TILL THE FUNDS RECEIVED
6. UPDATE SELF MESSAGE SCREEN WITH DETAILS OF THE ADVANCE REMITTANCE CLAIMED ALONG WITH LC REFERANCE NO.
7. XLC TO BE UTILIZED FOR THE ADVANCE AMOUNT CLAIMED AFTER CONFIRMATION
8. ON RECEIPT OF FUNDS FROM FOREIGN BANK REALIZE THE SXR CREDIT CUSTOMER AC THROUGH TMISC REAL TRACK
OTHER DETAILS AS PER ABOVE

PART- 5 - REALIZATION AND REPORTING

1. TRADE TRANSACTION SETTLEMENT
1. TRADE TRANSACTION CAN BE SETTLED THROUGH BANK DRAFT,PAY ORDER, BANKERS OR PERSONAL CHEQUE
2. FOREIGN CURRENCY NOTES/FOREIGN CURRENCY TRAVELLERS CHEQUE FROM BUYERS VISITING INDIA.
3. FUNDS HELD IN FCNR/NRE ACCOUNT.
4. INTERNATIONAL CREDIT CARDS OF BUYER
5. THROUGH ONLINE PAYMENT GAEWAY SERVICE PROVIDERS (OPGSPS) (NOSTRO)
6. TRADE TRANSACTION TO BE SETTLED IN INR FOR NEPAL AND BHUTAN
7. FOR NEPAL TRADE TRANSACTION CAN BE SETTLED IN FOEIGN CURRENCY WITH NRPAL RASHTRA BANK PERMISSION
8. FOR ACU COUNTRIES TRANSACTION CAN BE SETTLED THROUGH ACU MECHANISM IE. ACU ACCOUNT AVAILABLE IN USD OR EURO
9. DESPITE A ACU COUNTRIY- INDO- MAYANMAR TRADE TRANSACTION CAN BE SETTLED IN FOREIGN CURRENCY
10. DESPITE A ACU COUNTRY IRAN PAYMENT OR RECEIPT IS TO BE DONE IN FOREIGN CURRENCY
11. SETTLEMENT OF EXPORT TRANSACTION NOT HAVING DIRECT EXCHANGE RATE CAN BE SETTELED IN CURRENCY OF THE BENEFICIARY THROUGH
IRRESPECTIVE OF INVOICE CURRENCY.SUBJECT TO i) EXPORTER IS THE CUSTOMER OF THE BANK ii) SIGNED INVOICE IN FREELY CONVERTIBLE CURR
TO RECEIVE THE PAYMENT IN CURRENCY OF THE BENEFICIARY iv) BONAFIED v) FATF COMPLIED
1. EXPORT DECLARATION FORM
1. EXPORTERS NEED TO DECLARE VALUE OF EXPORTED GOODS IN THIS.
2. EDI PORT MEANS WHERE COMPUTER IS USED BY CUSTOMS FOR ENTERING EXPORT DATA IN EDPMS.
3. NON EDI PORT MEANS CUSTOMS MAINTAINING EDF DATA MANUALY.
4. FOR EDI/NON-EDI PORTS DECLARING EXPORTED GOODS IN EDF IS A MANDATORY REQUIREMENT OF EDF.
5. FOR NON EDI PORTS EXPORTER TO SUBMIT EDF IN DUPLICATE TO CUSTOMS
6. CUSTOM WILL GIVE RUNNING RERIAL NO (10 DIGIT PORT NO,YEAR, SERIAL) TO BOTH THE COPIES.
7. CUSTOM WILL CERTIFY THE EXPORTS DECLARED IN THE EDF AND GIVE ASSESSED VALUE OF EXPORTS IN EDF AND RETURN DUPLICATE COPY
NAMED EXCHANGE CONTROLL COPY TO THE EXPORTER
8. CUSTOM RETAIN ORIGINAL COPY FOR TRANSMISSION TO RBI THE EXPORTER WILL AGAIN SUBMIT THE DUPLICATE COPY OF EDF TO CUSTOMS ALO
9. AFTER EXAMINATION OF GOODS AND CERTIFYING QUANTITY OF SHIPMENT CUSTOM WILL AGAIN RETURN IT TO THE EXPORTER FOR SUBMISSION T
10. BANK SHOULD SUBMIT THAT DUPLICATE EDF WITHIN 21 DAYS FROM SHIPMENT TO BANK. AFTER DOCUMENTS HAVE BEEN SENT ON COLLECTION
11. NEGOTIATION BANK WILL REPORT THE TRANSACTION TO RBI THROUGH EDPMS. DUPLICATE COPY OF EDF AND INVOICE TO BE RETAINED BY THE
2. EDF IS EXEMPTED
1) SAMPLE OF GOODS, PUBLICITY MATERIAL SENT ON FREE OF COST BASIS
2) PERSONAL EFFECT GOODS OF TRAVELLERS VISITING INDIA.
3) GOODS EXPORTED ON ORDER OF AIRFORCE,NAVY, MILITARY OFFICIAL APPOINTED BY CENTRAL GOVERNMENT
4) BY WAY OF GIFT (DECLARATION FROM EXPORTER TO BE OBTAINED THAT GOODS ARE NOT MORE THAN INR 5 LAKH
5) AIR CARFTS, AIR CARFT ENGINES GOING TO ABROAD FOR REPAIR AND WILL BE RE-IMPORTED WITHIN 6 MONTHS
6) LEASED AIRCRAFTS, ENGINES, APUS ARE RE-EXPORTED DUE TO CANCELLATION OF LEASE AGREEMENT DGCA AND IDERA CERTIFICATE CREQUIED
7) GOODS IMPORTED ON FREE OF COST ON REEXPORT BASIS.
8) IMPORTED GOODS FOUND DEFECTIVE, EXPORTED FOR REPLACEMENT PURPOSE, GOODS IMPORTED ON LOAN BASIS, CAPITAL GOODS IMPORTED F
BY STP,EHTP,EPZ,SEZ.
9) REPLACEMENT GOODS EXPORTED ON FREE OF CHARGE
10) GOODS SENT OUTSIDE INDIA FOR TESTING
11) GOODS SENT OUTSIDE INDIA ON REPAIR AND RE-IMPORT BASIS (NO FOREIGN EXCHANGE INVOLVED)
12 ) SPECIALY PERMITTED BY RBI.
13) FOR EXPORT OF GOODS FOR RE-IMPORT - GOODS SENT FOR REPAIR, BUT IF DESTROIED CERTIFICATE ISSED BY TESTING AGGENCY IS REQUIRED
14) RE-EXPORT OF UNSOLD ROUGH DIAMOND IMPORTED ON FREE OF COST BASIS AT SNZ WITHOUT ENTERING DTA NOT REQUIRED TO SUBMIT EDF.
3. EDF IS WAVED
FOR EXPORT PROMOTION GOODS SENT ON FREE OF COST. UPTO 2% OF AVERAGE ANNUAL EXPORT OF THE EXPORTER IN LAST 3 YEARS SUBJECT
TO CEILING OF 5 LAKH. FOR STATUS HOLDER EXPORTER THIS LIMIT IS 10 LAKH.
1. RECEIVE THE REQUEST OF GR WAIVER ALONG WITH DOCUMENTS REQUIRED.
2. GENERATE TRACK IN TMISC GR-WAIVER
3. GENERATE GR-WAIVER CERTIFICATE SIGNED BY BANK OFFICIAL
4. GIVE INVOICE NO IF EDPMS IS SHOWING OUTSTANDING
5. MAXIMUM DEVIATION FOR NON-SUBMISSION OF DOCUMENTS IS 90 DAYS.
4. RBI APPROVAL
IN CASE OF EXPORTS MADE UNDER DEFFERED CREDIT ARRANGENENT,JOINT VENTURE ABROAD AGAINST EQUITY PARTICIPATION OR UNDER RUPEE
RBI APPROVAL NO AND DATE AND RBI CIRCULAR NO AND DATE, TO BE STATED IN EDF.
5. EXPORT PRECIOUS METALS
FOR EXPORT PRECIOUS METALS LIKE GOLD/SILVER/PLATINUM BY GEM/JEWELLERY UNITS IN SEZ/EOU APPROXIMATE VALUE OF PRECIOUS METALS T
6. EDF IS LOST
WHERE DUPLICATE COPY OF EDF IS LOST BANK CAN ACCEPT ANOTHER COPY OF DUPLICATE EDF DULY CERTIFIED BY CUSTOMS
7. EXPORT THE DOCUMENTS BY POST
EDF MUST FIRST TO BE CERTFIED BY BANK, BANK WILL CERTIFY SUBJECT TO
i) PARSEL IS BEEN ADDRESSED TO ITS COREESPONDENT BANK IN BUYERS COUNTRY
ii) OVERSEAS CORRESPONDENT SHOULD BE INSTRUCTED TO DELIVER THE PARCEL TO CONSIGNEEE AGAINST PAYMENT OR ACCEPTANCE
iii) BANK MAY HOWEVER SIGN EDF DIRECTLY SENT TO CONSIGNEE SUBJECT TO AN IRREVOCABLE LC ADVISED THROUGH THEM, FULL ADVANCE PAYM
OR BANK IS SATISFIED BY THE TRACK RECORD OF THE EXPORTER.
ANY ALTERATION IN NAME OF THE BANKS IN EDF TO BE SIGNED AND STAMPED BY BANK
8. INSURANCE CLAIM SETTLED
IN CASE OF SHIPMENT LOST AND CLAIM OF THE EXPORTER IS SETTLED BY THE ECGC OR OTHER INSURANCE COMPANY REGULATED BY IRDA. AFTER
FROM BUYER TO BANK , THE BANK WILL FIRST GIVE PROCEEDS TO EXPORTER AND THE GIVE TO INSURANCE CO. INSURANCE CO WILL ISSUE
A CERTIFICATE BY DECLARING THAT PROCEESS HAVE BEEN RECEIVED WITH BUYER NAME,SELLER NAME, BANK NAME , BILL NO INVOIVE NO AND VAL
BANK SHOULD MAINTAIN EXPORT BILL REGISTER IN PHYSICAL AND ELECTRONIC FORM ALLIENED WITH EDPMS.
10. EDPMS
RBI WITH A VIEW TO SIMPLYFY THE PROCEDURE FOR FILING VARIOUS RETURNS AND FOR BETTER MONITORING HAS DEVELOPED A COMPREHENSIVE
WHICH IS FACILITATE THE BANK TO REPORT ALL THE ABOVE MENTIONED RETURN THROUGH A SINGLE PLATFORM.
NECESSERY DETAILS OF THE USER BE SENT TO RBI TO OBTAIN USERNAME AND PASSWORD TO ACCESS THE EDPMS WEBLINK.
IN ICICI TSU-CQT TEAM AVAILED THIS PASSWORD
11. EDPMS AND RBI REPORTING
12. GROUPING OF IEC IN EDIS
AS PER EDPMS PROVISION, SHIPPING BILL WILL BE GENERATED AND REGULARIZED ON THE BASIS OF I.E CODE OF THE CUSTOMER. HOWEVER, IT HAS
CAN BE SCENARIOS WHEREIN SHIPPING BILL OF THE CUSTOMER HAS BEEN GENERATED USING ONE IE CODE AND INWARD REMITTANCE MAPPED TO
ACQUISITION-MERGER OF COMPANIES.
THERE CAN BE CASES WHERE SHIPPING BILL IS GENERATED UNDER IE CODE BUT INWARD REMITTANCE MAPPED AGAINST PAN NO. THIS IS DUE TO D
PAN NO OF THE ENTITY FOR PURPOSE OF IE CODE.
13. CHANGE IN IE-CODE DUE TO MERGER AND RE-CONSTRUCTION
1. DOCUMENTS REQUIRED - CRL, COPY OF NEW COURT ORDER FOR MERGER ACQUISITION, ANY OTHER SUPPORTING DOCUMENTS, ICEGATE SCREEN
2. IF PAN IS THE NEW ALLOTED IE CODE AS PER DGFT DIRECTIVE, THEN NO ADDITIONAL DOCUMENT REQUIRED ONLY CRL, AND ICEGATE SCREENSHO
3. ENSURE ALL VALUES FOB, FREIGHT & INSURANCE ARE "0" IN EDPMS/EDIS OR ATLEAST FOB VALUE
4. IF FOB VALUE IS NEGATIVE AND FREIGHT INSURANCE IS POSSITIVE
5. TWO TYPES OF REQUEST CAN BE SUBMITTED i) NETTING OFF FOR THE FULL VALUE ii) NETTING OFF FOR THE PARTIAL VALUE AND REALIZATION FO
6. DECLARATION FOR i) POSSITIVE FREIGHT & INSURANCE VALUE ii) IF BILLS CORRESPONDING SHOPPING BILL NOT HANDLED BY ANY BANK ICICI iii) W
YOU IDENTIFIED YOU FOR ANY LOSS DAMAGE
14. CANCELLATION OF EDF
1. SHIPPING BILL IS A MANDATORY REQUIREMENT IN EXPORT FINANCE. HOWEVER, MANYTIMES EXPORTER DOESNOT SHIP THE GOODS EVENAFTER I
IN SUCH CASES EXPORTER MAY SUBMIT THE REQUEST TO CANCELL THE SHIPPING BILL IN EDPMS.
2. RECEIVE REQUEST FROM CUSTOMER, CHECK ICEGATE STATUS OF SHIPPING BILL. BILL STATUS WILL SHOW AS "C" UNDER EGM INTEGRATION STAT
CANCELLATION CHALLAN ISSUED BY CUSTOMS, IF AVAILABLE, SHOULD BE SCANNED WITH CRL AND ICEGATE SCREENSHOT.
3. RAISE A TRACK IN TMISC-CORRECTION OF EBRC
4. CHECK FOR AD ACKNOWLEDGEMENT IN EDIS.IF BILL HAS OTHER BANK AD RAISE AD TRANSFER REQUEST. GR CANCELLATION REQUEST CAN BE PR
PROCESSING OF AD TRANSFER REQUEST AND SHIPPING BILL IS AVAILABLE IN EDIS
5. FOR EDI SHIPPING BILL- CANCELLATION CHALLAN AND ICEGATE VERIFICATION IS POSSIBLE FOR NON-EDI SHIPPING BILL - ONLY CANCELLATION CH
6. AFTER CHECKING ABOVE POINTS TSU TO TRANSFER THE REQUEST TO CQT TEAM FOR CANCELATION IN EDIS & EDPMS.
15. EXPORTER CAUTION LIST
1.WHENEVER EXPORTERS ARE CAUTIONED INTERMS OF PROVISSION CONTAINED IN TERMS OF PROVISSION CONTAINED IN REGULATION 17 OF EXPO
THEN ALSO THEY CAN EXPORT GOODS SUBJECT TO - THEY HAVE RECEIVED A IRREVOCABLE LC OR RECEIVED ADVANCE PAYMENT
2. USANCE BILL WILL MATURE WITHIN 12 MONTHS FROM THE DATE OF SHIPMENT
3. BANK SHOULD OBTAIN PRIOR APPROVAL OF RBI FOR ISSUING GUARANTEES FOR CAUTION LISTED EXPORTER
A. A EXPORTER CAN BE CAUTION LISTED FOR MANY REASONS - NON REGULARIZATION OF SHIPPING BILL OVER A PERIOD OF TIME IN EDPMS.
B. EXPORTER WILL BE IN CAUTION LIST UNTILL SHIPPINGBILL REGULARIZED IN EDPMS
16. XOS STATEMENT
RBI HAS ONETIME MEASURES GIVEN TO BANK FOR CLOSING OF OLD EXPORT BILL PENDING IN EDPMS SUBJECT TO -
1. THE CASE IS NOT SUBJECT MATTER OF ANY PENDING CIVIL/CRIMINAL SUIT.
2. EXPORTER NOT UNDER ADVERSE NOTICE OF ED/CBI/DRI ETC
3. THERE IS NO EXTERNALIZATION PROBLEM IN BUYERS COUNTRY
THERE ARE TWO CATAGORIES -
i) CEILING OF USD 1,00,000 OUTSTANDING BEYOND 15 YEARS
ii) CEILING OF USD 50,000 OUTSTANDING BEYOND 5 YEARS, WHERE CUSTOMER NOT TRACEABLE, SUBJECT TO PROOF OF NONTRACABILITY FROM CO
A REPORT OF CLOSED CASES TO BE SUBMITTED TO CONCERNED RO OF RBI BY BANKS IN EXCEL SHEET FORMAT
BILLS STILL OUTSTANDING SHOULD BE REPORTED IN XOS.
17. ED REPORTING.
18. EDF REGULARIZATION
1. FOR ADVANCE RECEVED IN WHICH SXR OR IGRS IS GENERATED SHIPPING BILL WILL BE REGULARIZED RHROUGH XFM
2. FOR XFC AND XBN SHIPPING BILL IS REGULARIZED AFTER INWARD PAYMENT FOROM CAME TO NOSTRO.
19. REALIZATION OF BILLS
1. FUNDS TO BE RECEIVED IN NOSTRO.
2. FUNDS TO BE DEVIDED IN DIFFERENT SOL FS ACCOUNT OF BRANCHES AS PER BILL CUSTOMER NAME.
3. TSU TO SETTLE FUNDS AND OUTSTANDING EXPORT BILL
4. FOR ADDITIONAL AMOUNT RECEIVED CREDIT CUTOMER ACCOUNT
5. FOR LESS AMOUNT RECEIVED DEBIT CUSTOMER ACCOUNT IF DIFFERENCE IS LESS THAN ???? USD FOR BANK CHARGES
OTHERWISE IF MORE DIFFERENCE PART REALIZE THE BILL AND SEND SWIFT TO CORRESPONDENT BANK ABOUT FULL REALIZATION
6. GOODS SOLD TO SUBSIDIARY COMPANY PAYMENT MAY BE RECEIVED FROM PARENT COMPANY
7. MNC CAN MAKE PAYMENT FROM ANY COUNTRY DESPITE OF GOODS RECEIPT AT PARTICULAR COUNTRY.
8. IT IS VERY DIFFICULT TO PROVIDE DETAILS OF THIRD PARTY IN EDF AS PER RBI GUIDELINES
WE SHOULD CONFIRM HAT THE PAYMENT IS NOT COMING FROM SCANTIONED COUNTRIES.
20. ACU - MECHANISM REALIZATION
ASSIGN CREDITS TO RESPECTIVE BRANCHES EVERY DAY
SETTLE THE CASE ALONG WITH DOCUMENTS LIKE DI,CRL AND ANY OTHER REQUIRED DOCUMENTS TO TSU
FOLLOWING NEEDS TO BE MENTIONED WHILE SETTLING THE CASE i) PURPOSE CODE ii) DETAILS OF DEAL
????
21. ISSUANCE OF EBRC
EBRC CAN BE ISSUED BY BANKS AS CONFIRMATION THAT EXPORTER HAS RECEIVED PAYMENT FROM THE BUYER, AGAINST EXPORT OF GOODS AND
EXPORTER NEEDS EBRC TO AVAIL VARIOUS INCENTIVES, DUTY EXEMPTIONS, SUBSIDIES, LOW COST LOANS ETC.
EBRC CAN BE ISSUED ONLY AFTER SHIPPING BILL REGULARIZED IN EDPMS.
1. EBRC ISSUANCE FOR DEEMED EXPORT
1. INVOICE 2. INVALIDATION LETTER, EOU CERTIFICATE ISSUED BY DGFT/ SEZ CERTIFICATE ISSUED BY GOI 3. TRANSPORT DOCUMENT 4. PROOF OF P
AS PER HP ISSUED BY MOE&I A BANK CERTIFICATE OF PAYMENT FOR DOMESTIC SUPPLIER SHOULD CERTIFY -
1. AMOUNT REALIZED 2. INVOICE DETAILS 3. PAYMENT DETAILS 4. ONE TIME DECLARATION WHEN REQUIRED
HERE INVOICE = EXCISE INVOICE/TAX INVOICE/INVOICE CUM CHALLAN EVIDENCING INVOICE DETAILS AND AMOUNT
PAYMENT DETAILS = PROOF OF PAYMENT TO BE CONFIRMED BY THE BRANCH OFFICIAL BY VERIFYING THE CREDIT ENTRIES IN THE ACCOUNT
A. FOR SUPPLIES TO UNITS OTHERTHAN 100% EOU AND UNITS IN SEZ -
i) EXCHANGE CONTROLL COPY OF THE ADVANCE LICENCE IN THE NAME OF THE DEEMED EXPORTER ALONG WITH
ii) CONDITION SHEET ( WHICH PRIMARILY GIVE DETAILS OF THE QUANTITY OF DEEMED EXPORTS TO BE DECLARED TO AVAIL BENEFITS UNDER THE LI
iii) INVALIDATION LETTER ISSUED BY DGFT TO THE ORIGINAL ADVANCE LICENCE HOLDER (ORIGINALY THE IMPORTER OF THE ITEM, WHO IS NOW SOU
iv) LOCAL MANUFACTURERS WHO THUS BECOMES THE DEEMED EXPORTER)
v). COPIES OF DOCUMENTS SUCH AS PROFORMA INVOICE, INVOICE, BILL OF LADING/LORRY RECEIPT
vi) AT LEAST ONE OF THE DOCUMENT SHOULD QUOTE ADVANCE LICENCE NUMBER/FILE NUMBER
vii). PROOF OF PAYMENT IN CASE THE CREDIT TO CUSTOMER ACCOUNT IS MORE THAN THE INVOICE AMOUNT
viii) CA CERTIFICATE CERTIFYING THAT THIS CREDIT ALSO INCLUDE THE AMOUNT OF THIS INVOICE
B. FOR SUPPLIES TO 100% EOU
i) INVOICES DULY STAMPED BY EOU FOR RECEIPT OF GOODS, SHOULD STATE THE FILE NO OF EXCHANGE CONTROLL LICENCE
ii) GREENCARD COPY OF EOU CERTIFICATE BY DGFT VALID AS DATE
iii) TRANSPORT DOCUMENT
iv) PROOF OF PAYMENT
C. FOR SUPPLIES TO SEZ UNITS
i) INVOICE
ii) TRANSPORT DOCUMENTS
iii) PROOF OF PAYMENT
iv) CERTIFICATE ISSUED BY GOVT AUTHORITY
CONFIRMING SEZ STATUS OF UNIT
2. EBRC ISSUANCE FOR POSTAL AND COURIER EXPORTS
FOR THESE TYPES OF EXPORTERS FOR WHOOM DATA IS NOT REPORTED IN EDPMS.
BANK CAN ISSUE EBRC FOR THESE EXPORTS.
3.ISSUANCE OF EBRC FOR SETOFF NETOFF TRANSACTION
EBRC CAN BE ISSUED UPTO THE EXTENT VALUE OF EDPMS.
22. FOLLOWUP FOR OVERDUE BILLS - EXTENTION OF TIME
1. BANK SHOULD CLOSELY WATCH REALIZATION OF EXPORT BILLS WHEN IT IS OUTSTANDING BENOND DUE DATE.
2. IF THE EXPORTER UNABLE TO REALIZE EVEN WITHIN THE EXTENDED TIME THE MATTER TO BE REPORTED TO RBI
3. THE DUPLICATE COPY OF EDF TO BE HELD BY BANKS, UNTILL FULL PROCEEDS BEEN REALIZED.
4. ACTION AGAINST DEFAULTING EXPORTERS SHOULD NOT BE DELAYED BY BANKS. ID DELAYED PENAL ACTION FOR BANKS
5. THE REALIZATION OF EXPORT BILLS TO BE REPORTED THROUGH EDPMS AND OUTSTANDING EXPORT BILLS TO BE REPORTED IN XOS STATEMENT
6. EXTENTION OF TIME FOR REALIZATION CAN BE ALLOWED UPTO 6 MONTHS AT A TIME IRRESPECTIVE OF AMOUNT SUBJECT TO
i) EXPORT TRANSACTION NOT COVERED UNDER ED/CBI
ii) BANK SATISFIES THAT EXPORTER IS NOT BEEN ABLE TO REALIZE FOR REASONS BEYOND ITS CONTROLL
iii) EXPORTER SUBMITS DECLARATION THAT EXPORT PROCEEDS WILL BE REALIZED WITHIN EXTENDED PERIOD
7. WHILE GRANTING EXTENTION BEYOND BEYOND 1 YEAR BANK SHOULD ENSURE THAT EXPORTERS TOTAL OUTSTANDING IS NOT EXTENDING USD 1
AVERAGE ANNUAL EXPORTS OF LAST 3 YEARS WHICHEVER IS LESS. (EXCEPT SUIT AGAINST BUYER ABROAD)
8. ALL EXPORT BILL OUTSTANDING BEYOND 6 MONTHS CAN BE REPORTED TO RBI FOR WHICH EXTENTION OF TIME IS NOT GRANTED
9. IN CASE OF NON-LC BILLS IS HANDLED ON COLLECTION BASIS A SWIFT NEED TO BE SENT TO TO FOREIGN BANK INFORMING NEW DUE DATE.
10. IF BILLS DISCOUNTED ON WITHOUT RECOURSE BASIS, CONFIRMATION FROM IFIG TO BE OBTAINED
11. IN CASE OF LC BILLS THEN EXTENTION REQUEST MUST BE RECEIPT FROM FOREIGN BANK
23. WRITE -OFF
AN EXPORTER WHO HAS NOT BEEN ABLE TO REALIZE OUTSTANDING EXPORT DUES, DESPITE BEST EFFORTS MAY EITHER SELF WRITE-OFF OR MAY H
HAVE HANDLED RELEVANT SHIPPING DOCUMENTS SUBJECT TO
1) APPROPRIATE SUPPORTING DOCUMENTS
2) CRL
3) SURRENDER OF INCENTIVES DECLARATION.
4) DOCUMENTARY EVIDENCE THAT REALIZATION OUTSTANDING MORE THAN ONE YEAR.
5) FOR SELF WRITE-OFF CA CERTIFICATE INDICATING EXPORT REALIZATION DURING FINANCIAL YEAR AND ALSO AMOUNT OF WRITEOFF ALREADY AV
COUNTRY.
PERMITTED PERCENTAGE OF TOTAL EXPORT PROCEEDS REALIZED DURING PREVIOUS FINANCIAL YEAR
SELF WRITEOFF BY EXPORTERS OTHER THAN STATUS HOLDER EXPORTERS 5%
SELF WRITEOFF BY STATUS HOLDER EXPORTERS 10%
WRITE-OFF BY BANK 10%
SUPPORTING DOCUMENTS
1. INSOLVENCY CERTIFICATE OF OVERSEAS BUYER SIGNED BY SIGNED BY OFFICIAL LIQUIDATOR
2. CERTIFICATE FROM APPROPRIATE AUTHORITY THAT OVERSEAS BUYER IS NOT TRACABLE OVERA PERIOD OF TIME
3. UNREALIZED SETTLED BY INDIAN EMBACY/FOREIGN CHEMBER OF COMMERCE OR SIMILAR ORGANIZATION
4. THE UNREALIZED AMOUNT REPRESENTS THE UNDRAWN BALANCE OF EXPORT BILL SUBJECT TO 10% OF INVOICE VALUE
WRITE-OFF NOT ALLOWED FOR -
a) EXPORTS MADE TO COUNTRY WITH EXTERNALIZATION PROBLEM (GOVT NOT ALLOWED TO REPATRIATE FUNDS TO INDIA)
b) EDF WHICH ARE UNDER INVESTIGATION BY THE AGENCIES LIKE ED, DORI, CBI ETC.
BANK SHOULD REPORT WRITE-OFF EXPORT BILLS THROUGH EDPMS TO RBI.
RANDOM SAMPLE CHECK OF WRITE-OFF TO BE DONE BY BANK
CASES NOT COVERED BY THE ABOVE INSTRUMENTS/ BEYOND THE ABOVE LIMITS MAY BE REFFERED TO THE CONCERNED RO OF RBI
????????????????????????????????????????????????????????????????????????

PART - 6 - PROJECT EXPORT

PROJECT EXPORT
1. EXPORT OF ENGINEERING GOODS ON DEFFERED PAYMENT TERMS AND EXECUTION OF TRUNKEY PROJECTS CIVIL CONSTRUCTION CONTRACTS AB
2. POST AWARD APPROVAL TO BE GRANTED BY BANK OR EXIM BANK.
3. BANK SHOULD MONITOR EXPORT PERFORMANCE OF THE EXPORTER
4. INTER- PROJECT TRANSFER OF MACHINERY FROM INDIA TO PROJECT LOCATION ABROAD
5. INTER-PROJECT TRANSFER OF FUNDS CAN BE DONE THROUGH FCA ABROAD AND INDIA
6. DEPLOYMENT OF TEMPORARY CASH SURPLUS ABROAD IN SHORT-TERM TREASURY BILLS AND OTHER MONETARY INSTRUMENTS WITH MATURITY O
RATING OF THESE SECURITIES SHOULD BE A1/AAA BY S&P PI/AA BY MOODY AND F1/AA BY FLITCH.
7. FOR ON-SITE SOFTWARE CONTRACTS THE REPATRIATION REQUIREMENT OF 30% OF THE CONTRACT VALUE.
A . BASIC
EXPORT OF ENGINEERING GOODS ON DEFFERED PAYMENT TERMS AND EXECUTION OF TRUNKEY PROJECTS AND CIVIL CONSTRUCTION CONTRACT
REFFERED AS "PROJECT EXPORT".
BROADLY DIVIDED INTO 4 CATAGORIES -
1. CIVIL CONSTRUCTION PROJECTS
2. TRUNKEY PROJECTS
3. CAUNSULTANCY SERVICES
4. SUPPLIES, PRIMARILY OF GOODS AND INDUSTRIAL MANUFACTURERS
B. APPROVAL FOR PROJECT EXPORT
1. RECEIVE CRL FROM CUSTOMER ALONG WITH DEBIT AUTHORITY AND OTHER DOCUMENTS
2. ACKNOWLEDGE THE CRL BY PUTTING SAMPLE ALONG WITH DATE AND TIME OF RECEIPT OF CRL.
3. ONE SET OF DOCUMENTS TO BE RETURNED TO CUSTOMER AS AN ACKNOWLEDGEMENT
4. CHECK AND ENSURE ALL DOCUMENTS AND TERMS AS PER CHECKLIST AND DULY COMPLETED
5. COMPLIANCE TEAM APPROVAL (TCT)
6. ENSURE PEM GUIDELINES
7. NO DOCUMENT TO BE FORWARDED TO RBI
8. IN CASE ICICI IS UNABLE TO GRANT PEM APPROVAL, REFER THE CASE TO EXIM BANK, WITHIN 2 DAYS FROM THE DATE OF REJECTION OF THE CASE
9. PEM APPROVAL TO BE AMMENDED IN THE SAME WAY AS ISSUANCE OF APPROVAL.
C. MONITORING OF EXPORTS
1. RECEIVE VARIOUS REPORTS FROM CUSTOMER
2. EXAMINE AND REVIEW THE REPORTS BY ENSURING i). PROJECT IS RUNNING ON TIME, ii). DEBIT AND CREDIT IN THE PROJECT AC ARE - COMMENSUR
iii) WHEATHER THERE IS ANY INSTANCE OF FUND DIVERSION ETC.
3. TAKE REMIDIAL ACTION IF REQUIRED.
4. MONITORING OF INTER PROJECT TRANSFER OF MACHINERY THROUGH POGRESS REPORT IN FORM OF DPX2
5. MONITORING OF DEPLOYMENT OF TEMPORORY SURPLUSES, GENERATED OUTSIDE INDIA.
WHEATHER IT IS INVESTED IN MONETARY INSTRUMENTS WITH MATURITY REMANING 1 YEAR OR LESS RATING IS A-/AAA BY S&P OR P-1/AAA BY MOOD
DEPOSIT WITH BRANCHES SUBSIDIARIES OUTSIDE INDIA OF INDIAN BANKS. THE SAME HAVE TO BE REFLECTED IN HALF YEARLY STATEMENT OF OPER
MAINTAINED ABROAD. NOT PERMITTED WHEN FOREIGN CURRENCY AC HAVE OVERDRAFT/BORROWING OUTSTANDING.
6. REPORT TO RM IF ANY WRONG THING OBSERVED, RM WILL TELL CLENT TO SUBMIT REVISED REPORT.
7. FORWARD THE COPY OF REPORTS TO TSU-CQT.
8. ENSURE THAT THE SIGNATURE ARE VERIFIED ON COVERING LETTER GIVEN BY THE CUSTOMER AND REPORT IS STAMPED AND SIGNED BRANCH OF
9. CQT TEAM WILL SENT REMINDERS TO BRANCH FOR SUBMITTING THESE REPORTS.
10. CQT TEAM WILL ALSO SENT REMINDERS TO BRANCH FOR SENDING REPORTS TO EXIM BANK. WHERE EXIM BANK IS INVOLVED.
11. CUSTOMER WILL SUBMIT PROJECT COMPLETION REPORT WITHIN 30 DAYS OF COMPLETION,
HALF YEARLY REPORT, QUARTERLY REPORT, MONTHLY REPORT WITHIN 17 DAYS FROM THESE.
D. OPENING OF FOREIGN CURRENCY ACCOUNT IN INDIA
1. RECEIVE REQUEST LETTER FOR ACCOUNT OPENING AS PER FORMAT WITH RELETIVE DOCUMENTS FROM EXPORTER AND i) PROJECT AWARD COPY
2. ACCOUNT CAN BE OPENED IN ALL CURRENCIES LIKE USD,GBP, EURO, JPY ETC.
3. BSMG-TREASURY APPROVAL IS REQUIRED FOR OPENING THE ACCOUNT.
4. ACCOUNT SHALL BE CLOSED AFTER COMPLETION/CANCELLATION OF PROJECT.
ENTIRE AMOUNT WILL BE TRANSFERRED TO RUPEE ACCOUNT OR FCA
E. PROJECT EXTENTION
1. FOR APPROVING AMMENDMENT OF ALREADY APPROVED PROJECT EXPORT, CONTRACT COPIES ARE REQUIRED.
2. IN CASE OF TIME OVERRUN, CONSIDERING THE PHYSICAL POGRESS OF THE PROJECT OVERSEAS BUYER REQUEST OUR BANK TO EXTEND THE BG
WE WILL DO THAT UPON SUBMISSION OF INFORMATION REGARDING PHYSICAL AND FINANCIAL STATUS OF THE PROJECT AND LIKELY COMPLETION P
3. HOWEVER, MANY TIMES CLIENT IS UNABLE TO SUBMIT US THE AMMENDED CONTRACT COPY, IN THAT CASE THESE DOCUMENTS TO BE SUBMITTED
i) BENEFICIARY LETTER STATING THE DATE TILL PROJECT IS VALID, WHICH IS TO BE IN LINE WITH THE PEM EXTENTION DATE.
ii) LETTER FROM COMPANY SECRATERY, LEGAL HEAD OF THE COMPANY , CA CERTIFICATE, THAT THE PROJECT IS VALID TILL REVISED DATE IN-LIUE O
iii) CLIENT UNDERTAKING THAT REVISED AMMENDMEND DATE WILL BE CARRIED IN DPX2.
iv) ALL OTHER CONDITIONS ON PROJECT EXPORT APPROVAL HEADS TO BE COMPLIED WITH.
v) DUE DILLIGENCE ON ABOVE PARAMETERS NEED TO BE DONE BY HIGHER AUTHORITIES
F. GENERAL GUIDELINES
1. ANY TRANSACTION WHERE BANK IS NOT PART OF PEM APPROVAL, NOC FROM THE BANK/EXIM BANK WHICH ARE APPROVED THE PROJECT IS REQU
IF THE APPROVAL LETTER IS SPECIFIED, THAT, FUND BASED AND NON FUND BASED FACILITY MAY BE AVAILED FROM ANY BANK THEN NOC NOT REQU
2. COPY OF APPROVAL LETTER FROM RELEVANT APPROVING AUTHORITY.
3. STANDARD DECLARATION FROM THE CLIENT
" WE CONFIRM THAT THE TOTAL OF ALL REMITTANCES (INCLUDING LC/BC AND ALL OTHER FACILITIES) INCLUDING REQUEST FOR REMITTANCE/BG/LC/
POST AWARD APPROVAL NO.. DATED… GRANTED BY ICICI AND THERE IS NO NET OUTFLOW OF FOREIGN EXCHANGE"
4. CHECK ISSUANCE OF LC BG ETC IS PERMISSIBLE AS PER PEM APPROVAL.
5. ADDITIONAL POINTS TO BE CHECKED IN PEM APPROVAL -
i) VALIDITY OF APPROVAL LETTER
ii) THIRD COUNTRY PURCHASES ARE PERMISSIBLE IN CASE OF THIRD COUNTRY REMITTANCE/ EXPORT/ IMPORT/ ISSUANCE/ AMMENDMENT OF LC/BG
iii) TRANSACTION REQUESTED IS WITHIN THE LIMITS SPECIFIED IN THE APPROVAL LETTER.
iv) TENOR STATED IN LC BILLS IN LINE WITH THE APPROVAL GRANTED
G. ISSUANCE OF PERFORMANCE GUARANTEE BEFORE PEM
1. GUARANTEES WHICH ARE PRE-CONDITIONED TO THE BIDDING PROCESS, REQUIRED TO BE GIVEN PRIOR TO PEM APPROVAL,
2. THE SAME MAYBE ISSUED BY A BANK IN INDIA BEING AN EXPORTING COUNTRY FOR PERFORMANCE OF PROJECT OUTSIDE INDIA OR FOR AVAILING
WHEATHER FUND BASED OR NON FUND BASED, FROM A BANK OR FINANCIAL INSTITUTION OUTSIDE INDIA, IN CONNECTION WITH THE EXECUTION OF
PROVIDED THAT THE CONTRACT/LETTER AWARDED STIPULATES SUCH REQUIREMENTS
3. FOLLOWING DOCUMENTS TO BE SUBMITTED - CRL, CAL CLEARLY STATING THAT THE GUARANTEE IS PRE CONDITIONED FOR PROJECT EXECUTION
CUSTOMER DECLARATION THAT CONTRACT COPY PROVIDED IS UNDER PEM.
"ICICI BANK WILL BE CHOSEN AS THE BANK UNDER PEM AND ALL REGULATION UNDER PEM WILL BE ADHERE TO"
H. ISSUANCE OF BANK GUARANTEE AFTER PEM
1. GUIDELINES APPLICABLE FOR ISSUANCE OF REGULAR GUARANTEE IS APPLICABLE HERE.
2. PROJECT EXPORT APPROVAL SHOULD SPECIFY PURPOSES FOR WHICH GUARANTEE CAN BE ISSUED
3. BG LIMIT TO BE SET IN I-CORE
4. ALL FOBG (EXCEPT BID-BOND) FOR OVERSEAS PROJECT, IRRESPECTIVE OF THE TENOR OF THE BANK GUARANTEE
SHOULD BE SCRUTINIZED FOR DETERMINE IF THE SAME FALLS UNDER PEM.
5. GUARANTEE TEXT CONTAINING WORDS LIKE - COMMISSIONING, EXECUTION, PROJECT FEASIBILITY, PROJECT SURVEY, CONSTRUCTION, IMPLEMEN
DESIGN, ERECTION, BUILDING, TRUNKEY, TRANSMISSION ETC MAY CAL FOR PEM APPROVAL.
6. PEM APPROVAL IS NOT REQUIRED FOR PURE SUPPLY CONTRACT WHERE 90% OF THE EXPORT VALUE WILL BE REALIZED WITHIN THE PRESCRIBED
REMAINING 10 % WILL BE REALIZED WITHIN 2 YEARS FROM THE DATE OF EXPORT.
PROVIDED THE EXPORTER NOT AVAILING ANY OTHER FUND/NONFUND BASED FACILITIES.
AND TENOR OF SUCH FOBG ISSUED SHOULD NOT BE MORE THAN 1 YEAR.
7. IN CASE THE PROJECT EXPORT APPROVAL IS EXPIRED GUARANTEE SHOULD NOT BE ISSUED OR RENEWED WITHOUT PEM GETTING EXTENDED. IN
FOR SOME CASE, PEM COULD NOT BE EXTENDED RBI APPROVAL NEEDED.
8. DOUBLE SCRUTINY FOR HIGH VALUE FOBG GREATER THAN USD 0.5 MN
9. TRANSACTION SPECIFIC APPROVAL FROM HIGHER AUTHORITY, IN CASE BG TEXT, CONTRACT IS NOT CLEAR WHEATHER UNDERLYING PROJECT IS
OR PURE SUPPLY CONTRACT.
10.OUR BANK IS NOT PART OF APPROVING AUTHORITY DISCUSSED ABOVE
11. IF PEM LINKED PENDING SUBMISSION OF ANY HIGHER AUTHORITY APPROVAL IS REQUIRED. EXPORTER NAME IS PART OF OVERDUELIST.
12. ANY EXTENTION/RENEWAL OF PROJECT RELATED BANK GUARANTEE, POST EXPIRY OF PROJECT APPROVAL, CAN ONLY BE PROCESSED POST RB
I. OUTWARD REMITTANCE
1. CHECK BG TEXT WORDS IN CONTRACT/INVOICE/AGREEMENT FOR APPLICIBILITY OF PROJECT EXPORT
2.IF THESE WORDS ARE AVAILABLE STILL CASE CAN BE PROCESSD AS NORMAL REMITTANCE WITHOUT PEM, BUT WITH HIGHER AUTHORITY APPROVA
3. FOR ALL IDENTIFIED PURPOSE CODES BRANCH TO OBTAIN A SPECIFIC DECLARATION ON APPLICIBILITY OF PEM GUIDELINES FROM CLIENT REQUIR
4. FOR PUSPOSE CODE S011 BRANCH WILL INSIST AD APPROVAL FOR OFFICE SET-UP.
5. DOCUMENTS REQUIRED - INVOICE/DEBITNOTE/COPY OF AGREEMENT OR CONTRACT. PEM APPROVAL, TRADE BILL/TRANSPORT DOCUMENT
6. ORM PAYMENT MAY BE MADE BY EXPORTER FROM FCA IN INDIA, OF INDIAN EXPORTER SUBJECT TO DECLARATION THAT EXPORT BENEFIT WILL NO
7. CRL, FEMA DECLARATION FROM IINDIAN EXPORTER.
8. EXAMPLE- REMITTANCE TOWARDS MAINTAINANCE EXPENSES IN RESPECT OF SERVICE CONTRACTS/TRUNKEY PROJECTS
REMITTACE OF AGENCY COMMISSION IN RESPECT OF PURE SUPPLY CONTRACT
9. CASES WHERE ADVANCE PAYMENT/OVERDRAFT/LOAN CANNOT BE ARRANGED FOR ABROAD BUYER, BANK OF PROJECT EXPORTER ALLOW REMITT
BUT BANK WILL ALLOW SUCH REMITTANCES AFTER OBTAINING A UNDERTAKING FROM THE EXPORTER THAT AMOUNT REMITTED WILL BE REPATRIAT
WITHIN A PERIOD STIPULATED BY EXIM BANK OR BANK
10. INTER-PROJECT TRANSFER OF FUNDS IS ALLOWED.
11. ESURE THAT THE REMITTANCES ARE ON ORIGINAL PEM APPROVAL LETTER.
12. IN CASE OF REMITTANCES TOWARDS PROJECTS WHICH HAS NOT BEEN APPROVED BY THE BANK , NOC PROCESS AS ABOVE
13. OVERDUE LIST AS ABOVE
14. WHEATHER PEM IS APPLICABLE OR NOT CAN BE DISCUSSED BETWEEN COMPLIANCE GROUP,TSU AND BRANCH
15. APPLICABLE PURPOSE CODES -
S0501 - CONSTRUCTION OF PROJECTS ABROAD BY INDIAN COMPANIES INCLUDING IMORT OF GOODS AT PROJECT SITE ABROAD
S0801 - SOFTWARE CAUNSULTANCY AND IMPLEMENTATION
S1011 - PAYMENT FOR MAINTAINANCE OF OFFICES ABROAD
S1014 - ENGINEERING SERVICES
S1002 - TRADE RELATED SERVICES COMMISSION ON EXPORT AND IMPORT
J. INWARD REMITTANCES
1. FOR APPLICIBILITY OF PROJECT EXPORT APPROVAL, ALL IDENTIFIED PURPOSE CODES BRANCH SHOULD OBTAIN CUSTOMER DECLARATION
WHILE N/A OF THESE CHECK FOR WORDS IN CONTRACT
3. S0502 - RECEIPT ON ACCOUNT OF CONSTRUCTION WORKS CARRIED OUT ABROAD BY INDIAN COMPANY
4. AN EXPORTER MAY POOL PROCEEDS IN ACCOUNT OPENED OVERSEAS AND IF IN THE SWIFT THE REMITTER AND BENEFICIARY ARE SAME UNDER, P
SHOULD BE PROCESSED.
K. IMPORT AND IMPORT LC
1. FOLLOWING TRANSACTIONS NOT INCLUDED IN PROJECT EXPORT TRANSACTION -
i) TRANSACTION WHERE GOODS ARE ENTERING INDIA
ii) MTT TRANSACTION
iii) TRANSACTION WITH RBI APPROVAL
2. CHECK FOR PEM APPLICIBILITY AS PER ABOVE.
3. CHECK FOR NOC APPLICIBILITY AS PER ABOVE.
4. CHECK OVERDUE LIST AS PER ABOVE
5. LC IN FAVOUR OF THIRD COUNTRY SUPPLIER CAN BE OPENED, PROVIDED THE AMOUNT OF SUCH LC DOES NOT EXCEED THE VALUE OF THIRD COU
IN THE PEM APPROVAL, UNDERTAKING FROM THE CUSTOMER THAT PAYMENT UNDER THAT LC SHOULD BE MADE OUT OF PROJECT EXPORT RECEIPT
L. BILL OF ENTRY WAIVER
IN RESPECT OF THIRD COUNTRY PURCHASES BY EXPORTER FOR EXECUTION OF PROJECT OR SERVICE CONTRACT ABROAD WHICH ARE DIRECTLY T
PROJECT SITE BOE IS WAIVED. SUBJECT TO -
a) THIRD COUNTRY PURCHASES HAVE BEEN APPROVED IN PEM
b) EXPORTER HAVE TO SUBMIT INVOICE AND BL/EVIDENCE THAT GOODS ARE ON SITE
c) COPY OF PEM APPROVAL
M. EXPORT BILLS
1. IF ADVANCE PAYMENT IS RECEIVED AGAINST PROJECT EXPORT CHECK FOR DECLARATION OF THE SAME, IN PROJECT EXPORT APPLICATION BY TH
2. IN CASE OF PROJECT EXPORT OF SERVICES, CERTIFICATE TO BE OBTAINED AS A PROOF OF DELIVERY OF SERVICES.
3. EBRC FOR PROJECT EXPORT REALIZATION WOULD BE PROCESSED UNDER SIMILAR PROCESS
4. ALL POINTS OF IMPORT AND IMPORT LC
N. ADDITIONAL DIFFERENT SCENARIOS COVERED UNDER PROJECT EXPORT
SCENARIO - 1
i) FOR EXPORT OF COSUMABLES - TOOLS,TACKLES, MACHINERY SPARES ETC. SEPARATE PAYMENT WILL NOT REQUIRED BE MADE BY OVERSEAS BUY
ii) IN PEM EXPORTER SHOULD ALLOWED TO RAISE INVOICE IN THEIR OWN OFFICES ABROAD.
iii) SEND EXPORT DOCUMENTS DIRECT TO THESE OFFICES
iv) AND REALIZE OUT OF INSTALLMENT PAYMENTS RECEIVED FOR THE CONTRACT.
v) DECLARATION BY THE EXPORTER THAT CONSUMABLES ARE EXPORTED FOR EXECUTION OF PROJECT EXPORT CONTRACT
vi) NUMBER AND DATE OF PEM GRANTED TO BE INDICATED ON GR
vii) IN SOME CASES WHERE PAYMENTS ARE MADE SEPARATELY THEN ALSO PEM NO TO BE MENTIONED IN GR
SCENARIO - 2
i) EXPORTER CAN SUPPLY CONSTRUCTION AND OTHER EQUIPMENTS FROM INDIA TO PROJECT SITE.
ii) BANK WILL PERMIT EXPORT OF EQUIPMENT FROM INDIA, ON THE CONDITION THAT IT WILL BE RE-IMPORTED INTO INDIA, ON COMPLETION OF PROJE
AND IF LET OUT/SOLD FULL HIRE CHARGES WILL BE PROMPTLY REPATRIATED TO INDIA.
iii) UNDERTAKING IN FORM PEX2 REGARDING RE-IMPORT OF SUCH EQUIPMENT INTO INDIA.
iv) GR FORMS DULY COMPLETED FOR THE EXPORT.
SCENARIO - 3
i) FOR EXPORT OF GOODS ON DEFFERED PAYMENT TERMS SUPPLY CONTRACT FOR EXPORT OF GOODS ON DEFFERED PAYMENT TERMS IS REQUIRE
ii) CHECK THE GOODS ELIGIBILITY AS PER LIST OF GOODS, IN RESPECT OF WHICH COMMERCIAL EXPORT CREDIT MAY BE OFFERED BY INDIAN EXPOR
iii) CHECK GR IS PROMPTLY SUPERSCRIBED WITH PEM IN BOTH THE COPIES
iv) ALSO GR FORM COVERING EXPORTS UNDER THE CONTRACT SHOULD BE PROMPTLY SUPERSCRIBED WITH RED INK -
"EXPORT UNDER DEFFERED PAYMENT ARRANGEMENT APPROVING AUTHORITIES APPROVAL NO … DATED….."
O. CHANGE IN PURPOSE CODE FROM P0502 TO P0102 FOR ISSUANCE OF EBRC
i) AS PER RBI NOTIFICATION BANKS HAVE TO GENERATE EBRC ONLY FROM THE DATA AVAILABLE IN EDPMS.
ii) EDPMS DOESN’T RECOGNISE P0502
iii) INWARD REMITTANCES RECEIVED UNDER PURPOSE CODE P0502 WILL BE CHANGED INTO P0102 LATER.
iv) BILLS TEAM AND CQT TEAM RECEIVE CRL WITH I-CORE REFERRANCE NO AND SHIPPING BILL DETAILS.
v) CRL SHOULD EVIDENCE THE VALUE OF TOTAL GOODS AND SERVICES WITH BIBURCATION, AND IT SHOULD MATCH WITH THE BILL ALREADY LODGED
vi) CRL SHOULD CONTAIN CLIENT DECLARATION TO THE FOLLOWING EFFECT " THE CUMULITIVE VALUE INCLUDING VALUE OF CURRENT REQUEST.
vii) EBRC ISSUANCE AGAINST EXPORT DO NOT EXCEED THE AMOUNT OF PEM APPROVAL AWARDED FOR GOODS PORTION
viii) RAISE I-MEMO TO TRADE PRODUCT AND SBH FOR JOINT APPROVAL
ix) CHECK SHIPPING BILL IN EDIS AND SCAN DETAILS IN EDIS. SCAN THE REQUEST IN OMNIFLOW UNDER TMISC REAL QUE, ALONG WITH CRL AND I-ME
P. PROCESS STEPS UNDER PROJECT EXPORT
1. ASSESSMENT AND APPROVAL OF PROJECT EXPORT
2. OPENING AND CLOSURE OF FCA
3. OPENING,RENEWAL AND CLOSURE OF SHORT TERM DEPOSIT IN INDIA IN FOREIGN CURRENCY
4. FOLLOWUP FOR REPORTS (HALF YEARLY, QUARTERLY, REPORT OF COMPLETION ETC.)
5. SENDING REPORTS TO APPROVING AUTHORITY
6. CONSOLIDATED EXCEL SHEET MAILED TO EXIM BANK ON QUARTERLY BASIS.
7. COMMUNICATING ANY CHARGES IN PEM FROM REGULATORY PERSPECTIVE FROM TIME TO TIME.
8. SENDING APPLICATION FORMS TO RBI AND OTHER CONCERNED AUTHORITIES AS APPLICABLE
9. SCRUTINY OF REPORTS SUBMITTED BY THE CLIENT
Q. EXTENTION OF RETENTION OF BILL UNDER PURE SUPPLY CONTRACT
1) THE PROCEDURE OF PEM WILL NOT APPLY TO EXPORT OF GOODS UNDER PURE SUPPLY CONTRACTS WHERE 90% OF THE EXPORT VALUE WILL BE
PERIOD OF 9 MONTHS AND REMAINING WITHIN 2 YEARS FROM THE DATE OF EXPORTS. PROVIDED EXPORTER DOESN’T REQUIRE ANY OTHER FUNDED
2) FOR EXPORT. IN ORDER TO EXTEND EXPORT BILL UNDER PURE SUPPLY CONTRACT, USERS TO ENSURE THAT THE BELOW CONDITIONS ARE FULLF
i) 90% OF THE MONEY RECEIVED WITHIN STIPULATED TIME AND BILL IS OUTSTANDING ONLY FOR RETENTION AMOUNT EQUAL OR LESS THAN 10% OF
ii) ANY EXTENTION OF BILL FOR BALANCE OUTSTANDING UNDER PURE SUPPLY CONTRACT IS PERMITTED UPTO THE MAXIMUM PERIOD OF 2 YEARS.
3) RECEIVE REQUEST LETTER FROM CUSTOMER MENTIONING NEW DATE TO WHICH EXPORT BILLS OUTSTANDING UNDER PURE SUPPLY CONTRACT W
OF NOT AVAILED ANY FUNDED OR NON FUNDED FACILITIES.
4) RAISE A TRACK FOR EXPORT BILL EXTENTION ALONG WITH NEW DUE DATE, CONTRACT COPY, INVOICE, OTHER DOCUMENT CONFIRMING PAYMENT
UNDER ONE CONTRACT TO BE SENT IN ONE TRACK.
5) BILL CAN BE OUTSTANDING ONLY FOR RETENTION AMOUNT EQUAL TO OR LESS THAN 10 % OF THE BILL VALUE
6) NEW DUE DATE SHOULD BE WITHIN THE MAXIMUM PERMISSIBLE PERIOD
7) TRACK NEED TO BE RAISED UNDER TMISC WRITEOFF EXPORT
R. EXTENTION OF RETENTION VALUE OF BILL UNDER NORMAL SUPPLY CONTRACT
1. RECEIVE REQUEST LETTER FROM THE CUSTOMER WITH NEW DUE DATE
2. RAISE REQUEST FOR EXPORT BILL EXTENTION ALONG WITH NEW DUE DATE
3. DOCUMENTS PAA COPY,CONTRACT COPY, CA CERTIFICATE GIVEN AT THE TIME OF PAA.
4. ALL BILLS UNDER PEM TO BE UPLOADED IN ONE TRACK
5. EXTEND THE DUE DATE IN FINACLE
6. UPDATE DUE DATE IN EDIS
S. BUYERS CREDIT
AS PER PEM DEFINATION BC IS FINANCE FOREIGN BUYER BY EXIM BANK IN PARTICIPATION WITH COMMERCIAL BANK UNDER EXIM BANK BUYERS CRE
SPECIFIC PRIOR APPROVAL OF EXIM BANK REQUIRED.
ANY TRANSACTION WHERE BANK IS NOT PART OF APPROVING AUTHORITY SHOULD BE PROCESSED AFTER ENSURING THAT -
i) THERE IS ENOUGH ROOM FOR THE TRANSACTION BASED ON DPX1
ii) THE ENDORSEMENT AND MARGIN FOR THE TRANSACTION ARE IN LINE WITH THE LATEST DPX2 .
iii) ENSURE TO ENDORSE THE DPX 1 WITH THE AMOUNT OF THE TRANSACTION PROCESSED.
iv) CHECK FOR DECLARATION SCANNED IN THE TRACK
v) CHECK EXPORTER LIST IS IN PART OF OVERDUE LIST, WHERE REGULATORY FORMS AND INFORMATION UNDER PEM GUIDELINES AND INTERNAL PR
vi) BANK TO TAKE RELEVANT DOCUMENTS
vii) ALSO PEM APPROVAL IS REQUIRED FOR FROCESSING ANY TRANSACTION UNDER THIS.
T. ADVANCE AGAINST RETENTION MONEY
WHILE MAKING POGRESS PAYMENTS OVERSEAS BUYER RETAININ A SMALL PERCENTAGE AS RETENTION MONEY.
FOLLOWING GUIDELINES TO BE FOLLOWED TO GRANT ADVANCE AGAINST RETENTION MONEY -
i) NO ADVANCES TO BE GRANTED RELATED TO SERVICE PORTION OF THE CONTRACT
ii) EXPORTER MAY BE ADVISED TO ARRANGE AS FAR AS POSSIBLE, PROVISION OF SUITABLE GUARANTEE, INSTEAD OF RETENTION MONEY
iii) BANK MAY CONSIDER ON A SELECTIVE BASIS, GRANTING OF ADVANCE AGAINST RETENTION MONEY TO BE BASED ON LIQUID FUND POSITION,PREV
EXPORTER.
iv) PAYMENT OF RETENTION MONEY MAY BE SECURED BY LC/BG
v) WHERE RETENTION MONEY IS PAYABLE WITHIN A PERIOD FROM THE DATE OF THE SHIPMENT. BANK SHOULD CHARGE PRESCRIBED RATE OF INTER
90 DAYS.
vi) RATE OF INTEREST PRESCRIBED FOR CATEGORY ECNOS AT POST SHIPMENT STAGE MAY BE CHARGED FOR A PERIOD BEYOND 90 DAYS.
vii) WHERE ADVANCE IS EXTENDED FOR A PERIOD OF 1 YEAR, BANK IS FREE TO DESIDE RATE OF INTEREST

PART -7 - MERCHANTING TRADE (MTT)

1. GUIDELINES
1. GOODS SHOULD NOT ENTER INTO DTA
TERE SHOULD BE NO TRANSFORMATION IN STATE OF GOODS
GOODS INVOLVED IN THE MTT SHOULD BE PERMITTED AS PER FTP
2. ALL REGULATIONS OF EXPORT AND IMPORT ARE APPLICABLE EXCEPT EDF AND BOE
KYC AND AML GUIDELINES WILL BE OBSERVED BY AD BANK WHILE HANDLING SUCH TRANSACTION
3. BOTH LEG OF MTT SHOULD BE ROUTED THROUGH SAME BANK
BANK SHOULD VERIFY THE DOCUMENTS LIKE INVOICE PACKING LIST TRANSPORT DOCUMENT AND ISSUANCE DOCUMENTS
(IF ORIGINALS ARE NOT AVAILABLE, NON NEGOTIABLE COPIES DULY AUTHENTICATED BY BANKS) FOR CHECKING GENUINENESS OF TRADE
4. THE ENTIRE MTT SHOULD BE COMPLETED WITHIN OVERALL PERIOD OF 9 MONTHS
THERE SHOULD BE NO OUTLAY OF FOREIGN EXCHANGE BEYOND 4 MONTHS
5. THE COMMENCEMENT OF MTT SHOULD BE DATE OF SHIPMENT OR EXPORT LEG RECEIVED OR IMPORT LEG PAYMENT, WHICHEVER IS FIRST.
THE COMPLETION DATE IS WHICHEVER IS LAST AMONG 3.
6. SHORT TERM CREDIT EITHER BY WAY OF BUYERS/SUPLIERS CREDIT IS AVAILABLE FOR MTT TRANSACTION
FOR THE PORTION IN WHICH ADVANCE REMITTANCE OR DISCOUNTING IS NOT THERE .
7.BANK SHOULD REPORT DEFAULT IN ANY LEG OF MERCHANTING TRADE TRANSACTION ON HALF YEARLY BASIS TO RBI WITHIN 15 DAYS OF HALF YEA
8. THE INWARD REMITTANCE FROM OVERSEAS BUYER SHOULD PREFERRABILY BE RECEIVED FIRST.
THE OUTWARD REMITTANCE TO OVERSEAS SUPPLIER WILL BE MADE SUBSIQUENTLY.
9. AN IRREVOCABLE LC CAN BE OPENED BY THE BUYER IN FAVOUR OF MERCHANT.
ON THE STREANTH OF THAT LC MERCHANT INTURN MAY OPEN ANOTHER LC IN FAVOUR OF OVERSEAS SUPPLIER
THE TERMS OF PAYMENT UNDER BOTH THE LCs SHOULD BE SUCH THAT PAYMENT FOR IMPORT LC IS REQUIRED TO BE MADE AFTER THE RECEIPT OF
THE EXPORT LC SHOULD BE ISSUED IN THE NAME OF THE ORIGINAL MERCHANT TRADER IN INDIA
THE IMPORT LC SHOULD BE FAVOURING ORIGINAL SUPPLIER.
IN CASE, EXPORT LEG PAYMENT IS RECEIVED IN ADVANCE, BANK NEED NOT INSIST TO OPEN EXPORT LC.
10. IN CASE, ADVANCE AGAINST EXPORT LEG IS RECEIVED BY THE MERCHANTING TRADER. THE ADVANCE PAYMENT MAY BE HELD IN A DEPOSIT/CUR
IN FOREIGN CURRENCY OR INR.
AND THE AMOUNT REQUIRED FOR IMPORT LEG SHOULD BE LIEN MARKED TILL ITS AVAILABLE FOR PAYMENT TO THE MERCHANTING TRADER FOR US
OTHER THAN IMPORT PAYMENT OF SHORTTERM DEPLOYMENT OF FUNDS LIMITED TO THE IMPORT PAYABLE, WITH THE SAME BANK FOR INTERVENIN
HOWEVER, BANK CAN INVEST THIS AMOUNT IN INTEREST BEARING ACCOUNT
11. MTT TRADER ARE ALLOWED TO MAKE ADVANCE PAYMENT FOR IMPORT LEG ON DEMAND BY THE OVERSEAS SELLER
BANK SHOULD ENSURE THAT ANY SUCH ADVANCE PAYMENT FOR IMPORT LEG BEYOND USD 2LAKH PER TRANSACTION.
SHOULD BE PAID AGAINST BG/LC FROM AN INTERNATIONAL BANK OF THE OVERSEAS BUYER COUNTRY.
IMPORT LC TO THE SUPPLIER IS PERMITTED AGAINST THE CONFIRMED EXPORT ORDER AND WITHIN 9 MONTS COMPLETION
PAYMENT OF IMPORT LEG MAY ALSO BE ALLOWED OUT OF THE BALLANCES IN EEFC ACCOUNT OF THE MERCHANT TRADER.
12. THE NAME OF THE DEFAULTING MERCHANT TRADER WHERE OUTSTANDING REACH 5% OF THERE ANNUAL EXPORT EARNINGS WOULD BE CAUTIO
THE MERCHANT TRADER HAVE TO BE GENUINE TRADER OF GOODS AND NOT MERE FINANCIAL INTERMEDIARIES
CONFIRMED ORDER HAVE TO BE RECEIVED BY THEM FROM THE OVERSEAS BUYER.
BANK SHOULD SATISFY THEM SELVES ABOUT CAPABILITIES OF THE MERCHANTING TRADER TO PERFORM THE TRANSACTION
THE OVERALL MTT SHOULD RESULT RESONABLE PROFITS TO MERCHANTING TRADER.
13. THE REPORTING OF MTT TO BE DONE ON GROSS BASIS ON COMPLETION OF R-RETURN AGAINST NOTED PURPOSE CODES
EXPORT- P0108 - GOODS SOLD UNDER MTT AGAINST EXPORT LEG OF MTT
IMPORT- S0108 - GOODS PURCHASED UNDER MTT AGAINST PAYMENT OF IMPORT LEG
14. PRIVATE/PUBLIC BONDED WIREHOUSES MAY BE SETUP IN DTA AS PER TERMS AND CONDITIONS MENTIONED IN NOTIFICATION ISSUED
BY DEPARTMENT OF REVENUE/CHAPTER 1X OF CUSTOMS ACT 1962.
ANY PERSON MAY IMPORT GOODS EXCEPT PROHIBITED ITEMS AND WAREHOUSE THEM IN SUCH BONDED WAREHOUSES.
SUCH GOODS MAY BE RE-EXPORTED WITHOUT POSING DUTY , SUBJECT TO COMPLIANCE OF CERTAIN TERMS AND CONDITIONS MENTIONED UNDER F
SCINCE THIS WAREHOUSES ARE SETUP IN DTA, GOODS KEPT IN SUCH WARE HOUSES IS CONSIDERED AS ENTER INTO DTA. SO, DOSENT QUALIFY FO
15. THE TRANSPORT DOCUMENT OR BOE SHOULD EVIDENCE PORT OF LOADING AND DISCHARGE ARE NOT INDIAN PORTS. INCLUDING ADVANCE PAYM
WE SHOULD OBTAIN CLIENT DECLARATION TO THE EFFECT THAT TRANSACTION DOESNOT FALL WITH THE PURVIEW OF MTT GUIDILINES.
16. EXPORT CREDIT EITHER PRE OR POST SHIPMENT IN INR OR FOREIGN CURRENCY IS ALLOWED AGAINST THE EXPORT LEG(MTTE) TO BE ALLOWED
IMPORT REMITTANCE. HOWEVER, WHERE THE CORRESPONDING IMPORT LEG IS ALREADY SETTLED THE PROCEEDS OF EXPORT CREDIT MAY PAID TO
17. TO ENSURE THAT WHEATHER THE UNDERTAKING TRANSACTION IS MTT OR NOT, A DECLARATION FROM CLIENT TO BE OBTAINED
HOWEVER, WHEN IT IS CLEAR FROM THE DOCUMENTS THAT TRANSACTION IS MTT DECLARATION IS NOT MANDATORY.
2. CHECKLIST
1. ALL THE DOCUMENTS ARE PROCUCT SPECIFIC AND ARE CONSISTENT TO EACH OTHER
ENSURE COMPLIANCE WITH KYC AND AML GUIDELINES
CUSTOMER SHOULD BE AN ACCOUNT HOLDER OF THE BABK
GOODS ARE PERMITTED UNDER EXPORT IMPORT UNDER PREVAILING FTP
TRANSACTION IS COMPLIED WITH ALL FEMA RULES, AND ALL DIRECTIONS APPLICABLE TO EXPORT AND IMPORT (EXCEPT EDF AND BOE)
THERE SHOULD BE RESONABLE PROFIT FOR MTT TRADER. PURCHASE PRICE UNDER IMPORT LEG IS LESER THATN THE SALE PRICE UNDER EXPORT L
2. BOTH THE LEG TO BE ROUTED THROUGH ICICI. INCASE ANY LEG UNDER MTT IS ALREADY HANDLED BY OTHER BANK TRANSACTION TO BE REJECT
TRANSACTION IS GENUINE TRANSACTION SHOULD ENSURE BHASED ON THE DOCUMENTS
ASSCERTAIN COMMENCEMENT DATE - SHIPMENT DATE/EXPORT LEG RECEIVED DATE/IMPORT LEG PAYMENT DATE WHICHEVER IS FIRST
ASSERTAIN COMPLETION DATE - SHIPMENT DATE/EXPORT LEG RECEIVED DATE/IMPORT LEG PAYMENT DATE WHICHEVER IS LAST
BOTH THE LEG OF MTT TO BE COMPLETED WITHIN 9 MONTHS
THERE SHOULD NOT BE ANY OUTLAY OF FUNDS BEYOND 4 MONTHS
PURPOSE CODE P0108 BE USED FOR GOODS SOLD/EXPORTED UNDER MTT
PURPOSE CODE S0108 BE USED FOR GOODS ACQUIED/IMPORTED UNDER MTT
NO THIRPARTY PAYMENT AGAINST MTTI OR THIRDPARTY RECEIPT AGAINST MTTE IS ALLOWED
3. THE DESCRIPTION OF GOODS UNDER MTTI SHOULD MATCH WOTH THE EXPORT ORDER OR EXPORT LC UNDER MTTE
8 DIGIT HS CODE SHOULD ENTER IN THE FIELD GOODS DESCRIPTION UNDER I-CORE.
IMPORT OF PLATINUM, PHODIUM, SILVER, GOLD, ROUGH CUT AND POLISHED DIAMONDS, PRECIOUS AND SEMI PRECIOUS STONES, GOLD JEWELLERY
WITH PRECIOUS AND SEMI PRECIOUS STONES INCLUDING DIAMOND AND PERLS ARE SUBJECT TO CERTAIN GUIDELINES AND RESTRICTIONS.
THEREFORE WHILE ALLOWING IMPORT OF SUCH COMMODITIES UNDER MTT HIGHER AUTHORITY APPROVAL IS REQUIRED
NO REDUCTION/DISCOUNT IN INVOICE VALUE UNDER MTT IS ALLOWED AT ANY STAGE WITHOUT RBI PPROVAL
4 .MTT FLAG IN I-CORE SHOULD BE SELECTED "Y" FOR ANY FLAG LODGEMENT UNDER MTTE OR MTTI
DETAILS OF CORRESPONDING LEG OF MTT, IE MTTI OR MTTE TO BE OBTAINED AND TO BE UPDATED IN I-CORE.
HOWEVER WHEN A LEG IS STILL NOT TAKEN PLACE DEVAITION TO BE MARKED
WHILE LODGING FIRST BILL AGAINST MTT MARK DEVIATION OF 8 MONTHS. AS TOTAL COMPLETION DEVIATION IS 9 MONTHS
WHILE HANDLING EXPORT ADVANCE TRANSACTION MARK DEVIATION OF 8 MONTHS
WHILE HANDLING IMPORT ADVANCE TRANSACTION 2 DEVIATION 3 MONTHS AND 8 MONTHS TO BE MARKED
DEVIATION TO BE MARKED FOR 90 DAYS (AFTER IMPORT PAYMENT) FOR REALIZATION OF EXPORT PROCEEDS AGAINST THE RESPECTIVE IMPORT BIL
NO DEVIATION TO BE ALLOWED FOR OBTAINING MTTI DETAILS, AT THE TIME OF LODGEMENT OF DOCUMENT UNDER MTTE.
5 . THE NATURE OF TRANSPORT DOCUMENT (AWB/BL) AND ITS NO AND DATE BE CORRECTLY SELECTED AND MENTIONED IN FIELD I-CORE AT THE TIM
OF MTT AS IT IS THE COMMON DOCUMENTS FOR BOTH THE LEG AND NUMBER, DATE SHOULD EXCEPT WHERE THE MTTIS SEZ/BTP/STP/EHTP UNITS
3. CONCEPT- WE ARE THE MTT COUNTRY, IMPORTER IS IN BANGLADESH AND EXPORTER IS IN US
1. WE RECEIVED THE PAYMENT FIRST FROM EXPORTER IN US
GENERATE SXR - CHECKLIST AS PER SXR
WE HAVE TO MAKE PAYMENT TO EXPORTER WITHIN 4 MONTHS
SO MARK DEVIATION FOR 3 MONTHS AND ALSO MARK DEVIATION FOR SHIPMENT OF 8 MONTHS
ADDITIONAL DOCUMENT TO BE OBTAINED FROM THE CLIENT -
i) MTT DECLARATION
ii) SELF CERTIFIED COPY OF CONFIRMED EXPORT ORDER/EXPORT CONTRACT/ EXPORT PROFORMA INVOICE OF MTT.
iii) CRL FOR SETTLEMENT OF ADVANCE AGAINST MTTE
a) MARK THE LIEN FOR PAYMENT OF MTT IMPORT LEG
b) FUNDS TO BE UTILIZED FOR MAKING ADVANCE PAYMENT AGAINST MTTI
c) AMOUNT CAN BE CONVERTED IN INR AND CAN BE KEPT IN OPERATING ACCOUNT OF THE CUSTOMER
d) FUNDS MAY KEPT IN SHORT TERM INTEREST BEARING TERM DEPOSIT EITHER IN FOREIGN CURRENCY OR IN INR.
e) FUNDS MAY BE KEPT IN FCA OR EEFC ACCOUNTS AND LIEN MARKED FOR MTTI
f) MTT FLAG IN I-CORE TO BE SELECTED AS "Y"
2. WE MAKE ADVANCE PAYMENT TO THE EXPORTER IN US OUT OF MTT TRADER ACCOUNT
GENERATE SMI - CHECKLIST AS PER SMI
PAYMENT HAS TO BE RECEIVED FROM EXPORTER WITHIN 4 MONTHS
MARK DEVIATION OF 3 MONTHS
ALSO MARK DEVIATION FOR SHIPMENT OF 8 MONTHS
IF MTTI ADDITIONAL DOCUMENTS REQUIRED -
a) MTT DECLARATION
b) SELF CERTIFIED COPY OF CONFIRMED EXPORT ORDER/ EXPORT CONTRACT/ EXPORT PI
c) SELF CERTIFIED COPY OF CONFIRMED IMPORT ORDER/ IMPORT CONTRACT/ IMPORT PI
c) CRL FOR MAKING ADVANCE PAYMENT AGAINST MTTI, ALONG WITH DOCUMENTS
d) AC NO WHERE SXR PROCEEDS TO BE KEPT AND LIEN MARKED
e) ORIGINAL BG/SBLC/LC IN FAVOUR OF IMPORTER ISSUED BY AN INTERNATIONAL BANK EXCEEDS USD 2,00,000 (EXCLUDING ADVANCE RECEIVED AG
f) THE TERMS OF PAYMENT UNDER IMPORT ORDER/ PROFORMA INVOICE/ AGREEMENT BETWEEN BUYER AND MTT TRADER SHOULD PERMIT FOR ADV
I ) MTT FLAG IN I-CORE TO BE SELECTED AS "Y"
ii) IF BL IS PROVIDED PROCESS THE TRANSACTION UNDER MDC
iii) IF BL IS NOT PROVIDED PROCESS THE TRANSACTION UNDER SMI
1) LIEN TO BE REMOVED AT THE TIME OF EXPORT ADVANCE LEG AT THE TIME OF PROCESSING ORM TRANSACTION.
2) IN CASE OF FULL PAYMENT OF IMPORT LEG IS DONE THE BALANCE CAN BE RETURNED TO CUSTOMER ACCOUNT
3) IF THERE IS ANY ADVANCE RECEIPT AGAINST MTTE THAT SHOULD BE UTILIZED SXR NO IF ADVANCE PAYMENT RECEIVED AGAINST MTTE
3. WE ARE MAKING ONLY SHIPMENT OF GOODS
GENERATE XFC - CHECKLIST AS PER XFC
2 DEVIATION TO BE MARKED FOR IMPORT PAYMENT AND EXPORT RECEIVED
1 DEVIATION OF COMPLETION
a) MTT DECLARATION
b) SELF CERTIFIED COPY OF CONFIRMED EXPORT ORDER/ EXPORT CONTRACT/ EXPORT PI
c) ORIGINAL INVOICE
d) ORIGINAL PACKING LIST
e) ORIGINAL BL/AWB
f) ORIGINAL INSURANCE (IN CASE OF CIP AND CIF)
g) ORIGINAL EXPORT LC IN CASE OF XBN
h) DETAILS OF MATCHING LEG IS MANDATORY
i) XFC TO BE LODGED IF DISCOUNTING NOT DONE
ii) DEVIATION ABOUT NON AVAILIBILITY OF MATCHING LEG UNDER CIRCUMSTANCES GIVEN
iii) WHILE LODGING OF IMPORT BILL AND EXPORT BILL, WHEN THIS IS THE FIRST TRANSACTION IN MTT - MARK DEVIATION FOR 8 MONTHS FOR COMPL
WITHIN OVERALL PERMISSIBLE TIMELINE GRANTED
iv) WHILE HANDLING EXPORT ADVANCE TRANSACTION UNDER MTT - MARK DEVIATION FOR 8 MONTHS
v) DUE DATE SHOULD FALL WITHIN 4 MONTHS, FROM THE ACTRUAL PAYMENT DATE OF MTTI.
vi) ALSO ENSURE BOTH THE LEGS SHOULD COMPLETED WITHIN 9 MONTHS
vi) IF BUYERS CREDIT OR SUPPLIERS CREDIT ALREADY ALLOWED FOR 180 DAYS FROM THE DATE OF SHIPMENT, THE DUE DATE OF MTT SHOULD NOT
FROM THE DATE OF COMMENCEMENT OF MTT. SO AS TO ENSURE THAT BOTH THE LEGS HAVE BEEN STRUCTURED, TO ENSURE COMPLETION WITHIN
vii) PART ADVANCE PAYMENT RECEIVED (SXR) IF ANY TO BE ADJUSTED AGAINST THE XFC
viii) DISCOUNTING CAN BE DONE THEN CHECKLIST AS PER XBN
4. WE ARE DOING REALIZATION UNDER EXPORT LEG
a) BRANCH TO SUPPLY THE DETAILS OF THE MATCHING LEG
b) ENSURE REFERANCE NO OF MATCHING LEG OF THE MTT (MTTI IN MTTE VISE VERSA)
c) REALIZATION OF ANY LEG OF MTT CAN BE DONE EVEN AFTER DEFAULT OF ITS REPORTING
d) WHILE REALIZING MTTI, THE FUNDS ALREADY LIEN MARKED UNDER MTTE, IF ANY TO BE UTILIZED FIRST FOR THE PURPOSE OF PAYMENT OF MTTI
e) IMPORT BILLS (MFC, MDC, MUB, MFB etc) NEED TO BE KNOCKED OF AGAINST EXPORT ADVANCE SXR
f) ADVANCE IMPORT SMI BILL NEED TO BE KNOCKED OF AGAINST THE EXPORT BILL (XFC,XFM ETC)
g) NO ADVANCE IMPORT BILL SMI TO BE KNOCKED OF AGAINST EXPORT ADVANCE SXR AND VICE-VERSA.
h) IN SUCH CASES KNOCKING OF CAN BE DONE, ONLY IF THE SHIPMENT ARE SCANNED BY BRANCH IN TMISC LODGE QUE.
i) BILLS TEAM TO CONDUCT AMLOCK AND SCRUTINY OF DOCUMENTS. IF THE DOCUMENTS ARE IN ORDER,
KNOCK OFF THE RELATED INWARD AND OUTWARD REMITTANCE TRANSACTION IN SMI AND SXR REFERANCE NO
j) IN ALL THE INSANE WHERE THE EXPORT AND IMPORT LEG IS KNOCKED OFF,
CROSS REFERANCE TO BE DONE IN RESPECTIVE IMPORT AND EXPORT LEG
k. EXPORT PROCEEDS BE UTILIZED FOR PAYMENT OF MTTI, IN CASE MTTI ALREADY BEEN SETTLED GIVE CREDIT TO CLIENT ACCOUNT
l. PART ADVANCE PAYMENT RECEIVED IF ANY (SXR) BE ADJUSTED FOR EXPORT LEG AND BILL TO BE DRAWN FOR THE BALANCE AMOUNT
m) LC CAN BE AVAILABLE WITH ANY BANK - IF IMPORT LEG IS PAID DISCOUNTING PROCEEDS CAN BE CREDITED TO CLIENT AC
IF NOT PAID PROCEEDS TO BE LIEN MARKED FOR IMPORT PAYMENT
n) IF BC IS AVAILED FOR IMPORT LEG DISCOUNTING FUNDS TO BE FIRST USED FOR REPAYING THE BC
5. WE ARE OPENING AN IMPORT LC A LC IN FAVOUR OF MTT TRADER
GENERATE MLC - CHECKLIST AS PER MLC
1. MTT DECLARATION
2. SELF CERTIFIED COPY OF EXPORT ORDER/ EXPORT CONTRACT/EXPORT PI
3. SELF CERTI FIED COPY OF IMPORT ORDER/ IMPORT CONTRACT/IMPORT PI
4. SXR NO IF ADVANCE RECEIVED AGAINST MTT
5. ACCOUNT NO WHERE SXR PROCEEDS KEPT AND LIEN MARKED
6. SMI NO IF PART ADVANCE ALREADY MADE
7. TC FORM INCLUDING APPROVAL OF SC OR BC
8. THE TERMS OF PAYMENT UNDER IMPORT ORDER/PI/AGREEMENT SHOULD CONTAIN PAYMENT TERMS AS PER LC
10. WHERE EVER ADVANCE PAYMENT BEEN RECEIVED AGAINST MTTE, NO SUPPLIER OR BUYERS CREDIT TO BE ALLOWED
11. IN CASE PART ADVANCE PAYMENT IS RECEIVED AGAINST MTTE, THE BUYERS OR SUPPLIERS CREDIT MAY BE ALLOWED UNDER LC. THE AMOUNT O
FOR BALANCE AMOUNT
12. THE PROSPECTIVE DATE OF SHIPMENT AS PER LC, SHOULD BE WITHIN PROSPECTIVE DATE OF SHIPMENT AS PER CONFIRMED EXPORT ORDER
13. THE PERIOD OF SC OR BC SHOULD BE ALLOWED IN SUCH A WAY, THAT OUTLAY OF FUNDS SHOULD NOT BE MORE THAN 4 MONTHS FROM THE NOT
AS PER CONFIRMED EXPORT ORDER AND DUE DATE OF BILL SHOULD FALL UNDER LC.
14. BILLS UNDER LC MAY FALL AFTER THE NOTIONAL DUE DATE AS PER EXPORT ORDER, SUBJECT TO COMPLETION OF MTT WITHIN 9 MONTHS FROM
6. DOCUMENTS RECEIVED UNDER LC IMPORT BILLS UNDER LC
0. GENERATE MUBMFB - CHECK GUIDELINES OF MUBMFB
1. MTT DECLARATION
2. ORIGINAL INVOICE
3. ORIGINAL PACKING LIST
4. ORIGINAL INSURANCE (CIP OR CIF)
5. SELF CERTIFIED COPY OF CONFIRMED IMPORT ORDER/IMPORT CONTRACT/ IMPORT PI
6. SELF CERTIFIED COPY OF CONFIRMED EXPORT ORDER/ EXPORT CONTRACT/EXPORT PI
7. ALL OTHER DOCUMENTS AS PER LC TERMS
8. SMI NO IF PART ADVANCE PAYMENT ALREADY MADE
9. SXR NO IF PART ADVANCE PAYMENT RECEIVED AGAINST MTTE
10. AC NO WHERE SXR PROCEEDS KEPT AND LIEN MARKED
11. FOR ALLOWING SUPPLIERS CREDIT TC FORM INCLUDING APPROVAL
12. IF USANCE, THE DUE DATE OF DOCUMENTS UNDER LC SHOULD FALL WITHIN 4 MONTHS OF NOTIONAL DUE DATE ASPER EXPORT DOCUMENTS.
13. THESE SHIPPING DOCUMENTS WOULD NOW BE USED FOR PAYMENT TERMS S PER CONFIRMED EXPORT ORDER OR EXPORT LC
14. HOWEVER DUE DATE OF BILLS UNDER LC, MAY FALL UNDER NOTIONAL DUE DATE AS PER EXPORT ORDER.
15. SUBJECT TO COMPLETION OF MTT WITHIN 9 MONTHS
16. IN CASE OF DOCUMENTS AT SIGHT(DP). THE NOTIONAL DUE DATE OF IMPORT BILLS UNDER LC, SHOULD FALL WITHIN THE
17. DUE DATE OF DOCUMENTS UNDER LC SHOULD FALL WITHIN FOUR MONTHS FROM THE NOTIONAL DUE DATE OF EXPORT DOCUMENTS SHIPMENT D
18
7. DIRECT IMPORT BILLS
8. MTT DEFAULTS
1. IF THE ENTIRE MTT TRANSACTION IS COMPLETED BEYOND 9 MONTHS
2. IF OUTLAY OF FUNDS EXCEEDS 4 MONTHS
3. IF BOTH THE LEG OF MTT ARE NOT ROUTED THROUGH SAME BANK
4. MTT TRANSACTION CAUSES LOSS FOR MTT TRADER
PRIOR RBI APPROVAL IS REQUIRED IN CASE OF ANY ABOVE 4 DEVIATION
9. MTT DEFAULTS DEPORTING
1. ENSURE ONE 2 ONE MATCHING OF MTTI LEG AND MTTE LEG AS PER MIS OF R-RETURN FOR PURPOSE CODE P0108 AND S0108.
2. REPORTING TO BE CARRIED OUT ON HALF YEARLY BASIS AS PER THE REQUIREMENT.
3. 4 ABOVE PARAMETERS TO BE MENTIONED WHILE SUBMITTING DEFAULT REPORT TO RBI
4. SEND A REPORT TO BRANCH ON QUARTERLY BASIS FOR ALL UNMATCHED CASES
6. SHARE A DEFAULT REPORT ON HALF YEARLY BASIS TO THE RESPECTIVE BRANCH.
7. MATCH THE TRANSACTION DETAILS AS SHARED BY TSU CQT TEAM
8. LETTER TO BE ALSO DISPATCH TO RESPECTIVE CLIENT, WHO HAVE DEFAULTED IN THE REPORTING HALF YEARLY.
9. SCANED COPY OF DEFAUYLT REPORT, ALONG WITH THE POD TO BE SENT TO CQT TEAM
10. HARD COPY OF THE SAME TO BE KEPT IN SEPARATE FILE
11. FOLLOWUP AND MONITORING FOR DETAILS OF CORRESPONDENT LEG OF MTT, WHEN ONE LEG TRANSACTION DONE, MARK DEVIATION FOR THE N
12. RESPECTIVE MIS TO BE UPDATED FOR ALL EXPORT ADVANCE SXR
10. FOLLOWUP LETTERS OF MTT
1. TO BE SENT ON THE DATE OF LODGEMENT OF THE BILL
2. TO BE SENT ON LODGED BILL DUE DATE
3. SENT LETTER INTIMATING VIOLATION OF RBI GUIDELINES, IN CASE OF BILL REMAIN IN LODGED STATUS AFTER 270 DAYS FROM THE DATE OF SHIPM
4. TO BE SENT ON 91ST DAY FROM THE DATE OF LODGEMENT OF SMI CASES.
11. MTT TO NEPAL & BHUTAN
1. NEPAL AND BHUTAN ARE LAND LOCKED COUNTRIES. TREATY OF TRADE AND TRANSIST AGREEMENT WITH INDIA IS APPLICABLE HERE FOR IMPORT
COUNTRY TO NEPAL AND BHUTAN. MTT WHERE GOODS CONSIGNED TO IMPORTER OF NEPAL/BHUTAN ARE QUALIFIED FOR TTT.
2. DOCUMENTS REQUIRED
a) ENSURE OBTAINING ANNEXURE
b) ENSURE PARTICULARS GIVEN IN LG (FOR BHUTAN) AND CDT (FOR NEPAL)
MATCH WITH GIVEN IN TRANSPORT DOCUMENT AND INVOICE UNDER MTTE AND DOCUMENTS ARE CONSISTENT
c) IN CASE OF LG FOR BHUTAN AND CDT FOR NEPAL IS NOT SUBMITTED FOR MTTE DEVIATION CAN BE MARKED FOR 15 DAYS.
d) ALL OTHER MTT DIRECTION TO BE FOLLOWED
3. IN CASE OF MTTE TO BHUTAN SELF CERTIFIED COPY OF LG ISSUED BHUTAN CUSTOMS/ REPRESENTATIVE OF GOVT OF BHUTAN AS PER FORMAT P
WHICH SHOULD ALSO BE DULY ENDORSED BY INDIAN CUSTOMS. THIS LG TO BE REQUIRED TO BE SUBMITTED UNDER PROVISSION OF ARTICLE-V OF T
AND VALID UPTO 10 YEARS.)
4. IN CASE OF MTTE TO NEPAL SELF CERTIFIED COPY OF CDT IMPORT LICENCE ISSUED BY HIS MAJESTY GOVT OF NEPAL, SELF CERTIFIED COPY OF L
COMMERCIAL BANK OF NEPAL
5. IN CASE OF NEPALESE IMPORT FOR WHICH THERE IS NO REQUIREMENT OF IMPORT LICENCE OR LC, THE NEPALESE CONSUL GENERAL, DEPUTY C
CONSUL AT CALCUTTA, SHALL FURNISH THE FOLLOWING CERTIFICATE ON CUSTOM TRANSIST DECLARATION, IN SUCH CASES ABOVE DOCUMENTS AR
OBTAINED AS THE SAME WOULD NOT BE AVAILABLE.
"I HAVE VERIFIED THAT GOODS SPECIFIED IN THE DECLARATION, QUOTATION AND VALUE SPECIFIED,THEREIN HAVE PERMITTED TO THE IMPORTED B
THE REQUIREMENT OF "IMPORT LICENCE" OR "LC".
ABOVE DECLARATION SHOULD BE TAKEN WHEN THERE IS NO REQUIREMENT OF IMPORT LICENCE OR LC
6. FOR QUARIES REFER TO TCT-CENTRAL
12. DECLARATION OF MTT
1. MATCHING EXPORT LEG
i) BUYERS NAME ii) AMOUNT IN FC iii) AMOUNT REALIZED iv)AMOUNT OUTSTANDING v) PAYNENT DATE IF PAID
2. MATCHING IMPORT LRG
i) SELLER NAME ii) AMOUNT IN FC iii) AMOUNT PAID IN FC iv) AMOUNT PAID IF ANY v) AMOUNT OUTSTANDING IF ANY vi) PAYMENT DATE IF PAID
3. DETAILS OF ADVANCE PAYMENT BEING RECEIVED OR ALREADY RECEIVED IF ANY AGAINST MTTE
4. DETAILS OF ADVANCE PAYMENT BEING MADE OR ALREADY MADE IF ANY AGAINST MTTI
13. CUSTOMER DECLARATION
1. GOODS HAVE NEITHER ENTERED INTO DTA OR NOR HAVE GONE THROUGH ANY TRANSFORMATION
2. GOODS INVOLVED UNDER MTT ARE PERMITTED AS PER FTP AND ALL RULES AND REGULATIONS ARE APPLICABLE TO EXPORT AND IMPORT
3. WE WILL ROUTE BOTH THE LEGS OF MTT WITH YOUR GOOD BANK AND SUBMIT NECESSERY DOCUMENTS LIKE INVOICE, PACKING LIST, TRANSPOR
AND INSURANCE IN SUPPORT OF GENUINENESS OF MTT
4. 9 MONTHS, 4 MONTS
5. PROFIT TO US
6. WE ARE A MTT TRADER DEALING IN COMMODITY__________
7. IN CASE OF INWARD REMITTANCE RECEIVED AGAINST MTTE, FUNDS CAN BE LIENMARKED BY BANKS FOR PAYMENT OF IMPORT LEG
8. WE ARE THE GENUINE MARCHENT TRADER OF GOODS NOT BARE FINANCIAL INTERMEDIARIES
9. TERMS OF EXTANT FEMA GUIDELES OF RBI.
10. THE DEFAULTING MTT OUTSTANDINGS NOT EXCEEDS 5% OF OUR ANNEXURE EXPORT EARNINGS
11. NOT CAUTION LISTED.

PART - 8 - DIFFERENT CONCEPTS

1. SOFTWARE EXPORTS AND SOFTEX FORM
1. FOR LONG DURATION CONTRACT INVOLVING SERIES OF TRANSACTIONS, EXPORTER SHOULD INVOICE THEIR OVERSEAS CLIENTS ONCE IN MONTHS
RAISED NOT LATER THAN 15 DAYS FROM THE DATE OF COMPLETION OF CONTRAT
2. COMBINED SOFTEX FORM TO BE FILLED FOR ALL INVOICES RAISED ON A PARTICULAR OVERSEAS CLIENT, INCLUDING ADVANCE REMITTANCE RECE
IN A MONTH FOR EXPORT VALUATION TO DESIGNATED OFFICIAL
3. FOR CONTRACT INVOLVING ONE SHOT OPERATION, INVOICE TO BE RAISED WITHIN 15 DAYS FROM THE DATE OF TRANSMISSION
4. EXPORTER SHOULD SUBMIT SOFTEX FORM IN QUADUPLICATE, FOR THE EXPORT OF COMPUTER SOFTWARE/AUDIO-VIDEO-TELEVSION SOFTWARE T
AT STPI/SEZ/EPZ/FTZ UNITS FOR VALUATION VERTIFICATION NOT LATER THAN 30 DAYS FROM THE DATE OF INVOICE.
5. ALL SOFTWARE EXPORTER CAN NOW FILE SINGLE AS WELL AS BULK SOFTEX FORM IN IN EXCEL FORMAT TO COMPETANT AUTHORITY FOR CERTIF
6. EXPORTER NEED TO SUBMIT SOFTEX TO STPI/SEZ AUTHORITIES IN DUPLICATE
7. EXPORTER NEED TO PROVIDE INFORMATION ABOUT ALL THE INVOICES INCLUDING LESSER THAN $ 25000 TO THE EXCEL SHEET
8. SOFTEX FORM IS COMMON FOR DECLARE SINGLE AS WELL AS BULK SOFTWARE EXPORTS
9. RBI HAS EXTENDED THE FACILITY OF ONLINE GENERATION OF EDF AND SOFTEX FORMS
10. BANK SHOULD DO RANDOM CHECKING OF NON-REALIZATION, SHORT-REALIZATION OF SOFTWARE EXPORTS
REQUEST RECEIVED FOR LODGEMENT OF EXPORT BILL UNDER COLLECTION WITH DOCUMENTS.
AT THE TIME OF XFC LODGEMENT GR FIELD TO BE UPDATED AS ZZ.
SELF MESSAGE TO BE UPDATED AS "EXPORT OF SERVICE, NATURE OF SERVICE, RELATIVE PURPOSE CODE".
ON RECEIPT OF EXPORT PROCEEDS SETTLE THE FUNDS WITH
RELATIVE PURPOSE CODES AND REALIZE THE BILL.
2. ADVANCE RECEIVED FOR EXPORT OF SERVICES
ADVANCE RECEIVED FOR EXPORT OF SERVICES TO BE SETTLED UNDER PURPOSE CODE P0103. INWARD
TEAM WILL LODGE GRS/SXR UNDER P0103. ON RECEIPT OF RESPECTIVE
EXPORT BILL LODGE XFM AGAINST THAT SXR/GRS
3. THIRD PARTY PAYMENTS
A.THIRDPARTY PAYMENT ON IMPORT EXPORT TRANSACTION CAN BE MADE SUBJECT TO
1. FIRM IRREVOCABLE ORDER BACKED BY TRIPARATE AGREEMENT, IRREVOCABLE LC
2. BONAFIED
3. FATF STATEMENTS
4. ROUTED THROUGH BANKING CHANNEL ONLY
5. THIRD PARTY NAME IN EDF
6. TIN CASE OF MPORTS INVOICE SHOULD CONTAIN THIRD PARTY PAYMENT NARRATION
B. RESPONSIBILITY OF THE EXPORTER TO REALIZE THE PAYMENT
C. OUTSTANDING TO BE REPORTED IN XOS STATEMENT
D. SHIPMENT TO RESTRICTED COVER COUNTRY CAN BE RECEIVED FROM OPEN COVERED COUNTRY
1. PAYMENT FROM EXPORTER SHOULD BE RECEIVED FROM OVERSEAS BUYER NAMED
AND CURRENCY MENTIONED IN THE EDF.
2. TPE MEANS PAYMENT RECEIVED FROM A PARTY OTHER THAN NAMED IN EDF.
3. TO BE DECLARED IN EDF AS A THIRD-PARTY REMITTER.
4.BANK SHOULD SATISFY TRANSACTION IS BONAFIED
5. CONSIDER FATF STATEMENT WHILE HANDLING TRANSACTION
6. BOE CAN BE DRAWN ON THIRD PARTY IN CASE OF B2B, B2C EXPORT DOCUMENTS
7. DOCUMENTS DRAWN UNDER XLC BE OBTAINED
8. THIRD PARTY NAME AND ADDRESS TO BE MENTIONED IN ICORE INSEAD OF BUYER NAME.
9. SELF MESSAGE TO BE UPDATED AS TPE TRANSACTION AND NAME OF THE BUYER.
10. ENSURE THAT ORDERING CUSTOMER NAME IN SWIFT 103 , SHOULD MATCH WITH THE THIRD PARTY
NAME MENTIONED IN EDF WHILE REALIZATION FOR B2C AND CTOC
11. FOR BTOB 202 REMITTANCE CAN BE RECEIVED FROM OTHER BANKS
4. DEEP SEA FISHING VESSEL - CATCHES AT MID SEA - AND TRANSHIPPED
1. GR FORM DULY SIGNED BY MASTER OF VESSEL AND CUSTOMS - INDICATING COMPOSITION OF CATCH, QUANTITY, EXPORT VALUE, DATE OF TRANS
2. DATE OF TRANSFER OF CATCH = DATE OF SHIPMENT
3. IN CASE OF SDF FORM BL AND DATE TO BE MENTIONED IN LINE OF SHIPPING BILL NO AND DATE
4. BL/RECEIPT OF TRANSHIPMENT ISSUED BY CARRIER VASSEL SHOULD INCLUDE GR NO
5. GR FORM DECLARING SUCH EXPORT SHOULD BE DULY SUPPORTED BY A CERTIFICATE FROM AN INTERNATIONAL MARINE CARGO SURVEYAR
6. PRESCRIBED PERIOD FOR REALIZATION AND REPATRIATION SHOULD BE IN LINE WITH DATE OF TRANSFER OF CATCH, DATE OF INVOICE WHICHEVE
7. GR FORM SHOULD MENTION NUMBER AND DATE OF LETTER OF PERMIT ISSUED BY MOA,GOI. FOR OPERATION OF VASSEL
8. THE EXPORTER TO COMPLETE THE GR FORM IN DUPLICATE AND BOTH THE COPIES TO BE SUBMITTED TO CUSTOMS AT REGISTERED PORT OF VES
OR ANY OTHER PORT AS APPROVED BY MOA. GR TO BE RETAINED BY THE CUSTOMS FOR CAPTURING OF DATA IN CUSTOMS EDI.
9. GR SHOULD CONTAIN RUNNING SERIAL NO ALLOTED BY CUSTOMS
10. FURTHER RULES REGULATIONS DIRECTIONS ISSUED BY RBI IN RESPECT OF PROCEDURE FOR SUBMISSION OF GR FORM BY EXPORTER TO BANKS
FORMS BY THE BANK WILL BE SAME AS APPLICABLE TO OTHER EXPORTER
5. DEEMED EXPORTS
DEEMED EXPORT REFERS TO THOSE TRANSACTION IN WHICH GOODS SHIPPED DO NOT LEAVE THE COUNTRY AND PAYMENT CAN BE MADE EITHER IN
FOLLOWING CATAGORIES OF SUPPLY OF GOODS BY MAIN/SUBCONTRACTORS IS REGARDED AS "DEEMED EXPORTS"
A. SUPPLY OF GOODS AGAINST ADVANCE AUTHORIZATION
B. SUPPLY OF GOODS TO EOU, STP,EHTP,BTP
C. SUPPLIES TO UNITS OTHER THAN 100 % EOU AND SEZ UNITS, SUPPLIES TO 100 % EOU, SUPPLIES TO SEZ UNITS
D. SUPPLY OF CAPITAL GOODS TO HOLDER OF AUTHORIZATION UNDER EPCG SCHEME
E. SUPPLY OF GOODS TO PROJECT FINANCED BY MULTILATERAL AND BYLATERAL AGENCIES/ FUNDS AS NOTIFIED BY DEA,MOF UNDER INTERNATIONA
IN ACCORDANCE WITH THE PROCEDURES OF THOSE AGENCIES/FUNDS, WHERE LEGAL AGREEMENT PROVIDED FOR LENDING EVOLUTION WITHOUT IN
BIDS MAY HAVE BEEN INVITED AND EVALUATED ON THE BASIS OF DDP PRICES OF GOODS MANUFACTURED ABROAD
F. SUPPLY OF CAPITAL GOODS INCLUDING UNASSEMBLED/DIISASSEMBLED CONDITIONS AS WELL AS PLANT, MACHINERY, ACCESSORIES, TOOLS, DIE
ARE USED FOR INSTALLATION PURPOSES TILL THE STAGE OF COMMERCIAL PRODUCTION AND SPARES TO EXTENT OF 10% OF VALUE OF FERTILIZER
G. SUPPLY OF GOODS TO ANY PROJECT OR PURPOSE IN RESPECT OF WHICH MOF PERMITS THE IMPORT OF GOODS AT ZERO CUSTOMS DUTY
H. SUPPLY OF GOODS TO POWER PROJECTS AND REFINERIES
I. SUPPLY OF MARINE FREIGHT CONTAINERS BY EOU ( FROM DOMESTIC FREIGHT CONTAINER MANUFACTURERS PROVIDED THE SAID CONTAINERS AR
WITHIN 6 MONTHS OR SUCH FURTHER PERIOD AS PERMITTED BY THE CUSTOMS
J. SUPPLY OF PROJECTS FUNDED BY UN AGENCIES
K. SUPPLY OF GOODS TO NUCLEAR POWER PROJECTS THROUGH COMPETIVE BIDDING. BENIFITIS OF DEEMED EXPORT UNDER ICB IS AVAILABLE.
L. SUPPLIES MADE BY DEEMED EXPORTER DIRECTLY TO THE MAIN/SUB-CONTRACTORS OF DESIGNATED PROJECTS/AGENCIES/UNITS.
M. SUPPLIES MADE BY INDIAN SUBCONTRACTOR TO AN INDIAN FOREIGN MAIN CONTRACTOR, IS ALSO BE ELIGIBLE FOR DEEMED EXPORT BENEFITS S
CONTRACTOR IS INDICATED IN THE CONTRACT AND PAYMENT CERTIFICATE IS ISSUED BY PROJECT AUTHORITY IN THE NAME OF SUB-CONTRACTOR
6. CONSIGNMENT EXPORT
A. BASIC
1. RECEIVE REQUEST FOR FORWARDING SHIPPING DOCUMENTS OF EXPORTS ON CONSIGNMENT BASIS ALONG WITH OTHER DOCUMENTS.
2. ACKNOWLEDGE THE SAME BY PUTTING STAMP DATE TIME OF RECEIPT IN ORIGINAL COPY AS WELL AS CUSTOMER COPY.
3. PROCESS OF REALIZATION IS NORMAL.
4. DOCUMENTS REQUIRED - CRL, BOE,INVOICE,BL,GR, INSURANCE, PACKING LIST, COPY OF ANY OTHER DOCUMENTS, ONE TIME FEMA DECLARATION
5. BANK TO FORWARD SHIPPING DOCUMENTS TO ITS OVERSEAS BRANCH CORRESPONDENT, SHOULD INSTRUCT OVERSEAS BRANCH TO DELIVER TH
OR UNDERTAKING TO DELIVER THE PROCEEDS WITHIN SPECIFIED PERIOD
6. AGENT/CONSIGNEE MAY DEDUCT FROM THE SALE PROCEEDS LANDING CHARGES, WARE HOUSE RENT, HANDLING CHARGES ETC AND REMIT THE P
7. EXPORT OF PRECIOUS AND SEMI-PRECIOUS STONES - ARE EXPORTED MOSTLY ON CONSIGNMENT BASIS.
8. ACCOUNT SALES RECEIVED FROM THE AGENT/CONSIGNEE TO BE VERIFIED BY THE BANKS
9. IN CASE OF PAYMENT PERTAINS TO IMPORT OF OIL GAS, IF IMPORTER IS IN ACU, CAN BE SETTLED OUTSIDE ACUMECHANISM
10. OFAC,AMLOCK,FATF TO BE COMPLIED
11. APPROVAL FOR 1 L AND FOR JPY 10 L
12. C TO C CASES ARE NOT PERMITTED UNDER CONSIGNMENT EXPORT
13. FREIGHT OR MARINE INSURANCE MUST BE ARRANGED IN INDIA
14. EXPORTER HAVING SATISFACTORY TRACK RECORD ELIGIBLE FOR LONGER PERIOD REALIZATION UPTO 12 MONTHS.
15. EXPORT OF BOOKS REALIZATION UPTO 9 MONTHS
IF BOOKS ARE UNSOLD EXPORTER CAN SHOW THAT AS A DEDUCTION OF SALE PROCEEDS
B. CHECKLIST FOR LODGEMENT
1. THE BILL TENOR SHOULD BE UPTO 365 DAYS FROM THE DATE OF SHIPMENT. IN CASE TO BE EXTENDED RBI APPROVAL REQUIRED
2. TERMS OF SHIPMENT TO BE CIF.
3. BILL TO BE LODGED WITH XFA BILL ID UNDER FOBCCON
4. COVERING SCHEDULE SHOULD MENTION "DELIVER DOCUMENT AGAINST TRUST RECEIPT/UNDERTAKING"
7. NETTING OFF PROCESS FOR UNITS IN SEZ
1. RECEIVE THE CRL ALONG WITH OTHER DOCUMENTS AND ACKNOWLEDGE THE SAME BY PUTTING STAMP DATE AND TIME
CUSTOMER SHOULD CLEARLY MENTION THAT TRANSACTION IS UNDER NETTING OFF
2. SHIPPING BILL PROVIDED BY THE CUSTOMER SHOULD CLEARLY MENTION IN THE COLUMN "ANALYSIS OF EXPORT VALUE" - FOR TOTAL AMOUNT OF
AMOUNT TO BE DEDUCTED AND NET AMOUNT TO BE RECOVERED
3. INCOICE PROVIDED BY THE CUSTOMER SHOULD CLEARLY MENTION AS PER 2 ABOVE
4. BILL OF ENTRY PROVIDED BY THE CUSTOMER WOULD PROVIDE THE AMOUNT OF COMMOFITY IMPORTED
5. DECLARATION FROM EXPORTER DECLARING THAT THE NETTING-OFF OF EXPORT RECEIBABLES AGAINST IMPORT PAYABLE IN RESPECT OF SAME I
WITH OVERSEAS BUYER/SUPPLIER NAME, AND NETTING WILL BE DONE ON DATE OF BALLANCESHEET
6. A CA CERTIFICATE INDICATING IMPORTER EXPORTER BANK REFERANCE NOS, AMOUNT OF THE BILL AND AMOUNT OUTSTANDING AGAINST THE SAM
AND CERTIFY THAT THE BILLS ARE OUTSTANDING ON THE GIVEN BALANCESHEET DATE.
7. VALID CERTIFICATE CERTIFYING STATUS OF SEZ UNIT
8. SETOFF PROCESS
A. DOCUMENTS REQUIRED
i) CRL
ii) A CONCENT LETTER FROM OVERSEAS BUYER AND SUPPLIER, WHO HAVE TO BE THE SAME TO SETOFF EXPORT RECEIBABLES AGAINST IMPORT PA
THE RELEVANT DETAILS SUCH AS INV NO AND DATE, CURRENCY AMOUNT, AWB NO DATE AND AMOUNT TO BE SETOFF FOR BOTH EXPORT AND IMPOR
THIS LETTER IS TO BE DULY SIGNED BY AUTHORIZED SIGNATORIES OF PARTIES I.E OVERSEAS SUPPLIER AND BUYER , RESIDENT SUPPLIER AND BUY
a) WHERE IMPORT BILL IS DIRECTLY RECEIVED BY IMPORTER AND SUBMITTED OR TO BE SUBMITTED TO THE BANK. ABOVE CONCENT LETTER TO BE S
b) WHERE IMPORT BILL HAS BEEN RECEIVED FROM OVERSEAS SUPPLIER BY THE BANK, ISSUANCE OF NECESSERY INSTRUCTIONS DIRECTLY BY OVE
FOR SET OFF EXPORT RECEIBABLES AGAINST IMPORT PAYABLE IN TERMS OF ABOVE CONCENT LETTER
c) WHERE IMPORT BILL HAS BEEN RECEIVED FOR COLLECTION, ISSUANCE OF NECESSERY INSTRUCTION/AUTHORIZATION VIA AN AUHENTICATED
SWIFT MESSAGE OR SEPARATE LETTER FROM OVERSEAS BANK TO SETOFF THE MFC BILL LODGED AGAINST EXPORT RECEIBABLES IN TERMS
OF CONCENT LETTER IN FAVOUR OF BANK. IN CASE WHERE IMPORT BILL HAS BEEN RETURNED UNPAID OR UNACCEPTED OR DISHONOURED THE CON
RECEIVED BY OVERSEAS SUPPLIER OR BUYER MAY BE SUBMITTED.
iii) IMPORT BILL INVOICE,BL,AWB, BOE
iv) EXPORT BILL INVOICE, BL, SDF
v) WHERE ANY OR BOTH OF EXPORT IMPORT BILLS TO SETOFF UNDER THE SCHEME, HAS NOT EARLIER BEEN SUBMITTED TO THE BANK FOR COLLEC
ALL REQUIRED DOCUMENT OF SUCH BILLS TO BE SUBMITTED ADDITIONALY AS PER FEMA
vi) UNDERTAKING FROM THE PARTY (EXPORTER/IMPORTER)
a) PAYMENT OF EXPORT IMPORT BILLS IS STILL OUTSTANDING FOR THE AMOUNT TO BE SETOFF IN THE BOOKS OF THE PARTY
b) EXPORT IMPORT TRANSACTION NEITHER FALL WITHIN PURVIEW OF ACU COUNTRY, NOT IS TO BE SETTLED IN ACU CURRENCY
c) THE EXPORT IMPORT UNDER SAID BILLS ARE AS PER FTP
d) THERE IS NO BANK FINANCE OUTSTANDING AGAINST THE SAID EXPORT IMPORT BILLS
e) THERE IS NO FORWARD CONTRACT OUTSTANDING AGAINST THE SAID BILL
f) BILL IS NOT SUBJECT MATTER OF ANY PENDING CIVIL OR CRIMINAL SUIT
g) WE OR THE BILLS HAVE NOT CAME UNDER ADVESE NOTICE OF ED OR CBI OR DORI OR OTHER LAW ENFORCEMENT AGENCY
vii) A CERTIFICATE FROM A CA THAT PAYMENT OF IMPORT BILLS AND EXPORT BILLS IS STILL OUTSTANDING FOR THE AMOUNT TO BE SETOFF IN THE B
CONTAINING FOLLOWING DETAILS ABOUT RELATIVE EXPORT AND IMPORT BILLS
a) BANK REFERANCE NO
b) INV NO AND DATE
c) CURRENCY AND AMOUNT OF INVOICE
d) BL/AWB AND DATE
e) GR/SDF/SHIPPING BILL/SOFTEX/BOE
f) CURRENCY AND AMOUNT PAID IF ANY
g) AMOUNT OUTSTANDING
viii) NECESSERY INSTRUCTIONS VIA A SEPARATE SHEET/LETTER TO DEAL WITH THE EXPORT IMPORT BILLS WHICH ARE BEING REALIZED PARTLY UND
9. DISHONOUR OF EXPORT BILLS
1. RETURN OF DOCUMENTS TO EXPORTER - THE DUPLICATE COPY OF GR SDF PP FORMS AND SHIPPING DOCUMENTS ONCE SUBMITTED TO THE BANK
NEGOTIATION OR COLLECTION ETC. SHOULD NOT ORDINARILY BE RETURNED TO EXPORTER EXCEPT FOR ERROR AND RESUBMISSION . RH APPROVA
OF ONE MONTHS.
2. CHANGE OF BUYER/CONSIGNEE - PRIOR APPROVAL OF RBI IS NOT REQUIRED, IF AFTER GOODS HAVE BEEN SHIPPED, AFTER THAT, THEY ARE TO B
TO THE 2ND BUYER OTHER THAN THE ORIGINAL BUYER. IN THE EVENT OF 2ND BUYER DEFAULTS THE REDUCTION IN INVOICE VALUE IF ANY DOESNOT
OF THE INVOICE VALUE AND THE REALIZATION OF EXPORT PROCEEDS NOT DELAYED BEYOND THE PERIOD OF 9 MONTHS FROM THE DATE OF EXPOR
3. AS REQUESTED BY THE EXPORTER THAT GOODS ARE COMING BACK TO INDIA- CRL, BOE TOBE SUBMITTED. CLOSE THE BILL IN FINACLE.
CUSTOM DEPT SHOULD MENTION INVOICE NO THROUGH WHICH THE GOODS WERE SENT IN BOE.
IN CASE OF B TO B IF BOE IS NOT RECEIVED AT THE TIME OF PROCESSING THE TRANSACTION, CONFIRMATION FORM BUYER BANK THAT GOODS ARE
IN CASE OF B TO C REASON FROM IMPORTER PARTY FOR RETURN OF GOODS TO BE TAKEN AND CLOSE THE BILL IN FINACLE
IN CASE GOODS HAVE BEEN DESTROYED AND NOT COMING BACK TO INDIA - DESTRUCTION CERTIFICATE SHOULD BE CALLED FOR.
DISCHARGED DOCUMENTS SHOULD BE RETURNED BY FOREIGN BANK.
IN CASE DISCHARGE DOCUMENTS ARE NOT RETURNED SEND SWIFT TO FOREIGN BANK.
TILL THE TIME WE RECEIVE THE DOCUMENTS BILL TO BE KEPT ON DISHONOURED STATUS, AFTER RECEIPT CLOSE.
ON BOE CHECK DETAILS LIKE QUANTITY, DESCRIPTION OF GOODS, CONSIGNEE TO BE OUR PARTY.
PORT OF LOADING & DISCHARGE WILL BE REVERSED TO THE ORIGINAL TRANSACTION, CHARGES TO BE TAKEN AS PER LODGEMENT OF COLLECTION
4. GOODS NOT COMING BACK TO INDIA DUE TO CHANGE IN CONSIGNEE/BUYER - AS REQUESTED BY THE EXPORTER
GOODS SHIPPED CAN BE TRANSFERRED TO A 2ND BUYER OTHERTHAN THE ORIGINAL BUYER. IN THE EVENT OF DEFAULT OF THE 1ST BUYER.
CRL, CONFIRMATION FROM INITIAL IMPORTER BANK( IN CASE OF B TO B, IN CASE OF B TO C CONFIRMATION FORM IMPORTER PARTY), CONFIRMATION
READY TO BUY THE GOODS. REDUCTION IN INVOICE VALUE IF ANY INVOLVED SHOULD NOT EXCEED 25 %. REALIZATION OF EXPORT PROCEEDS SHOU
9 MONTHS FROM THE DATE OF SHIPMENT. IN CASE NEW FBCS IS GENERATED FOR NEW PARTY WITH DIFFERENT TERMS AND CONDITIONS CLOSE THE
AND CROSS UPDATE. ALSO SEND A SWIFT MESSAGE TO FB, ASKING THEM TO CHANGE THE NAME OF THE BUYER IN EARLIER FBCS SENT TO THEM
AND HANDLE THE TRANSACTION ACCORDINGLY. CHARGES TO BE TAKEN FOR CHANGE OF CONSIGNEE/BUYER.
5. AS REQUESTED BY THE IMPORTER GOODS ARE COMING BACK TO INDIA - BENEFICIARY CONCENT,BOE, IN CASE NOT PRESENT DEVIATION TO BE M
10. COMPENSATION POLICY
1. AS PER FEDAI GUIDELINES AND RBI CIRCULAR ON CUSTOMER SERVICE TO EXPORTER- COMPENSATION TO BE PAID TO CUSTOMER FOR DELAY IN C
BEYOND 2 WORKING DAYS UPON RECEIPT OF EXPORT CREDIT ADVICE/STATEMENT AND COMPLIANCE WITH THE REQUIREMENT OF BANK FEMA
2. THERE MAY BE LOSS DUE TO CONVERSION OF FOREIGN CURRENCY TO INR
3. IN ICICI ALL VOSTRO AND NOSTRO CREDITS DULY MATCHED WITH THE RECORDS ON THE SAME DAY OF RECEIPT
4. ON SAME DAY OR WITHIN SCEOND DAY CREDIT IS GIVEN TO CUSTOMER THROUGH IGRS
5. CLIENT IS COMMUNICATED OF SUCH INWARD REMITTANCES VIA EMAIL CALL ETC
6. IN CASE OF NON EXPORT COMPENSATION WILL BE PAID AS PER BOND APPROVED COMPENSATION POLICY, AFTER RECEIVING CLAIM FROM THE CU
7. SETTLEMENT DATE IS THE DATE IN WHICH INWARD REMITTANCE IS SETTLED IN IGRS AFTER OBTAINING NECESSERY DOCUMENTS FROM CUSTOME
8. QUARTERLY REVIEW OF COMPENSATION PAID,DELAY IN SETTLEMENT, AND DO ANALYSIS IF ANY CHANGES REQUIRED IN POLICY OF SETTLEMENT.
11. IGRS
SHIPPING BILL FROM EDI PORTS ARE ELIGIBLE FOR THIS PROCESS.DOCUMENT TO BE SUBMITTED AGAINST INWARD. IF INWARD CAME TO OTHER BAN
CAN BE PROCESSED AFTER AD TRANSFER ONLY. NON-EDI PORT GR,MTT,PROJECT EXPORT, GROSS CCY, DEEMED EXPORT ARE NOT ELIGIBLE UNDER
THESE CAN BE SETTLED IN SXR.
EXPORT BILLS ALREADY LODGED CAN BE KBOCKED OFF THROUGH GRS/SXR.
TMISC EXPORT REALIZATION TRACK TO BE RAISED
EXCEPTION-
KNOCKING OFF RESIDUAL VALUE OUTSTANDING IN IRM
KNOCKING OFF RESIDUAL VALUE OUTSTANDING IN EXPORT BILL.
KNOCKING OF AGAINST FIRC ISSUED BY OTHER BANKS WHERE DATA IS NOT AVAILABLE IN EDIS
KNOCKING OF IRM AGAINST EBRC ISSUED BY OTHER BANKS
FOREIGN CURRENCY INSTRUMENTS WHERE BENEFICIARY ACCOUNT IS A CURRENT EEFC ACCOUNT AND PURPOSE IS ADVANCE AGAINST EXPORTS
AS PER RBI GUIDELINES AND BANKS INTERNAL POLICY ADVANCE AGAINST EXPORT TRANSACTION TO BE PROCESSED ONLY IF CUSTOMER HAVING AC
BANK IS OBLIDGED TO CONDUCT DUE DILLIGENCE ON THE UNDERLYING TRADE TRANSACTION
1. RECEIVE FOREIGN CURRENCY CHEQUES WITH DEPOSIT CUM INDEMNITY SLIP SXR NO WRITTEN SIGNED BY CUSTOMER WITH DECLARATION OF SAP
INVOICE - DISPOSAL INSTRUCTION
2. IF ALL OK SENT THE CHEQUE TO RPC WITH SUPPORTING DOCUMENTS FOR REALIZATION OF CHEQUE
3. TRACK THE CREDIT IN IIOG NOSTRO

12. ACCOUNTS
A. FCA
1. PARTICIPANTS IN INTERNATIONAL TRADE FAIR AND EXHIBITION CAN OPEN OUTSIDE INDIA AND REPATRIATE THE FUNDS TO INDIA AFTER ONE MONT
2. EXPORTER HAVING GOOD TRACK RECORD CAN OPEN IN INDIA OR OUTSIDE INDIA FORM EFC TO BE SUBMITTED, DETAILS OF THE AC OUTSIDE INDIA
3. AN INDIAN ENTITY CAN OPEN MAY OPEN FCA OUTSIDE INDIA IN THE NAME OF THEIR OVERSEAS OFFICE BRANCH
4. UNIT LOCATED IN SEZ MAY OPEN UNDER REGULATION 4 FEMA
5. A PERSON RESIDENT IN INDIA BEING A PROJECT SERVICE EXPORTER MAY OPEN
B. DDA
DIAMOND EXPORTER HAVING TRACK RECORD OF 2 YEARS OF ANNUAL TURNOVER 3 CRORE. CAN OPEN MORE THAN 5 DIAMOND DOLLAR ACCOUNT.
C. EEFC
1. A PERSON RESIDENT IN INDIA MAY OPEN WITH A BANK IN INDIA SUBJECT TO REGULATION 4 FEMA
2. PERMITTED TO INCLUDE CLOSE RELATIVES AS JOINT HOLDER
3. NON INTEREST BEARING, NO - CREDIT FACILITY
4. FOR CREDIT OF FOREIGN EXCHANGE EARNINGS
5. CONVERTED TO RUPEE AFTER CALENDER MONTH ENDS
6. ASSETS CANNOT BE MAINTAINED
7. ELIGIBLE TRANCTIONS ARE - i) INWARD REMITTANCES FORM OUTSIDE INDIA ii) PAYMENT IN FC FORM EOU,STPISEZ UNITS. iii) LOAN TO OVERSEAS B
8. WHEN EXPORTS PROCEEDS ARE CREDITED EEFC AC, EDF MAY INCLUDE NARRATION "PROCEEDS AMOUNTING TO…. REPRESENTING…. TO CREDIT
D. ESCROW AC
1. ELIGIBILE CREDIT IS EXPORT PROCEEDS AND ELIGIBLE DEBIT IS IMPORT PAYMENT
2. GOODS TO BE TRADED IN INTERNATIONAL PRICES
3. NO INTEREST PAYABLE
4. SHORT TERM DEPOSIT UPTO TOTAL PERIOD OF 3 MONTHS
5. NO CREDIT FACILITY
6. EXPORT PROCEEDS RECEIVED IN THE ACCOUNT TO BE UTILIZED FOR PAYMENT OF IMPORT WITHIN 6 MONTHS
13. AGENCY COMMISSION ON EXPORTS
BANK MAY ALLOW PAYMENT ON COMMISSION EITHER BY REMITTANCE OR BY DEDUCTION FROM INVOICE VALUE. THE REMITTANCE OF AGENCY COMM
SUBJECT TO CONDITIONS THAT -
1. AMOUNT OF COMMISSION IS DECLARED ON EDF AND ACCEPTED BY CUSTOMS AUTHORITY.
IF AGENCY COMMISSION ON EXPORT IS NOT DECLARED ON EDF THEN ALSO REMITTANCE OF AGENCY COMMISSION IS ALLOWED IF THERE IS VALID A
AND BENEFICIARY.
2. SHIPMENT HAS ALREADY BEEN MADE
BANK MAY ALLOW PAYMENT OF COMMISSION BY INDIAN EXPORTER, UNDER COUNTER GUARANTEE AGREEMENT THROUGH ESCROW ACCOUNT SUBJ
1. ABOVE TWO CONDITIONS
2. COMMISSION IS NOT PAYABLE TO ESCROW ACCOUNT IT-SELF
3. COMMISSION NOT ALLOWED AS DEDUCTION FROM INVOICE VALUE
3. PAYMENT OF COMMISSION IS PROHIVITED ON EXPORT MADE BY INDIAN PARTNERS TOWARDS EQUITY PARTICIPATION IN OVERSEAS JV/WOS AND E
CREDIT ROUTE EXCEPT COMMISSION UPTO 10% OF INVOICE VALUE FOR EXPORT OF TEA &TOBACOO
14. FACTORING
1. EXIM BANK AND BANK ARE PERMITTED TO DO FACTORING OF EXPORTERS EXPORT RECEIBABLES, REMITTANCE OF COMMITMENT FEE, SERVICE CH
2. SUCH REMITTANCES MAY BE MADE IN ONE LUMPSUM OR ON MONTHLY INTERVALS.
3. THIS CAN BE DONE ON NON-RECOURSE BASIS.
4. FOR EXPORTERS WORKING CAPITAL REQUIREMENTS
5. INVOICES PURCHASED FOR FACTORING SHOULD BE GENUINE.
6. EXPORT FACTOR HAVE AN ARRANGEMENT WITH THE IMPORT FACTOR FOR CREDIT EVALUTION AND COLLECTION OF PAYMENT
7. NOTATION TO BE THERE IN INVOICE THAT IMPORTER HAS TO MAKE PAYMENT TOWARDS IMPORT FACTOR
8. AFTER FACTORING EXPORTER MAY CLOSE THE BILL AND REPORT THE SAME TO RBI THROUGH EDPMS
9. IN CASE OF NOT INVOLVING IMPORT FACTOR. EXPORT FACTOR MAY AVAIL CREDIT EVALOUTION DETAILS FROM CORRESPONDENT BANK.
10. KYC AND DUE DILIGENCE OF THE EXPORTER TO BE ENSURED BY THE EXPORT FACTOR
15. EXPORT OF GOODS ON LEASE-HIRE
1. PRIOR APPROVAL OF RBI REQUIRED FOR EXPORT OF MACHINERY, EQUIPMENTS ON LEASE.
2. BANKS ARE HIRED FOR COLLECTING RENTAL AND HIRE CHARGES
16. EXPORT OF CURRENCY
1. PRIOR PERMISSION OF RBI REQUIRED FOR EXPORT OF INR.
2. ANY PERSON RESIDENT IN INDIA MAY TAKE INR OUTSIDE INDIA (EXCEPT NEPAL-BHUTAN) UPTO 25000
3. ANY PERSON RESIDENT OUTSIDE INDIA WHILE VISIT IN INDIA CAN TAKE OUT WITH HIM INR UPTO 25000 (EXCEPT PAKISTAN AND BANGLADESH)
17. SETTING UP OFFICES ABROAD AND ACQUISITION OF IMMOVABLE PROPERTY THERE
1. AT THE TIME OF SETTING UP OVERSEAS OFFICES EXPENSES UPTO 15% OF AVERAGE ANNUAL SALES DURING LAST 2 YEARS (UPTO 25% OF THE NE
2. FOR RECURRING EXPENSES 10%
3. A REPRESENTATIVE OF OUR OFFICE TO BE SENT IN ABROAD OFFICE.
4. OVERSEAS BANCH SHALL NOT ENTER INTO ANY CONTRACT OR ANYTHING THAT CREATES LIABILITY FOR INDIAN OFFICE.
5. SHOULD NOT INVEST SURPLUS FUNDS ABROAD WITHOUT PRIOR APPROVAL OF RBI TO BE BUT TO BE REPATRIATED TO INDIA
6. DETAILS OF BANK ACCOUNT SHOULD BE PROMPTLY REPORTED TO INDIAN BANK
7. INDIAN COMPANY CAN ALSO REMIT UPTO THE ABOVE LIMIT FOR ACQUISITION OF IMMOVABLE PROPERTY OUTSIDE INDIA.
8. OVERSEAS BRANCH OFFICE OF SOFTWARE COMPANY MAY REPATRIATE TO INDIA 100% OF THE CONTRACT VALUE OF A OFFSITE CONTRACT
9. IN CASE OF ONSITE CONTRACT PROFIT OF THE CONTRACT
10. AN AUDITED YEARLY STATEMENT OF OFFSITE ONSITE CONTRACT UNDERTAKEN OVERSEAS EXPENSES AND REPATRIATION TO INDIA
18. OPENING/HIGHERING WAREHOUSES ABROAD
BANK MAY GRANT PERMISSION SUBJECT TO
1. APPLICANTS EXPORT OUTSTANDING DOESNOT EXCEED 5% OF THE EXPORT MADE DURING THE PREVIOUS FINANCIAL YEAR.
2. APPLICANT HAS A MINIMUM TURNOVER OF 1 LAKH DURING LAST FINANCIAL YEAR.
3. ALL TRANSACTION TO BE ROUTED THROUGH THAT BANK
4. ABOVE PERMISSION TO BE GRANTED FOR EXPORTER FOR A PERIOD OF 1 YEAR.
5. BANKS GRANTING SUCH PERMISSION SHOULD MAINTAIN PROPER RECORDS OF APPROVAL
19. SHORT SHIPMENT - SHUTOUT SHIPMENT
1. WHEN EDF ALREADY FILED WITH CUSTOMS BUT SHIMENT IS HAPPENING FOR LESS VALUE, SHORT SHIPMENT NOTICE TO BE SUBMTTED WITH THE C
OBTAINING SHORT SHIPMENT NOTICE FROM THE CUSTOMS FOR SUBMITTING WITH BANK
2. WHERE THE ENTIRE SHIPMENT IS SHUTOUT, AND NOTICE TO BE GIVEN TO CUSTOMS IN DUPLICATE COPY OF EDF, CUSTOM WILL VERIFY THAT SHIP
AND CERTIFY ONE COPY OF EDF AND GIVE TO CUSTOMER. ALSO CUSTOM WILL CANCEL ORIGINAL COPY PREVIOUSLY SUBMITTED.
20. EXPORT OF GOODS BY SEZ
1. UNITS IN SEZ ARE PERMITTED TO UNDERTAKE MANUFACTURE ABROAD, AND EXPORT GOOS FROM THAT COUNTRY, SUBJECT TO CONDITION THAT
MANUFACTURING CHARGES ARE ADDED WHILE CALCULATING MRP IE. IT SHOULD BE BORNE BY BUYER.
2. REALIZATION PROCEDURE TO BE SAME AS USUAL EDF PROCEDURE.
3. DTAS ARE ALLOWED TO MAKE PAYMENT IN FOREIGN EXCHANGE TO SEZ FOR SUPPLY OF GOODS AND SERVISES TO THEM
4. LETTER OF APPROVAL ISSUED BY DC TO SEZ, SHOULD BE CHECKED FOR GOODS AND SERVICES SUPPORTED AND PAYMENT IN FOREIGN EXCHAN
21. MID-SEA- CATCH BY DEEP SEA SHIPPING VESSEL
1. FOR MID-SEA TRANSHIPMENT OF CATCHES BY INDIAN OWNED VESSELS WHICH HAVE LICENCE TO OPERATE FROM MOA,GOI.
2. THE EDF DECLARATION PROCESS IN THIS REGARD IS DIFFERRNT. EXPORTER TO SUBMIT THE EDF DULY SIGNED BY MASTER OF VESSEL TO CUSTO
INDICATING COMPOSITION OF CATCH, QUALITY OF EXPORT VALUE, DATE OF TRANSFER OF CATCH.
3. DATE OF TRANSFER OF CATCH = DATE OF SHIPMENT
4. BILL OF LADING/RECEIPT OF TRANSHIPMENT ISSUED BY VASSEL SHOULD INCLUDE EDF NO
5. EDF TO BE CERTIFIED BY INTERNATIONAL CARGO SURVEYOR
6. PERIOD OF REALIZATION WILL BE DETERMINED ON THE BASIS OF BL OR INVOICE
7. EDF TO MENTION LETTER OF PERMIT NO ISSUED BY MOA
8. EDF CAN BE SUBMITTED TO ANY CUSTOMS REGISTERED VESSEL APPROVED BY MOA.
9. CUSTOM WILL GIVE THE RUNNING SERIAL NO IN BOTH THE COPIES
22. COSOLIDATION OF SHIPPING DOCUMENTS
A. CONSOLIDATION OF AIR-CARGO AND SEA-CARGO
1. WHERE AIR-CARGO IS SHIPPED UNDER CONSOLIDATION THEN AIRLINE COMPANIES MASTER AIRWAY BILL WILL BE ISSUED TO THE CONSOLIDATED
THE CARGO AGENT IN TURN WILL ISSUE HIS OWN HAWB TO INDIVIDUAL SHIPPERS.
2. BANK MAY NEGOTIATE HWAB ONLY IF THE LC SPECIALY STATES HWAB CAN BE USED FOR NEGOTIATION INSTEAD OF MWAB.
3. IN CASE OF BILL OF LADING, BANK MAY ACCEPT FORWARDERS CARGO RECEIPT ISSUED BY IATA APPROVED AGENTS IN LIUE OF BL. FOR NEGOTIAT
FORWARDER CARGO RECEIPT THEN ONLY CAN BE USED
4. WHERE EXPORT TRANSACTION ARE NOT BACKE BY LC, BANK IS IN OWN DIRECTION WHEATHER TO USE TO HWAB OR FCR, SUBJECT TO BONAFIED
B. DELAY IN SUBMISSION OF SHIPPING DOCUMENTS
MEANS MORE THAN 21 DAYS, NO RBI APPROVAL REQUIRED
C. DOCUMENTS ONCE SUBMITTED TO BANK FOR NEGOTIATION
NOT USUALY RETURNED TO EXPORTER UNLESS RECTIFICATION REQURED
D. NON NEGOTIABLE COPY
BANK MAY DELIVER NON-NEGOTIABLE COPY OF BL TO THE MASTER OF CARRING VESSEL AS AGENT OF THE IMPORTER FOR LAND LOCKED COUNTRIE
SHIPMENT IS COVERED BY AN IRREVOCABLE LC AND IT IS STATED IN THE LC
23. CHANGE IN BUYER/CONSIGNEE
PRIOR APPROVAL OF RBI NOT REQUIRED IF GOODS HAVE ALREADY BEEN SHIPPED AND AFTER THAT BUYERS DEFAULTS SO TRANSFERRED TO 2ND B
i) REDUCTION IN INVOICE ALLOWED SUBJECT TO 25 %. ii) REALIZATION OF EXPORT PROCEEDS IS BEYOND 12 MONTHS
24. REDUCTION IN INVOICE VALUE
1. BY WAY OF CASH DISCOUNTS TO IMPORTERS IF REPAYMENT OF USANCE BILLS PAID BEFORE TIME.
DISCOUNTS WILL BE GIVEN AT LIBOR FOR UNEXPIRED PERIOD.
2. AFTER BILL HAS BEEN NEGOTIATED OR SENT ON COLLECTION BASIS THE AMOUNT CNNOT BE REDUCED MORE THAN 25%, SUBJECT TO
i) COMMODITY DOES NOT REALTE TO FLOOR PRICE STIPULATIONS
ii) EXPORTER IS NOT CAUTION LISTED BY RBI
iii) EXPORTER HAS SURRENDERED EXPORT INCENTIVES IF ANY
3. IN CASE OF EXPORTERS WHO IS IN THE EXPORT BUSINESS FOR MORE THAN 3 YEARS (OUTSTANDING NOT EXCEED 5%) REDUCTION IN INVOICE
VALUE MAY ALLOWED WITHOUT PERCENTAGE CEILING
25. REFUND OF EXPORT PROCEEDS
BANKS THROUGH WHICH EXPORT PROCEEDS WERE ORIGINALLY BE REALIZED MAY CONSIDER REQUEST FOR REFUND OF EXPORT PROCEEDS IF GOO
ON ACCOUNT OF POOR QUALITY. WHILE REMITTING SUCH TRANSACTION BANKS ARE REQUIRED TO -
i) EXERCISE DUE-DILLIGENCE REGARDING TRACK RECORD OF THE EXPORTER.
ii) VERIFY THE BONAFIED OF THE TRANSACTION
iii) OBTAIN A CERTIFICATE FROM EXPORTER ISSUED BY DGFT/CUSTOMS THAT NO INCENTIVES HAVE BEEN AVAILED BY THE EXPORTER
iv) OBTAIN UNDERTAKING FROM THE EXPORTER THAT GOODS WILL BE RE-IMPORTED WITHIN 3 MONTHS FROM THE DATE OF REMITTANCE.
v) ENSURE ALL PROCEDURES FOR NORMAL IMPORTS ARE ENSURED.
26. REMIT TO APPLICANT
BANK MAY REMIT EXPORT CLIMS OF APPLICANT SUBJECT TO -
1. EXPORT PROCEEDS HAS BEEN REALIZED
2. EXPORTER IS NOT ON CAUTIONLISTED
3. EXPORT INCENTIVES TO BE SURRENDERED

5. SETOFF
SETOFF OF EXPORT RECEIBABLES AGAINST IMPORT PAYABLES
ALL RELEVANT DOCUMENT SUBMITTED
PAYMENT OF IMPORT OUTSTANDING IN THE BOOKS OF IMPORTER
EDF WILL BE RELEASED AFTER ENTIRE EXPORT PROCEEDS ADJUSTED
SAME OVERSEAS BUYER AND SELLER
ACU COUNTRIES ARE NOT ALLOWED
REPORTED IN R RETURNS SEPATATELY
6. NETOFF
NETTING OF OF EXPORT RECEIBABLES AGAINST IMPORT PAYABLE
ALLOWED FOR UNITS IN SEZ AND BETWEEN SAME ENTITY AND OVERSEAS PARTY
ON BALLANCESHEET DATE OF SEZ
OTHERS SAME AS NETOFF
7. DUE DATE EXTENTION
UPTO PERIOD OF 180 DAYS AT A TIME
DECLARATION WITHIN THAT REALIZE
EXTENTION BEYOND 1 YEAR
DOES NOT EXCEED USD 1 MILLION
OR 10% OF AVERAGE EXPORT REALIZATION
DURING 3 PRECEEDING FINANCIAL YEAR EXCEPTION SUITS ALL OUTSTANDING BEYOND 6 MONTHS
XOS REPORTING
EXTEND MORE FOR REASON BEYOND HIS CONTROLL
1. RBI EXPORT CREDIT
2. MTT MUB AND MDC FIRC
3. PROJECT EXPORT
3. EDPMS RBI APPROVAL
4. LAPE GUARANTEE
5. ED REPORTING
YPES OF EXPORT TRANSACTIONS -

OST,OR MAIL (NOT AUTHENTICATED)

OF BUSINESS
OF DUE DILIGENCE OR ONLY KYC

LODGE NEW XLC

OR BENEFICIARY WITHOUT RECOURSE IF DOCUMENTS
THE UNDERTAKING PROVIDED BY ISSUING BANK.
OWN AS LC CONFIRMATION. WHEN
LD IS WITHOUT THEN SCILENT CONFIRMTION MAY

OMER v) LC WHERE NO REIMBURSEMENT

DOCUMENT THAT GIVES TITLE OF GOODS,

SSUING BANK OR BLANK ENDORSED ii) ROAD

OODS RECEIPT NOTE iii) LC BACKED BY CHARTER
S v) ENERGY SECTOR - COAL, CRUDE OIL, BRUNT CRUDE,
INS SOYABINS, PLAM OIL,COTTON, TEXTILE ETC.

R AND ABOVE THE LC VALUE.

N, ACCEPTANCE, PAYMENT. SUBJECT TO -

TO BE READ AS ICICI OR ISSUING BANK

AND ADVISING BANK NAME AND ADDRESS

EQUIVALENT

M REIMBURSEMENT FROM ISSUING BANK.

K ABOUT CONFIRMATION ADDED BY ICICI.

ND SENT MAIL TO IFIG TEAM.
UNDER THIS CASE DOCUMENT CAN BE SENT TO

STRUCTION ACCORDINGLY

EXPORT PROCEDS ARE NOT RECEIVED FROM

K.ii) SUCH BILLS ARE NOT NEGOTIATED OR PURCHASED

AS PER UCPDC. CERTAIN CLAUSES/FIELDS CAN BE

E LC SHOULD CLEARLY NOMINATE A BANK TO TRANSFER

AND ADDRESS OF THE SUBSEQUENT BENEFICIARY,

RE DATE, LC EXPIRY DATE SHOULD NOT BE PRIOR TO

RECORD OF LC IN I-CORE, LC EXPIRY PLACE SHOULD
URE EXPORT IS DONE FROM INDIA

DATE,TIME.

ALSO IT CAN BE CLOSED.

SIS

OBTAIN ACCEPTANCE ii) TO OBTAIN PAYMENT iii) AGAINST

DIDDERANCE IN WEIGHT, QUALITY ETC.

D FOR REALIZATION

ESPONDENT BANK OVERSEAS OVERSEAS INSTRUCT THEM TO

OCEEDS WITHIN DUE DATE.
ATCH TO CONSIGNEE

IRECTLY TO CONSIGNEE SUBJECT TO -

S UP TO $ 10 LAKH, SUBJECT TO -

NSES FOR RENDERING SERVICES IN MANUFACTURING

RMED EXPORT ORDER. IT IS A LOAN AGAINST

BY BANK IN FOREIGN CURRENCY TO THE EXPORTER

APITAL EXPENCES. INTEREST RATE

ER DATE +SHIPMENT TERMS)

AS PER ORDER

CTRONIC FORM
ODS FROM DTA

T DOCUMENTS WITHIN 5 DAYS OF DISPATCH OF GOODS"

DEVELOPMENT ETC.

EIVD FROM FOREIGN BY EOH.

ADING HOUSES/STAR TRADING HOUSES

ATED WITHIN 30 DAYS

E OF CREDIT FROM FOREIGN,

IQUIDATED IN FOREIGN EXCHANGE

NCY COMPONENT OF EXPORT CREDIT GET REDUCED.
F SHIPMENT

AS PER CAAM

TH APPROVAL FROM HIGHER AUTHORITY.

ERY EXPLANATION
CT AMOUNT,
DERTAKING THAT WILL BE FURNISHED SOON

ANCH APPROVAL IS NEEDED.

AND THERE IS NO VARIANCE IN PRICES WITH LC.

ONEY DISBURSED IF LC ISSUING BANK IS PROHIBITED

ESIDENT TO BE OBTAINED.

F ORIGINAL AND DUPLICATE DOCUMENTS, ACCOUNT IN

BANK WILL STATE ON THE COVERING LETTER THAT

AND TRANSACTION IS CARRIED UNDER FEMA GUIDELINES.

R, PAYEE BANK IS SPECIFIED AS ICICI,

NT ON APPROVAL BASIS/COLLECTION BASIS.
ECTION BASIS.
CASE OF USANCE BILLS NOTIONAL DUE DATE).

O AVOID EXCHANGE RISK/ RECURRING SWAP COSTS

SELLING RATE.

COUNTING CAN BE DONE AGAINST BILLS PORTFOLIO

MARGIN AND DULY COVERED BY CENTRALIZED DOCUMENTS.

N WITHOUT RECOURSE BASIS.

NG NORMAL TRANSIST PERIOD AND GRACE PERIOD IF ANY)

N OF FED UNDER EBR SCHEME.

O THE EXPORTER SHOULD NOT EXCEED 350 BPS OVER LIBOR

T TO VALUE OF BILL EARLIER DISCOUNTED THE BILL

G INSTITUTION

EN AS "BAF" "EBRD-BAF" (BASED ON PCFC OR PSFC TRADE

D TO OUTSTANDING BILLS COMMUNICATING NOSTRO DETAILS

NT INSTRUCTIONS.

PROMOTION COPY OF SHIPPING BILL CONTAINING EGM NO

TH DESIGNATED BANK TO TRANSFER OF FUNDS TO FINANCING

OR SUPPLIES IN RESPECT OF PROJECT FINANCED BY
OEA,MOF UNDER DEEMED EXPORT IN FTP.

NT OF GOODS ALSO TO BE DONE WITHIN 1 YEAR FORM THE

CEED LIBOR+100 BPS AND DOCUMENT

APPROVAL OF RBI.
UPTO MAXIMUM TENOR OF 10 YEAR

LIZATION OF EEFC ACCOUNT

NSACTION IS BONAFIED

SHIPPER IF THE BL IS ISSUED TO THE ORDER OF SHIPPER.

ED INVALIDATION LETTER FROM EITHER

PING DOCUMENTS BY EXPORTER & REPATRIATION

E FOLLOWED.
E DETAILS STPI, CERTIFICATE OF EXPORT NOTE
Y TO BE OBTAINED, RBI APPROVAL IS NOT REQUIRED FOR?

COPY OF BRC HIGHLIGHTING THE REFERANCE NO,

ENT, A CA CERFICATE CONFIRMING THAT ADVANCE

ANK FOR REFUND OF ADVANCE, VARIANCE IN PRICE,

EMITTANCE ONLY CLIENT DICLERATION

ESIDENT IN INDIA AND OWED TO A PERON RESIDENT

E OF A INTERNATIONALY REPUTE RESIDENT BANK OR

WHICH BID IS EXPECTED, PERFORMANCE OF BORROWER,

O REQUIRED FOR ISSUANCE OF BG.

E REPORT, PERFORMANCE OF EXPORTER

ROUGH FUTURE EXPORT, ROI NOT EXCEED LIBOR+2,

, ADVANCES SHALL NOT BE USED TO REPAY INR LOAN

ED ON APPROVED POLICY, NOT EXCEEDING 2 YEARS

DIA IN FAVOUR OF OVERSEAS BUYER SHOULD NOT
EXPORTER AND ANNUAL POGRESS REPORT TO BE

C DEFAULTERS TO ED. OUTSTANDING ADVANCE PAYMENT

ENT PORTION.

S TILL THE FUNDS RECEIVED FROM DOREIGN BANK

D OR EURO

THE BENEFICIARY THROUGH CROSS CURRENCY DEAL

FREELY CONVERTIBLE CURRENCY iii) BENE IS WILLING

TURN DUPLICATE COPY

Y OF EDF TO CUSTOMS ALONG WITH SHIPMENT.

PORTER FOR SUBMISSION TO THE BANKS.
EEN SENT ON COLLECTION BASIS,
CE TO BE RETAINED BY THE BANK.

ERA CERTIFICATE CREQUIED (FOR CAPETOWN CONVENTION)

CAPITAL GOODS IMPORTED FOR PRODUCTION VALUE ADDITION

TING AGGENCY IS REQUIRED.

REQUIRED TO SUBMIT EDF.

N LAST 3 YEARS SUBJECT

CIPATION OR UNDER RUPEE CREDIT ARRANGEMENT,

LUE OF PRECIOUS METALS TO BE DECLARED IN EDF

 OR ACCEPTANCE
THEM, FULL ADVANCE PAYMENT RECEIVED

REGULATED BY IRDA. AFTER THAT PROCEEEDS RECEIVED

NCE CO WILL ISSUE
ILL NO INVOIVE NO AND VALUE ETC.

VELOPED A COMPREHENSIVE IT BASED SYSTEM CALLED EDPMS.

USTOMER. HOWEVER, IT HAS BEEN OBSERVED THAT THERE

RD REMITTANCE MAPPED TO ANOTHER IE CODE DUE TO

ST PAN NO. THIS IS DUE TO DGFT DIRECTIVE AIMING TO USE

CUMENTS, ICEGATE SCREENSHOT OF IE CODE CANCELLED,

L, AND ICEGATE SCREENSHOT IS SUFFICIENT.

VALUE AND REALIZATION FOR THE REMAINING VALUE

LED BY ANY BANK ICICI iii) WE HEREBY KEEP
 P THE GOODS EVENAFTER ISSUANCE OF SHIPPING BILL.

DER EGM INTEGRATION STATUS OF CURRENT STATUS TAB.

LATION REQUEST CAN BE PROCESSED ONLY AFTER

L - ONLY CANCELLATION CHALLAN IS AVAILABLE.

IN REGULATION 17 OF EXPORT REGULATIONS -

D OF TIME IN EDPMS.

NONTRACABILITY FROM COMPETANT AUTHORITY

ALIZATION

ST EXPORT OF GOODS AND SERVICES.

T DOCUMENT 4. PROOF OF PYMENT

IES IN THE ACCOUNT

AIL BENEFITS UNDER THE LICENCE)

THE ITEM, WHO IS NOW SOURCING THE SAME GOODS FROM
ORTED IN XOS STATEMENT

G IS NOT EXTENDING USD 1 MILLION OR 10% OF THE

T GRANTED
MING NEW DUE DATE.

R SELF WRITE-OFF OR MAY HAVE APPROACH BANKS WHO

T OF WRITEOFF ALREADY AVAILED, BILL NO, COOMODITY

D RO OF RBI

NSTRUCTION CONTRACTS ABROAD.

TRUMENTS WITH MATURITY OF LESS THAN 1 YEAR.

CONSTRUCTION CONTRACT ABROAD ARE COLLECTIVELY

BC

OF REJECTION OF THE CASE.

OJECT AC ARE - COMMENSURATE WITH THE REQUIREMENT

Y S&P OR P-1/AAA BY MOODY OR F1/AAA BY FLITCH.
EARLY STATEMENT OF OPERATIONS IN BANK ACCOUNTS

PED AND SIGNED BRANCH OFFICIAL.

ND i) PROJECT AWARD COPY ii) PROJECT APPROVAL.

UR BANK TO EXTEND THE BG AND VALIDITY OF CONTRACT.

AND LIKELY COMPLETION PERIOD.
CUMENTS TO BE SUBMITTED -

TILL REVISED DATE IN-LIUE OF AMMENDED CONTRACT

OVED THE PROJECT IS REQUIRED.

BANK THEN NOC NOT REQUIRED.

ST FOR REMITTANCE/BG/LC/BC IS WITHIN THE SCANTIONED

CE/ AMMENDMENT OF LC/BG

SIDE INDIA OR FOR AVAILING CREDIT FACILITIES,

ON WITH THE EXECUTION OF SUCH PROJECT

D FOR PROJECT EXECUTION

CONSTRUCTION, IMPLEMENTATION, PLANT, INSTALLATION,

ED WITHIN THE PRESCRIBED PERIOD 9 MONTHS AND

EM GETTING EXTENDED. IN EXCEPTION CASES WHERE

R UNDERLYING PROJECT IS FOR OVERSEAS PROJECT

T OF OVERDUELIST.
LY BE PROCESSED POST RBI APPROVAL.

GHER AUTHORITY APPROVAL.

LINES FROM CLIENT REQUIRED.

NSPORT DOCUMENT
AT EXPORT BENEFIT WILL NOT BE CLAIMED.

T EXPORTER ALLOW REMITTANCES FROM INDIA.

MITTED WILL BE REPATRIATED TO INDIA

OMER DECLARATION

FICIARY ARE SAME UNDER, PCODE P0502, THEN IT

D THE VALUE OF THIRD COUNTRY IMPORTS MENTIONED
PROJECT EXPORT RECEIPT.

OAD WHICH ARE DIRECTLY TO SHIPPED TO THE

EXPORT APPLICATION BY THE EXPORTER.

BE MADE BY OVERSEAS BUYER.

, ON COMPLETION OF PROJECT

AYMENT TERMS IS REQUIRED.

OFFERED BY INDIAN EXPORTER.

H THE BILL ALREADY LODGED.

OF CURRENT REQUEST.

, ALONG WITH CRL AND I-MEMO

THE EXPORT VALUE WILL BE REALIZED WITHIN A MAXIMUM
EQUIRE ANY OTHER FUNDED OR NON FUNDED FACILITY
LOW CONDITIONS ARE FULLFILLED.
QUAL OR LESS THAN 10% OF THE BILL.
MUM PERIOD OF 2 YEARS.
R PURE SUPPLY CONTRACT WITH DECLARATION

MENT CONFIRMING PAYMENT TERMS. ALL BILLS

DER EXIM BANK BUYERS CREDIT SCHEME.

UIDELINES AND INTERNAL PROCESS IS OVERDUE

ETENTION MONEY
LIQUID FUND POSITION,PREVIOUS PERFORMANCE OF THE

PRESCRIBED RATE OF INTEREST UPTO MAXIMUM PERIOD OF

BEYOND 90 DAYS.

ENESS OF TRADE

WHICHEVER IS FIRST.

WITHIN 15 DAYS OF HALF YEAR.

 ADE AFTER THE RECEIPT OF PAYMENT UNDER EXPORT LC.

BE HELD IN A DEPOSIT/CURRENT ACCOUNT

RCHANTING TRADER FOR USE.

AME BANK FOR INTERVENING PERIOD.

ARNINGS WOULD BE CAUTION LISTED.

ICATION ISSUED

ITIONS MENTIONED UNDER FTP

TA. SO, DOSENT QUALIFY FOR MTT
S. INCLUDING ADVANCE PAYMENT AGAINST EXPORTS,
MTT GUIDILINES.
LEG(MTTE) TO BE ALLOWED ONLY FOR THE PURPOSE OF
EXPORT CREDIT MAY PAID TO EXPORT LEG.
E OBTAINED
T EDF AND BOE)
ALE PRICE UNDER EXPORT LEG
TRANSACTION TO BE REJECTED

HEVER IS FIRST

STONES, GOLD JEWELLERY, PLAIN AND STUDDED

AND RESTRICTIONS.

HE RESPECTIVE IMPORT BILL NO.

IN FIELD I-CORE AT THE TIME OF LODGEMENT OF ANY LEG

 SEZ/BTP/STP/EHTP UNITS

DING ADVANCE RECEIVED AGAINST MTTE)

ER SHOULD PERMIT FOR ADVANCE PAYMENT
ED AGAINST MTTE

FOR 8 MONTHS FOR COMPLETION OF TRANSACTION

DATE OF MTT SHOULD NOT BE MORE THAN 90 DAYS

NSURE COMPLETION WITHIN 9 MONTHS

OSE OF PAYMENT OF MTTI

NT ACCOUNT
LANCE AMOUNT

D UNDER LC. THE AMOUNT OF LC/BC SHOULD BE

NFIRMED EXPORT ORDER

AN 4 MONTHS FROM THE NOTIONAL DUE DATE

TT WITHIN 9 MONTHS FROM DATE OF COMMENCEMENT.

ER EXPORT DOCUMENTS.

RT DOCUMENTS SHIPMENT DATE

MARK DEVIATION FOR THE NEXT LEG.

S FROM THE DATE OF SHIPMENT

PLICABLE HERE FOR IMPORT OF GODDS FROM THIRD

F BHUTAN AS PER FORMAT PRESCRIBED,

OVISSION OF ARTICLE-V OF TTT.

, SELF CERTIFIED COPY OF LC OPENED THROUGH A

ONSUL GENERAL, DEPUTY CONSUL GENERAL OR

ASES ABOVE DOCUMENTS ARE NOT REQUIRED TO BE

MITTED TO THE IMPORTED BY GOVT OF NEPAL WITHOUT

YMENT DATE IF PAID

XPORT AND IMPORT

E, PACKING LIST, TRANSPORT DOCUMENT

IMPORT LEG

AS CLIENTS ONCE IN MONTHS AND THE LAST INVOICE TO BE

ADVANCE REMITTANCE RECEIVED

DEO-TELEVSION SOFTWARE TO THE OFFICIAL OF GOI

ANT AUTHORITY FOR CERTIFICATION.

ORT VALUE, DATE OF TRANSFER OF CATCH ETC

NE CARGO SURVEYAR
DATE OF INVOICE WHICHEVER IS EARLIER

T REGISTERED PORT OF VESSEL

RM BY EXPORTER TO BANKS AND DISPOSAL OF THESE

ENT CAN BE MADE EITHER IN INR OR FC.

A,MOF UNDER INTERNATIONAL COMPETETIVE BIDDING

DING EVOLUTION WITHOUT INCLUDING CUSTOM DUTY

, ACCESSORIES, TOOLS, DIES AND SUCH GOODS WHICH

0% OF VALUE OF FERTILIZER PLANTS.
ERO CUSTOMS DUTY

ED THE SAID CONTAINERS ARE EXPORTED OUTOFF INDIA

NDER ICB IS AVAILABLE.
NCIES/UNITS.
EEMED EXPORT BENEFITS SUBJECT TO NAME OF SUB
AME OF SUB-CONTRACTOR

HER DOCUMENTS.

E TIME FEMA DECLARATION

EAS BRANCH TO DELIVER THEM ONLY AGAINST TRUST RECEIPT

ARGES ETC AND REMIT THE PROCEEDS TO EXPORTER.

REQUIRED
UE" - FOR TOTAL AMOUNT OF COMMODITY EXPORTED,

ABLE IN RESPECT OF SAME INDAN ENTITY

STANDING AGAINST THE SAME IN FOREIGN CURRENCY

BABLES AGAINST IMPORT PAYABLE. IT SHOULD INCLUDE

OR BOTH EXPORT AND IMPORT BILLS.
ESIDENT SUPPLIER AND BUYER
E CONCENT LETTER TO BE SUBMITTED.
RUCTIONS DIRECTLY BY OVERSEAS SUPPLIER TO BANK

N VIA AN AUHENTICATED
CEIBABLES IN TERMS
D OR DISHONOURED THE CONCENT LETTER DIRECTLY

D TO THE BANK FOR COLLECTION OR OTHERWISE

OUNT TO BE SETOFF IN THE BOOKS OF PARTY

EING REALIZED PARTLY UNDER THE SCHEME.

CE SUBMITTED TO THE BANK BY EXPORTER FOR

ESUBMISSION . RH APPROVAL AND RETURN WITH DEVIATION

AFTER THAT, THEY ARE TO BE TRANSFERRED

OICE VALUE IF ANY DOESNOT EXCEED 25%
S FROM THE DATE OF EXPORT.
E BILL IN FINACLE.

YER BANK THAT GOODS ARE RETURNED TO INDIA TO BE TAKEN.

ODGEMENT OF COLLECTION BILLS

OF THE 1ST BUYER.

TER PARTY), CONFIRMATION FROM NEW BUYER, IF HE IS
F EXPORT PROCEEDS SHOULD NOT DELAYED BEYOND
AND CONDITIONS CLOSE THE OLD BILL AND GENERATE NEW BILL.
IER FBCS SENT TO THEM

RESENT DEVIATION TO BE MARKED FOR 1 MONTH. SAME AS 2.

CUSTOMER FOR DELAY IN CREDIT TO CUSTOMER ACCOUNT

EMENT OF BANK FEMA
CEIVING CLAIM FROM THE CUSTOMER AND ITS DUE BY THE BANK.
OCUMENTS FROM CUSTOMER.
N POLICY OF SETTLEMENT.

WARD CAME TO OTHER BANK FIRC. IF AD IS OTHER BANK

RT ARE NOT ELIGIBLE UNDER IGRS.

DVANCE AGAINST EXPORTS (P0103)

NLY IF CUSTOMER HAVING AC WITH ICICI.

R WITH DECLARATION OF SAPE/MAPE/LAPE-

S TO INDIA AFTER ONE MONTH OF EXHIBITION ENDS.

LS OF THE AC OUTSIDE INDIA TO TB SHARED WITH INDIAN BANK.

AMOND DOLLAR ACCOUNT.

TS. iii) LOAN TO OVERSEAS BUYER iv) REPAYMENT OF EPC/PCFC

EPRESENTING…. TO CREDIT TO EEFC AC"

MITTANCE OF AGENCY COMMISSION MAY ALLOWED

LOWED IF THERE IS VALID AGREEMENT BETWEEN EXPORTER

GH ESCROW ACCOUNT SUBJECT TO

N OVERSEAS JV/WOS AND EXPORTS UNDER RUPEE

MMITMENT FEE, SERVICE CHARGES ETC.

ESPONDENT BANK.

AN AND BANGLADESH)

EARS (UPTO 25% OF THE NET WORTH)

A OFFSITE CONTRACT

ATION TO INDIA

O BE SUBMTTED WITH THE CUSTOMS, IN CASE OF DELAY IN

STOM WILL VERIFY THAT SHIPMENT IS ACTRUALY SHUTOUT.

BJECT TO CONDITION THAT PROCESSING AND

YMENT IN FOREIGN EXCHANGE IS ALLOWED

STER OF VESSEL TO CUSTOMS FOR CERTIFICATION.

UED TO THE CONSOLIDATED CARGO AGENT.

N LIUE OF BL. FOR NEGOTIATION IF LC SPECIALY STATES

CR, SUBJECT TO BONAFIED TRANSACTION

OR LAND LOCKED COUNTRIES, SUBJECT TO IF

SO TRANSFERRED TO 2ND BUYER. SUBJECT TO -

5%, SUBJECT TO

) REDUCTION IN INVOICE

F EXPORT PROCEEDS IF GOODS RE-IMPORTED TO INDIA

HE EXPORTER
OF REMITTANCE.
 PART - 1 - ADVANCE PAYMENT AGAINST IMPORT (SMI)
A. CONCEPT
1. CONTRACT DONE BETWEEN IMPORTER AND EXPORTER. IMPORT OF PLATINUM
2. EXPORTER IN REPUTABLE POSITION AND IMPORTER SENDS ADVANCE TO EXPORTER SILVER ON UNFIXED PRICE BASIS
3. HE CAME TO BANK BANK DEBIT CUSTOMER ACCOUNT, CONVERT THE FUNDS BY FX DEAL TO RESPECTIVE CURRECY AND CREDIT THE FUNDS IMPORT OF DIAMOND
TO OUR FOREIGN CORRESPONDENT BANK WITH A MT103 SWIFT WHERE DETAILS OF BENEFICIARY, BENEFICIARY BANK AND ACCOUNT NO ARE THERE.. EDD
4. CORRESPONDENT BANKS ARE TRYING TO MAINTAIN NOSTRO WITH ALL FOREIGN BANKS OF RESPECTIVE REGION OR MAINTAIIN NOSTRO WITH BIG BANKS WHO USUALY HAVE WRITE OFF
NOSTRO WITH ALL BANKS. MAIN OBJECT IS TO TRANSMIT FUNDS TO FOREIGN BENEFICIARY FAST. D AND B REPORT
ICIC HONG KONG - MAINTAINING NOSTRO WITH ALL ASIAN BANKS BPO
ICICI GERMANY - MAINTAINING NOSTRO WITH ALL EUROPE BANKS DEEMED IMPORT
2. DOCUMENTS AIRCRAFT/SHIP
1.CRL FORM A1 WITH FEMA NNL DECLARATION ALONG WITH IE CODE AND HS CODE IMPORT BY SEZ
2.PI/PO/CONTRACT IMPORT BY 100% EOU
3.UNDERTAKING SUBMISSION OF BOE AMLOCK
4.ADVANCE IMPORT DECLARATION
5.EITHER EDD/NIL BOE PENDING CONFIRMATION
6.FX DEAL AND APPROVAL IN CASE OF DELAY APPROVAL
7.IMPORT LICENCE IN CASE OF RESRICTED GOODS
3. CHECKLIST
1. IE CODE IN ICEGATE, HS CODE IN DGFT, AMLOCK CHECK
2. CONSISTENCY IN NAMES,CURRENCY AMOUNT IN ALL DOCUMENTS AND PAYMENT SHOULD BE AS PER INVOICE
3. IMPORT OF GOLD NOT ALLOWED, .IMPORT OF BOOKS FREELY ALLOWED
4. IF BENE NAME AND COUNTRY DIFFERENT IN CRL AND INVOICE, THIRDPARTY PAYMENT GUIDELINES
5. CHECK FOR APPLICIBILITY MTT AND PROJECT EXPORT
6. CRL SHOULD CONTAIN CUSTOMER ACKNOWLEDGEMENT AND SIGNATURE AND STAMP, BALANCE IN CUSTOMER ACCOUNT WITH FUNDS AVAILIBILITY.
7. ADVANCE PAYMENT TERMS TO BE MENTION IN PI/PO AND ADVANCE PAYMENT NOT MORE PERCENTAGE MENTIONED IN PI
8. COUNTRY OF ORIGIN IF YES SHOULD BE AS PER ADVANCE IMPORT DECLARATION AND NOT BE RESTRICTED UNDER SCANTIONED COUNTRIES
9. INVOICE MUST BE ENDORCED, IN CASE OF PARTIAL ADVANCE IMPORT OR NIL BOE PENDING CONFIRMATION.
10. DIRECT DEAL UTILIZE IN CREDENCE FORWARD DEAL UTILIZE IN DRA GTSU DEAL UTILIZE IN CREDENCE MUREX DEAL ID 8 DIGIT RELATED DEAL ID 12/9 DIGIT
11. IMPORT LICENCE FOR RESTRICTED GOODS CHECK -NAME OF IMPORTER, VALIDITY OF IMPORT LICENCE GOODS DESCRIPTION CURRENCY AND QUANTITY
12 ACU MECHANISM TO BE FOLLED FOR ACU COUNTRIES IMPORT OF OIL AND GAS IS PERMITTED CURRENCY
13. BANK GURANTEE ABOVE USD 10000 AND FOR GOI ABOVE USD 100000
14 . GOODS IMPORED FOR PERSONAL USE CAN BE PROCESSED FROM SAVINGS ACCOUNT
15. MENTION PPR(CUSTOMER ASSESSMENT CERTIFICATE OR POSTAL APPRISAL FORM WHERE IMPORT HAVE BEEN MADE BY POST
16. SAFE APPROVAL CHINESE BENEFICIARY HOLDING BANK ACCOUNT ABROAD
18. CNAPS CODE FOR CNY, IBAN FOR EURO/UAE PAYMENT, POPS CODE FOR JORDAN
19. JPY 1 M OTHER 1 L APPROVAL ,LATE DEAL UTILIZATION APPROVAL
20. EDD OVERDUE 15 DAYS RETURN
21. CHARGES ASPER CAL,I-MEMO,RELATED PARTY LIST

PART - 2 - DIRECT PAYMENT AGAINST IMPORT (MDC)

A. BASIC
1. WHEN THERE IS REGULAR RELATIONSHIP BETWEEN IMPORTER AND EXPORTER. IE INDIAN IMPORTER IS REGULAR CUSTOMER THAT FOREIGN EXPORTER.
2. THEN USUALY EXPORTER SENDING THE GOODS FIRST AND IMPORTER MAKING THE PAYMENT LATER.
3. IMPORTER CAME TO BANK FOR GOODS ALREADY CAME TO INDIA.
4. PAYMENT PROCESS AND NOSTRO PROCEESS ARE SAME HERE BUT BANK NEED TO SENT MT102 TO FOREIGN CORRESPONDENT FOR DIRECT IMPORT PAYMENT
B. DOCUMENTS
1. SAME AS SMI
2. TRANSPORT DOCUMENT AND BILL OF ENTRY IS MANDATORY HERE
C. CHECKLIST
1. AD CODE ON BOE, IF OF OTHER BANK THEN ALSO WE CAN PROCESS
2. CAN BE DELAY IN PAYMENT FOR MORE THAN 6 MONTHS BUT HAVE TO BE WITHIN 3 YEARS CUSTOMER SHOULD MENTION THE REASON OF DELAY
3. FOR EARLY CASH DISCOUNT CONCEPT MAY APPLY. IF PAYMENT DATE IS LESS THAN DUE DATE THEN CUSTOMER CONFIRMATION IS REQUIRED
FOR DEDUCTING OF PAYMENT INTEREST FOR UNEXPIRED USANCE PERIOD
4. CHECK APPROVAL IN FEMA APPROVAL TRANSACTION
5. MULTIPLE ORM CAN BE SETTLED AGAINST SINGLE BOE SINGLE ORM CAN BE SETTLED AGAINT MULTIPLE BOE
6. CONTRACT COPY BETWEEN BENEFICIARY AND THAT SISTER CONCERN OR SUBSIDIARY REQUESTED
7. BOE CHECK AD CODE, PORT CODE,BOE NO,BOE DATE CURRENCY, AMOUNT, CHECK ICEGATE SCREENSHOT, CHECK BOE AND INVOICE DETAILS IN EDIS
8. PRO FORMA INVOICE INSTEAD OF COMMERCIAL INVOICE IS ALLOWED UPTO USD 10,000
9. VALUE OF REMITTANCE SHOULD NOT EXCEED USD 3,00,000 IF EXCEEDS RBI APPROVAL REQUIRED IF THE REMITTER IS PARTNERSHIP FIRM, TRUST SOCIETY
SUBSIDIARY,SEZ PARTNERSHIP AND INDIVIDUAL CAPACITY
 PART- 3 - DOCUMENTARY COLLECTION WITHOUT LC (MFC)
A. BASIC
0. SOMETIMES, PROCESS OF LC IS COSTLY FOR CUSTOMERS SO CUSTOMER OPTING DOCUMENTARY COLLECTION PROCESS
1. DOCUMENTARY COLLECTION MEANS FOREIGN EXPORTER/EXPORTER BANK SENT EXPORT DOCUMENTS INCLUDING TITLE OF GOODS TO OUR BANK WITH COVERING SCHEDILE.
2. C TO B - EXPORTER SENDING DOCUMENTS DIRECTLY TO OUR BANK AND B TO B MEANS EXPORTER BANK SENDING DOCUMENTS TO OUR BANK.
3. AND INSTRUCT OUR BANK THROUGH COVERING SCHEDULE EITHER TO DELIVER THE DOCUMENTS AGAINST PAYMENT FROM IMPORTER OR ACCEPTANCE FOR PAYMENT ON DUE DATE
4. WE ARE GENERATING MFC BILL, SENDING MT410/412 (INTIMATION OF RECEIPT OF DICUMENT) WHEN WE ARE RECEIVING THE DOCUMENTS.
5. IF MFC BILL IS IN SIGHT WE ARE REALIZING THE BILL ON SAME DATE OR NEXT DATE THROUGH MFCR AND IF MFC BILL IS IN USANCE MFCR TO BE DONE ON DUE DATE.
6. THROUGH MFCR WE ARE DEBITING CLIENT ACCOUNT AND MAKING PAYMENT AS PER COVERING SCHEDULE.
7. PAYMENT CAN BE MADE DIRECT TO THE BENEFICIARY THEN WE HAVE TO SEND MT102
8. IF PAYMENT IS COMING TO FOREIGN BANK THEN WE HAVE TO SEND MT202
9. PAYMENT AND NOSTRO DETAILS SAME AS SMI
B. PROCESS AND CHECK LIST
1. RECEIVE DOCUMENTS FROM FOREIGN BANK AND ACKNOWLEDGE THE SAME BY AFFIXING STAMP ALONG WITH DATE, TIME OF RECEIPT OF DOCUMENTS.
2. CHECK THE AVALIBILITY OF DOCUMENTS AS PER COVERING SCHEDULE AND IT IS TO BE ADDRESSED TO ICICI IF NOT THEN SEND MT499 AND
CHECK DOCUMENT TO BE RELEASED AGAINST PAYMENT OR ACCEPTANCE
3. CHECK IF THERE IS ANY SPECIAL CONDITION REGARDING STORAGE, INSURANCE, IF YES MFC CAN BE LODGED, AND SEND MESSAGE STATING " KINDLY NOTE THAT WE DO-NOT
UNDERTAKE STORAGE/INSURANCE OF GOODS"
4. IF NOTING AND PROTESTING CLAUSE IN COVERING SCHEDULE, IF PAYMENT TERM IS SIGHT LODGE THE BILL. IF PAYMENT TERM IS USANCE HOLD AND SENT MT499 MESSAGE
TO FOREIGN BANK STATING, WE ARE NOT "WE ARE NOT FACILITATE NOTING AND PROTESTING CLAUSE"
5. IF THERE IS ANY CONDITION RELATED TO CO ACCEPTANCE/AVALIZATION STATED ON THE COVERING SCHEDULE. CHECK CAL CONDITION OF CLIENTS.
IF CO ACCEPTANCE/AVALISATION FACILITY IS AVAILABLE FOR CLIENTS LODGE MFC BILL AND SEND SWIFT ACCORDINGLY AND
IF CO-ACCEPTANCE FACILITY IS AVAILABLE FOR CLIENT THAT SHOULD BE SPECIALY MENTIONED IN CAL, TILL PRESENTATION MEMO IS SENT THE PROCESS IS SAME.
WHEN ACCEPTANCE LETTER CAME FROM CLIENT, IT SHOULD REQUEST BANK TO UNDERTAKING TO FOREIGN BANK TO PAY UPON RECEIPT OF NOTICE OF REDINESS(NOR).
OPEN LC UNDER SCANTIONED LC LIMIT FOR THE CUSTOMER WITH DATE OF EXPIRY AS GIVEN IN CRL OF THE CUSTOMER. AND LODGE A BILL UNDER LC FOR USANCE PERIOD
NO OF DAYS. SEND SWIFT MESSAGE TO FOREIGN BANK. SENT SWIFT MESSAGE TO FOREIGN BANK FOR ACCEPTANCE UNDERTAKING. " BANK UNDERTAKE TO PAY UPON
RECEIPT OF NOR WITHIN SPECIFIED NO OF DAYS" . IF THE FACILITY IS NOT AVAILABLE THEN SEND SWIFT MESSAGE MT499 TO FOREIGN BANK
THAT WE DO NOT FACILITATE CO-ACCEPTANCE/AVALIZATION OF BILLS.
6. IF TENOR OF BILL IS SIGHT AND HAS AN INTEREST CLAUSE IN COVERING SCHEDULE, CHECK ROI TO BE COLLECTED. PAYABLE DATE AND SEND SWIFT TO REMITTING BANK
OR COLLECTING BANK SEEKING CLARIFICATION ABOUT THE PERIOD, AND WHEATHER WE CAN HANDLE THE DOCUMENTS IGNORING THE INTEREST CLAUSE. MFC BILL SHOULD
NOT BE LODGED UNTILL CONFIRMATION CAME FROM REMITTING BANK. CHARGES TO BE COLLECTED, AND WHEATHER THEY MAY BE WAIVED OR NOT. I
NTEREST TO BE COLLECTED, AND RATE OF INTEREST, PERIOD, BASIS OF CALCULATION(360/365)
7. IN CASE OF COLLECTION INSTRUCTION IS NOT SUBJECT TO URC522 SEND SWIFT MESSAGE TO FOREIGN BANK STATING "WE ARE NOT HANDLING DOCUMENTS WITHOUT URC522"
8. IF DISCRIPANCIES ARE THERE IN THE DOCUMENTS, SEND MT499 TO FOREIGN BANK, IF NOT LODGE THE BILL.
10. CHECK FOR CORRESPONDENT BANK DETAILS IN COVERING PAYMENT INSTRUCTIONS IF IT IS NOT PROVIDED, SEND MT499 AND ASK FOR THE SAME.
11. IN CASE OF ANY INSUFFICIENT DETAILS IN FBCS THEN SEND MT499 TO FOREIGN EXPORTER BANK AND ASK FOR THE SAME.
12. PRINT PRESENTATION MEMO (SIGHT) OR ACCEPTANCE MEMO (USANCE) AND DISPATCH TO THE IMPORTER.
13. IF DOCUMENT ARE TO BE RETURNED TO FOREIGN BANK PRINT RETURN LETTER ATTACH WITH THE DOCUMENTS AND RETURN.
14. IF PAYMENT TERMS IS SIGHT OR USANCE UPTO 180 DAYS NO APPROVAL REQUIRED.
IF PAYMENT TERMS IS USANCE MORETHAN 180 DAYS SUPPLIERS CREDIT APPROVAL REQUIRED.
IF PAYMENT TERMS IS USANCE MORE THAN 1095 DAYS RBI APPROVAL REQUIRED.
15. FOR SIGHT BILLS DOCUMENTS TO BE RELEASED AFTER REALIZATION IE AFTER MFCR. FOR USANCE BILL DOCUMENTS TO BE RELEASED AFTER ACCEPTANCE LETTER FROM
CLIENT AND AFTER NECESSERY ENDORCEMENTS ON DOCUMENTS. FOR ACCEPTANCE WITHOUT DISCRIPANCY OR WITH DISCRIPANCY SEND SWIFT MESSAGE TO CUSTOMER.
16. FOR SIGHT OR USANCE BILLS IF WRITTEN REJECTION RECEIVED FROM CUSTOMER, INFORM FOREIGN BANK ABOUT THE SAME THROUGH MT499. AND WAIT FOR DISPOSAL
INSTRUCTION FROM OVERSEAS BANK. WHEN IT RECEIVED ACT ACCORDINGLY
17. FOR DA OR DP BILLS IF PAYMENT IS NOT RECEIVED FROM CLIENT ON DUE DATE OR PAYMENT DATE, FOLLOWUP WITH THE CLIENT, AFTER 1 MONTH
SEND LETTER TO IMPORTER AND SEND MT499 TO FOREIGN BANK FOR NON-PAYMENT OR NON ACCEPTANCE.
18. RETURN THE DOCUMENTS TO FOREIGN BANK IF ACCEPTANCE OR PAYMENT STILL NOT RECEIVED AFTER 90 DAYS AND DISHONOUR MFC BILL.
AND SEND MTT499 FOR RETURNING INTIMATION
19.IN CASE OF NON-PHYSICAL IMPORTS CERTIFICATE FROM CA, EVIDENCING RECEIPT OF SOFTWARE/IMAGE/DRAWING ATTACHED.
20. FOR B2B CASES NO DUE DILIGENCE IS REQUIRED FOR THE OVERSEAS SUPPLIER, IN CASE OF C TO C UPTO USD 3,00,000 NOT REQUIRED IF TRACK RECORD OF IMPORTER IS GOOD
AND FOR ABOVE USD 300000 ADD TO BE DONE ON OVERSEAS CLIENT
21. CHECK IF COLLECTION INSTRUCTION CONTAINS EXACT PERIOD AND IF IT IS CONTAINED WORD LIKE IMMEDIATE, FIRST, PROMPT DOCUMENTS SHOULD NOT BE HANDLED.
CHECK POINT 1 AND 2 OF SMI.
22. NAME OF PARTIES DRAWER DRAWEE AMOUNT CURRENCY TENOR GOODS DESCRIPTIONS QUANTITY ETC SHOULD CONSISTANT IN ALL DOCUMENTS.
23. BOE SHOULD BE DULY SIGNED BY SELLER/DRAWER. BOE NOT TO BE DRAWN ON ICICI - IT IS TO BE DRAWN ON CUSTOMER ONLY.
24.. CHECK WHEATHER TRANSPORT DOCUMENT IS CONSIGNED TO ORDER OR BLANK ENDORSED TO SHIPPER. IN CASE OF C TO B TRANSACTION, CHECK IF TRANSPORT DOCUMENT
IS CONSIGNED "'TO ORDER" AND THEN CHECK FOR ENDORCEMENT. IN CASE IF TRANSPORT DOCUMENT IS CONSIGNED TO ICICI SEND MT499

PART - 4 - REALIZATION OF IMPORT BILL UNDER COLLECTION (MFCR)

A. BASIC AND DOCUMENTS
FOR SIGHT MFC BILLS TO BE REALIZED ON DATE FOR USANCE MFC BILL TO BE REALIZED ON DUE DATE -
1. FOREIGN BANK COVERING SCHEDULE
2. MT799 IF BUYERS CREDIT REPAYMENT
3. USANCE BILL - BOE SUBMITTED
4. CRL FOR PAYMENT ACCEPTANCE, INCLUDES FEMA DECLERATION AND NNL.
5. MT 202 IN CASE OF NOSTRO FUNDING
6. IMPORT LICENCE IF APPLICABLE
7. TRANSPORT DOCUMENT
8. BOE OR A VALID REASON FOR NON SUBMISSION OF BOE
B. CHECKLIST
1. ALL CHECKLIST AS PER SMI
2. BOE AND BL CHECKLIST AS PER MDC
3. CHECK SMSA FOR ANY SWIFT COMMUNICATION RECEIVED FROM FOREIGN BANK.
4. FOR PRE PAYMENT IE, IF PAYMENT TO BE MADE PRIOR TO DUE DATE, INTEREST FOR UNEXPIRED USANCE DAYS TO BE DEDUCTED FROM REPAYMENT AS PER RBI.
5. IF INVOICE IS IN DIFFERENT CURENCY AND BENEFICIARY WANTS PAYMENT IN FREELY CONVERTIBLE CURRENCY THAT IS POSSIBLE, IF BANK IS SATISFIED ABOUT THE
BONAFIED OF THE TRANSACTION AND NOT OFAC OR FATF
8. FOR NOSTRO FUNDING CASES, ENSURE THAT FUNDS ARE SIGHTED IN RESPECTIVE NOSTRO.
9.IN CASE OF CAPITAL GOODS TRANSACTION SHOULD BE COMPLETED WITHIN 3 YEARS AND IN CASE OF NON CAPITAL GOODS IT SHOULD BE COMPLETED WITHIN 1 YEAR.
10. IN CASE TRANSACTION PROCESSING BEYOND 180 DAYS FROM DATE OF SHIPMENT LATE PAYMENT APPROVAL REQUIRED.
11. FOR CHARGES - RELATED PARTY LIST, CAL, STATUS AND I MEMO APPROVAL
12. CHECK FULL NAME AND ADDRESS OF REMITTING BANK WITH SWIFT CODE, FULL ADDRESS OF DRAWER -DRAWEE, PAYMENT ROUTING INSTRUCTIONS ARE MENTIONED. IN CASE
BILL FROM ACU COUNTRY, CHECK DETAILS OF ACU ACCOUNT FOR PAYMENT.
13. CHECK IF REMITTANCE AMOUNT AND CURRENCY MENTIONED ON CRL SHOULD MATCH WITH COVERING SCHEDULE.
14. CHECK HEATHER DOCUMENTS TO BE RELEASED AGAINST SIGHT/USANCE.
15. IN CASE OF PRE-PAYMENT OR OVERDUE PAYMENT TO BE DONE SAME TO BE MENTIONED IN FBCS.
16. CHECK TENOR OR MATURITY OF THE BILL
17. SENT MT202 AS PER PAYMENT INSTRUCTION MENTIONED IN FBCS.
18. SENT MT103 AS PER PAYMENT INSTRUCTION MENTIONED IN INVOICE.
19. PARTIES INVOLVED TO BE CHECKED WITH EXPORTER CAUTION LIST AND ADVICES CIRCULATED BY RBI TO BANKS.
20. PURPOSE CODE FOR MFCR IS S0102

PART - 5 - IMPORT LC
A. BASIC AND DOCUMENTS FOR IMPORT LC
APPLICANT COMES TO US TO OPEN AN LC IN FAVOUR OF BENEFICIARY
1.CRL 6.MTT DECLARATION IF ANY
2. LC APPLICATION WITH FEMA AND NNL DECLARATION 7. STANDARD BL CLAUSE IS INCORPORATED
3. PI/PO/SA AMOUNT >=LC VALUE 8. LC APPLICATION SHOULD BE SIGNED
4. INSURANCE POLICY FORM APPLICANT IF INCOTERMS BY APPLICANT ON ALL PAGES
IS CPT/CFR/FOB/EXW/FCA/FAS 9.CONTRACT SIGNED BY APPLICANT
AMOUNT OF INSURANCE IS >= 110% OF LC AMOUNT 10.IMPORT LICENCE IN CASE OF RESTRICTED GOODS
LC EXPIRY< INSURANCE EXPIRY 11. KYC AND AML NORMS COMPLIED
POLICY CONSIGNED TO ICICI AIRCRAFT/BPO
5.IF INCOTERMS IS CIF/CIP/DAT/DAP STANDARD
INSURANCE CLAUSE SHOULD BE INCORPORATED
IN LC
B. CHECKLIST FOR IMPORT LC
BRANCH CHECKLIST MLC ADDITIONAL BRANCH CHECKLIST FOR ISSUANCE OF ESCALATION/DESCALLATION CLAUSE
CHARGES AND MARGIN AC NO AND BALLANCE REVOLVING LC 1.FOR LCS RELATED TO IMPORT OF OIL
CUSTOMER SIGNATURE VERIFY WITH LC APPLICATION 1. NO OF REVOLVEMENTS UNDER THE LC (NOT UNLIMITED) ADDITIONAL LIMIT NEED TO BE BLOCKED
LIMIT IS VALID AND AVAILABLE 2. TOTAL DRAWINGS ALLOWED UNDER THE LC AS PER CONDITIONS STATED IN CAL
CAL UPADATED FOR CHARGES, IF CAL IS EXPIRED APPROVAL 3. REINSTATEMENT TYPE- AUTOMATIC 2. IN CASE CAL IS SCILENT ADDITIONAL
LDN BEYOND EXPIRY APPROVAL 4.WHEATHER REVOLVEMENT IS CUMULITIVE OR NON 15 % LIMIT TO BE BLOCKED TO COVER
OVERDUE LIABILITY APPROVAL CUMULITIVE PRICES OR CHANGE IN QUANTITY
STAMP PAPER IN CASE OF NON MFA ADDITIONAL CHECKLIST FOR REIMBURSEMENT FINANCE 3. IF CAL PERMITS ESCALLATION/
FD NO FOR MARGIN -BALLLANCE AND MATURITY DATE 1. LC APPLICATION TO MENTION THE SAME DEESCALLATION CLAUSE FOR PRICE/
1 MILLION OR ABOVE LC VALUE, D&B REPORT OF BENEFICIARY, 2. FUNDING ARRANGEMENT OFFER LETTER EMAIL FORM QUANTITY/ PRICE AND QUANTITY
FORBES INTERNATIONAL 500 LIST OR APPROVAL AS PER TRADE FUNDING BANK OR EMAIL CONFIRMATION FROM IFIG BLOCK LIMIT AS PER CAL
DEVIATION 3. CONFIRM THE VALUE OF THE STAMP 4. IF SCILENT ABOUT PERCENTAGE
GENERAL CHECKLIST FOR MLC IMPORT LICENCE CHECKLIST TAKE 15%
1. LC APPLICATION SHOULD MATCH WITH 1. AMOUNT-BALANCE, COMMODITY, VALIDITY LDS DT, ENDORC 5. IF CAL DOES NOT PERMIT RETURN
CONTRACT , BENEFICIARY DETAILS, DESCRIPTIONS OF GOODS, FOR LC VALUE AUTHENTICATION BY BRANCH, LC OPENER NAMEREVOLVING LC
TERMS OF PAYMENT, TENOR OF LC, LC EXPIRY DATE, SHIPMENT TERCOUNTRY OF ORIGIN MATCH WITH LC 1. MAXIMUM LIABILITY SHOULD NOT
2. PO SHOULD BE SIGNED BY APPLICANT 2. IF ON OTHER PERSON NAME IT MUST BE ENDORSED BE UNLIMITED
PI SHOULD BE SIGNED BY BENEFICIARY 3. IN CASE OF CAPITAL GOODS LICENCES THE TIME LIMIT 2. MAXIMUM LIABILITY OF BANK AS
3. OFAC COMPLIANCE FOR REPLACEMENT OF SUCH ORDERS SHOULD BE CHECKED GIVEN IN LC TEXT NOT BREACHED
4. OVERDUE STATUS CHECK WITH THE DATE APPLIED 3. CHECK WHEATHER RE
5. AMMENDMENT OF EXPIRED LC CAN BE MADE INSTATEMENT IS AUTOMATED
WITHIN ONE MONTH FROM EXPIRY INSURANCE, STAMP DUTY CHECKLIST 4. VERIFY NO OF REINSTATEMENT
6. CHARTER PARTY BILL OF LADING, THIRD PARTY DOCUMENTS, IN CASE OF SPECIFIC VOYAGE POLICY AS PER LC
CASES WHERE BL SHOULD BE CONSIGNED TO APPLICANT COMMODITY,WEIGHT,SHIPMENT DATE RED CLAUSE LC
APPROVAL REQUIRED SHOULD BE AVAILABLE 1. CAL SPECIFICALLY PERMIT
7. BUSINESS HEAD APPROVAL REQUIRED TRASPORT DOCUMENT EFFECTIVE DATE ON OR BEFORE ON 2. MAXIMUM LIMIT OF ADVANCE
TO APPLICANT BOARD DATE AS PER CAL
8. OVERDUE LIABILITY UPTO 80 DAYS CLIENT APPROVAL VALIDITY SIGHT LC LETTER THAN 3. MAXIMUM AMOUNT THAT ADVISING
ABOVE 80 DAYS ED APPROVAL EXPIRY DATE AND USANCE LC OR NEGOTIATING BANK COULD PAY
9.HS CODE IN DGFT SHOULD BE FREE LETTER THAN LDS IN ADVANCE TO BENEFICIARY
10 IE CODE IN ICEGATE INSTITUTE CARGO CLAUSE A SHOULD BE AS PER CAL
11. AMLOCK WITH EXTENDED COVERAGE 4. THIS AMOUNT SHOULD BE
12. RBI DEFAULTER LIST APPROVAL REQUIRED FOR TRANSSHIPMENT,THREFT, MENTIONED IN CLAUSE INCOPORATED
13. RBI CAUTION LIST CAN BE PROCESSED GENERALLY PILFERAGE,BREAKAGE, NON IN LC
14. D AND B REPORT DELIVERY INR DENOMINATED INVOICE
ADVISING INSTITUTE WAR CLAUSE PERMISSIBLE INTEREST PAYMENT
LC TEXT INSTITUTE TRANSFER CLAUSE ON TRADE CREDITS
1. LC TEXT IN LINE WITH UNDERLYING CONTRACT STAMPING NOT REQUIRED CAP- REPO+3 BPS
2. BL SHOULD BE CALLED FOR TO ORDER BANK ENDORCED FOR MFA EXECUTED CLIENT GOLD IMPORT LC
OR TO ORDER OF ICICI BANK, EVEN IF LC APPLICATION IS SCILENT FOR NON MFA REQUIRED 1. LC CAN BE OPENED ON BEHALF OF NOMINATED
3. FOR CONFIRMED LC DRAFT SHOULD BE DRAWN ON CONFIRMING CHECK ADEQUACY OF STAMP DUTY AGENCIES, EOUS ENGAGED IN GEM AND JEWELLERY
BANK AND LC SHOULD EXPIRES ON CONFIRMING BANK COUNTER AND DATE OF STAMP NOT BE LESS SECTOR SITUATED IN SEZ ONLY.
4. OFAC CLAUSETO BE INCLUDED IN ALL TRANSACTIONS THAN 6 MONTHS 2. SC AND BC FOR IMPORT OF GOLD INCLUDING
"THIS LC WOULD BE SUBJECT TO US, EU, UN , INDIA AND OTHER" D AND B REPORT OF BENEFICIARY THE USANCE PERIOD OF LC DOES NOT EXCEED
SCANTIONS INCLUDING DUE TO USE OF A CORRESPONDENT 1.REQUIRED FOR LC VALUE ABOVE 1 MILLION 90 DAYS
BANK. CONSEQUENTLY PROCESSING OF THIS LC WOULD BE 2.EXCEPTION RATED A IN FORBES INTERNATIONAL 3. REPORT ON OVERSEAS SUPPLIER TO ESTABLISH
SUBJECT TO SAME" 500 AND ASIA WEAK 1000 CREDENTIAL OF OVERSEAS SUPPLIER
5.ISSUANCE OF LC WITH A CLAUSE ACCEPTANCE OF LOI 3. GM APPROVAL FOR WAIVER 4. FOR IMPORT OF JEWELLERY 90 DAYS USANCE
INSTEAD OF BL IS ALLOWED 4. 100 % MARGIN CASES AND GOLD IMPORT PERMITTED
6. ACCEPTANCE OF LOI IN LIEU OF FULL SET OF 3/3 ORIGINAL WAIVER IS NOT APPLICABLE 5. FOR ALL OTHER DP BASIS- REFER IMPORT OF GOLD
BILL OF LADING IN OIL TRANSACTIONS 5. NAME AND ADDRESS OF OVERSEAS PARTY MATCH 6. LC-PDF SHOULD MENTION ACTRUAL LC VALUE
7. BOE SHOULD BE DRAWN BY BENEFICIARY ON ISSUING BANK WITH CRL AND CHARGES TO BE COLLECTED
NOT ON APPLICANT SO, OBLIGATION TO PAY IS OF ISSUING BANK. 6.LINE OF BUSINESS COMMENSURATE WITH 7. ADDITIONAL LIMIT TO BE BLOCKED AS PER CAL
8. LC SHOULD MENTION UCP LATEST VERSION TRANSACTION RECEIVED OVER AND LC VALUE PLUS TOLLERANCE OR
9. DISCRIPANCY BETWEEN SOFTCOPY AND HARDCOPY 7. DATE OF INCORPORATION SHULD BE PRIOR AS PER CUSTOMER REQUEST WHICHEVER IS
OF LC TEXT CLARIFICATION TO BE TAKEN TO SHIPMENT HIGHER BUT UPER CAP LIMIT MENTIONED IN CAL
10. REIMBURSEMENT INSTRUCTION TO BE INCORPORATED FOR 8. AML CHECK ON NAME OF DIRECTORS/PROMOTERS SHOULD NOT EXCEED
ALL CONFIRMED LCS DENOMINATED IN ANY CURRENCY AND 9. CREDIT RATING SHOULD BE SATISFACTORY 8. IN CASE CAL HAS NO MENTION APPROVAL REQUIRED
UNCONFIRMED LC DENOMINATED IN USD AND EURO 10. UNABLE TO LOCATE THE COMPANY,REFUCE TO FORM RISK AND PRODUCT
11. PI OR PO AMOUNT CAN BE GREATER THAN LC APPLICATION PROVIDE INFORMATION,CASES FILED AGAINST COMPANY SAMPLE FORMAT
BUT NOT LESS FINANCIAL STREANTH IS UNDISCLOSED, RISK INDICATOR 8. 45(A) GOODS DESCRIPTION TO BE VERY CLEAR
12. IF TENOR IN PI IS SCILENT ON TOLLERANCE IS GIVEN AS UNDETERMINED,OVERSEAS REIMBURSEMENT FINANCE STRUCTURE
WHERE AS LC APPLICATION MENTIONS UP TO10% TOLLERANCE SUPPLIER HAVING RISK INDICATOR OTHERTHAN 1 AND 2 1. LC APPLICATION SHOULD INDICATE REIMBURSEMENT
PROCESS AS PER LC APPLICATION AGM APPROVAL REQUIRED FINANCE STRUCTURE
13. CURRENCY IN PO OR PI IS DIFFERENT FROM LC LIMIT SET-UP 2. CONFIRMATION FROM IFIG/IMPORTER ABOUT
APPLICATION BUT IS ONE WHICH IS GENERALLY TRADED AND LIQUID 1.AVAILIBILITY AND VALIDITY OF LIMIT THE ARRANGEMENT WITH THE FOREIGN BANK
PROCESS AS PER LC APPLICATION CURRENCY IF CONVERTED 2.COPS LIMIT, FD BACKED LIMIT 3. COMPLETE SET OF DOCUMENTS FORWARDED TO
AMOUNT IS UPTO 115% OF LC APPLICATION AMOUNT 3. WHEN FUND AND NON FUND BASED SWIFT
14. MISMATCH OF INCOTERMS IN CONTRACT AND LC APPLICATION LIMITS ARE INTERCHANGABLE 4. FATF COUNTRY CHECK ON FUNDING BANK
LC - CIF, PO-FOB, LC AMOUNT NOT MORE THAN 15% OF LC APPLICATI AS PER LSM AND CAL ADDITIONAL CHECKLIST FOR AMMENDMENT OF IMPORT LC
LC-CIF, PO-CFR LC AMOUNT NOT MORE THAN 10 % IN LC APPLICATIONA.WHEN NON-FUND BASED LIMIT IS 1. LIMIT ID TO BE MODIFIED AND IN CASE OF COPS
LC-FOB, PO-CIF LC AMOUNT NOT LESS THAN 15% IN LC APPLICATION CHILD LIMIT OF FUND BASED LIMIT IN CASE OF FD LIMIT ADDITIONAL MARGIN TO TAKE
LC-CFR, PO-CIF LC AMOUNT NOT LESS THAN 10 % IN LC APPLICATIONOR VICE VERSA LC DRAFT TO BE AMMENDED
15. SHIPMENT DATE PRIOR TO LC OPENING DATE CALL FOR B.ENSURE FUND BASED LIMIT ARE 2. TENURE OR AMOUNT OF LC TO BE CHANGED AS CRL
SHIPPING DOCUMENTS HOWEVER NOT BEFORE PO/PI DATE AVAILABLE IN I-CORE 3. CHARGES COMMISSION SHOULD BE AS PER I-MEMO
ENSURE USANCE PERIOD FROM DATE OF SHIPMENT C.CHECK FUND BASED LIMIT AT 4. IN CASE OF VALUE ENHANCEMENT NAME SCREENING
NOT FROM LC ISSUANCE ACCOUNT LEVEL/CC LEVEL TO BE DONE AS PER AMLOCK GRID
16. LC WITH ESCALLATION CLAUSE SHOULD HAVE LIMIT UPTO NO CHANGE IN DRAWING POWER JV/WOS/STEP-DOWN SUBSIDIARY
WHICH LC CAN BE OVERDRAWN AND CAN BE OPENED WITH PROPER TO BE DONE A. ENSURE CAL SPECIFICALLY MENTIONS BELOW
SCANTION AND MAXIMUM COMMITMENT OF BANK UNDER THE LC D.100% FD BACKED CASES CHECK 1. CLIENT FOR WHOOM THE LC IS OPENED
SHOULD BE DEFINED AND COMMISSION NEEDS TO BE COLLECTED FD EXPIRY DATE AND LC EXPIRY DATE IS A JV WOS OR SD SUB OF INDIAN CO
FOR ADDITIONAL LC AUTO CLOSURE SHOULD BE NO 2. LC CAN BE OPENED FOR THAT PARTICULAR
17. IF AVAILABLE WITH BANK (41 A) MENTIONS AS X BANK BY AUTO RENEWAL SHOULD BE YES JV/WOS/STEP-DOWN SUBSIDIARY
ACCEPTANCE, THEN 42(D) FIELD DRAWEE SHOULD BE X BANK ONLY REPAYMENT ACCOUNT SHOULD BE 3. TENOR OF LC
18. NO RESTRICTIONS OPENING LC OF ESSENTIAL ITEMS COLLECTION ACCOUNT 4. COMMODITY THAT CAN BE IMPORTED
NOT PERMITTED TO OPEN INLAND LCS E.PRE-LIMIT CARVING SCREENSHOT 5. SEPATATE LIMIT ONLY FOR IMPORT LC
19. LC APPLICATION AND OTHER DOCUMENTS SUBMITTED TENOR CHECKLIST OR WOS OR STEP DOWN SUBSIDIARY
WITHOUT SPECIFYING OR MARKING CLAUSES, TRANSACTION TO 1.SIGHT CHARGES DATE OF OPENING AND NOT INTERCHANGABLE WITH OTHER LIMITS
BE PROCESSED BY INSERTING OUR STANDARD CLAUSE TO DATE OF EXPIRY B. COPY OF RBI LETTER ALLOTING UIN TO THE
20. MAXIMUM COMMITMENT OF THE BANK UNDER LC 2.MAXIMUM USANCE PERIOD PERMITTED CLIENT TO BE VERIFIED
SHOULD BE DEFINED IS 180 DAYS FROM THE DATE OF C. APPROVAL FGARG OR PIVG OR CMOG TO
RISK INDICATORS SHIPMENT BE PLACE PRIOR TO LC APPLICATION
1.STRONG 3. MORE THAN 180 DAYS SUPPLIERS D.CHARGES
2.GOOD CREDIT APPROVAL G.MASTER FACILITY AGREEMENT
3. FAIR 4.INCREASE IN LC VALUE CREDIT IS SUBJECT TO UCP LATEST VERSION
4. LIMITED REVISED TRADE CREDIT APPROVAL NOT CONTRADICT WITH ANY RULES
O. INFORMATION 5.CAPITAL GOODS 1-3 YEARS GOODS NOT NEGATIVE LIST OR LICENCE
INSUFFICIENT TRADE CREDIT APPROVAL UNDERTAKING TO SUBMIT BOE
NQ. BUSINESS CEASED OPERATIONS 6. MORE THAN 3 YEARS ECB TO BE UNDERTAKE TO PAY ANY LOSS REGARDING
N. NEGATIVE NETWORTH ARRANGED NEGOTIATION
ER. NOT PARTICIPATE IN CREDIT 7. INTEREST NOT EXCEED 6 MONTHS UNDERTAKE TO PAY INTEREST IN RESPECT TO PAY
ADDITIONAL CHECKLIST FOR AMMENDMENT LIBOR+350 BPS ANY BANK LOSS LIKE OVERDUE ETC
1. LIMIT ID TO BE MODIFIED FOR LC AMMENDMENT REQUEST FROM CLIENT. EARLY OR LATE DELIVERY OF FOREIGN EXCHANGE
2. AC NO OF LC CHARGES IF ANY AND ALL OTHER CHARGES
UNDERTAKE THAT CREDIT MAY BE AMMENDED BY BANK

BUYERS CREDIT ROLLOVER

JPY CURRENCY BUYERS CREDIT REPAYMENT IMPORT BILLS UNDER LC
BUYERS CREDIT CREPAYMENT RBI GUIDELINES
PDN LOI
EXTENTION OF TIME DO
BPO BOE IDPMS ICE GATE
AMLOCK WRITE OFF
TRADE DEVIATION & IMPORT LICENCE
DEEMED IMPORT
IMPORT OF GOLD
IMPORT OF ROUGH DIAMOND
IMPORT OF PLATINUM
 PART - A - BASIC CONCEPT
1. MEANING -
A SECURITY PROVIDED BY BANK THAT THEY WILL PAY OFF LIABILITIES AND DEBTS OF AN ENTITY, IN CASE IT UNABLE TO PAY. BUT OBLIGATION TO PA
NOT THE BANK, BANK IS ONLY ACTING AS A GUARANTOR
2. BASIC TYPES
1. FINANCIAL GUARANTEE - REGARDING PAYMENT OF CONTRATUAL FINANCIAL OBLIGATION OF AN ENTITY. BANK RISK IS LINKD TO THE CTEDIT WOR
2. PERFORMANCE GUARANTEE - REGARDING PERFORMANCE OF A CONTRACTUAL NON-FINANCIAL OBLIGATION. BANK DOESN’T PERFORM THE APPLI
IF IT FAILS, IT WILL ONLY COMPENSATE THE BENEFICIARY.
3. CONCEPT -
1. BANK GUARANTEE IS ISSUED BY BANK FOR SPECIFIC PERFORMANCE/FINANCIAL OBLIGATION OF THE APPLICANT TO A BENEFICIARY.
2. GUARANTEE SHOULD SPECIFY APPLICANT LIABILITY IN CASE OF BREACH OF CONTRACT AND ALSO SPECIFY AMOUNT THAT BANKS NEED
TO PAY TO THE BENEFICIARY ON PRESENTATION OF WRITTEN DEMAND.
3. IT SHOULD BE ISSUED ON STANDARD FORMAT AND TERMS-CONDITIONS DEPENDS ON TRANSACTION REQUIREMENT. VALID TILL SPECIFIED DATE W
4. GUARANTEE ISSING BANK IS LIABLE TO MAKE PAYMENT UPON DEFAULT OF THE BENEFICIARY UNLESS RESTRAINED BY THE COURT ORDER. SUBJE
5. FOR BENEFICIARY IT IS A SECURITY TO RECEIVE RELEVANT FUND IF APPLICANT FAILS TO MEET THE CONTRACTUAL OBLIGATION. FOR APPLICANT,
CONTRACT EASILY.
4. BASIC RULES
1. PURPOSE OF THE BANK GUARANTEE SHOULD BE CLEAR.
2. BANK SHOULD GUARANTEE SHORTER MATURITIES AND TRY MOVE LONGER MATURITIES TO OTHER INSTITUTIONS
3. BANK SHOULD NOT ISSUE GUARANTEE FOR MORE THAN 10 YEARS.
4. SOMETIMES FOR LONG TERM PROJECTS/LOANS - BANK CAN ISSUE LONG DURATION GUARANTEES WITH VIEW TO THEIR ASSET/LIABILITY MANAGEM
5. PRECAUTIONS FOR BANKS
1. BANK SHOULD AVOID GIVING UNSECURED GUARANTEES IN LARGE AMOUNT FOR MEDIOUM AND LONG-TERM PERIODS.
UNSECURED GUARANTEES OF ANY INDIVIDIDUAL SHOULD BE LIMITED TO REASONABLE % OF BANKS TOTAL UNSECURED GUARANTEES.
IN EXCEPTIONAL CASES, BANK MAY GIVE DEFFERED PAYMENT GUARANTEE ON UNSECURED BASIS
2. GUARANTEES EXECUTED ON BEHALF OF ANY CONSTITUENT, SHOULD BE SUBJECT TO PRESCRIBED EXPOSURE NORMS.
3. BANK SHOULD SATISFY THAT CUSTOMER WOULD BE IN THE POSITION TO REIMBURSE BANKS, IN CASE BANK IS REQUIRED TO MAKE PAYMENT UND
4. FOR PERFORMANCE GUARANTEE CUSTOMER SHOULD HAVE EXPIRENCE, CAPACITY, MEANS TO PERFORM OBLIGATION UNDER CONTRACT.
5. BANK SHOULD RETAIN THEM FROM ISSUING GUARANTEE, WHO DO NOT HAVE CREDIT FACILITIES WITH THEM.
6. GHOSH COMMITTEE RECOMMENDATIONS
1. IN ORDER TO PREVENT UNACCOUNTED ISSUE OF GUARANTEES OR FAKE GUARANTEES, AS SUGGESTED BY IBA, BG SHOULD BE ISSUED IN SERIALY
2. WHILE FORWARDING GUARANTEES BANK SHOULD CONFIRM THE GENUINENESS OF THE GUARANTEE
3. BANK GUARANTEE ISSUED FOR Rs 50,000 AND ABIVE TO BE SIGNED BY TWO BANK OFFICIAL , TO ENSURE LACK OF HONESTY.

PART - B - TYPES
1. BID BOND/TENDER GUARANTEE -
ECGC PROVIDES 90 % COVER, PROVIDED THERE IS NO CASH MARGIN IN BANKS. SO BANK NOT ASK MARGIN FOR BID-BONDS.
IF COUNTER GUARANTEE OF ECGC IS NOT AVAILABLE BANK MAY ASK FOR MARGINS. THERE SHOULD BE SEPARATE LIMIT IN BANKS FOR ISSUE OF BID
SUPOSE INDIAN GOVT ISSUING A BRIDGE CONTRACT AND INVITING APPLICANTS TO BID IN THIS CONTRACT AND WIN BY SUBMITTING BID-BOND GURA
IT PREVENT GOVERNMENT FROM FAULTY APPLICATION OF ANY APPLICANT AS BANK IS GURANTING THE APPLICANT ITS GENUINE.
IF 10 APPLICANTS SUBMITTING BID BOND GUARANTEE. ONE WILL BE SELECTED BY THE GOVT AS PER INTERNAL MEASURES.
OTHER 9 GUARANTEES WILL BE RETURNED TO APPLICANT. AND APPLICANT GOES TO BANK AND GUARANTEE WILL BE CANCELLED BY BANK AND SEC
ALSO AFTER GETTING THE CONTRACT BID- BOND GUARANTEE WILL BE RETURNED TO WINNING APPLICANT. AND IT WILL BE CANCELLED.
2. ADVANCE PAYMENT GUARANTEE -
SUPPOSE L & T GOT THE CONTRACT OF TALA BRIDGE KOLKATA HERE. NOW, IT WANTS TO START ITS WORK. FOR THAT IT NEEDS MONEY FROM THE G
ADVANCE PAYMENT GUARANTEE TO THE GOVERNMENT TO GET THE MONEY.
3. PERFORMANCE GUARANTEE - AFTER ADVANCE PAYMENT GUARANTEE AND FOR FURTHER REGULAR FUND REQUIREMENT L & T NEEDS TO SUBMIT
4. CREDIT GUARANTEE -
WHENEVER BORROWER IS TAKING ANY LOAN HE HAS TO PROVIDE A SECURITY TO BANK. SUPPOSE BORROWE SHARING LIMITS WITH AXIS BANK.
AND WANTS LOAN FROM ICICI BANK. AXIS BANK CAN ISSUE A BANK GUARANTEE AS A CO- LATERAL IN FAVOUR OF BORROWER. BY THIS BG BORROWE
ICICI WITHOUT CO-LATERAL.
5. PAYMENT GUARANTEE - A BUYER IS PURCHASING GOODS FROM SELLER. HE WANTS GOODS TO BE DELIVER FIRST. HE CAN GO TO A BANK FOR ISS
6. COUNTER GUARANTEE -
i) BUYER AND SELLER SHOULD SIGN A CONTRACT
ii) BUYER AND SEEER SHOULD LOCATED IN DIFFERENT COUNTRY
iii) SUPPOSE BUYER IS IN INDIA AND SELLER IS ON US. SELLER WANTS BG OF US BANK TO SHIP THE GOODS FIRST.
IMPORTER BANK IN INDIA CAN ISSUE A BANK GUARANTEE TO SUCH US BANK, ON THE BASIS OF SUCH GUARANTEE US BANK CAN ISSUE COUNTER GU
7. DEFFERED PAYMENT GUARANTEE -
1. BUYER WANTS TO MAKE PAYMENT TO HE SELLER ON INSTALLMENTS WITH PRE DETERMINED DATES
SELLER WANTS GUARANTEE FOR PAYMENTS. BANK CAN ISSUE DEFFERED PAYMNT GUARANTEE TO THE SELLER IN FABOUR OF BUYER.
2. FIRST, A DEFINITE PROVISION FOR ITS POSSIBLE REDEMTION IS THERE, IE A SPECIFIED TIME AND DATE.
THIS PERIOD OF POSSIBLE REDEMPTION MAY BE CONSIDERED AS INITIAL VALIDITY PERIOD.
3. IN THE EVENT THAT GUARANTEE IS NOT REDEMMED AT THE END OF THAT PERIOD, GUARANTEE TO BE EXTENDED.
THE BALANCE PERIOD IS CONSIDERED AS EXTENTION OF INITIAL PERIOD
4. ALL GUARANTEES SHOULD CONTAIN A SPECIFIC CLAUSE AND PERIOD UNDER WHICH CLAIMS CAN BE MADE UNDER THE GUARANTEE.
5. COMMISSION CAN BE TAKEN UPFRONT FOR THE TOTAL INITIAL PERIOD OR CAN BE TAKEN IN INSTALLMENTS.
WHERE COMMISSION IS RECOVERED ON INSTALLMENT BASIS INSTALLMENT DATE RATE IS APPLICABLE.
WHERE ENTIRE COMMISSION IS COLLECTED UPFRONT, THE RATE OF THE COMMISSION AND EXCHANGE RATE AT THE DATE OF COMMISSION WILL BE
COMMISSION FIRT TO BETAKEN FOR INITIAL PERIOD AND THEN TO BE TAKEN FOR EXTENDED PERIOD
IF GUARANTEE QUALIFIES FOR CONCESSION RATE IN INITIAL PERIOD, THAT IS APPLICABLE FOR EXTENDED PERIOD ALSO.
8. RETENTION MONEY GUARANTEE
CUSTOMERS WHO ARE UNDERTAKING CONSTRUCTION CONTRACT, WHILE THESE CONTRACTORS RECEIVE PAYMENT FROM THEIR OVERSEAS EMPLO
RETAINED PORTION IS CALLED RETENTION MONEY. TO GETTING THIS RETENTION MONEY CONTRACTOR WILL ISSUE A GURANTEE TOWARDS OVERSE
9. STANDBY LETTER OF CREDIT
SBLC IS A GUARANTEE ON BEHALF OF BANK TO HIS BENEFICIARY IF CLIENT FAILS TO PERMORM HIS PART.
BG IS NOT ALLOWED IN US. SO THIS CONCEPT CAME INTO USE.
10. GUARANTEE ON BEHALF OF BANK DIRECTORS
AS PER SEC 20 BR ACT BANK CANNOT GIVE LOANS/ADVANCES TO THEIR DIRECTORS. BUT BANK CAN ISSUE BANK GUARANTEE TO THEM OR BUSINES
PARTNERSHIP THEY ARE PART OF IN THE EVENT OF DEMAND, DIRECTOR TO BE TREATED AS NORMAL CUSTOMER.
BANK SHOULD ENSURE THAT -
i) FULLFILLMENT OF PURPOSE OF BANK GUARANTEE FROM DIRECTORS OWN RESOURCES IN CASE OF DEFAULT.
ii) BG TEXT SHOULD INCLUDE " BANK WILL NOT GIVE ANY LOAN OR ADVANCES IN CASE OF INVOCATION HAPPENS"
11. BANK GUARANTEE ON BEHALF OF GOVT
1. BG TO BE ISSUED IN FAVOUR OF CENTRAL/STATE GOVTS, OR PSU UNDERTAKINGS OF GOVT AS PER BANK GUARANTEE SCHEME OF GOVT.
2. A SPACIFIC MODEL IS PRESCRIBED IN THESE SCHEME FOR ISSUING THESE TYPE OF GUARANTEES.
3. BANK SHOULD MENTION IN THEIR GUARANTEE TEXT THE SPECIFT DEPARTMENT OF GOVT AND THE PURPOSE OF THE GUARANTEE.
4.GUARANTEES IN FAVOUR OF PRESIDENT OF INDIA IS CONCERNED WITH SPECIFIC MINISTRIES/DEPARTMENTS.
5. THESE GUARANTEES SHOULD BE INDENTIFIED IN ONE EYE THAT IT IS A GOVT GUARANTEE.
12. GUARANTEES IN FAVOUR OF DIRECTORATE GENERAL OF SUPPLIES AND DISPOSAL
i) HERE PRODUCING FIRM IS SUPPLYING GOODS TO THE STORES UNDER CONTRACT AS PER PETERMINED DELLIVERY PERIOD.
ii) DGS&D IS RESONSIBLE FOR SUPPLYING GOODS TO STORE IN TIME.
iii) PRODUCING FIRM HAS TO ISSUE GUARANTEE TOWARDS DGS&D THAT THEY WILL SUPPLY THE GOODS TO STORES IN TIME.
iv) IN ORDER TO SPEED UP VERIFICATION PROCESS OF BG, BANK OFFICIALS SIGNING BG SHOULD SHOULD GIVE NAME, DESIGNATION, EMPLOYEE ID U
v) BENEFICIARY SHOULD OBTAIN CONFIRMATION FROM THE ADVISING BANK ABOUT GENUINENESS OF BANK GUARANTEE.
vi) GUARANTEE UNDER THIS SHOULD BE ISSUED FOR A PERIOD OF CONTRACT END DATE + 6 MONTHS EXTENTION.
vii) BANK CAN ADD A CLAUSE IN BG TEXT THAT "AUTOMATICALLY EXTENDED FOR 6 MONTHS IF CONTRACT NOT END IN 6 MONTS"
viii) THIS 6 MONTHS AUTORENEWAL CLAUSE IS ALSO APPLICABLE TO BANK GUARANTEES FAVOURING CUSTOMS
ix) DGS&D GUARANTEES SHOULD BE ON NON-JUDICIAL STAMP PAPER FOR SECURITY
13. GUARANTEES ON BEHALF OF SHARE/STOCK/COMMODITY BROKERS
1. CAN BE ISSUED IN ON BEHALF OF BROKER FOR MARKET FLUCTUATIONS AGAINST SECURITY DEPOSIT.
2.MARGIN REQUIREMENT IS 50% OUT OF WHICH 25% SHOULD BE CASH MARGIN.
3.APPLICABLE FOR ALL STOCK/COMODITY MARKET
13. PERSONAL GUARANTEES OF DIRECTORS
SOMETIMES BANK TAKES GUARANTEE FROM DIRECTORS TO PROVIDE CREDIT FACILITIES TO CORPORATES.
JUSTIFICATION IS NEEDED FOR PERSONAL GUARANTEE OF DIRECTOR EVEN NOT CLOSE MANAGEMENT.
ALSO UNDERTAKING THAT THERE SHOULD BE NO CHANGE IN THE MANAGEMENT.
AS MULTIPLE CHANGE OF MANAGEMENT IS NOT CONSIDERED AS GOOD.
A. WHERE GUARANTEE NEED NOT CONSIDER NECESSERY
1. WHEN A LENDING INSTITUTION IS SATISFIED ABOUT THE MANAGEMENT, ITS STAKE,ECONOMIC/FINANCIAL POSITION,
CAPACITY OF CASH GENERATION OF THE BORROWER PUBLIC CO
2. A PERSONS REKNOWNED FOR HIS PROFESSIONAL/TECHNICAL SERVICES IS THERE IN THE MANAGEMENT OF ANY PRIVATE/PUBLIC LIMITED CO.
3. WHEN ABOVE TWO CONDITIONS ARE NOT SATISFIED, LENDING INSTITUTION MAY STIPULATE CONDITIONS
FOR THE BORRING CO - RESTRICTION ON DISTRIBUTION OF DIVIDENTS,
FURTHER EXPANSION, AGGRIGATE BORROWINGS, CREATION OF FURTHER CHARGE ON ASSETS,
MAINTAINANCE OF MINIMUM WORKING CAPITAL , MAINTAINANCE OF DEBT EQUITY
RATIO, OWNED FUNDS AND CAPITAL INVESTMENTS.
B. WHERE GUARANTEES ARE NECESSERY
1.SHARES HOLD CLOSELY CONNECTED PERSONS OR GROUP (EXCEPTION THE SHAREHOLDING CREATED BY COURT ORDER)
2.PUBLIC LIMITED CO NOT FIRST CLASS - ADVANCES CAN BE GIVEN ON UNSECURED BASIS.
3. PUBLIC LIMITED CO WHOSE CASH FLOWS FINANCIAL CONDITION IS NOT GOOD - ADVANCES CAN BE GIVEN ONLY IN SECURED BASIS
4. DELAY IN CHARGE CREATION OF LOAN, GUARANTEE FOR LOAN DISBURSEMENT DATE AND CHARGE CREATION DATE
5. WHEN SUBSIDIARY FINANCIAL CONDITION IS NOT SATISFACTORY
6. WHERE BALANCE SHEET OF A COMPANY DISCLOSES THAT INTERLOCKING OF FUNDS BETWEEN THE COMPANY AND OTHER CONCERNS OWNED AN
C. WORTH OF DIRECTOR, PAYMENT OF GUARANTEE COMMISSION
GUARANTEE SHOULD BEAR ESTIMATED WORTH OF DIRECTORS. NOT TO BE USED AS A SOURCE FOR DIRECTORS COMPANY. NO COMMISSION IS PAYB
UNLESS SPECIALY ALLOWED BY GUARANTEE COMMISSION.
D. PERSONAL GUARANTEE IN CASE OF SICK UNITS
DIRECTORS GIVING GUARANTEE TO SICK UNITS, BECOME PART OF MANAGEMENT OF SICK UNITS.
14. GUARANTEE OF STATE GOVERNMENT
1. PERSONAL GUARANTEES OF DIRECTORS IS APPLICABLE HERE.
2. STATE GOVT UNDERTAKING ANY PROJECT CAN ISSUE GUARANTEE TOWARDS BANK TO ISSUE COUNTER GUARANTEE TOWARDS OVERSEAS ONTRA
15. GUARANTEES FAVOURING OTHER BANKS
BANK MAY ISSUE GUARANTEE TOWARDS OTHER BANK TO EXTEND LOANS -
1. BANK RISK MANAGEMENT BOARD SHOULD BE STRONG - AND SHOULD DEFINE A POLICY IN THIS REGARD ACCORDING TO -
a. LIMITS LINKED TO BANKS TRIER 1 CAPITAL UPTO WHICH GUARANTEE TO OTHER BANK CAN BE ISSUED b. NATURE AND EXTENT OF SECURITY AND M
c. DELEGATION OF POWERS d. REPORTING SYSTEM e. PERIODICAL REVIEWS
2. RISK ANALYSIS OF THE BORROWING ENTITY TO BE DONE
3. GUARANTEES CAN BE GIVEN ONLY THAT THE BORROWER CAN AVAIL LOAN.
4. THERE SHOULD BE 10 % MARGIN
5. OVERSEAS BANK CANNOT AVAIL GUARANTEE FROM INDIAN BANKS TO AVAIL LOAN.
6. COMPLIANCE WITH THE RECOMMENDATION OF GHOSH COMMITTEE
7. THIS GUIDELINES FOLLOWED ONLY FOR LOANS NOT FOR DEBENTURE ISSUED BY BANKS.
BANK EXTENDING CREDIT FACILITIES AGAINST GUARANTEES ISSUED BY OTHER BANKS SHOULD ENSURE THAT -
1. THE LOAN AMOUNT WILL BE TO THE EXTANT OF THE GUARANTEE.
2. SHOULD BE WITHIN INTERBANK LOAN LIMIT PRESCRIBED BY BOD
3. AS THESE ARE LONGTERM THESE CAN BE USED IN MONEY/FOREX/SHARE MARKET.
4. AN APPROPRIATE SUB LIMIT SHOULD BE THERE FOR THESE KIND OF LOANS.
5. LENDING BANK SHOULD MONITOR GURANTEE BANK
6. LENDING SHOULD BE UNDER SINGLE BORROWER LIMIT PRESCRIBED BY RBI
7.RECOMENDATION OF GHOSH COMMITTEE TO BE FOLLOWED
EXCEPTIONS
1. FOR REHABITATION OF SICK UNITS A BANK UNABLE TO PARTICIPATE DUE TO LIQUIDATION ISSUE, CAN GIVE GUARANTEE IN FAVOUR OF OTHER BAN
2. FOR INFRASTRUCTURE PROJECTS BANK MAY ISSUE GUARANTEES FAVOURING OTHER BANKS, PROVIDED BANK ISSING
GUARANTEE SHOULD GET ATLEAST 5 % SHARE IN THE PROJECT.
SUBJECT TO NORMS REGARDING CAPITAL ADEQUACY, CREDIT EXPOSURE, INCOME RECOGNITION, ASSET CLASSIFICATION, PROVISSIONING IS SATIS
3. BOE FOR BILL DISCOUNTING CAN BE CO -ACCEPTED BY BUYERS BANK WITH BUYER AS SOMETIMES REQUIRED BY SELLER FOR BILL DISCOUNTING
4.GUARANTEE CAN BE ISSUED IN FAVOUR OF HUDCO/STATE HOUSING BOARDS FOR LOAN GRANTED BY THEM
5. BANK CAN ISSUE GUARANTEES ON BEHALF OF INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY, NATIONAL HORTICULTURE BOARD
16. INLAND AND FOREIGN GUARANTEES
INLAND BANK GUARANTEE - EXECUTE BETWEEN PARTY IN INDIA
FOREIGN BANK GUARANTEE - ISSUED IN FOREIGN CURRENCY TO BENEFICIARY OUTSIDE INDIA FOR OVERSEAS OBLIGATION OF THE APPLICANT.
17. PROJECT EXPORTS AND EXPORT ADVANCE GUARANTEE
THERE SHOULD BE A WORKING GROUP FOR MONITORING PROJECT EXPORTS. THEY WILL PROVIDE THEIR APPRISAL REPORT FOR GIVING
PROJECT EXPORT GUARANTEES. WORKING GROUP SHOULD JUDGE CAPACITY OF THE CONTRACTOR, PROTECTIVE CLAUSE IN CONTRACT, ADEQUAC
CREDIT RATING OF OVERSEAS SUB CONTRACTORS, AS WELL AS THE OVERSEAS EMPLOYER.
EXPORT ADVANCE GUARANTEE - SOMETIMES GURANTEES ARE NECESSERY FOR GETTING EXPORT ADVANCE. BANK SHOULD BE CAREFULL ABOUT -
i) USED FOR EXPORT ADVANCE ONLY .
ii) NO VIOLATION OF FEMA WHILE EXTENDING SUCH GUARANTEES
iii) ENSURE EXPORT ADVANCES SHOULD ALSO RECEIVED AS-PER FEMA-1999
iv) EXPORT PERFORMANCE GUARANTEES SHOULD NOT CONTAIN ANY CLAUSE THAT IT CAN BE USED AS FINANCIAL GUARANTEE.
18. GUARANTEES ON BEHALF OF NRI LOANS OUTSIDE INDIA -
MR K IS RESIDENT OF HONGKONG MR K HAVING NRE ACCOUNT IN INDIA WITH ICICI BANK. ICICI HONGKONG CAN ISSUE
GUARANTEE OUTOFF FUNDS HELD IN THIS NRE ACCOUNT. TOWARDS ANY LOAN TAKEN BY MR K IN HONGKONG.
19. GUARANTEES ON BEHALF OF JV/WOS ABROAD -
MAHINDRA INDIA HAVE JOINT VENTURE IN FRANCE CALLED MAHINDRA FRANCE. MAHINDRA INDIA CAN DO FINANCIAL COMMITMENT FOR
MAHINDRA FRANCE AS LIMIT PRESCRIBED BY RBI FROM TIME TO TIME AS % OF BALANCE SHEET OF INDIA. AS, PURCHASE OF SHARES, ISSUE OF COR
BANK GUARANTEE/COUNTER GUARANTEE/ COLLATERAL OF MAHINDRA INDIA ON BEHALF OF MAHINDRA FRANCE, CHARGE ON IMMOVABLE/MOVABLE
ON BEHALF OF MAHINDRA FRANCE.
MAHINDRA INDIA MAY OFFER ANY FORM OF GUARANTEE ON BEHALF MAHINDRA FRANCE, PROVIDED, i) TOTAL FINANCIAL COMMITMENT
IS OVERALL LIMIT PRESCRIBED BY ODI. ii) NO GUARANTEE SHOULD BE OPEN ENDED IE, AMOUNT AND PERIOD OF GUARANTEE SHOULD BE OPEN END
MOVABLE OF MAHINDRA INDIA ON BEHALF OF MAHINDRA FRANCE
SUBJECT TO i) TOTAL FINANCIAL COMMITMENT OF MAHINDRA INDIA SHOULD NOT EXCEED OVERALL LIMIT PRESCRIBED BY ODI, ii) NO G
OPEN ENDED, IE AMOUNT AND PERIOD OF GUARANTEE SHOULD BE SHOULD BE SPECIFIED iii) IN CASE OF PG TIME SPECIFIED FOR FOR COMPLETION
THE VALIDITY OF THE PERFORMANCE GUARANTEE. Iv) IN CASE OF INVOCATION OF PG MAHINDRA INDIA SHOULD SEEK PRIOR RBI APPROVAL BEFORE
v) ALL GUARANTEE SHOULD BE REPORTED TO RBI IN ODI FORM.
MAHINDRA INDIA MAY EXTEND CORPORATE GUARANTEE ON BEHALF OF FIRST GENERATION STEP DOWN SUBSIDIARY, UNDER AUTOMA
LIMIT OF ODI.
MAHINDRA INDIA CAN ISSUE CORPORATE GUARANTEE ON BEHALF OF 2ND LEVEL STEP-DOWN SUBSIDIARY WITHIN ODI LIMIT AND HOLD
OVERSEAS SUBSIDIARY FOR WHICH SUCH GUARANTEE IS INTENDED TO ISSUED.
BANK WHICH ISSUES THESE TYPE OF GUARANTEE, TO BE RESPONSIBLE FOR COMPUTATION OF FINANCIAL COMMITMENT OF INDIAN PA
BANKS INCLUDING OVERSEAS BRANCHES/SUBSIDIARIES OF INDIAN BANK SHOULD NOT ISSUE SBLC/GUARANTEE/LETTER OF COMFORT ON BEHALF O
PURPOSE OF RAISING LOAN FROM OTHER ENTITIES OVERSEAS, EXCEPT IN CONNECTION WITH THE ORDINARY CAUSE OF OVERSEAS BUSINESS. BAN
EFFECTIVE USE OF SUCH FACILITIES AND RELATES THEM WITH THE NEEDS OF BUSINESS ENTITY.
20. GUARANTEES FOR TRADE CREDITS -
BANKS ARE PERMITTED TO ISSUE LC/BG/LOU/LOC IN FAVOUR OF OVERSEAS SUPPLIER - UPTO 20 MILLION PER TRANSACTION -FOR A PERIOD UPTO 1
EXCEPT GOLD,PLATINUM AND UPTO 3 YEARS OF IMPORT OF CAPITAL GOODS, SUBJECT TO GUIDELINES ISSUED BY RBI.
21. INWARD GUARANTEE
OVERSEAS BANK REQUEST ICICI TO ISSUE GUARANTEE IN FAVOUR OF INDIAN ENTITIES AGAINST THEIR COUNTER GUARANTEES .
1. TO COVER ADVANCE PAYMENT TO BE MADE TOWARDS IMPORT IN INDIA.
2. BID BOND - TENDER BOND FOR PARTICIPATING IN GLOBAL TENDER TO IMPORT GOODS AND SERVICES IN INDIA.
3. BG SWIFT MESSAGE TO BE RECEIVED FROM FROM FOREIGN BANK IN PROPER MANNER.
4. THE DRAFT OF GUARANTEE SHOULD BE ACCEPTABLE CONTAINS LIMITATION CLAUSE AND DOES NOT HAVE ANY ONRAOUS CLAUSES.
5. COUNTER GUARANTEE TO BE ISSUED FOR VALODITY PERIOD OF LESS 15 DAYS.
6. NO GUARANTEE TO BE ISSUED WITHOUT THE WRITTEN SCANTION FROM IBD
7. ON RECEIPT OF CONFIRMATION FROM IBD, ISSUE THE GUARANTEE ON STAMP PAPER.
8. GUARANTEES ISSUED IN INDIA GOVERNED BY INDIA COURTS, COUNTER GUARANTEES ISSUED OVERSEAS ARE SUBJECT TO JURIDICTION OF THE O
9. TO ENSURE VARIOUS TYPES OF BORROWING RBI HAS GRANTED GENERAL PERMISSION TO ISSUE GUARANTEES IN FAVOUR OF INDIAN ENTITIES,
10. SUBJECT TO, GENUINE TRANSACTION INVOLVING DEBT OBLIGATION LIABILITY OF PERSONS RESIDENT OUTSIDE INDIA.
11. IF THE GURANTEE GOT INVOKED BANK CAN SETTLE THE CLAIM IN INR, AND CLAIM TO OVERSEAS.
12. IN CASE OF CLAIM NOT RECEIVED TO BE REPORTED TO RBI.
13. INDIAN BANK CAN ALSO ISSUE CONDITION THAT PAYMENT WILL BE MADE ONLY ON RECEIPT OF REIMBURSEMENT FROM OVERSEAS BANK.
14. OVERSEAS BRANCHES OF FOREIGN BANK CAN ALSO ISSUE GUARANTEES, IN FAVOUR OF INDIAN BANK.
22. UNCONDITIONAL GUARANTEE -
BANK MAY ISSUE GUARANTEE TOWARDS EXPORTERS EXPORT OBLIGATION SUBJECT TO ECGC WHENEVER NECESSERY.
WHILE ISSUING IN FAVOUR OF OVERSEAS IMPORTER BANK SHOULD TAKE A UNDERTAKING FROM THE EXPORTER THAT
BANK HAVE NO RELATION WITH THE DISPUTE BETWEEN EXPORTER AND IMPORTER BANK WILL PAY AS PER BG TERMS UNLESS EXPORTER RESTRAIN
23. RESTRICTIONS OF ISSUING GUARANTEE
1. BANK SHOULD NOT PROVIDE GUARANTEES FOR INTER COMPANY DEPOSITS/LOANS
2. NO GUARANTEE TO BE ISSUED FOR PLACEMENT OF FUNDS BETWEEN NBFCs
24. GUARANTEE FOR NON RESIDENT
1. INDIAN BANKS CAN ISSUE GUARANTEE IN FAVOUR OF NR AS PERMITTED BY RBI.
2.PROVIDED COUNTER GUARANTEE FROM OVERSEAS.
3. BEFORE ISSUING GUARANTEE BANK SHODULD PROPERLY EVALUATED TERMS AND CONDITIONS OF THE COUTER GUARANTEE.
4. RUPEE CLAIM PAYMENT UNDER THE GUARANTEE IS ALLOWED
5. DISCUSSED ABOVE IN INWARD GUARANTEES
25. ISSUING GUARANTEE ON BEHALF OF FOREIGN AIRLINES
INDIAN AGENTS OF FOREIGN AIRLINES WHO ARE MEMBER OF IATA, HAVE TO GIVE BG TO OVERSEAS PARENT COMPANY REGARDING THEIR TICKET SE
26. BG FOR SERVICE IMPORTS
BG AMOUNT SHOULD NOT EXCEED RS 1,00,000
BONAFIED TRANSACTION
SUBMISSION OF DOCUMENTARY EVIDENCE
CONTRACT COPY HAVING DIRECT CONTRACTUAL LIABILITY
27. ISSUE OF BG FOR COMMODITY HEDGING
BANKS IN INDIA MAY GIVE BG OR SBLC IN RESPECT OF OBLIGATION INCURRED BY A PERSON RESIDENT IN INDIA AND OWED TO A PERSON RESIDENT
WITH PAYMENT OF MARGIN MONEY IN RESPECT OF APPROVED COMMODITY HEDGING TRANSACTION SUBJECT TO TERMS AND CONDITIONS STIPULAT
AND INTER BANK DEALING CIRCULAR.
28. PAYMENT OF INVOKED GUARANTEES
1. WHRERE GUARANTEES ARE INVOKED PAYMENT TO BE MADE TO BENEFICIARY WITHOUT ANY DELAY.
2. AN APPROPRIATE PROCEDURE ABOUT IMMEDIATE HONOURING OF BG TO BE LAID DOWN BY BANKS
3. LATE IN PAYMENT WILL CREATE ADVERSE IMAGE TO THE BANKS AND PROVIDES OPPORTUNITY OF THE BENEFICIARY TO GO TO COURTS
4. BANK SHOULD ISSUE GUAANTEES ONLY TO ENTITIES AFTER ENSURING THAT ENTITY WILL PERFORM.
5. BANK GUARANTEE IS A CONTRACT BETWEEN BANK AND BENEFICIARY, SO IT IS OBLIGATION OF BANK TO PAY BENE WNEN INVOCATION LETTER REC
6. COMMITMENTS OF THE BANK MUST BE HONOURED AND SHOULD BE FREE FROM INTERFERANCE OF COURTS EXCEPT INDICATION OF FRAUDS. (SUP
7. BG PROPOSAL SHOULD BE APPROPRIATELY EXAMINED BY BANKS, AND APPROPRIATE MARGIN SHOULD BE THERE.
8. FOR GOVT GUARANTEES BANK SHOULD ENSURE THAT THERE IS NO DISCONTINENT IN GOVT DEPARTMENTS.
9. IN ORDER TO DISBURSE CLAIM WITHOUT DELAY BANK SHOULD TAKE ADEQUATE PRECAUTIONS WHEN ISSUING.
10. ANY DECISION TO NOT TO HONOUR THE CLAIM SHOULD BE DISCUSSED WITH HIGHER AUTHORITIES OF THE BANKS AND PAYMENT IS NOT RIGHTFU
11. THE CEO OF THE BANKS SHOULD ASSUME PERSONAL RESPONSIBILITY FOR COMPLAINS RECEIVED FROM GOVT REGARDING BG.
12. BANK SHOULD ESURE THAT APPROPRIATE PROCEDURE SHOULD BE THERE FOR HONORING BG.
13. STAFF ACCOUNTIBILITY SHOULD BE PRE-DETERMINED IF NON PAYMENT OF GURANTEE IN TIME.
14. FOR GURANTEES FAVOURING CUSTOMS AND CENTRAL EXCISE AUTHORITIES TO COVER DUTY AMOUNTS USUALY INVOKED BY ORDERS ISSED BY
15. IT HAS BEEN OBSERVED THAT SOME GOVT DEPARTMENT SUCH AS DOR, GOI IS NOT SETTLING BANK CLAIMS DESPITE OF COURT ORDER UNLESS
OF COURT JUDGEMENT MADE AVAILABLE TO THEM DESPITE BANK NOT ASKING GOVT CERTIFIED COPIES OF COURT JUDGEMENTS.
16. BANK SHOULD HONOUR THE THE GUARANTEE WHEN INVOKED , IF ANY DISPUTE, CAN DO PROTEST , THE MATTAR OF DISPUTE TO BE PROCESSED
17. GOVT HAS ADVISED THEIR DEPARTMENTS THAT INVOCATION CLAIM REQUEST SHOULD BE STRICTLY AS PER TERMS AND CONDITIONS OF GUARAN
18. NO SETTLEMENT OF THE CLAIMS UNDER TERMS AND CONDITION OF GUARANTEES, RBI CAN TAKE STRICT ACTION AGAINST BANK
29. CO-ACCEPTANCE OF BILLS
SOMETIMES BANK CO ACCEPTS THE BILLS OF THEIR CUSTOMER SO THAT SELLER BANK DOING FREELY DISCOUNT OF THESE BILLS
IT IS VERY DIFFICULT FOR BANK WHICH CO -ACCEPT THE BILLS TO RECOVER AMOUNT FROM BUYER WHEN BUYER DEFAULTS
FOLLOWING PRECAUTIONS TO BE TAKEN BY BANKS FOR CO-ACCEPTANCE OF BILLS -
1. CUSTOMER SHOULD ENJOY LIMITS WITH THE BANK
2. VERIFY THE GENUINENESS OF THE BILL BY SEEING CUSTOMER STOCK ACCOUNTS
3.GOODS VALUATION SHOULD BE ASPER INVOICE GOODS VALUATION
4. NO CO-ACCEPTANCE FOR HOUSE BILLS/ACCOMODATION BILLS DRAWN BETWEEN SAME GROUP CONCERN.
5. DISCOUNTING BANK SHOULD ALSO ENSURE THAT WHILE DISCOUNTING
6. BANK WISE LIMITS ACCORDING TO SIZE OF THE BANKS SHOULD BE THERE FOR CO-ACCEPTANCE OF BILL.
7. PERIODICAL VALUATION OF LIABILITY OF OUTSTANDING CO ACCEPTED BILLS TO BE DONE
8. CO-ACCEPTANCE OF BILLS SHOULD BE RECORDED PROPERLY IN THE BANK BOOKS.
9. WHEN EVER LARGE TRANSACTION CONFIRMATION FROM HEAD OFFICE
10. PERIODICAL RETURNS TO BE FILED REGARDING CO-ACCEPTANCE OF BILLS TO CINTROLS TO CENTRALY DETERMINE STATUS OF CO-ACCEPTANCE
11. CO-ACCEPTANCE ABOVE 10000 TO BE SIGNED BY 2 BANK OFFICIALS
12. FOR DISCOUNTING OF CO-ACCEPTANCE BILLS ABOVE 2 LAKH, BANK SHOULD ASK FOR A WRITTEN CONFIRMATION FROM REGIONAL OFFICE OF CO
13. WHEN ABOVE 20 LAKH DISCOUNTING COFIRMATION FROM HEAD OFFICE OF CO-ACCEPTANCE BANKS.
14.WHILE DISCOUNTING BILLS ACCEPTED BY URBAN CO-OPERATIVE BANKS, BANK SHOULD ENSURE THE CONDITION OF THE URBAN CO -OPERATIVE B
15. CO-ACCEPTANCE OF BILL IS PRE-INCLUDED IN IDBI,SIDBI,PFC s BUYERS LINE OF CREDIT SCHEME
16. BANK SHOULD NOT CO ACCEPT BILLS DRAWN BY NBFCS
17. BILLS DRAWN UNDER SELLER LINE OF CREDIT SCHEME , BANK CAN CO ACCEPT TO ANY AMMOUNT, SUBJECT TO CAPACITY OF BUYER
18. BANK MAY OPEN LC. AND BILL CAN BE DRAWN UNDER LC FOR CO-ACCEPTANCE OF BILLS. BUT SELLER BANK HAVE NO OBLIGATION TOWARS LC TE
AS IT IS SUBJECT TO NI ACT . NOT ICC
30. OTHER TYPES OF GUARANTEES
1. GUARANTEES IN LIUE OF REPAYMENT OF FINANCIAL SECURITIES(DEBT, SHARES)
2. GURANTEES IN LIUE OF MARGIN REQUIREMENT OF EXCHANGES
3. GUARANTEE TOWARDS REVENUE QUE TAXES DUTIES EXCISE
4. CREDIT ENHANCEMENTS TO ENHANCE CREDIT POWER OF COMPANY
5. LIQUIDITY FACILITY FOR SECURITIZATION TRANSACTION
6. BILL ACCEPTANCES
7. GUARANTEES IN LIUE OF SECURITY DEPOST/EMD FOR PARTICIPATING IN TENDER
8. WARRANTIES, INDEMNITY, SBLC RELATED TO PARTICULAR TRANSACTION
9. FOR TAKING GOODS FROM CUSTOMS WITHOUT PRESENTING IMPORT LICENCE UNDERTAKING TO PRESENT IN STPULATED TIME
10.UNDERTAKING TO PAY CUSTOM DUTY
11. EXCISE DUTY
12.GUARANTEES FAVOURING EXPORT PROMOTION COUNCIL,COMMODITY BOARD ETC
13. RENTAL GUARANTEE - THIS IS A GUARANTEE FOR PAYMENT OF RENT UNDER A RENTAL CONTRACT.
14. CREDIT CARD GUARNTEE - IN CERTAIN CASES CREDIT CARD COMPANY WANTS BG FOR ISSUING CREDIT CARD.
15. B/L - LETTER OF INDEMNITY - BL OR FULL SET OF BL CAN GO MISSING, FOR THIS LOI CAN BE ISSUED BY BANKS IN FAVOUR OF IMPORTER.

PART - C - URDG
1. BASIC
# SUBJECT TO - APPLYS WHEN ANY GUARANTEE OR COUNTER GUARANTEE SPECIFICALLY STATES IT IS SUBJECT TO IT AND APPLICABLE TO ALL PART
# WHEN A COUNTER GUARANTEE IS ISSUED ON BEHALF OF URDG APPLIED DEMAND GUARANTEE THAT IS ALSO SUBJECT TO URDG UNLESS SPECIFIC
# IF DEMAND GUARANTEE IS NOT URDG AND COUNTER GUARANTEE CAN BE UNDER URDG. 1ST DEMAND GUARANTEE WILL NOT BECOME URDG.
# WHERE AT REQUEST OF APPLICANT URDG IS INCLUDED. APLLICANT BOUND TO FOLLOW THESE RULES.
# VERSION IF NOT STATED ANYTHING IN URDG 2010 WILL APPLY NOT URDG 1992 (ISSUED AFTER 1 JULY 2010)
2. DEFINATION
# ADVISING BANK- MEANS THE BANK THAT ADVICES THE GUARANTEE AT THE REQUEST OF THE GARRANTOR BANK
# APPLICANT - PARTY INDICATED IN THE GUARANTEE THAT HAVE OBLIGATION UNDER GUARANTEE. MAY OR MAY NOT BE THE INSTRUCTING PARTY.
# APPLICATION - MEANS THE REQUEST OF THE ISSUE OF THE GUARANTEE
# AUTHENTICATED - MEANS PARTY TO WHOOM THE GUARANTEE IS PRESENTED IS ABLE TO VERIFY THE IDENTITY OF THE SENDER AND WHEATHER
DATA RECEIVED IS COMPLETE AND UNALTERED . 760 COV IS USED FOR VERIFY AUTHENTICITY.
# BENEFICIARY - MEANS THE PARTY IN WHOSE FAVOUR GUARANTEE IS ISSUED.
# BUSINESS DAY - A DAY IN WHICH OBLIGATION UNDER THIS ACT CAN BE PERFORMED.
# CHARGES - MEANS COMMISSION , FEES , COST OR EXPENCES OF ANY PARTY ACTING UNDER THE GUARANTEE, GOVERNED BY THESE RULES
# COMPLYING DEMAND - A DEMAND THAT MEETS THE REQUIREMENTS OF A COMPLYING PRESENTATION
# COMPLYING PRESENTATION - A PRESENTATION THAT IS IN ACCORDANCE WITH 1. TERMS AND CONDITIONS OF GUARANTEE 2. THESE RULES
3. THE ABSENCE OF RELEVANT PROVISION IN GUARANTEE INTERNATIONAL DEMAND GUARANTEE PRACTICE
# COUNTER GUARANTEE - GUARANTEE ON WHICH BEHALF ANOTHER GUARANTEE CAN BE ISSUED.
# COUNTER GUARANTOR - PARTY ISSUING A COUNTER GUARANTEE WHEATHER IN FAVOUR OF A GUARNATOR OR ANOTHER COUNTER GUARANTOR
AND INCLUDES A PARTY ACTING FOR ITS OWN ACCOUNT.
# DEMAND - A SIGNED DOCUMENT BY THE BENEFICIARY DEMANDING PAYMENT UNDER GUARANTEE.
# DEMAND GUARANTEE/GUARANTEE - ANY SIGNED UNDERTAKING PROVIDING FOR PAYMENT ON PRESENTATION OF A COMPLYING DEMAND.
# DOCUMENT - MEANS A SIGNED OR UNSIGNED RECORD OF INFORMATION IN PAPER OR IN ELECTRONIC FORM THAT IS CAPABLE OF BEING PRODUCE
BY THE PERSON TO WHOOM IT IS PRESENTED. IN THESE RULES DOCUMENT MEANS DEMAND AND A SUPPORTING DOCUMENT.
# EXPIRY EVENT - EVENT THAT CAUSE THE EXPIRY OF GUARANTEE AS EVENT MENTIONED IN GUARANTEE, DOCUMENTS ABOVE SHOULD BE PRESENT
# GUARANTEE - DEMAND GUARANTEE
# GUARANTOR - THE PARTY ISSUING A GUARANTEE INCLUDING IN ITS OWN BEHALF.
# GUARANTOR'S OWN RECORD - RECORDS OF THE GUARANTOR SHOWING AMOUNTS DEBITED TO OR CREDITED FROM ACCOUNTS HELD WITH THE GU
THE RECORD OF THOSE CREDITS OR DEBITS ENABLES THE GUARANTOR TO IDENTIFY THE GUARANTEE TO WHICH THEY RELATE
# INSTRUCTING PARTY - THE PARTY OTHER THAN A COUNTER GUARANTOR WHO GIVES INSTRUCTION TO ISSUE A GUARANTEE OR COUNTER GUARA
FOR INDEMNIFYING THE GUARANTOR OR COUNTER-GUARANTOR.
# PRESENTATION - MEANS THE DELIVERY OF A DOCUMENT UNDER A GUARANTEE TO THE GUARANTOR. IT INCLUDES A PRESENTATION OTHERTHAN F
FOR EXAMPLE - A PRESENTATION FOR THE PURPOSE OF TRIGGERING THE EXPIRY OF THE GUARANTEE OR A VARIATION OF ITS AMOUNT.
# PRESENTER - A PERSON WHO MAKES PRESENTATION AS OR ON BEHALF OF THE BENEFICIARY OR THE APPLICANT.
# SIGNED - A GUARANTEE OR A COUNTER GUARANTEE SHOULD BE SIGNED BY OR ON BEHALF OF THE ISSUER AND CAN BE AUTHENTICATED BY ADV B
# SUPPORTING STATEMENT - A STATEMENT REFERS TO EITHER 15 (A) OR 15 (B)
# UNDERLYING RELATIONSHIP - MEANS THE CONTRACT, TENDER CONDITIONS OR OTHER RELATIONSHIP BETWEEN THE APPLICANT AND THE BENEFIC
3. INTERPRETATION
a. BRANCHES OF A GUARANTOR IN DIFFERENT COUNTRIES ARE TO BE SEPARATE ENTITIES.
b. ANY AMENDMENT IN GUARANTEE OR COUNTER GUARANTEE, EFFECT BOTH AND INCLUDES BOTH BENEFICIARY AND APPLICANT
c. ANY REQUIREMENT FOR PRESENTATION OF ONE OR MORE ORIGINALS OR COPIES OF ELECTRONIC DOCUMENT SATISFIED BY THE PRESENTATION
ELECTRONIC DOCUMENT
d. WHEN USED WITH A DATE OR DATES TO DETERMINE THE START, END OR DURATION OF ANY PERIOD
THE TERM "FORM" "TO" "UNTILL" "TILL" AND "BETWEEN" INCLUDE
AND "BEFORE" AND "AFTER" EXCLUDE THE DATE OR DATES MENTIONED
f. THE TERM SUCH AS " FIRST CLASS ", "WELL KNOWN" , "QUALIFIED", "INDEPENDENT", "OFFICIAL", "COMPETENT" OR "LOCAL" WHEN USED TO DESCRIB
THE ISSUER OF THE DOCUMENT ALLOW ANY ISSUER EXCEPT THE BENEFICIARY OR THE APPLICANT TO ISSUE THE DOCUMENT.
4. ISSUE AND EFFECTIVENESS
a. A GUARANTEE IS ISSUED WHEN IT LEAVES THE CONTROLL OF THE GUARANTOR
b. A GUARANTEE IS IRREVOCABLE ON ISSUE EVEN IT DOES NOT STATE THIS.
c. BENEFICIARY MAY PRESENT A DEMAND FROM ISSUE TIME
5. INDEPENDENCE OF GUARANTEE AND COUNTER GUARANTEE
A GUARANTEE IS BY ITS NATURE INDEPENDENT OF CONTRACT/UNDERLYING RELATIONSHIP AND THE APPLICATION AND A GUARANTOR IS NO WAY CO
BY SUCH RELATIONSHIP.
A REFERANCE IN THE GUARANTEE OF CONTRACT NO FOR THE PURPOSE OF IDENTIFYING IT DOES NOT CHANGE THE INDEPENDENT NATURE OF THE
THE UNDERTAKING OF A GUARANTOR TO PAY CLAIM UNDER THE GUARANTEE IS ONLY TO THE BENEFICIARY.
A COUNTER GUARANTEE BY ITS NATURE INDEPENDENT FROM THE GUARANTEE, CONTRACT, THE APPLICATION OR ANY OTHER COUNTER GUARANTE
AND COUNTER GUARANTOR IS NO WAY CONCERNED WITH OR BOUND BY SUCH RELATIONSHIP
A REFERANCE IN THE COUNTER GUARANTEE TO THE UNDERLYING RELATIONSHIP IT DOES NOT CHANGE THE INDEPENDENT NATURE OF THE COUNTE
THE UNDERTAKING OF A COUNTER GUARANTOR TO PAY CLAIM UNDER THE COUNTER GUARANTEE IS TO WHOOM IT IS BEEN ISSUED.
6. DOCUMENTS VS GOODS/SERVICE/PERFORMANCE
GUARANTOR DEAL WITH DOCUMENTS AND NOT WITH GOODS SERVICES OR PERFORMANCE TO WHICH THE DOCUMENTS MAY RELATE.
7. NON DOCUMENTARY CONDITIONS
A GUARANTEE SHOULD NOT CONTAIN A CONDITION WITHOUT A DATE OR PERIOD AND WITHOUT SPECIFYING DOCUMENT TO INDICATE COMPLIANCE T
IF THE GUARANTEE DOES NOT SPECIFY ANY SUCH DOCUMENT AND THE FULLFILLMENT OF CONDITION CANNOT BE DETERMINED FROM THE GUARAN
OR FROM INDEX SPECIFIED IN THE GUARANTEE THEN SUCH CONDITION WILL BE DESGARDED (BUT CHECK THAT DATA CAN BE PART OF THE CLAIM O
8. CONTENT OF INSTRUCTIONS AND GUARANTEES
ALL INSTRUCTIONS FOR ISSUE OF GUARANTEES AND GUARANTEES THEMSELVES SHOULD BE CLEAR,PRECISE AND SHOULD AVOID EXCESSIVE DETA
IT IS RECOMENDED THAT GUARANTEES SPECIFY-
1. THE APPLICANT
2. THE BENEFICIARY
3.THE GUARANTOR
4. THE REFERANCE NUMBER OR OTHER INFORMATION IDENTIFYING THE UNDERLYING RELATIONSHIP
5. A REFERANCE NO OTHER INFORMATION IDENTIFYING THE ISSUED GUARANTEE
IN-CASE OF COUNTER GUARANTEE, THE ISSUED COUNTER GUARANTEE
6.THE AMOUNT OR MAXIMUM AMOUNT PAYABLE AND CURRENCY IN WHICH IT IS PAYABLE
7. THE EXPIRY OF THE GUARANTEE
8. ANY TERMS FOR DEMANDING PAYMENT
9. WHEATHER A DEMAND OR DOCUMENT SHALL BE PRESENTED IN PAPER OR ELECTRONIC FORM
10. LANGUAGE OF ANY DOCUMENT SPECIFIED IN THE GUARANTEE
11. AND THE PARTY LIABLE FOR THE PAYMENT OF ANY CHARGES
9. APPLICATION NOT TAKEN UP
WHERE AT THE TIME OF RECEIPT OF THE APPLICATION THE GUARANTOR IS NOT PREPARED OR IS UNABLE TO ISSUE THE GUARANTEE
THE GUARANTOR SHOULD INFORM IMMEDIATELY TO THE INSTRUCTED PARTY
10. ADVISING OF GUARANTEE OR AMMENDMENT
a. A GUARANTEE MAY BE ADVISED TO THE BENEFICIARY THROUGH AN ADVISING BANK.
BY ADVISING A GUARANTEE, WHEATHER DIRECTLY OR UTILIZING SERVICES OF SCEOND ADVISING BANK
THE ADVISING BANK SIGNAFIES TO THE BENEFICIARY AND IF APPLICABLE TO THE SCEOND ADVISING BANK
b.BOTH HAVE TO BE SATISFIED ITSELF AS TO THE APPARENT AUTHENTICITY
IE TERMS AND CONDITIONS OF THE GUARANTEE
c. AN ADVISING OR SCEOND ADVISING WITHOUT ANY ADDITIONAL REPRESENTATION
OR ANY UNDERTAKING WHATSOVER TO THE BENEFICIARY
d. IF A PARTY IS REQUESTED TO ADVISE THE GUARANTEE AND UNABLE TO DO SO, INFORM THE PARTY IMMEDIATELY TO WHOOM IT RECEIVED
e. IF A PARTY IS REQUESTED TO ADVICE A GUARANTEE AND AGREE TO DO SO, AND CANNOT SATISFY ITSELF AS TO THE APPARENT AUTHENCITY OF T
INFORM IMMEDIATELY TO THE ISSUING BANK AND BENE OR 2ND ADV
11. AMMENDMENT
a. WHERE, AT THE TIME OF RECEIPT OF INSTRUCTION FOR THE ISSUE AN AMMENDMENT, THE GUARANTOR SHALL INFORM THE INSTRUCTOR IMMEDIA
b. IF AN AMMENDMENT IS ACCEPTED BY BENEFICIARY, THEN ONLY HE IS BOUND TO IT. BUT GUARANTOR BOUNDS WHEN ISSUED. BENE IF NOT ACCEP
MAKE PRESENTATION AS PER ISSUANCE OR NEW AMMENDMENT (IT WILL CONSIDERED AS ACCEPTANCE).
c. EXCEPT WHERE MADE IN ACCORDANCE WITH THE TERM OF THE GUARANTEE BENEFICIARY MAY REJECT AN AMMENDMENT
UNTILL IT NOTIFIES OR MAKE PRESENTATION AS PER AMMENDED GUARANTEE.
d. AN ADVISING BANK SHALL WITHOUT DELAY INFORM THE PARTY FROM WHICH IT HAS RECEIVED THE AMMENDMENT OF THE BENEFICIARYS NOTIFIC
OF ACCEPTANCE OR REJECTION OF THE AMMENDMENT.
e. PARTIAL ACCEPTANCE OF AMMENDMENT IS NOT ALLOWED DEEMED TO BE REJECTION.
f. A PROVISION IN AN AMMENDMENT TO THE EFFECT THAT THE AMMENDMENT SHALL TAKE EFFECT UNLESS REJECTED WITHIN A CERTAIN TIME SHAL
12.EXTENT OF GUARANTORS LIABILITY UNDER GUARANTEE
A GUARANTOR IS LIABLE TO THE BENEFICIARY ONLY IN ACCORDANCE WITH, FIRST THE TERMS AND CONDITIONS OF THE GUARANTEE AND SCEOND T
SO FAR AS CONSISTENT WITH THOSE TERMS AND CONDITIONS UPTO THE GUARANTEE AMOUNT.
13. VARIATION OF AMOUNT OF GUARANTEE
A GUARANTEE MAY PROVIDE FOR THE REDUCTION OR THE INCREASE OF ITS AMOUNT ON SPECIFIED DATES OR ON OCCURANCE OF SPECIFIED EVEN
WHICH UNDER THE TERMS OF THE GUARANTEE RESULTS IN THE VARIATION OF ITS AMOUNT AND FOR THIS PURPOSE THE EVENT IS DEEMED TO HAV
a. WHEN A DOCUMENT SPECIFIED IN THE GUARANTEE AS INDICATING THE OCCURANCE OF THE EVENT IS PRESENTED TO THE GUARANTOR.
b. IF NO SUCH DOCUMENT IS SPECIFIED IN THE GUARANTEE , WHEN THE OCCURANCE OF THE EVENT IS BECOME DETERMINABLE AS PER GURANTERS
INDEX SPECIFIED IN THE GUARANTEE.
14.PRESENTATION
1. A PRESENTATION SHALL BE MADE TO THE GUARANTOR
i. AT THE PLACE OF ISSUE OR SUCH OTHER PLACE AS IS SPECIFIED IN THE GUARANTEE.
ii. ON OR BEFORE EXPIRY
2. A PRESENTATION HAVE TO BE COMPLETED UNLESS IT INDICATES THAT IT IS TO BE COMPLETED LATER.
IN THAT CASE, IT SHALL BE COMPLETED ON OR BEFORE EXPIRY.
3. WHERE A GUARANTEE INDICATES THAT PRESENTATION HAVE TO BE MADE IN ELECTRONIC FORM
THE GUARANTEE SHOULD SPECIFY THE FORMAT, THE SYSTEM FOR THE DATA DELIVERY
THE ELECTRONIC ADDRESS FOR THE PRESENTATION.
IF A GUARANTEE DOES NOT SPECIFY A DOCUMENT MAY BE PRESENTED IN ANY ELECTRONIC FORMAT.
ALL FORMAT ALLOWED OR IN PAPER FORM.
A ELECTRONIC DOCUMENT CANNOT BE AUTHENTICATED IS DEEMED NOT BEEN PRESENTED.
4. IF A PRESENTATION TO BE MADE IN PAPER FORM THROUGH A PARTICULAR MODE OF DELIVERY BUT OTHER MODES NOT EXCLUDATE
ONE OTHER MODE CAN BE ALLOWED IF THE PRESENTATION MADE AS PER POINT 1.
5. WHERE A GUARANTEE DOESNOT INDICATE PAPER OR ELECTRONIC -PRSENTATION HAVE TO BE MADE IN PAPER FORM.
6. EACH PRESENTATION SHALL IDENTIFY A GUARANTEE TERM UNDER WHICH IT IS MADE
SUCH AS BY STATING THE GUARANOR REFERANCE NO FOR THE GUARANTEE.
IF IT DOES NOT THE TIME FOR EXAMINATION
INDICATED IN ARTICLE 20 SHALL START ON THE DATE OF IDENTIFICATION
NOTHING IN THIS PARAGRAPH SHALL RESULT IN THE EXTENTION OF THE GUARANTEE
OR LIMIT THE REQUIREMENT IN ARTICLE 15 (a) or (b)
FOR ANY SEPARATELY PRESENTED DOCUMENTS ALSO TO IDENTIFY THE DEMAND TO WHICH THEY RELATE.
7. EXCEPT WHERE THE GUARANTEE OTHERWISE PROVIDES, DOCUMENTS ISSUED BY OR ON BEHALF OF THE APPLICANT
15.REQUIREMENTS FOR DEMAND
1. A DEMAND UNDER A GUARANTEE/COUNTER GUARANTEE TO BE SUPPORTED DOCUMENTS AS SPECIFIED IN THE GUARANTEE.
AND BY A STATEMENT BY THE BENEFICIARY, INDICATING IN WHAT RESPECT THE APPLICANT IS IN BREACH OF ITS APPLICATION UNDER CONTRACT.
THIS STATEMENT MAY BE IN THE DEMAND OR IN SEPARATE SIGNED DOCUMENT ACCOMPANYING AND IDENTIFYING THE DEMAND.
2. A DEMAND UNDER A COUNTER GUARANTEE IS TO BE SUPPORTED BY A STATEMENT
BY THE PARTY TO WHOOM THE COUNTER GUARANTEE WAS ISSUED.
INDICATING SUCH BANK HAS RECEIVED A COMPLYING DEMAND UNDER GUARANTEE/COUNTER GUARANTEE.
THIS STATEMENT MAY BE IN THE DEMAND OR IN SEPARATE SIGNED DOCUMENT ACCOMPANYING AND IDENTIFYING THE DEMAND.
3. THE REQUIREMENT OF A SUPPORTING STATEMENT CAN BE OMMITED BY INCLUDING TERMS (REQUIREMENT OF SUPPORTING SATEMENT ARTICLE-1
4. NEITHER THE DEMAND NOR THE SUPPORTING STATEMENT MAY BE DATED BEFORE THE DATE WHEN THE BENEFICIARY IS ENTITLED TO PRESENT A
ANY OTHER DOCUMENT MAY BE DATED BEFORE.
NEITHER THE DEMAND NOR THE SUPPORTING DOCUMENT NOR ANY OTHER DOCUMENT MAY BE LATER THAN THE DATE OF ITS PRESENTATION.
16. INFORMATION ABOUT DEMAND
THE GUARANTOR WILL INFORM IMMEDIATELY TO INSTRUCTED PARTY OR COUNTER GUARANTOR ABOUT THE DEMAND OR EXTENTION OF EXPIRY DAT
THE COUNTERGUARANTOR SHALL WITHOUT DELAY INFORM THE INSTRUCTING PARTY OR EXTENTION OF EXPIRY DATE.
17. PARTIAL DEMAND AND MULTIPLE DEMANDS : AMOUNT OF DEMAND
1. A DEMAND MAY BE MADE FOR LESS THAN FULL AMOUNT AVAILABLE (PARTIAL DEMAND)
2. MORE THAN ONE DEMAND CAN BE MADE ( MULTIPLE DEMAND)
3. THE EXPRESSION "MULTIPLE DEMAND PROHIVITED" OR A SIMILAR EXPRESSION IF THERE IN THE GUARANTEE TEXT
ONLY ONE DEMAND IS ALLOWED. IF THAT DEMAND IS REJECTED ONLY ANOTHER DEMAND ON OR BEFORE THE EXPIRY
DATE IS ALLOWED.
4. A DEMAND IS A NON COMPLYING DEMAND IF :
a. IT IS FOR MORE THAN THE AMOUNT AVAILABLE IN THE GUARANTEE
b. ANY SUPPORTING DOCUMENT OR OTHER DOCUMENTS REQUIRED BY THE GUARANTEE IS HAVING LESS AMOUNT THAN THE DEMAND.
(NA FOR IF AMOUNT IS MORE)
18. SEPARATENESS OF EACH DEMAND
a. MAKING A DEMAND THAT IS NOT A COMPLYING DEMAND OR WITHDRAWING A DEMAND DOESNOT WAIVE THE RIGHT TO MAKE ANOTHER TIMELY DEM
IRREPECTIVE OF THE GUARANTEE PROHIBITS PARTIAL OR MULTIPLE DEMANDS.
b. PAYMENT OF A DEMAND THAT IS NOT A COMPLYING DEMAND DOES NOT WAIVE THE REQUIREMENT OF
OTHER DEMANDS TO BE COMPLYING DEMANDS
19. EXAMINATION
1. THE GUARANTOR SHALL DETERMINE, ON THE BASIS OF PRESENTATION ALONE, WHEATHER IT IS A COMPLYING PRESENTATION.
2. THE DATA IN A DOCUMENT REQUIRED BY THE GUARANTEE SHALL BE EXAMINED IN CONTEXT WITH THE GUARANTEE AND THESE RULES.
3. IF A GUARANTEE REQUIRES PRESENTATION OF A DOCUMENT STIPULATING WHEATHER IT IS TO BE SIGNED
BY WHOOM IT IS TO BE ISSUED OR SIGNED OR ITS DATA CONTENT, THEN :
i) THE GUARANTOR WILL ACCEPT THE DOCUMENT AS PRESENTED
IF ITS CONTENT APPEARES TO FULLFILL THE FUNTION OF THE DOCUMENT
REQUIRED BY THE GUARANTEE AND OTHERWISE COMPLIES WITH ARTICLE 19(B)
ii) IF THE DOCUMENT IS SIGNED, ANY SIGNATURE WILL BE ACCEPTED AND NO INDICATION
NO INDICATION OF NAME OR POSITION OF THE SIGNATORY IS NECESSARY
4.IF A DOCUMENT NOT REQUIRED BY THE GUARANTEE BUT REFFERED TO THESE RULE WILL BE DISGARDED.
5. A GUARANTOR NEED NOT RECALCULATE A BENEFICIARYS CALCULATION UNDER A FORMULA STATED OR REFERANCED IN THE GUARANTEE.
6. THE GUARANTOR SHALL CONSIDER A REQUIREMENT REQUIREMENT FOR A DOCUMENT TO BE LEGALIZED, VIASED
IF IT IS SIGNATURED,STAMPED, LEVEL MARKED
20.TIME FOR EXAMINATION OF DEMAND/PAYMENT
1. IF A PRESENTATION OF A DEMAND DOES NOT INDICATE THAT IT IS TO BE COMPLETED LETTER. IF INDICATES, THEN NO LIABILITY FOR EXAMINATION
THE GUARANTOR HAVE 5 BUSINESS DAYS AFTER RECEIPT OF DEMAND TO DETERMINE THAT IT IS A COMLYING PRESENTATION OR NOT.
BUT WITHIN EXPIRY.
2. WHEN A GURANTOR DETERMINES THAT A DEMAND IS COMPLYING, IT SHALL PAY.
3. PAYMENT IS TO BE MADE, AT THE BRANCH OR OFFICE OF A GURANTOR OR COUNTER-GUARANTOR
OR IN PLACE STATED IN THE GUARANTY AS "PLACE OF PAYMENT"
21. CURRENCY OF PAYMENT
1. A GUARANTOR HAVE TO MAKE A COMPLYING DEMAND IN THE CURRENCY SPECIFIED IN THE GUARANTEE.
2. IF ON ANY DATE PAYMENT IS TO BE MADE UNDER THE GUARANTEE
THE GUARANTOR IS UNABLE TO MAKE PAYMENT IN THE CURRENCY SPECIFIED IN THE GUARANTEE
DUE TO AN IMPEDIMENT BEYOND ITS CONTROLL OR DUE TO LAW IN THE PLACE OF PAYMENT
THE GUARANTOR SHALL MAKE THE PAYMENT IN THE CURRENCY OF THE PLACE OF THE PAYMENT
EVEN IF GUARANTEE INDICATES A SPECIFIED CURRENCY PAYMENT.
THE INSTRUCTING PARTY OR COUNTER GUARANTOR IS BOUND TO MAKE THE PAYMENT IN THE CURRENCY OF THE BG
OR IN THE CURRENCY ACTRUALY CLAIM BEEN MADE.
22.TRANSMISSION OF COPPIES OF COMPLYING DEMAND
THE GUARANTOR SHALL WITHOUT DELAY TRANSMIT A COPY OF COMPLYING DEMAND AND ANY RELATED DOCUMENT TO THE INSTRUCTED PARTY OR
FOR TRANSMISSION TO THE INSTRUCTING PARTY.
HOWEVER, NEITHER COUNTER GUARANTOR NOR THE INSTRUCTING PARTY HOLD THE PAYMENT
23.EXTEND OR PAY
1. WHERE A DEMAND INCLUDES OPTION EITHER PAY OR EXTEND THE DUE DATE.
GURANGOR CAN HOLD THE PAYMENT FOR 30 DAYS.
FOR COUNTER GUARANTOR SUSPENTION PERIOD IS 4 DAYS.
2. THE GUARANTOR/COUNTER GUARANTOR SHALL WITHOUT DELAY INSTRUCT THE INSTRUCTING PARTY ABOUT SUSPENTION
3. THE DEMAND FOR THE PAYMENT IS DEEMED TO BE WITHDRAWN IF EXTENTION IS GRANTED IN TIMELIMIT AS PER (1)
OR IF NOT EXTENDED, DEMAND HAVE TO BE MADE.
4. THE GUARANTOR OR COUNTER GUARANTOR MAY REFUCE TO GRANT EVEN IF INSTRUCTED TO DO SO AND SHALL THEN PAY.
5. THE GUARANTOR OR COUNTERGUARANTOR SHALL WITHOUT DELAY INFORM THE PARTY FROM WHOOM IT HAS REVEIVED ITS INSTRUCTION
TO EXTEND OR TO PAY.
6.GUARANTOR OR COUNTER GUARANTOR HAVE NO LIBILITY OF PAYMENT FOR ANY PAYMENT SUSPENDED UNDR THIS ARTICLE.
24. NON-COMPLYING DEMAND WAIVER AND NOTICE
1. WHEN A GUARANTOR DETERMINES OR COUNTER GUARANTOR THAT THE DEMAND UNDER THE GUARANTEE IS NOT A COMPLYING DEMAND,
IT MAY REJECT THE DEMAND IN ITS SOLE JUDGEMENT AND INFORM INSTRUCTING PARTY OR COUNTER GUARANTOR, FOR WAIVER OF DISCRIPANCY.
2. OBTAINING THE WAIVER OF COUNTER GUARANTOR OR THE INSTRUCTING PARTY DOES NOT OBLIDGE THE GUARANTOR OR COUNTER GUARANTOR
TO WAIVE ANY DISCRIPANCY
3. WHEN A GUARANTOR REJECTS A DEMAND, IT SHALL GIVE A SINGLE NOTICE TO THAT EFFECT TO THE PRESENTER OF THE DEMAND WITHIN 5TH BUS
THE NOTICE SHALL STATE :
i) THAT THE GUARANTOR IS REJECTING THE DEMAND
ii) EACH DISCRIPANCY FOR REJECTION
4. THE GUARANTOR MAY ANY TIME AFTER PROVIDING THE NOTICE, RETURN ANY DOCUMENTS PRESENTED IN PAPER FORM TO THE PRESENTER
AND DISPOSE OF THE ELECTRONIC RECORDS IN ANY MANNER THAT IS CONSIDER APPROPRIATE WITHOUT INCURRING ANY RESPONSIBILITY.
25. REDUCTION AND TERMINATION
a. AMOUNT PAYABLE UNDER THE GUARANTEE SHALL BE REDUCED BY THE AMOUNT
i) PAID UNDER THE GUARANTEE
ii) RESULTING FROM ARTICLE 13
iii) INDICATED IN THE BENEFICIARIES SIGNED PARTIAL RELEASE FROM LIABILITY UNDER THE GUARANTEE.
b. WHEATHER OR NOT GUARANTEE DOCUMENT IS RETURNED TO THE GUARANTOR, THE GUARANTEE SHALL TERMINATE
i) ON EXPIRY
ii) EWHEN NO AMOUNTS REMAIN PAYABLE UNDER IT
iii) ON PRESENTATION OF BENEFICIARIES SIGNED RELEASE
c. IF THE GUARANTEE OR THE COUNTER GUARANTEE STATES NO EXPIRY DATE OR EVENT
THE GUARANTEE WILL TERMINATE AFTER 3 YEARS AND COUNTER GUARANTEE WILL TERMINATE AFTER 30 DAYS OF TERMINATION OF GUARANTEE
d. PRESENTATION OF DEMAND DAY IS HOLIDAY IN PLACE, THEN NEXT BUSINESS DAY.
e. THE GUARANTEE TERMINATES AS A RESULT OF "b" THE GUARANTOR IMMEDIATELY INFORM INSTRUCTING PARTY OR COUNTER GUARANTOR.
COUNTER GUARANTOR SHALL SO INFORMED THE INSTRUCTING PARTY.
26. FORCE MAJEURE
1. MEANS GOD,RIOTS,CIVIL COMMISSIONS, INSURRECTIONS, WARS, TERRORISM ACTS, OR ANY CASE BEYOND CONTROLL OF THE GUARANTOR OR CO
THAT INTERRUPTS ITS BUSINESS.
2. IF A GUARANTEE/COUNTER GUARANTEE EXPIRES AT THE TIME OF FORCE MAJEURE EACH GUARANTEE AND COUNTER GUARANTEE MAY
THE INSTRUCTING PARTY OR COUNTER GUARANTOR EXTEND FOR 30 DAYS AND ACCORDING TO INFORM.
3. EXAMINATION TIME IS NA FOR FORCE MAJURE
4. DEMAND MADE UNDER FORCE MAJEURE NOT PAID UNDER FORCE MAJEURE CAN BE PAID AFTER THE FORCE MAJEURE EVEN EXPIRY DATE GONE.
5.THE INSTRUCTING PARTY IS BOUND BY THIS ARTICLE
6. THE GUARANTOR OR COUNTER GUARANTOR ASSUMES NO LIABILITY FOR FORCE MAJEURE
27. DISCLAIMER ON EFFECTIVENESS OF DOCUMENTS
THE GUARANTOR ASSUMES NO LIABILITY OR RESPONSIBILITY FOR
1. THE FORM , ACCURACY, GENUINENESS, SUFFICIENCY , FALSIFICATION OR LEGAL EFFECT OF ANY SIGNATURE OR DOCUMENT
2. THE GENERAL OR PARTICULAR STATEMENT MADE IN OR SUPER IMPOSED ON ANY DOCUMENT PRESENTED TO IT.
3.THE DESCRIPTION, QUANTITY , WEIGHT , QUALITY , CONDITION , PACKING DELIVERY, VALUE OR EXISTANCE OF GOODS
SERVICES OR OTHER PERFORMANCE OR DATA REPRESENTED BY OR REFFERED TO ANY DOCUMENT PRESENTED TO IT.
28. DISCLAIMER ON TRANSMISSION OR TRANSLATION
THE GUARANTOR ASSUMES NO LIABILITY OR RESPONSIBILITY FOR THE CONSEQUENCES OF DELAY,LOSS IN TRANSIST ,
MULTILATION OR OTHER ERRORS ARISING IN THE TRANSMISSION OF ANY DOCUMENT
IF THE DOCUMENT IS SENT ACCORDING TO THE TERMS OF THE GUARANTEE
OR EVEN IF WHEN THE GUARANTOR MAY HAVE TAKEN THE INITIATIVE
TO SELECT THE DELIVERY CHANNEL (IN ABSENCE OF DELIVERY CHANNEL)
THE GUARANTOR ASSUMES NO LIABILITY OR RESPONSIBILITY FOR ERRORS IN TRANSLATION
OR INTERPRETATION OF TECHNICAL TERMS
AND MAY TRANSMIT ALL OR ANY PART OF THE GUARANTEE TEXT WHITOUT TRANSLATTING IT.
29. THE DISCLAIMER OF ACTS OF ANOTHER PARTY
THE GUARANTOR USING THE SERVICE OF ANOTHER PARTY FOR THE PURPOSE OF GIVING EFFECT TO THE INSTRUCTIONS OF AN INSTRUCTING PART
OR COUNTER GUARANTOR DOES SO FOR THE ACCOUNT AND AT THE RISK OF AN INSTRUCTING PARTY OR COUNTER GUARANTOR.
30.LIMITS ON EXEMPTION FOR LIABILITY
THE ARTICLE 27 TO 29 SHALL NOT EXEMPT A GUARANTOR FOR ITS LIABILITY OR RESPOSIBILITY OF ITS FAILURE TO ACT IN GOOD FAITH
31. INDEMNITY FOR FOREIGN LAWS AND USAGES
THE INSTRUCTING PARTY OR COUNTER GUARANTOR SHALL INDEMNIFY GURANTOR FOR ANY OBLIGATION OR RESPONSIBILITY DUE TO FOREIGN LAW
INCLUDING WHERE THOSE FOREIGN LAWS AND USAGES TERMS INTO THE GUARANTEE OR COUNTER GUARANTEE
32.LIABILITY FOR CHARGES
1. A PARTY INSTRUCTING ANOTHER PARTY TO PERFORM SERVICES UNDER THIS RULES IS LIABLE TO PAY THAT PARTY'S CHARGES FOR PERFORM
2. IF A GUARANTEE STATES CHARGES ARE ON THE ACCOUNT OF BENEFICIARY AND GUARANTOR/COUNTER GUARANTOR IS UNABLE TO COLLECT THA
CHARGES WILL BE RECOVERED FROM INSTRUCTING PARTY.
33.TRANSFER OF GUARANTEE AND ASSIGNMENT OF PROCEEDS
1. A GUARANTEE IS TRANSFERABLE WHEN IT SPECIALY STATES THAT IT IS TRANSFERABLE. THEN IT CAN BE TRANSFERABLE FOR MORE THAN ONE TI
FOR FULL AMOUNT AVAILABLE.
2. A COUNTER GUARANTEE IS NOT TRANSFERRABLE.
3. EVEN IF THE GUARANTEE SPECIFICALLY STATES THAT IT IS TRANSFERABLE, THE GUARANTOR IS NOT OBLIDGED TO GIVE EFFECT
TO THE TRANSFER REQUEST IF IT NOT PRESENTED AS PER FORMAT GIVEN BY THE GUARANTOR.
4.A TRANSFERABLE GUARANTEE MEANS A GUARANTEE THAT MAY BE MADE AVAILABLE BY THE GUARANTOR
TO A NEW BENEFICIARY (TRANSFEREE) AT THE REQUEST OF THE EXISTING BENEFICIARY.
5. THE FOLLOWING PROVISION WILL APPLY TO TRANSFER A GUARANTEE
i) A TRANSFERED GUARANTEE SHALL INCLUDE ALL AMMENDMENTS TO WHICH TRANSFEROR AND GURANTOR AGREED AS OF THE DATE OF TRANSFER
ii) A GUARANTEE CAN ONLY BE TRANSFERED WHERE IN ADDITION TO THE CONDITIONS STATED IN PARAGRAPH 1 , 3 AND 5.1 OF THIS ARTICLE
THE TRANSFEROR HAS PROVIDED A SIGNED STATEMENT TO THE GUARANTOR. THAT TRANSFEREE HAS AQUIRED TRANSFEROR RIGHTS AND OBLIGAT
ON THE CONTRACT.
6. UNLESS OTHERWISE AGREED AT THE TIME OF TRANSFER THE TRANSFEROR SHALL PAY ALL CHARGES REGARDING TRANSFER
7. UNDER A TRANSFERED GUARANTEE A DEMAND OR ANY SUPPORTING STATEMENT SIGNED BY THE TRANSFAREE.
UNLESS GUARANTEE PROVIDES OTHERWISE, THE NAME AND THE SIGNATURE OF THE TRANSFEROR IN ANY OTHER DOCUMENT.
8. WHEATHER OR NOT THE GUARANTEE STATES THAT IT IS TRANSFERABLE AND SUBJECT TO THE PROVISIONS OF THE APPLICABLE LAW.
THE BENEFICIARY MAY ASSIGN ANY PROCEEDS TO WHICH IT MAY BECOME ENTITLED UNDER THE GUARANTEE
HOWEVER, THE GUARANTOR SHALL NOT BE OBLIDGED TO PAY AN AS SIGNEE OF THESE PROCEEDS UNLESS THE GUARANTOR HAS AGREED TO DO S
34.GOVERNING LAW
a) UNLESS OTHERWISE PROVIDED IN THE GUARANTEE/COUNTER GUARANTEE ITS GOVERNING LAW SHALL BE OF THE LOCATION OF THE GUARANTO
GUARANTORS BRANCH OR OFFICE THAT ISSUE THE GUARANTEE.
35. JURISDICTION
a) UNLESS OTHERWISE PROVIDED IN THE GUARANTEE/COUNTER GUARANTEE ANY DIPUTE BETWEEN GUARANTOR AND BENEFICIARY/COUNTER GUAR
GUARANTOR WILL BE SETTLED EXCLUSIVELY BY COURT OF THE GURANTORS BRANCH/ COUNTER GURANTORS BRANCH

PART - 3 – BG TEXT AND ONEROUS CLAUSES

A. ONEROUS CLAUSES-
IMPOSING CERTAIN ONEROUS RESPONSIBILITIES ON ISSUING BANK THAT CREATES HIGHER RISK FOR ISSUING BANK.
1. NOT WITH-STANDING CLAUSE
"NOT WITH STANDING ANYTHING CONTAINED HERE IN ABOVE THE GUARANTEE/SBLC, a) OUR LIABLITY UNDER THE GUARANTEE/SBLC SHOULD NOT E
INR ONE CRORE. THIS BG/SBLC SHALL BE VALID FOR UPTO 31.12.22. WE SHALL BE LIABLE TO PAY ANY AMOUNT UNDER THIS BANK GUARANTEE/SBLC
ONLY IF WE RECEIVE A WRITTEN CLAIM OR DEMAND UNDER THIS GUARANTEE/SBLC, ON OR BEFORE 31.12.22, BRANCH OFFICE AT ABC ROAD KOLKAT
THE ABOVE CLAUSE IS STANDARD NWC CLAUSE, THERE ARE 3 POINTS -
1. A SPECIFIC AMOUNT
2. A SPECIFIC EXPIRY DATE
3. A CLAIM EXPIRY DATE, WITH MANNER OF MAKING CLIM WITH PLACE WHERE CLAIM CAN BE MADE.
THERE SHOULD NOT BE ANY CONTRA CLAUSE IN BG TEXT -
1. RENEWED AUTOMATICALLY TILL ALL THE LIABILITIES OF THE CONTRACTOR UNDER CONTRACT IS CLEARED.
2. VALIDITY TILL DULY DISCHARGE IN WRITING BY THE BENEFICIARY.
3. VALIDITY TILL ALL THE DUES OF THE CONTRACT TO THE BENEFICIARY ARE PAID.
GUARANTEE CAN BE ISSUED WITHOUT NWC CLAUSE BUT WITH SIMILAR CLAUSE, SUBJECT TO ABOVE 3 POINTS ARE MAINTAINED
AND THERE IS NO ADVESE CLAUSE TO OUR BANK.
2. AUTO RENEWAL CLAUSE - "GUARANTEE WILL BE AUTO RENEWED AFTER 3 YEARS" - THIS MEANS WITHOUT BANK CONCERN AND NO SUCH CLAUSE
3. GUARANTOR AS PRINCIPLE DEBTOR/OBLIGATOR
NO BG/SBLC TO BE ISSUED WITH A CLAUSE BINDING GUARANTOR AS PRINCIPLE DEBTOR/OBLIGATOR. HERE PRINCIPAL OBLIGATOR IS APPLICANT AN
WITH BENEFICIARY. BANK IS ONLY A GUARANTOR/SECURITY AND ACTING ONLY IN THAT CAPACITY AND NOT AS THE DEBTOR/CONTRACTOR.
4. GUARANTOR HOLDING THE FUNDS IN TRUST OF THE BENEFICIARY
BANK IS PERFORMING ONLY THE ROLE OF GUARANTOR NOT AN TRUSTEE. NO SUCH BG/SBLC TO BE ISSUED . HOWEVER IF THE CUSTOMER IS PLACIN
SECURED FOR BG/SBLC IT CAN BE STATED IN BG TEXT. "GUARANTOR IS HOLDING FUND DEPOSITED BY THE CONTRACTOR/PRINCIPLE DEBTOR FOR IS
IN TRUST OF THE BENEFICIARY"
5. ASSIGNIBILITY OF BG/SBLC
BENEFICIARY MAY REQUEST TO INCLUDE A ASSIGNEE BG TEXT WITH BANK CONCENT PROVIDED
"THIS BANK GUARANTEE/SBLC, IS ASSIGNABLE ONLY WITH THE CONCENT OF THE GUARANTOR. ON ASSIGNMENT OF BG /SBLC THE GUARANTOR SHAL
IF PAID IN ACCORDANCE WITH THE TERMS OF THE BG OR IF THE ASSIGNEE INDICATED IN THE NOTICE OF ASSIGNMENT ISSUED BY BENEFICIARY WITH
VALID LEGALITY, ENFORCIBILITY OF THE ASSIGNMENT"
PROHIBITING ASSIGNMENT FACRORS -
i) ANY ADVERSE RELATIONSHIP
ii) ENTITY BLACKLISTED BY THE REGULATOR
iii) ENTITY HAS AN OVERDUE LIABILITY WITH GUARANTOR BANK
iv) COUNTRY OF THE ASSIGNEE IS IN SCANTIONED LIST
SOME TIMES BG TEXT CONTAINS "TEXT REGARDING ASSIGNMENT" , THEN IT HAVE TO BE MODIDIED.
" NOT WITHSTANDING ANYTHING , GUARANTOR WOULD BE VALIDLY DISCHARGED OF ALL ITS LIABILITY TOWARDS ASSIGNOR, UNDER THE GUARANTEE
ASSIGNMENT OF A BG/SBLC, IN FAVOUR OF ASSIGNE_________________" (ASSIGNEE NAME TO BE ADDED AND BELOW TEXT)
" THE ASSIGNMENT IS A VALID ASSIGNMENT UNDER THE LAWS OF THE GUARANTOR, WILL HENCEWORTH BE LIABLE ONLY TO THE ASSIGNEE, AND BE
TO HONOUR THE CLAIM BY THE ASSIGNEE , ONLY UNDER BG/SBLC"
IF BENEFICIARY IS NOT AGREEABLE WITH THE CHANGE IN THE BG TEXT AND TELLING BANK TO PAY TO THE CONSIGNEE WITHOUT VERIFYING VALIDIT
A SEPARATE NOTICE OF ASSIGNMENT TO BE ISSUED BY BANK. TAKE A INDEMEMNITY LETTER FROM CUSTOMER REGARDING THIS.
6. POSTING OF WRITTEN DEMAND
A CLAUSE SAYING THAT "NOTICE OF DEMAND IF POSTED WILL BE DEEMED TO HAVE RECEIVED" SHOULD NOT BE THERE IN THE BG TEXT. NOTICE OF D
HAS TO BE RECEIVED IN BANKS COUNTER WITHIN CLAIM EXPIRY DATE.
7. FAX INVOCATION - NO FAX INVOCATION CLAUSE SHOULD BE THERE IN BG TEXT. AS IT IS UNSECURED.
8. CASES ON BANK
"GUARANTOR CONFIRMS THAT THERE ARE NO COURT/TRIBUNAL/REGULATORY ORDER OR BANKRUPTY/ADMINISHTRATIVE PROCEEDING REGARDING
PERFORMANCE OF THE BG/SBLC" - NO SUCH STATEMENT IS ALLOWED IN BG TEXT. ALREADY MANY CASES PENDING AGAINST BANK.
9. HONOURING OF BG DESPITE COURT ORDER -
MEANS BENEFICIARY WANTS PAYMENT DESPITE OF A COURT RESTAIN ORDER. NO SUCH TEXT TO BE ADDED BANK WILL OBEY RESTRAINT ORDER BY
"HONOURING OF GUARANTEE IN RESPECT OF COURT/TRIBUNAL ORDER" "COURT ORDER TO BE HONOURED"- NO SUCH TEXT TO BE ADDED IN TEXT.
AS PAYMENT CANNOT BE DONE THROUGH COURT ORDER.
10. VALIDITY DATE SHOULD BE THERE NOT AN EVENT
BG/SBLC SHOULD SPECIFICALLY MENTION A FUTURE DATE OF VALIDITY AND SHOULD NOT MENTION AS COMPLETION OF EVENTS SUCH AS " SUBMISS
PROFIT OF EXPORT IMPORT" ETC
ALSO, THERE CAN BE A DIFFERENT FUTURE EFFECTIVE DATE IN BG TEXT OTHER THAN ISSUE DATE. BUT BG COMMISSION WILL BE COLLECTED FROM
11.GOVERNING LAW
IF BG/SBLC ISSUED TO A BENEFICIARY IN FOREIGN JURIDICTION ENGLISH COURT JURIDICTION IS TO BE FOLLOWED
CLG WILL GIVE LEGAL OPINION WHEATHER A JURIDICTION WILL BE APPLIED OR NOT BASED ON REQUEST RECEIVED.
TO BG/SBLC TO BE ISSUED OTHER THAN ENGLISH LAW AND COURT OF ENGLAND, INDEMNITY TO BE TAKEN FROM CUSTOMER.
9. 100% FD BACKED BANK GUARANTEE AND GUARANTEE FAVOURING COURT/TRIBUNAL/ARBITAL PANEL
THERE MAY BE VARIATION IN NWC,AUTO RENEWAL, FAX INVOCATION, WAIVER OF SURETYSHIP RIGHT CLAUSES.
12. UNTILL WRITTEN DISCHARGE
A CLAUSE REFLECTING THAT LIABILITY UNDER GUARANTEE TO BE ENFORCABLE TILL ALL DUES TO THE BENEFICIARY STANDS UNPAID AND UNTILL TH
IS DISCHARGED BY THE BENEFICIARY. NO SUCH STATEMENT TO BE THERE IN TEXT, AS IT INCLUDES OBLIGATION UNDER CONTRACTUAL AGREEMENT
13. IF EXTERNAL RATING OF BANK IS DOWN GRADING THEN THEN BG CAN BE INVOKED
NO TRANSACTION RELATING TO BG/SBLC/LC/PARTICIPATION IN UNFORCEN RISK PARTICIPATION WHICH REQUIRE COLATERAL POSTING BASED ON AN
RATING DOWNGRADE OF ICICI BANK ARE PERMITTED. ONLY CASES WITH EXISTING FACILITY AGREEMENT ARE PERMITTED TO BE CONTINUED TILL RU
14. SURETYSHIP RIGHTS
THERE ARE THREE PARTIES IN BG. APPLICANT, BENEFICIARY, GUARANTOR. IF APPLICANT COULD NOT PERFORM. AND BENEFICIARY TAKES MONEY O
THEN BANK HAS HIS ALL RIGHTS TO RECOVER HIS MONEY FROM BENEFICIARY.
ONEROUS CLAUSES CAN BE ADDED IN BANK GUARANTEE AFTER TAKING PROPER INDEMNITY FROM APPLICANT. " APPLICANT WILL INDEMNIFY BAN
BANK HAS MADE UNDER THE MENTION CLAUSE"
GUARANTEE TEXT INDEMNITY TEXT
1. BID BOND GUARANTEE
2. ADVANCE PAYMENT GUARANTEE -
3. PERFORMANCE GUARANTEE
4. GOVT GUARANTEE
6. COUNTER GUARANTEE -
7. FOBG EXAMPLES
8. DBG EXAMPLES
9. FIBG EXAMPLES
B. SAMPLE BG TEXT
1. BID BOND GUARANTEE - M/S MOON CAME TO ICICI BANK TO PARTICIPATING IN TENDER OF SUN LTD
BANK GUARANTEE NO- 1 DATE - 1.1.22
VALID UPTO 1.7.22 AMOUNT - INR 1,00,00,000
TO
SUN LTD, XYZ ROAD
KOLKATA -700057

DEAR SIR,

1. GENERAL INTRODUCTION -
WHERE AS, THE SUN LTD, AN AUTONOMUS BODY OF MINISTRY OF EARTH SCIENCES, GOVT. OF INDIA HAVING ITS OFFICE AT XYZ ROAD,
KOLKATA 700057, INDIA HAS FLOATED A TENDER NO - 123 AND M/S MOON HAVING REGISTERED HEADOFFICE AT KOLKATA HAVE SUBMITTED A QUOTA
HAVING AGREED TO FURNISH THE CONDITION PRECEDENT FOR PARTICIPATION IN TENDER AN UNCONDITIONAL AND IRREVOCABLE BANK GUARANTE
(INDIAN RUPEES 1 CRORE ONLY), FOR THE DUE PERFORMANCE OF BIDDER OBLIGATION AS CONTAINED IN TERMS AND CONDITION CONTAINED IN TEN
SUPPLIEED BY SUN IN THE CONDITION THAT -
a) BIDDER SHALL KEEP HIS TENDER OPEN FOR A PERIOD OF 180 DAYS IE FROM 1/1/2022 TO 1/7/2022 OR ANY EXTENTION THERE OFF AND SHALL NOT W
OR MODIFY IN ANY MANNER NOT ACCEPTABLE BY SUN
b) THE BIDDER WILL EXECUT THE CONTRACT IF AWARDED, AND FURNISH PERFORMANCE GUARANTEE IN THE FORMAT PRESCRIBED BY SUN WITHIN T
BIDDER HAS ABSOLUTELY AND UNCONDITIONALY ACCEPTED THESE CONDITIONS.
2. NOTICE INVITING TENDER (NIT)/ TENDER DOCUMENT (TD)-
a) IS AN OFFER MADE ON THE CONDITION THAT THE TENDER IF SUBMITTED WOULD BE KEPT OPEN IN ITS ORIGINAL
FORM FOR A PERIOD OF 180 DAYS I.E FROM 1.1 22 TO 1.7 22 OR ANY EXTENTION THERE OFF AND THAT THE MAKING OF THE TENDER ITSELF, SHALL B
UNCONDITIONAL ACCEPTANCE CONTAINED IN THIS DOCUMENT.
b) THEY HAVE FURTHER AGREED THAT THIS DOCUMENT IS AN OFFER AND SUBMISSION OF TENDER IS THE
ACCEPTANCE AND IT IS A SEPARATE DOCUMENT FROM CONTRACT WHICH WILL COME INTO EXISTANCE WHEN TENDER IS AWARDED.
c) THE NEED OF THIS SEPARATE INITIAL AGREEMENT PRECEEDING THE MAIN AGREEMENT IS THAT
i) SUN IS NOT AGREEBLE TO SELL THE NIT/TD TO THE BIDDER ii) TO CONSIDER THE TENDER TO
BE MADE ACCEPT ON THE CONDITION THAT THE TENDER SHALL BE KEPT OPEN FOR A PERIOD INDICATED ABOVE. AND THE BIDDER DESIRES TO MAK
ON THE CONDITION THAT AFTER ENTERING INTO SEPARATE INITIAL AGREEMENT WITH THE SUN, SUN PROMISSES TO CONSIDER THE TENDER IF BIDD
TENDER OPEN FOR THE REQUIRED PERIOD. THESE RESIPROCAL PROMISES FROM THE CONSIDERATION FOR THIS SEPARATE INITIAL AGREEMENT BE
3. BANK GENERAL CONSIDERATION -
a) WE ICICI BANK LTD,REGISTERED UNDER LAWS OF INDIAN GOVT HAVING REGISTERED OFFICE AT RN MUKHERJEE ROAD KOLKATA-70000,
HEREBY ISSUE A IRREVOCABLE AND UNCONDITIONAL BANK GUARANTEE AND UNDERTAKE TO PAY IMMEDIATELY ON FIRST DEMAND IN WRITING IN RU
ANY CONVERTIBLE CURRENCY AS ACCEPTABLE TO SUN, ANY MONEY TO THE EXTEND OF RS 1,00,00,000 (INDIAN RUPEES ONE CRORE ONLY) AT ANY
ON SUCH DEMAND WITHOUT ANY DEMUR, RESERVATIONS, RECOURSE, CONTEST OR PROTEST AND WITHOUT ANY REFERANCE TO BIDDER
b) ANY SUCH DEMAND MADE BY SUN ON THE BANK SHALL BE CONCLUSIVE AND BINDING NOTWITHSTANDING ANY DIFFERENCE BETWEEN SUN AND T
c) ANY SUCH DEMAND MADE BY SUN ON BANK SHALL BE CONCLUSIVE AND BINDING NOTWITHSTANDING ANY DIFFERENCE BETWEEN SUN AND THE BI
PENDING BEFORE ANY COURT ARBITRATER OR ANY AUTHORITY OR ANY MATTER WHATSOVER.
d) WE ALSO AGREE THAT GUARANTEE HEREIN CONTAINED SHALL BE IRREVOCABLE UNLESS IT IS DISCHARGED EARLIER BY SUN IN WRITING
e) GUARANTEE SHALL NOT BE DISCHARGED/DTERMINED/AFFECTED BY LIQUIDATION, WINDING UP, DISSOLUTION OR INSOLVENCY OF THE BIDDER AN
BINDING AND OPERATIVE AGAINST THE BANK.
f) BANK ALSO UNDERTAKES THAT THE SUN AT ITS OPTION SHALL BE ENTITLED TO ENFORCE THIS GUARANTEE AGAINST THE BANK AS A PRINCIPLE DE
INSTANCE WITHOUT PROCEEDING AGAINST THE BIDDER.
4. BANK CONSIDERATION REGARDING BREACH OF CONTRACT
BANK ALSO UNDERTAKES THAT BETWEEN BANK AND THE SUN ANY NOTICE OF BREACH OF CONDITIONS CONTAINED IN NIT/TD AND OTHER TERMS AN
IN NIT AS MENTIONED ABOVE, GIVEN TO THE BANK IS CONCLUSIVE AND BINDING ON BANK WITHOUT ANY PROOF, NOT WITHSTANDING ANY OTHER MA
DISPUTE WHATSOVER. WE FURTHER AGREE THAT THIS DOCUMENT SHALL NOT BE EFFECTED BY ANY CHANGE IN OUR CONSTITUTION, OR, IN THE CO
OR THAT OF THE BIDDER WE ALSO UNDERTAKE NOT TO REVOKE IN ANY CASE THIS CURRENCY DURING ITS CURRENCY.
5. LIBERTY
a) BANK AGREE WITH SUN THAT SUN SHALL HAVE THE FULLEST LIBERTY WITHOUT OUR CONCENT AND WITHOUT AFFECTING IN ANY MANNER OUR OB
TO VARY ANY OF THE TERMS OF THE TENDER OR GET EXTENTION OF THE VALIDITY PERIOD FROM TIME TO TIME.
b) WE SHALL NOT BE RELEAVED FROM OUR LIABILITY BY REASON OF ANY SUCH VARIATION OR EXTENTION OF THE VALIDITY PERIOD FROM TIME TO
c) ALSO, WE SHALL NOT BE RELEAVED FROM OUR LIABILITY BY REASON OF ANY SUCH VARIATION OR EXTENTION OF THE VALIDITY PERIOD
OR FOR ANY FOR ANY FORBEARANCE, ACT OF OMMISSION AND COMMISSION ON THE PART OF SUN, OR ANY INDULGENCE SHOWN BY THE
SUN TO THE SAID BIDDER OR ANY SUCH MATTER OR THING WHATSOVER WHICH UNDER THE LAW RELATING TO SECURITIES WOULD
6. NWC CLAUSE
a) NOTWITHSTANDING WITH ANYTHING CONTAINED HEREIN ABOVE, OUR LIABILITY UNDER THIS GUARANTEE IS LIMITED TO INR 100,00,000 ONLY (ONE
b) AND IT SHALL REMAIN IN FULL FORCE UPTO 1/7/22 & INCLUDING 60 DAYS AFTER 1/5/22, UNLESS EXTENDED IN WRITING BY MS MOON, ON WHOSE BE
HAS BEEN GIVEN, IN WHICH CASE REMAIN IN FULL FORCE UPTO AND INCLUDING 60 DAYS AFTER THE EXTENDED PERIOD.
c) ANY CLAIM UNDER THIS GUARANTEE MUST BE RECEIVED BY US BEFORE EXPIRY OF 60 DAYS AFTER THE SAID DATE/EXTENDED DATE, ALL RIGHTS O
THIS GUARANTEE WILL CEASE SUBJECT TO BELOW.
d) HOWEVER, IF SUCH A CLAIM HAS BEEN RECEIVED BY US WITHIN AND UPTO 60 DAYS AFTER THE SAID DATE/EXTENDED DATE, ALL RIGHTS OF
SUN UNDER THE GUARANTEE SHALL BE VALID AND SHALL NOT CEASE UNTILL WE HAVE SATISFIED THE CLAIM.
7. CONTRACT AWARDED
a) IF CONTRACT AWARDED TO THE BIDDER THE VALIDITY OF THE BG WILL STAND AUTOMATICALLY EXTENDED, UNTILL THE BIDDER FURNISHES TO SU
ONLY (INDIAN RUPEES TEN CRORE ONLY). TOWARDSSATISFACTORY PERFORMANCE OF THE CONTRACT.
b) IN CASE FAILURE TO FURNISH PERFORMANCE GUARANTEE IN THE FORMAT PRESCRIBED BY THE SUN BY REQUIRED
DATE, THE CLAIM MUST BE SUBMITTED TO US WITHIN 120 DAYS AFTER THE LAST DATE OF VALIDITY PERIOD OR EXTENDED PERIOD
OR EXTENDED PERIOD IF ANY.
c) IF NO SUCH CLAIM HAS BEEN ECEIVED BY US WITHIN 120 DAYS AFTER THE SAID DATE/EXTENDED, RIGHTS OF SUN UNDER THIS GUARANTEE SHALL
CEASE UNTILL WE HAVE SATISFIED THE CLAIM.
8. LAWS CONSIDERATION
a)BANK CONFIRMS THAT GUARANTEE HAS BEEN ISSUED WITH THE APPROVAL OF APPROPRIATE EXCHANGE CONTROLL AUTHORITIES IN INDIA AND AN
IF REQUIRED AS PER THE LAWS OF THE COUNTRY OF ISSUE OF GUARANTEE.
b) WE CONFIRMS THAT THE GUARANTEE SHALL BE GOVERNED BY AND CONSTRUCTED IN ACCORDANCE WITH INDIAN LAWS AND SUBJECT TO EXCLUS
COURTS.
c) BANK ALSO AGREES THAT THE COURTS OF THE PLACE FROM WHERE TENDERS HAVE BEEN INVITED SHALL HAVE EXCLUSIVE JURIDCTION.
IN WITNESS, WHEREAS THE BANK THROUGH ITS AUTHORIZED OFFICER HAS PUT ITS HAND AND STAMP ON SATURDAY 1ST JANUARY 20
WITNESS NO 1
SIGNATURE NAME WITH FULL ADDRESS SIGNATURE
FULL NAME IN CAPITAL LETER
WITNESS NO 2 DESIGNATION IN BANK
SIGNATURE NAME WITH FULL ASSRESS
ATTORNEY ASPER POWER OF ATTO
DATE ________ NO.___________
DATE. ___________

2. PERFORMANCE BOND GUARANTEE-

BANK GUARANTEE NO - 2 DATE- 1.1.22
VALID UPTO - 31.12.2022 AMOUNT -

THE PRESIDENT OF INDIA

(ACTING THROUGH THE DIRECTOR
PURCHASE AND STORE)
DEPARTMENT OF FOOD
VIKRAM SARABHAI BHABAN
ANKUSHAKTINAGAR
MUMBAI-400094
1. GENERAL CONSIDERATION -
1. WHERE AS ON OR ABOUT THE 1.1.2021 NESTLE HAVING ITS HEAD OFFICE AT SWITZERLAND, XYZ ROAD 55555, ENTERED INTO AN AGREEMENT BEAR
WITH PRESIDENT OF INDIA ACTING THROUGH THE DIRECTOR, PURCHASE AND STORES, DEPARTMENT OF FOOD FOR THE SUPPLY OF THE MAGGI
2. THE CONTRACT RECOGNISES THAT NESTLE INDIA, INDIAN AGENT OF THE CONTRACTOR IN INDIA WILL FURNISH A PERFORMANCE BOND ON BEHALF
FOR SATISFACTORY FUNCTIONING OF THE EQUIPMENT DURING WARRENTY PERIOD WHILE RELEASING 100% PAYMENT OF THE CONTRACTOR.
2. PREVIOUS GUARANTEE
AND WHEREAS UNDER THE TERMS AND CONSIDERATION OF CONTRACT AN AMOUNT OF USD 10,00,000 ONLY REPRESENTING 100% PAYMENT OF THE
OF THE CONTRACT IS TO BE PAID TO THE CONTRACTOR AFTER REDUCING THE AGENCY COMMISSION SUBJECT TO THE INDIAN AGENT FURNISHING A
ON BEHALF OF THE CONTRACTOR FOR 10% OF ORDER VALUE AMOUNTING TO USD 1,00,000 IN THE MANNER HEREIN CONTAINED DULY EXECUTED BY
NATIONALIZED BANK TOWARDS SATISFACTORY PERFORMANCE OF THE EQUIPMENT DURING WARRANTY PERIOD VIZ 12 MONTHS, FROM THE DATE OF
OF THE SAID EQUIPMENT OR 12 MONTHS FROM THE DATE OF DISPATCH OF THE LAST LOT OF CONSIGNMENT, WHICHEVER IS EARLIER.
3. BANKS GENERAL CONSIDERATION
NOW WE ICICI BANK LIMITED, XYZ ROAD , MUMBAI - 400001, ON BEHALF OF MAGI INDIA, IN CONSIDERATION OF THE PROMISES AND THE PAYMENT OF T
USD 10,00,000 BY THE PURCHASER TO THE CONTRACTOR DO HEREBY AGREE AND UNDERTAKE TO PAY TO THE PURCHASER THE AMOUNT DUE AND P
UNDER THE GUARANTEE WITHOUT ANY DEMUR, MERELY ON A DEMAND FROM A DIRECTOR/REGIONAL DIRECTOR/JT DIRECTOR/PURCHASE OFFICER/D
PURCHASE AND STORE, DEPARTMENT OF ATOMIC ENERGY STATING THAT THE AMOUNT CLAIMED IS DUE BY WAY OF LOSS/DAMAGE CAUSED TO OR S
THE PURCHASER BY REASON OF UNSATISFACTORY PERFORMANCE OF THE EQUIPMENT DURING THE WARRANTY PERIOD. ANY SUCH DEMAND MADE
SHALL BE CONCLUSIVE AS REGARDS THE AMOUNT DUE AND PAYABLE BY THE BANK UNDER THE GUARANTEE. HOWEVER, OUR LIABILITY UNDER THIS
SHALL BE RESTRICTED TO AN AMOUNT NOT EXCEEDING USD 10,00,000 ONLY
4
PAY. BUT OBLIGATION TO PAY IS OF APPLICANT

LINKD TO THE CTEDIT WORTHINESS OF THE ENTITY.

ESN’T PERFORM THE APPLICANTS FINANCIAL OBLIGATION

TYPES
BENEFICIARY.
THAT BANKS NEED RBI GUIDELINES

ALID TILL SPECIFIED DATE WITH OR WITHOUT CLAIM EXPIRY DATE. CLASS
THE COURT ORDER. SUBJECT TO STATE STAMP ACT. ONEROUS CLAUSES
LIGATION. FOR APPLICANT, IT IS GOOD TO GETTING THE ISSUANCE
AMMENDMENT
INVOCATION

R ASSET/LIABILITY MANAGEMENT.

GUARANTEES.

ED TO MAKE PAYMENT UNDER GUARANTEE.

UNDER CONTRACT.

OULD BE ISSUED IN SERIALY NUMBERED SECURITY FORMS.

 CLOSURE

IN BANKS FOR ISSUE OF BID-BONDS GUARANTEES

UBMITTING BID-BOND GURANTEE OF 1 CR. DEMAND/PAYMENT
SPECIAL CONDITIONS

NCELLED BY BANK AND SECURITY WILL BE RETURNED.

BE CANCELLED.

NEEDS MONEY FROM THE GOVT. HE HAS TO SUBMIT

ENT L & T NEEDS TO SUBMIT P GUARANTEE TO GOVT.

LIMITS WITH AXIS BANK.

OWER. BY THIS BG BORROWER CAN TAKE LOAN FROM

CAN GO TO A BANK FOR ISSUE A GUARANTEE TOWARDS SELLER.

NK CAN ISSUE COUNTER GUARANTEE TO SELLER.

UR OF BUYER.
E GUARANTEE.

TE OF COMMISSION WILL BE APPLICABLE.

OM THEIR OVERSEAS EMPLOYER, RETAIN NOT EXCEED 10 %.

URANTEE TOWARDS OVERSEAS EMPLOYER.

NTEE TO THEM OR BUSINESS

SCHEME OF GOVT.

GUARANTEE.

ESIGNATION, EMPLOYEE ID UNDER THE SIGNATURE.

ATE/PUBLIC LIMITED CO.

CURED BASIS

HER CONCERNS OWNED AND MANAGED BY A GROUP.

NY. NO COMMISSION IS PAYBLE TO DIRECTOR

 OWARDS OVERSEAS ONTRACTOR.

EXTENT OF SECURITY AND MARGINS

E IN FAVOUR OF OTHER BANKS TO PARTICIPATE

ON, PROVISSIONING IS SATISFIED

ER FOR BILL DISCOUNTING PURPOSE

ICULTURE BOARD
ON OF THE APPLICANT.

ORT FOR GIVING

SE IN CONTRACT, ADEQUACY OF SECURITY,

OULD BE CAREFULL ABOUT -

FINANCIAL COMMITMENT FOR

OF SHARES, ISSUE OF CORPORATE GUARANTEE/
E ON IMMOVABLE/MOVABLE PROPERTY OF MAHINDRA INDIA

TAL FINANCIAL COMMITMENT OF MAHINDRA INDIA

NTEE SHOULD BE OPEN ENDED. iii) CHARGE ON IMMOVABLE/

PRESCRIBED BY ODI, ii) NO GUARANTEE SHOULD BE

FIED FOR FOR COMPLETION OF CONTRACT TO BE
IOR RBI APPROVAL BEFORE REMITTING THE FUNDS FROM INDIA.

UBSIDIARY, UNDER AUTOMATIC ROUTE, WITH THE PREVAILING

WITHIN ODI LIMIT AND HOLD 51 % OR MORE STAKE IN

COMMITMENT OF INDIAN PARTY FOR ODI.

OF COMFORT ON BEHALF OF JV/WOS FOR THE
 OVERSEAS BUSINESS. BANK SHOULD MONITOR

ION -FOR A PERIOD UPTO 1 YEAR FOR ALL NON-CAPITAL GOODS

OUS CLAUSES.

T TO JURIDICTION OF THE OVERSEAS COURTS.

VOUR OF INDIAN ENTITIES,

OM OVERSEAS BANK.

NLESS EXPORTER RESTRAINED BANK BY A COURT ORDER.

REGARDING THEIR TICKET SELLING BUSINESS IN INDIA.

ED TO A PERSON RESIDENT OUTSIDE INDIA IN CONNECTION

S AND CONDITIONS STIPULATED IN RBI RISK MANAGEMENT

O GO TO COURTS

EN INVOCATION LETTER RECEIVED. (DELHI HIGH COURT)

NDICATION OF FRAUDS. (SUPRIME COURT)

D PAYMENT IS NOT RIGHTFULL UNDER INDIAN CONTRACT ACT.

RDING BG.

OKED BY ORDERS ISSED BY COURTS.

OF COURT ORDER UNLESS CERTIFIED COPIES

DISPUTE TO BE PROCESSED SEPARATELY

ND CONDITIONS OF GUARANTEE.
AINST BANK

STATUS OF CO-ACCEPTANCE LIABILITY AND OVERDUE.

OM REGIONAL OFFICE OF CO-ACCEPTING BANK

HE URBAN CO -OPERATIVE BANKS.

CITY OF BUYER
OBLIGATION TOWARS LC TERMS.
OUR OF IMPORTER.

ND APPLICABLE TO ALL PARTIES (UNLESS AMENDED AS EXCLUDED)

TO URDG UNLESS SPECIFICALLY EXCLUDED.
LL NOT BECOME URDG.

THE INSTRUCTING PARTY.

SENDER AND WHEATHER

NED BY THESE RULES

TEE 2. THESE RULES

ER COUNTER GUARANTOR

MPLYING DEMAND.
APABLE OF BEING PRODUCED IN TANGIBLE FORM

ABOVE SHOULD BE PRESENTED

CCOUNTS HELD WITH THE GUARANTOR, PROVIDED

ANTEE OR COUNTER GUARANTEE AND IS RESPONSIBLE

RESENTATION OTHERTHAN FOR A DEMAND.

OF ITS AMOUNT.

E AUTHENTICATED BY ADV BANK

PPLICANT AND THE BENEFICIARY.

IED BY THE PRESENTATION OF ONE

L" WHEN USED TO DESCRIBE

A GUARANTOR IS NO WAY CONCERNED WITH OR BOUND

EPENDENT NATURE OF THE GUARANTEE.

 THER COUNTER GUARANTEE.

NT NATURE OF THE COUNTER GUARANTEE.

EN ISSUED.

MAY RELATE.

TO INDICATE COMPLIANCE THAT CONDITIONS.

RMINED FROM THE GUARANTORS OWN RECORDS
N BE PART OF THE CLAIM OR NOT)

ULD AVOID EXCESSIVE DETAIL.

GUARANTEE
WHOOM IT RECEIVED
APPARENT AUTHENCITY OF THE GUARANTEE

M THE INSTRUCTOR IMMEDIATELY.

SSUED. BENE IF NOT ACCEPTED CAN

THE BENEFICIARYS NOTIFICATION

ITHIN A CERTAIN TIME SHALL BE DISGARDED.

GUARANTEE AND SCEOND THESE RULES

URANCE OF SPECIFIED EVENT

E EVENT IS DEEMED TO HAVE OCCURED ONLY
THE GUARANTOR.
MINABLE AS PER GURANTERS OWN DATA AND
OT EXCLUDATE

ATION UNDER CONTRACT.

RTING SATEMENT ARTICLE-15 IS EXCLUDED)

IS ENTITLED TO PRESENT A DEMAND.

OF ITS PRESENTATION.

R EXTENTION OF EXPIRY DATE.

 THE DEMAND.

MAKE ANOTHER TIMELY DEMAND

ND THESE RULES.

IN THE GUARANTEE.

LIABILITY FOR EXAMINATION UNTILL IT IS COMPLETED.

ATION OR NOT.
THE INSTRUCTED PARTY OR COUNTER GUARANTOR

ED ITS INSTRUCTION

OMPLYING DEMAND,
R WAIVER OF DISCRIPANCY.
R OR COUNTER GUARANTOR

HE DEMAND WITHIN 5TH BUSINESS DAY

RM TO THE PRESENTER
NY RESPONSIBILITY.

MINATION OF GUARANTEE

OUNTER GUARANTOR.

OF THE GUARANTOR OR CO GURANTOR

GUARANTEE MAY

EVEN EXPIRY DATE GONE.

S OF AN INSTRUCTING PARTY

N GOOD FAITH

BILITY DUE TO FOREIGN LAWS AND USAGES.

CHARGES FOR PERFORM

IS UNABLE TO COLLECT THAT CHARGES

BLE FOR MORE THAN ONE TIMES

VE EFFECT

OF THE DATE OF TRANSFER.

5.1 OF THIS ARTICLE
FEROR RIGHTS AND OBLIGATION
PPLICABLE LAW.

NTOR HAS AGREED TO DO SO.

CATION OF THE GUARANTORS/COUNTER

ENEFICIARY/COUNTER GUARANTOR AND

ANTEE/SBLC SHOULD NOT EXCEED INR 1,00,00,000,

HIS BANK GUARANTEE/SBLC OR PART THERE OF,
FFICE AT ABC ROAD KOLKATA"

CERN AND NO SUCH CLAUSE SHOULD BE THERE IN TEXT.

BLIGATOR IS APPLICANT AND HE IS UNDER CONTRACT
TOR/CONTRACTOR.

F THE CUSTOMER IS PLACING 100 % CASH DEPOSIT

R/PRINCIPLE DEBTOR FOR ISSUANCE OF BG/SBLC

SBLC THE GUARANTOR SHALL BE FULLY DISCHARGED,

SUED BY BENEFICIARY WITHOUT VERIFYING THE

OR, UNDER THE GUARANTEE/SBLC DUE TO

TO THE ASSIGNEE, AND BE OBLIDGED

WITHOUT VERIFYING VALIDITY OF ASSIGNMENT.

N THE BG TEXT. NOTICE OF DEMAND

E PROCEEDING REGARDING THE

NST BANK.

OBEY RESTRAINT ORDER BY COURTS

EXT TO BE ADDED IN TEXT.

EVENTS SUCH AS " SUBMISSION OF

N WILL BE COLLECTED FROM ISSUE DATE ONLY.

ANDS UNPAID AND UNTILL THE GUARANTOR

CONTRACTUAL AGREEMENT.

ERAL POSTING BASED ON AN EXTERNAL

D TO BE CONTINUED TILL RUN-OFF. TYPE EXAMPLE TEXT
DBG
NEFICIARY TAKES MONEY OF BG FROM BANK. FOBG
FIBG
ICANT WILL INDEMNIFY BANK IF ANY OBLIGATION ISSUANCE
AMMENDMENT
CANCELLATION
CLOSURE
DOCUMENT
CHECKLIST
NT - INR 1,00,00,000

AT XYZ ROAD,
HAVE SUBMITTED A QUOTATION NO- Q1. BIDDER
EVOCABLE BANK GUARANTEE OF RS- 1,00,00,000 ONLY
ONDITION CONTAINED IN TENDER DOCUMENT

HERE OFF AND SHALL NOT WITHDRAW

RESCRIBED BY SUN WITHIN THE REQUIRED TIME

HE TENDER ITSELF, SHALL BE REGARDED AS AN

AWARDED.

HE BIDDER DESIRES TO MAKE THE TENDER

NSIDER THE TENDER IF BIDDER KEEP THE
RATE INITIAL AGREEMENT BETWEEN PARTIES.

KOLKATA-70000,
T DEMAND IN WRITING IN RUPEES OR
 ONE CRORE ONLY) AT ANY TIME IMMEDIATELY
RANCE TO BIDDER
ENCE BETWEEN SUN AND THE BIDDER.
E BETWEEN SUN AND THE BIDDER OR ANY DISPUTE

BY SUN IN WRITING
LVENCY OF THE BIDDER AND WILL REMAIN VALID

HE BANK AS A PRINCIPLE DEBTOR, IN THE FIRST

T/TD AND OTHER TERMS AND CONDITION CONTAINED

THSTANDING ANY OTHER MATTER, DIFFERENCE,
ONSTITUTION, OR, IN THE CONSTITUTION OF SUN

NG IN ANY MANNER OUR OBLIGATION HEREUNDER

ITY PERIOD FROM TIME TO TIME.

VALIDITY PERIOD
E SHOWN BY THE
ES WOULD

O INR 100,00,000 ONLY (ONE CRORE ONLY) IN AGGRIGATE.

BY MS MOON, ON WHOSE BEHALF THE GUARANTEE

TENDED DATE, ALL RIGHTS OF SUN UNDER

DATE, ALL RIGHTS OF

E BIDDER FURNISHES TO SUN A BG FOR RS 10,00,00,000

ER THIS GUARANTEE SHALL BE VALID AND SHALL NOT

UTHORITIES IN INDIA AND ANY OTHER AUTHORITIES

WS AND SUBJECT TO EXCLUSIVE JURIDICTION OF INDIAN

USIVE JURIDCTION.
SATURDAY 1ST JANUARY 2022 AT 2.30 PM.

AME IN CAPITAL LETER

NATION IN BANK

NEY ASPER POWER OF ATTORNEY

___________
 INTO AN AGREEMENT BEARING NO . 000
SUPPLY OF THE MAGGI
ORMANCE BOND ON BEHALF OF CONTRACTOR
F THE CONTRACTOR.

ING 100% PAYMENT OF THE FOB VALUE

NDIAN AGENT FURNISHING A BANK GUARANTEE
TAINED DULY EXECUTED BY A SCHEDULED
MONTHS, FROM THE DATE OF COMMISSIONING
R IS EARLIER.

SES AND THE PAYMENT OF THE SAID SUM OF

ER THE AMOUNT DUE AND PAYABLE
CTOR/PURCHASE OFFICER/DIRECTORATE OF
S/DAMAGE CAUSED TO OR SUFFERED BY
D. ANY SUCH DEMAND MADE ON THE BANK
OUR LIABILITY UNDER THIS GUARANTEE
A. FOREIGN INVESTMENT
1. FOREIGN DIRECT INVESTMENT
2. FOREIGN PORTFOLIO INVESTMENT
3. FOREIGN VENTURE CAPITAL INVESTMENT
4. GOVERNMENT SECURITIES, NCDs,
5. INVESTMENT ON NON-REPATRIABLES
1. FOREIGN DIRECT INVESTMENT(FDI)
A. BASIC
GOVERNMENT OF INDIA - MINISTRY OF COMMERCE AND INDUSTRY- DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
CONSOLIDATED FDI POLICY ON 15 OCTOBER,2020
IT IS A NON DEBT FINANCIAL RESOURCE FOR ECONOMIC DEVELOPMENT
# AD CATEGORY I BANK/AUTHORIZED DEALER/AUTHORISED BANK- FEMA SEC 10(I) BANKS
# AUTOMATIC ROUTE- MEANS THE ENTRY ROUTE THROUGH WHICH INVESTMENT BY A PERSON RESIDENT OUTSIDE INDIA NOT REQUIRE
# CAPITAL - EQUITY SHARES, CONVERTABLE PREFERANCE SHARES, DEBENTURES AND WARRENTS (SUBJECT TO COMPANIES ACT, AND
# CAPITAL ACCOUNT TRANSACTION - ALLOWS A RESIDENT TO INVESTMENT IN ASSETS AND LIABILITIES OF OUTSIDE AND ALLOWS A NR TO INVEST I
AND LIABILITIES (SEC-6 FEMA)
# COMPETENT AUTHORITY - MINISTRY/DEPARTMENT WHICH GRANT APPROVAL FOR FOREIGN INVESTMENTS UNDER THIS POLICY AND FEMA
# CNTROLL - MEANS RIGHT TO APPOINT DIRECTORS/PARTNERS.
# CONVERTIBLE NOTE - ISSUED BY STARTUP COMPANY AS RECEIPT OF INITIAL MONEY AS DEBT, WHICH IS REPAYABLE TO HODER. IT IS CONVERTABL
SHARES OF THIS STARTUP COMPANY WITHIN A PERIOD NOT EXCEED 5 YEARS SUBJECT TO TERMS IN THE NOTE.
# DEPOSITORY RECEIPT - A FOREIGN CURRENCY DENOMITED INSTRUMENT ISSUED BY FOREIGN DEPOSITORY BACKED BY SECURITIES
DEPOSITED WITH INDIAN CUSTODIAN .
# DOMESTIC CUSTODIAN - CUSTODIAN OF SECURITIES REGISTERED WITH SEBI
# DOMESTIC DEPOSITORY - CUSTODIAN OF SECURITIES REGISTERED WITH SEBI AUTHORIZED TO ISSUE IDR
# ESOP - EMPLOYEES STOCK OPTION
# ERSTWHILE OVERSEAS CORPORATE BODY - A COMPANY,PARTNERSHIP FIRM, SOCIETY OR A CORPORATE BODY OR OVERSEAS TRUST
OWNED DIRECTLY OR INDIRECTLY ATLEAST 60% BY NRI, WHICH ARE IN EXISTANCE ON THE DATE OF COMMENCEMENT OF FOREIGN EXC
MANAGEMENT (WITHDRAWAL OF GENERAL PERMISSION TO OCB) REGULATIONS 2003 OR IMMEDIATELY PRIOR TO THIS ACT ARE CALLED
THEY ARE PERMITTED TO UNDERTAKE TRANSACTION SUBJECT TO PERMISSION GRANTED BY FEMA.
# FOREIGN CURRENCY CONVERTABLE BOND (FCCB) - BOND ISSUED UNDER " THE ISSUE OF FOREIGN CURRENCY CONVERTIBLE BONDS
(THROUGH DEPOSITORY RECEIPT MECHANISM) SCHEME, 1993
# FOREIGN DIRECT INVESTMENT (FDI) - INVESTMENT BY NR IN UNLISTED INDIAN COMPANY OR MINIMUM 10% MORE IN POST ISSUE PAID
ISSUED ON DILIUTED BASIS OF LISTED COMPANY
# FOREIGN INVESTMENT - INVESTMENT MADE BY NR ON REPATRIABLE BASIS IN CAPITAL INSTRUMENTS OF INDIAN COMPANY OR LLP.
(IF BENEFICIAL INTEREST IS OF NR EVEN IF INVESTED BY A RESIDENT ALSO A FI)
# FOREIGN PORTFOLIO INVESTMENT (FPI) - INVESTMENT MADE BY A PERSON NR IN LISTED CAPITAL INSTRUMENT OF INDIAN COMPANY
# FOREIGN PORTFOLIO INVESTOR - REGISTERED AS FPI UNDER SEBI
# FOREIGN VENTURE CAPITAL INVESTOR (FVCI) - INCORPORSTED/ESTLABLISHED OUTSIDE INDIA REGISTERED UNDER SEBI AS FVCI.
# GOVERNMENT APPROVAL - APPROVAL BY SIA, DPIIT-GOI, FIBP OR COMPETENT AUTHORITY
# GOVERNMENT RUTE - REQUIRED GOVT APPROVAL.
# GROUP COMPANY - TWO OR MORE COMPANY IN A POSITION THAT ONE CO HAVING 26% OR MORE VOTING POWER OF ANOTHER COMP
APPOINT MORE THAN 50% OF BOD OF OTHER COMPANY
# HOLDING COMPANY - COMPANY WHICH HOLDS 50% SHARE OF ANOTHER CO
# INDIAN COMPANY - COMANIES INCORPORATED UNDER COMPANIES ACT
# INVESTMENT - SUBSCRIBE,AQUIRE,HOLD,TRANSFER ANY SECURITY/UNIT ISSUED BY PERSON RESIDENT IN INDIA (INCLUDES ADR)
FOR LLP INVEST IN CAPITAL CONTRIBUTION OR PROFIT SHARE
# INVESTMENT VEICHLE - AN ENTITY REGISTERED AND REGULATED UNDER RELEVANT CONDITION (INCLUDES REITs,INVITs,AIFs)
# JOINT VENTURE - AN ENTITY INCORPORATED IN INDIA, ON WHOSE CAPITAL NR ENTITY MAKES AN INVESTMENT
# LIMITED LIBILITY PARTNERSHIP(LLP) - FORMED AND REGISTERED UNDER LLP ACT 2008
# NRE,NRI,PERSON, RESIDENT - AS PER INCOME TAX ACT
# OVERSEAS RESIDENT IN INDIA (OCI) - REGISTERED UNDER SECTION 7A OF CITIZENSHIP ACT.
# RESIDENT INDIAN CITIZEN- A PERSON RESIDENT IN INDIA AS PER FEMA 1999 WITH
# OWNED - A COMPANY/LLP CONSIDERED AS OWNED BY RESIDENT INDIAN CITIZENS IF MORE THAN 50% OF ITS CAPITAL IS OWNED BY THEM.

u
TRY AND INTERNAL TRADE

TSIDE INDIA NOT REQUIRE THE APPROVAL OF RBI

TO COMPANIES ACT, AND SEBI REGULATIONS)
D ALLOWS A NR TO INVEST IN INDIAN ASSETS

POLICY AND FEMA

O HODER. IT IS CONVERTABLE TO EQUITY

Y BACKED BY SECURITIES, (GDR)

VERSEAS TRUST
CEMENT OF FOREIGN EXCHANGE
TO THIS ACT ARE CALLED OCB.

NCY CONVERTIBLE BONDS AND ORDINARY SHARES

ORE IN POST ISSUE PAID UP CAPITAL

DIAN COMPANY OR LLP.

ENT OF INDIAN COMPANY (LESS THAN 10% PAID UP VALUE)

UNDER SEBI AS FVCI.

OWER OF ANOTHER COMPANY OR

UDES ADR)

REITs,INVITs,AIFs)

S OWNED BY THEM.
FTP ECGC
FEDAI EXIM BANK
IES GOLD CARD
1. FOREIGN TRADE POLICY (2015-2020)
PART- B - GENERAL PROVISIONS REGARDING IMPORTS AND EXPORTS
1. HS CODE-
1. GENERALY, TRADE IS FREE BUT SOMETIMES REGULATED BY PROVISSION, RESTRICTION AND SPECIAL TRADING RIGHTS
ONLY GIVEN TO STEs, DEFINED IN ITC(HS)
2. LIST OF FREE,PROHIVITED, RESTRICTED AND STE ITEMS CAN BE VIEWED IN DGFT.GOV.IN
3. THERE ARE SOME ITEMS WHICH ARE FREE BUT HAVE TO COMPLY WITH CONDITIONS STIPULATED IN OTHER ACTS
4. GOODS ARE CLASSIFIED BASED ON THEIR GROUP, SUB-GROUP OF 2/4/6/8 DIGITS
5. INDIAN HS IS ALLINED WITH INTERNATIONAL HS MAINTAINED BY WORLD CUSTOMS ORGANIZATION (WCOOMD.ORG)FOR FIRST 6 DIGITS
6. DOMESTIC LAWS/RULES/ORDERS/REGULATIONS/TECHNICAL SPECIFICANS/ENVIRONMENTAL SAFETY AND HEALTH NORMS APPLICABLE TO DOMEST
GOODS WILL APPLY TO IMPORTED GOODS ALSO UNLESS SPECIFICALLY EXEMPTED.
7. HOWEVER, GOODS TO BE UTILISED FOR MANUFACTURE OF EXPORT PRODUCTS MAY BE EXEMPTED FROM DOMESTIC STANDARD/QUALITY SPECIFI
8. LICENCING FACILITY IS AVAILABLE FOR IMPORTERS AND EXPORTERS FOR GOODS WHICH ARE NOT FREELY TRADEABLE FROM
LICENCING AGENCY/REGIONAL AUTHORITY
2. IE CODE
1. AN IE CODE IS A 10 DIGIT NUMBER ALLOTED BY DGFT MANDATORY FOR EVERY IMPORTER OR EXPORTER
2. ELECTRONIC FACILITY OF IEC IS E-IEC
3. GET IE CODE BY RA OF DGFT OR E-IEC SITE BY ANF-2 FORM
4. ONLY ONE I E CODE IS PERMITED AGAINST ONE PAN
3. MANDATORY DOCUMENTS FOR IMPORT AND EXPORT
a) IMPORT
1.BILL OF LADING/AWB/LORREY RECEIPT/RAILWAY RECEIPT/POSTAL RECEIPT
2.COMMERCIAL INVOICE CUM PACKING LIST
3. BILL OF ENTRY
b) EXPORT
3. IS SHIPPING BILL OR BILL OF EXPORTS
c) FOR IMPORT OF SPECIFIC GOODS WHICH ARE RESTRICTED NOC FRM RA DGFT OR LICENCE UNDER ANY LAW IS REQUIRED.
4. RESTRICTIONS
1. PUBLIC MORALS
2. HUMAN, ANIMAL OR PLANT LIFE OR HEALTH
3. PLANETS TRADEMARKS AND COPY RIGHTS AND PREVENTION OF DEPECTIVE PARCTICES
4. USE OF PRISON LABOUR
5. NATIONAL TREASURES OF ARTISTIC, HISTORIC OR ARCHEOLOGICAL VALUE
6. CONSERVATION EXHUSTIBLE NATURAL RESOURCES
7. TRADE OF FISSIONABLE MATERIAL OR MATERIAL FROM WHICH THEY ARE DERIVED
8. ARMS AMMUNITION OR IMPLEMENTS OF WAR
9. EXPORT OF SPECIAL CHEMICALS, ORGANISMS,MATERIALS AND TECHNOLOGIES (SCOMET) ITEMS
WILL BE AS INDICATED IN APPENDIX 3 OF SCHEDULE 2 ITC(HS) FOR IMPORT EXPORT ITEMS
10. SOME TIMES ACTRUAL USER CAN ONLY IMPORT A GOODS. THEN PROFF OF ACTRUAL USER REQUIRED.
11. RESTRICTED GOODS CAN BE IMPORTED OR EXPORTED WITH AN AUTHORIZATION COMPLIED WITH
PROCEDURES PRESCRIBED IN NOTIFICATION/PUBLIC NOTICE IN THIS REGARD
5. TERMS AND CONDITIONS OF AN AUTHORIZATION
a) DESCRIPTION, QUANTITY AND VALUE OF GOODS
b) ACTRUAL USER CONDITION
c) EXPORT OBLIGATION
d) MINIMUM VALUE ADDITION TO BE ACHIEVED
e) MINIMUM EXPORT/IMPORT PRICE
f) BANK GUARANTEE/LEGAL UNDERTAKING/BOND WITH CUSTOMS AUTHORITY/RA
g) VALIDITY PERIOD FOR IMPORT/EXPORT AS SPECIFIED IN HANDBOOK PROCEDURES
(GOODS ALREADY ARRIVED IN COSTOMS CAN ONLY ENTER TO DTA AFTER GETTING THIS AUTHOEIZATION)
(THIS IS AN AUTHORIZATION NOT A RIGHT- DGFTRA CAN ANY TIME REFUSE TO RENEW )
(PENAL ACTION AND PLACING OF AN ENTITY IN DENIED ENTITY LIST (DEL) IF EXPORTER BREAKS ANY RULES OR REGULATIONS)
6. COUNTRY PROHIBITIONS
1. TRADE OF ARMS FROM/TO IRAQ IS BANNED. BUT NO OBJECTION CERTIFICATE (NOC) FOR ONLY EXPORT FROM DEPARTMENT OF DEFENCE PRODUC
2. TRADE WITH ISLAMIC STATE IN IRAQ AND THE LEVANT (ISIL ALSO KNOWN AS DAESH), AL-NUSRAH FRONT AND OTHER INDIVIDUALS, GROUPS, UNDE
ENTITIES ASSOCIATED WITH AL-QUIDA IS BANNED.(OIL AND REFINED OIL PRODUCTS ,MODULERS REFINERIES AND RELATED MATERIALS,ITEMS OF CU
3. DIRECT AND INDIRECT TRADE WITH DEMOCRATIC PEOPLES REPUBLIC OF KOREA IS PROHIBITED. CHECK WWW.UN.ORG/DOCS/SC AND WWW.IAEA.O
4. DIRECT/ INDIRECT TRADE WITH IRAN IS PROHIBITED
5. TRADE OF CHARCOL IS PROHIBITED FROM SOMALIA
7. STATE TRADING ENTERPRISES
STATE TRADING ENTERPRISES ARE GOVERNMENTAL OR NON GOVERNMENTAL ENTERPRISES INCLUDING MARKETING BOARDS, WHICH DEALS WITH G
STEs HAVE GIVEN SPECIAL PRIVILIDGE TO TREADE IN SOME GOODS AS DEFINED IN ITC(HS)
8. TRADE WITH SPECIFIC COUNTRIES
1. TRADE WITH RUSSIA UNDER DEBT REPAYMENT AGREEMENT
2. BILATERAL TRADE BETWEEN INDIA AND NEIGHOURING COUNTRIES
9. IMPORTS
1.IMPORT OF SAMPLES AS PER HANDBOOK
2.IMPORT OF GIFTS IS FREE
3. BONIFIED HOUSEHOLD GOODS AND PERSONAL EFFECTS MAY BE IMPORTED AS PART OF PASSENGER BAGAGE AS PER LIMITS SCANTIONED BY BA
EXAMPLE- SAMPLE ARE FREELY ALLOWED, DRAWINGS, PATTERNS , LEBELS , PRICE TAGS , BOTTONS, BAGS, BELTS, TRIMMING AND ESTABLISHMENT
AS A PART OF PASSENGER BAGGAGE WITHOUT ANY AUTHORIZATION
4. CAPITAL GOODS, EQUIPMENTS, COMPONENTS, PARTS AND ACCERORIES WHEATHER IMPORTED OR LOCAL EXCEPT THOSE RESTRICTED UNDER ITC
MAY BE SENT ABROAD FOR REPAIRS, TESTING AND QUALITY IMPROVEMENTS OR UPGRADATION AND RE IMPORTED WITHOUT AN AUTHORIZATION
5. IMPORT OF GOODS USED IN PROJECT ABROAD AFTER COMPLETION OF PROJECT WITHOUT ANY AUTHORIZATION
6. IMPORT OF NEW/SCEOND HAND/SAMPLES OF PROTOTYPES MAY ALLOWED ON PAYMENT OF DUTY WITHOUT AN AUTHORIZATION
TO ACTRUAL USER ENGAGE IN PRODUCTION/ HAVING INDUSTRIAL LICENCE LETTER OF INTENT FOR RESEARCH IN ITEM FOR WHICH PROTOTYPE IS S
FOR PRODUCT DEVLOPMENT RESEARCH
7. IMPORT THROUGH A RESTRICTED COURIER SERVICE ARE PERMITTED AS PER NOTIFICATION ISSUED BY DOR.
HOWEVER, IMPORTABILITY, EXPORTABILITY OF SUCH ITEM IS AS PER FTP, ITC(HS)
8. SCEOND HAND CAPITAL GOODS IMPORTABLE AGAINST AUTHORIZATION
9. RE-FURBISHED/RE CONDITIONED SAPRES OF CAPITAL GOODS
(SUBJECT TO PRODUCTION OF CHARTERED ENGINEERS CERTIFIVATE
THAT SUCH SPARES HAVE ATLEAST 80% RESIDUAL LIFE OF ORIGINAL SPARES)
10. ALL OTHER SCEONDHAND CAPITAL GOODS ARE FREE
11. SCEOND HAND GOODS OTHER THAN CAPITAL GOODS ARE RESTRICTED IMPORTABLE AGAINST AUTHORIZATION.
12. IMPORT OF ANY FORM OF METALIC WASTE,SCRAP WILL BE SUBJECT TO CONDITION THAT IT WILL NOT CONTAIN HAZARDOUS
TOXIC WASTE, RADIO ACTIVE CONTAMINATED WASTE/SCRAP
CONTAINING RADIO ACTIVE MATERIAL
13.SEZ UNIT DEVELOPER CO DEVELOPER MAY ALLOWED TO DISPOSE OF ANY WASTE OR SCRAP IN DTA WITHOUT AUTHORIZATION
14. NO SPECIFIC PERMISSION OF RA IS REQUIRED FOR LEASED FINANCED CAPITAL GOODS.
15. WHENEVER ANY DUTYFREE IMPORT IS ALLOWED OR WHERE OTHERWISE SPECIALY STATED IMPORTER SHALL EXECUTE LUT/BG/BOND FOR CLEA
IN CASE OF LOCAL SOURCING, AUTHORIZATION HOLDER SHALL FURNISH LUT/BG/BOND TO RA CONCERNED BEFORE SOURCING MATERIAL FROM LOC
NOMINATED AGENCY
17. PRIVATE/PUBLIC BONDED WAREHOUSES MAY BE SETUP IN DTA AS PER TERMS AND CONDITIONS ISSUED BY DOR
ANY PERSON MAY IMPORT GOODS EXCEPT PROHIBITED ITEMS, ARMS AND AMMUNIATION, HAZARDOUS WASTE
AND CHEMICALS AND WAREHOUSE THEM IN SUCH BONDED WAREHOUSES. SUCH GOODS MAY BE CLEARED FOR HOME CONSUMPTION IN ACCORDAN
CUSTOMS DUTY WILL BE PAID AT THE TIME OF CLEARANCE OF GOODS. IF SUCH GOODS ARE NOT CLEARED WITHIN 1 YEAR OR PERIOD PERMITTED BY
IMPORTER HAVE TO RE-EXPORT SUCH GOODS.
18. HIDE, SKINS AND SEMI FURNISHED LEATHER MAY BE IMPORTED IN PUBLIC BONDED WAREHOUSE FOR THE PURPOSE OF DTA SALE
UNSOLD ITEMS CAN BE RE-EXPORTED FROM WAREHOUSE AT 50% EXPORT DUTY (NA FOR PRIVATE BONDED WARE HOUSE)
19.SALE OF GOODS ON HIGH SEA FOR IMPORT INTO INDIA MAY BE SUBJECT TO FTP OR ANY OTHER RULES
10. EXPORTS
1. ALL GOODS MAY BE EXPORTED WITHOUT ANY RESTRICTIONS, BUT SUCH EXPORTS ARE REGUALTED BY ITC(HS)/FTP/ANY OTHER LAW
ANY GOODS NOT INCLUDED IN ITC(HS) MAY BE EXPORTED WITHOUT AUTHORIZATION
2. EXEMPTION/REMITION OF SERVICE TAX IN GOODS AND SERVICES EXPORTED FROM DTA TO UNITS IN EOU/EHTP/STP/BTP
3. FOR GIVING ANY BENIFIT TO THE SUPPORTING MANUFACTURERS, THE NAME OF BOTH SUPPORTING MANUFACTURERS AND MERCHANT EXPORTER
MUST SPECIFY IN ARE-1/ARE-3/SHIPPING BILL/BILL OF EXPORT/AIRWAY BILL.
4. THIRD-PARTY EXPORT EXCEPT DEEMED EXPORT IS ALLOWED SUBJECT TO SHIPPING BILL INDICATE NAME OF THIRD PARTY AND EXPORTER
BRC, EXPORT ORDER , INVOICE SHOULD BE IN NAME OF THIRD PARTY.
5. EXPORT OF SAMPLE AND FREE CHARGED GOODS SHALL BE GOVERNED BY PROVISION IN PARA 2.66 HANDBOOK
6. GOODS INCLUDING EDIBLE ITEMS FOR VALUE NOT EXCEEDING 5,00,000 IN A LICENCING YEAR, MAY BE EXPORTED AS A GIFT, SUBJECT TO ITC(HS) F
7. EXPORT OF PASSENGER BAGGAGE- PERSONAL BAGGAGE MAY BE EXPORTED ALONG WITH PASSENGER, OR
IF UNACCOMPANIED, ONE YEAR BEFORE THE PASSENGER DEPARTURE FROM INDIA SUBJECT TO ITC(HS)
GOVT OF INDIA OFFICIALS FOR ABROAD POSTING CAN TAKE PERSONAL BAGGAGE IN RESPECT OF FREE RESTRICTED OR PROHIBITED
SAMPLE OF ITEMS OTHERTHAN FREELY EXPORTABLE CAN BE TAKEN AS A PASSANGER BAGAGE
8. GOODS IMPORTED INACCORDANCE WITH FTP, MAY BE EXPORTED IN SAME OR SUBSTANTIALY THE SAME FORM WITHOUT
AN AUTHORIZATION PROVIDED FREE IN ITC(HS)
9. GOODS INCLUDING CAPITAL GOODS (BOTH NEW AND 2ND HAND) MAY BE IMPORTED FOR RE-EXPORT PREDETERMINED, PROVIDED-
i) IMPORTER CLEAR GOODS UNDER CUSTOMS BOND
ii) GOODS ARE FREELY EXPORTABLE OR RESTRICTED ITEMS BUT NOT PROHIBITED ITEMS
iii) EXPORT IS AGAINST FREELY CONVERTABLE CURRENCY
10. CAPITAL GOODS WHICH ARE FREELY TRADABLE (IF ABOVE 3 CONDITION NOT FOLLOWED)
MAY BE IMPORTED FOR RE- EXPORT ON EXECUTION OF LUT/BG WITH CUSTOMS AUTHORITY
11.GOODS IMPORTED AGAINST PAYMENT IN FREELY CONVERTABLE CURRENCY
IS PERMITED FOR EXPORT IN FREELY CONVERTIBLE CURRENCY EXCEPT BIRD EGGS AND RICE
12. RE-EXPORT OF GOODS TO THE NOTIFIED COUNTRIES (IRAN)
WOOD BE PERMITTED IN INR SUBJECT TO MINIMUM VALUE ADDITION OF 15 %
13. RE-EXPORT OF FOOD, MEDICINE AND MEDICAL EQUIPMENTS NAMELY ITEMS COVERED UNDER CHAPERT 2,4,7,11, 15-21, 23,30,90
WILL NOT SUBJECT TO MINIMUM VALUE ADDITION REQUIREMENT OF IRAN
14. COURIER SERCICE - SAME AS IMPORT
15. REPLACEMENT AND REPARED GOODS- GOODS OR PARTS BEING EXPORTED AND FOUND DEFECTIVE/DAMAGED OR UNFIT FOR USE
MAY BE REPALCED OR REPAIRED FREE OF CHARGE BY EXPORTER AND SUCH GOODS SHALL BE ALLOWED CLEARANCE BY CUSTOMS AUTHORITIES
PROVIDED NOT RESTRICTED AS PER HS.
16. WARRANTY SPARES WHEATHER LOCAL OR IMPORTED OF PLANT, EQIPMENT, MACHINERY, AUTOMOBILES OR ANY OTHER GOODS
MAY BE EXPORTED ALONG WITH MAIN EQUIPMENT BUT WITHIN CONTRACTED WARRANTY PERIOD, SUCH AS GOODS SUBJECT TO RBI APPROVAL
17. PRIVATE BONDED WAREHOUSES EXCLUSIVELY FOR EXPORTS MAY BE SETUP IN DTA AS PER TERMS AND CONDITIONS OF DOR
SUCH WAREHOUSES SHALL BE ENTITLED TO PROCURE GOODS FROM DOMESTIC MANUFACTURERS WITHOUT PAYMENT OF DUTY
SUPPLIES MADE BY DOMESTIC SUPPLIERS TO SUCH NOTIFIED WIREHOUSES SHALL BE TREATED AS PHYSICAL EXPORTS
PROVIDED PAYMENT ARE MADE IN FREE FOREIGN EXCHANGE.
11. PAYMENT AND RECEIPT FOR IMPORT AND EXPORT
1. ALL EXPORT CONTRACT AND INVOICES, SHALL BE DENOMINATED EITHER IN FREELY CONVERTIBLE CURRENCY OR INR
BUT EXPORT PROCEEDS TO BE REALIZED IN FREELY CONVERTIBLE CURRENCY.
2. HOWEVER, EXPORT PROVEEDS AGAINST SPECIFIC EXPORTS MAY BE ALSO REALISED IN RUPEES, PROVIDED IT IS THROUGH
A FREELY CONVERTIBLE VOSTRO ACCOUNT.
3.CONTRACT FOR WHICH PAYMENT ARE RECEIVED THROUGH ACU CAN BE DENOMINATED IN ACU DOLLAR.
4. EXPORT CONTRACT, INVOICES CAN BE DENOMINATED IN INR AGAINST EXIM BANK/GOI LINE OF CREDIT (REPAYMENT OF LOAN TAKEN BY GOVT)
5. EXPORTS TO IRAN AND REALIZATION IN INR - ELIGIBLE FOR FTP BENIFITS INCENTIVES
12. NON REALIZATION OF EXPORT PROCEEDS
1. IF AN EXPORTER FAILS TO REALIZE EXPORT PROCEEDS WITHIN TIME. HE IS LIABLE TO TO PAY PENALTY AND RETURN ALL THE BENIFITS AVAILED B
UNDER PROVISION OF FT(D&R) ACT.
2. IN CASE AN EXPORTER UNABLE TO REALIZE EXPORT PROCEEDS, FOR REASONS BEYOND ITS CONTROLL. MAY APPROACH RBI FOR WRITTING OFF T
AS PER PROCEDURE.
3. THE PAYMENT REALIZED THROUGH INSURANCE COVER ELIGIBLE FOR BENIFITS AS PER PROCEDURE.
13.EXPORT PROMOTION COUNCIL
1. ORGANIZATIONS FOR EXPORTERS, TO SETUP TO PROMOTE AND DEVELOP INDIAN EXPORTS.
2. EACH COUNCIL IS RESPONSIBLE FOR PROMOTION OF A PARTICULAR GROUP OF PRODUCTS/PROJECT/SERVICES.
3. EPC,S ARE ALSO BE ELIGIBLE TO FUNCTION AS A REGISTERING AUTHORITY TO ISSUE REGISTRATION CUM MEMBERSHIP CERTIFICATE(RCMC).
4. RCMC IS AN AUTHORIZATION TO IMPORT EXPORT FOR FOR RESTRICTED ITEMS IN ITC(HS)
5. TO GET CONCESSION UNDER FTP IT IS REQUIRED TO UPLOAD RCMC ON IMPORTER/EXPORTER PROFILE OF DGFT SITE
6. CERTIFICATE OF REGISTRATION AS EXPORTER OF SPICES (CRES) ISUED BY SPECIES BOARD SHALL BE TREATED AS RCMC
14. POLICY INTERPRETATION AND RELAXTATION AND PERSONAL HEARING, SETTLEMENT COMMISSION BOARD
1.POLICY INTERPRETATION (HANDBOOK PROCEDURES) IS ON SOLE DECITION OF DTFT. POLICY INTERPRETATION COMMITTEE MAY BE CONSTITUTED
2. DGFT MAY GRANT EXEMPTION/RELAXATION/RELIEF TO ANY PERSON OR CLASS OR CATEGORY OF PERSONS FROM ANY PROVISSION UNDER FTP.
3. DGFT CONSULTING COMMITTEE - 1) NORMS COMMITTEE 2) EPCG COMMITTEE 3) POLICY RELAXATION COMMITTEE
4. AFTER APLLYING FOR RELAXATION TO ABOVE NORMS, IF EXPORTER IS NOT HAPPY HE CAN APPLY DIRECTLY TO DGFT BY PERSONAL HEARING
5. FOR FIRMS WHO HAVE DEFAULTED UNDER FTP FOR REASONS BEYOND ITS CONTROLL, MERGER AND ACQUISITION, REHABITATION OF SICK UNITS
A SETTLEMENT COMMISSION IN CENTRAL BOARD OF EXCISE AND CUSTOMS IS PRESENT
15.SELF CERTIFICATION OF CERTIFICATE OF ORIGIN
1. CERTIFICATE OF ORIGIN OF VARIOUS PTA,FTA,CECA,CEPA WAS CAN BE ISSUED BY AGENCIES UNDER APPENDIX 2B AND ANF FORMS.
NOW SELF CERTIFICATION IS CONSIDERED
2. FOR MANUFACTURERS WHO ARE ALSO STATUS HOLDERS SELF CERTIFICATION WILL BE PERMITTED ONLY TO THE GOODS THAT ARE MANUFACTUR
ISSUED TO THEM.
3. STATUS HOLDER EXPORTER CAN CAN BE ELIGIBLE FOR SELF CERTIFICATION IF IT IS AUTHORISED BY DGFT.
4. THIS SCHEME AND ALONG WITH ITS PENALTY PROVISIONS WILL CAME TO EFFECT
ONLY WHEN INDIA INCORPORATE THE SCHEME INTO SPECIFIC AGREEMENTS
WITH ITS PARTNERS AND THE NAME IS APPROPRIATELY NOTIFIED BY DGFT.
CHAPTER -3 -EXPORT FORM INDIA SCHEMES
16. MERCHANDISE EXPORTS FROM INDIA SCHEMES (MEIS)
1.TO OFFSET INFRASTRUCTURAL INEFFICIENCY AND ASSOCIATE COST INVOLVED IN EXPORT OF GOODS WHICH ARE HAVING HIGH EXPORT INTENTITY
ITC HS APPENDIX 3B LISTED HS CODES WILL BE ELIGIBLE FOR BENEFITS
2.THE BASIS OF CALCULATION OF BENEFIT IS LESSER THAN i) REALISED FOB VALUE FOR EXPORTS ii) FOB VALUE AS GIVEN IN SHIPPING BILL
3.EXPORTS OF GOODS THROUGH COURIER OR FOREIGN POST OFFICE USING E-COMMERCE (APPENDIX 3C) OF FOB UPTO RS.25000 PER CONSIGNMEN
WILL BE ENTITLED FOR THIS REWARDS UNDER MEIS.
4. PROHIBITIONS
i) EOUS/EHTPS/BTPS/BTPS/STPS WHO ARE AVAILING DIRECT TAX BENIFITS, ,
ii) SEZ/EOU/EHTP/BTP/FTWZ PRODUCTS EXPORTED THROUGH DTA UNITS
iii) EXPORT MADE BY UNIT IN FTWZ
iv) SUPPLIES MADE FROM DTA UNITS TO SEZ UNITS
v) EXPORT OF IMPORTED GOODS (DISCUSSED ABOVE),
vi) EXPORTS THROUGH TRANSSHIPMENT(GOODS ORIGINATED FROM OTHER COUNTRY TRANSSHIPED THROUGH INDIA),
vii) DEEMED EXPORTS AND SERCICE EXPORTS
viii) DIAMOND GOLD SILVER PLATINUM OTHER PRECIOUS METAL IN ANY FORM INCLUDING PLAIN AND STUDDED JEWEELERY AND ANY PRECIOUS OR S
ix)PRODUCTS WHERE PRECIOUS METALS/DIAMOND/STONES ARE USED
x) ORES AND CONCENTRATES
xi) RED SANDERS AND BEACH SAND,
xii) CRUDE PETROLIOUM OIL AND CRUDE,
xiii) CEREALS
xiv) SUGER, MEAT AND MEAT PRODUCTS, MILK AND MILK PRODUCTS UNLESS SPECIFICALLY NOTIFIED IN APPENDIX 3B,
xv) ITEMS WHICH ARE RESTRICTED/PROHIBITED FOR EXPORTS UNDER SCHEDULE OF ITC(HS),
xvi) EXPORT PRODUCTS WHICH ARE SUBJECT TO MINIMUM EXPORT PRICE OR EXPORT DUTY,
17.SERVICE EXPORTS FROM INDIA SCHEME (SEIS)
SERVICE EXPORTS FROM INDIA SCHEME (SEIS) AIMS TO PROMOTE EXPORT OF SERVICES FROM
INDIA BY PROVIDING 5 OR 7 % INCENTIVE ON NET FOREIGN INCOME IN THE FORM OF  DUTY CREDIT SCRIPS FOR ELIGIBLE EXPORTS. 
ELIGIBLITY
1. SERVICE PROVIDERS OF NOTIFIED SERVICES(SUPPLY OF SERVICE TO ANY OTHER COUNTRY AND SUPPLY OF SERVICE TO A SERVICE CONSUMER)
2. SERVICE PROVIDER SHOULD HAVE MINIMUM NET FREE FOREIGN EXCHANGE EARNING OF $ 15000 IN PREVIOUS FINANCIAL YEAR
INDIVIDUAL SERVICE PROVIDERS AND SOLE PROPRIETORSHIP MINIMUM NET FREE FOREIGN EXCHANGE EARNING CRITERIA IS $ 10000
3.PAYMENT IN INR FOR SERVICE CHARGES EARNED FOR SPECIFIED SERVICES (APENDIX 3E), SHALL BE TREATED IN DEEMED FOREIGN EXCHANGE AS
4. NET FOREIGN EXCHANGE EARNINGS= GROSS FOREIGIN EXCHANGE EARNING - TOTAL PAYMENT OF FOREIGN EXCHANGE(ONLY SERVICE SECTOR)
BY IEC HOLDER TO THAT FINANCIAL YEAR
INELIGIBILITY
1. FOREIGN EXCHANGE REMITTANCES OTHER THAN THOSE EARNED FOR RENDERING OF NOTIFIED SERVICES WOULD NOT BE COUNTED FOR ENTITLE
2. OTHER SOURCES OF FOREIGN EXCHANGE EARNINGS SUCH AS EQUITY OR DEBT PARTICIPATION, DONATIONS,
RECEIPTS OF REPAYMENT OF LOANS ETC. AND ANY OTHER INFLOW OF FOREIGN EXCHANGE, UNRELATED TO RENDERING OF SERVICE.
3. EOU, EHTP/ STPI & BTP units.
EARNED THROUGH CONTRACT/REGULAR EMPLOYMENT ABROAD(EG: LABOUR REMITTANCES)
1. PAYMENT OF SERVICES RECEIVED IN EEFC ACCOUNT
2.FOREIGN EXCHANGE TURNOVER BY HEALTH CARE INSTITUTIONS AND EDUCATIONAL INSTITUTIONS (EQUITY PARTICIPATION,DONATION ETC)
3.EXPORT TURNOVER RELATING TO SERVICES OF EOU/EHTP/STPI/BTP SCHEMES AND CLUBBING OF TURNOVER BY THEM WITH DTA
4. FOREIGN EXCHANGE EARNINGS FOR SERVICES PROVIDED BY AIRLINES, SHIPPING LINES SERVICE PROVIDER FROM ONE COUNTRY TO ANOTHER W
5. SERVICE PROVIDER IN TELECOM SECTOR.
FREE FOREIGN EXCHANGE EARNED THROUGH INTERNATIONAL CREDIT CARD AND OTHER INSTRUMENTS CAN BE TAKEN IN THE ACCOUNT FOR CALCU
GOVT RIGHTS
1. SELECT THE PRODUCT NOT ENTITLE FOR DUTY STRIP BY APPENDIX 3A
2. CHANGE RATE OF DUTY STRIPS
3. VALUE CAP/LIMIT OF ANY PRODUCT

STATUS HOLDER
1. CONTRIBUTED TOWARDS COUNTRIES FOREIGN TRADE, GUIDING NEW ENTERPRENIOURS
2. RECOGNIZATION OF STATUS HOLDER BY ACHIVING EXPORT PERFORMANCE IE FOB VALUE OF EXPORT EARNINGS IN FREE FOREIGN EXCHANGE DU
PREVIOUS 2 FINANCIAL YEAR. (DEEMED EXPORT EXPORT VALUE CONVERTED IN USD)
3. CATAGORY
STAR EXPORT HOUSES FOB OF EXPORT $ MN
1 SATR 3
2 STAR 25
3 STAR 100
4 STAR 500
5 STAR 2000
DOUBLE WEIGHTAGE STATUS HOLDER
THE EXPORT BY IEC HOLDER UNDER FOLLOWING CATAGORIES SHALL BE GRANTED FOR DOUBLE WEIGHTAGE FOR CALCULATION OF EXPORT PERFO
ONLY ONCE FOR 1 STAR. NA FOR 2,3,4,5,6 STAR
RE EXPORT AND EXPORT PERFORMANCE FROM OTHER IEC HOLDER IS NOT ALLOWED
1. MSME 2. MANUFACTURING UNITS HAVING ISO/BIS
3. UNIT LOCATED IN NORTH EASTERN STATES INCLUDING SIKKIM JAMMU KASHMIR
4. UNITS LOCATED IN AGRI EXPORT ZONES
PRIVILIGES
1. AUTHORIZATION AND CUSTOM CLEARANCE IS GRANTED AGAINST SELF DECLARATION
2. NORMS COMMITTEE WILL FIX NORMS IN 60 DAYS.
3. EXEMPTION OF FURNISHING BANK GUARANTEE
4. EXEMPTION FROM COMPULSURY NEGOTIATION OF DOCUMENTS WITH BANKS
5. 2 STAR AND ABOVE EXPORT HOUSES ARE PERMITTED TO ESTABLISH EXPORT WAREHOUSE(DOR GUIDELINES)
6. 3 STAR AND ABOVE EXPORT HOUSE GET ACCREDITED CLIENTS PROGRRAME(ACP) AS PER GUIDELINES OF CBEC
7. PRIORITY IN HANDLING OF THEIR CONSIGNMENT BY CONCERNED AGENCIES
8. MANUFACTURER STATUS HOLDER (3.4.5) WILL SELF CERTIFY THEM SELVES FOR QUALIFY UNDER PTA,FTA,CECA, CEPA, AS DISCUSSED ABBOVE
9. MANUFACTURER STATUS HOLDER WILL SELF CERTIFY THEIR GOODS AS ORIGINATING FROM INDIA
10. STATUS HOLDER ENTITLED TO EXPORT FREELY EXPORTABLE ITEMS ON FREE OF COST BASIS FOR EXPORT PROMOTION
SUBJECT TO AN ANNUAL LIMIT OF 10 LAKH OR 2% OF AVERAGE ANNUAL EXPORT REALIZATION DURING PRECEEDING 3 LICENCING YEAR WHICHEVER
RISK MANAGEMENT SYSTEM IS THER TO DETECT ANY DUPLICACY IN SUBMISSION STRIP .
10% OF SELECTED EXPORTERS OF SELECTED RA WILL BE CALLED FOR EXAMINATION OF DOCUMENTS PROFF OF LADING CERTIFICATE
ANNEXURE ATTACHED TO ANF OR ANY OTHER DOCUMENT
AF FAIL TO PRESENT DOCUMENT EXPOTER HAVE TO RETURN THE STRIPS ALONG WITH INTEREST AS PER CUSTOMS ACT
IN CASE OF EXPORT ORDER DEFAULTS
GOODS MAY BE IMPORTED UNDER SAME SCHEME IN WHICH PREVIOUSLY EXPORTED
BUT PENALTY, INTEREST SHALL BE PAID IN CASH
IN CASE OF PAYMENT OF VALUE SHORTFALL IN EXPORT ORDER
TRANSFER OF EXPORT PERFORMANCE
1.TRANSFER OF EXPOR PERFORMANCE FROM ONE IEC HOLDER TO ANOTHER IEC HOLDER IS NOT PERMITTED
AS A SHIPPING BILL CONTAINING NAME OF APPLICANT COUNTED AS AN EXPORT PERFORMANCE
IF EXPORT PROCEEDS FROM OVERSEAS ARE REALISED IN APPLICANT BANK ACCOUNT
AND THIS WILL BE EVIDENCED FORM E-BRC AND FIRC
2. BUT,MEIS REWARDS CAN BE CLAIMED EITHER BY SUPPORTING MANUFACTURER OR BY COMPANY WHO HAS REALISED IN FOREIGN EXCHANGE DIR
IMPORT UNDER LEASE FINANCING
UTILIZATION OF DUTY CREDIT STRIP IS PERMITED FOR PAYMENT OF DUTY IN CASE OF IMPORT OF CAPITAL GOODS UNDER LEASE FINANCING TERMS
CENVAT DRAWBACK
ADDITIONAL CUSTOMS DUTY/ EXCISE DUTY / SERVICE TAX PAID IN CASH OR THROUGH DUTY CREDIT STRIPS SHALL BE ADJUSTED AS CENVAT CREDIT
AS PER DOR RULES.
TRANSISITIONAL ARRANGEMENT
CHAPTER- 4 - DUTY EXEMPTIONS AND REMISSION SCHEMES
A.TYPES- DUTY FREE IMPORT OF IMPORTS OF GOODS FOR EXPORT PRODUCTION INCLUDING REPLENISMINT OF INPUTS OR DUTY REMISSION.
THERE ARE 3 SCHEMES
i) ADVANCE AUTHORIZATION(AA) FOR ANNUAL REQUIREMENT (DUTY FREE EXEMPTION SCHEME)
ii) DUTY FRE IMPORT AUTHORIZATION (DFIA) (DUTY FREE EXEMPTION SCHEME)
iii) DUTY DRAWBACK SCHEME (DUTY REMISSION SCHEME)
APPLIIBILITY OF SCHEMES - FROM DATE OF ISSUE OF AUTHORIZATION
B. ADVANCE AUTHORIZATION
1.BASIC- ADVANCE AUTHORIZATION ISSUED TO IMPORTER TO ALLOW DUTY FREE IMPORT FOR PRODUCTION AND EXPORT.
(FUEL,OIL,CATALYST CONSUMED IN PRODUCTION IS ALSO ALLOWED FOR DUTY EXEMPTION UNDER THIS SCHEME)
2.PROCESS OF ISSUE- CAN BE ISSUED AS PER STANDARD INPUT OUTPUT NORMS(SION)
OR ON THE BASIS OF SELF DECLARATION ( BOTH AVAILABLE IN HANDBOOK PROCEDURES)
3. APPLICIBILITY-
a. FOR SPECIES UNDER CHAPER 9 ITC HS IS PERMITTED ONLY FOR MANUFACTURE/CRUSHING/GRINDING/SANETARIZATION OF OILS OR OILERIES
N/A FOR CLEANING/GRADING/REPACKING.
b. CAN BE ISSUED EITHER TO MERCHANT EXPORTER OR SUPPORTING MANUFACTURER.
c. FOR PHARMACEUTICAL PRODUCTS CAN BE ISSUED IN NI PROCESS TO MANUFACTURER EXPORTER ONLY
d.FOR PHYSICAL EXPORT (INCLUDING EXPORT TO SEZ) AND INTERMEDIATE SUPPLY
e. CAN BE ISSUED FOR SUPPLY OF GOODS BY MANUFACTURER (INCLUDING DEEMED EXPORT) , TO EOU/STP/EHTP/BTP
AND SUPPLY OF CAPITAL GOODS AGAINST EPCG AUTHORIZATION
f. SUPPLY AND INSTALLATION OF GOODS (DEEMED EXPORT) TO PROJECTS FINANCED BY MULTILATERAL OR BILATERAL AGENCIES AS NOTIFIED DEA,
SUBJECT TO A LEGAL AGREEMENT WITHOUT INCLUDING CUSTOMS DUTY AND BIDS HAVE BEEN INVITED ON THE BASIS OF DDP PRICES
OF GOODS MANUFACTURED ABROAD. SUPPLIES COVERED HERE IS UNDER ICB.
g. SUPPLY OF GOODS TO ANY PROJECT NOTIFIED BY MOF OR MEGA POWER PROJECT NOTIFIED BY DOR INCLUDING DEEMED EXPORT
h. SUPPLY OF GOODS TO UNITED NATIONS OR INTERNATIONAL ORGANIZATIONS FOR THEIR OFFICIAL USE OR SUPPLIED UNDER PROJECT FINANCED B
ANY OTHER INTERNATIONAL ORGANIZATIONS APPROVED BY GOI.
i. SUPPLY OF GOODS REQUIRED FOR SETTING UP ANY NUCLEAR POWER PROJECT (MINIMUM CAPACITY OF 440 MW CERTIFICATE ISSUED BY OFFICER
JOINT SECTORY GOI,DAE. TENDER INVITED THROUGH NCB OR ICB
j.SUPPLY OF STORES ON BOARD OF FOREIGN GOING VESSEL/AIRCRAFT AS PER CONDITION OF (SION)
k. ADVANCE AUTHORIZATION FOR ANNUAL REQUIREMENT CAN ONLY BE ISSUED AGAINST SION (NA FOR APPENDIX 4J) SUBJECT TO EXPORT PERFORM
ENTITLEMENT ON THE BASIS OF CIF VALUE OF IMPORT SHALL BE UPTO 300% OF FOB VALUE OR FOB VALUE OF DEEMED EXPORT IN PRECEEDING FIN
WICHEVER IS HIGHER.
4. RULES
a. VALUE ADDITION (EXCEPT GEMS AND JEWELLERY) = (FOB VALUE OF EXPORTS REALIZED DEVIDED BY CIF VALUE OF INPUTS UNDER AUTHORIZATIO
MINIMUM REQUIREMENT UNDER ADVANCE AUTHORIZATION IS 15%, EXPORT PRODUCTS MINIMUM REQUIREMENT LESS THAN 15% , PHYSICAL EXPORT
RECEIVED IN FREELY CONVERTABLE CURRENCY VALUE ADDITION AS PER APPENDIX 4C , MINIMUM VALUE ADDITION FOR GEMS AND JEWELLERY SEC
IN CASE OF TEA VALUE ADDITION CAN BE 50%
b. WHENEVER SION NOT SPECIFY THE NAME OF THE ACTRUAL INPUT INSTEAD SPECIFY a) GENERIC INPUT OR b) ALTERNATIVE INPUT
- INPUTS ISED IN SB AND BOE SHOULD MATCH
WHEN EVER SION SPECIFY A SINGLE QUANTITY AGAINST NUMBER OF INPUTS, IMPORT IS PERMITTED TO THAT QUANTITY - BOE AND SB SHOULD MATC
- AT THE TIME OF DISCHARGE OF EXPORT OBLIGATION RA SHOULD ALLOW ONLY THOSE INPUTS WHICH HAVE BEEN SPECIALY INDICATED IN SB.
- THESE PROVISSIONS ARE ALSO APPLICABLE FOR SUPPLIES MADE TO DEEMED EXPORT SUBJECT TO DETAILS OF ABOVE PROVISSIONS SHOULD IND
IN BILL OFEXPORT, ARE3, CENTRAL EXCISE CERTIFIED INVOICE, IMPORT DOCUMENT,DOCUMENT FOR DOMESTIC PROCUREMENT/SUPPLY
c. PRE IMPORT CONDITION OF DGFT FOR INPUTS LISTED IN APPENDIX 4J OR AS PER SION (IMPORT OF DRUGS UNER UNREGISTERED SOURCES IS SUB
d. IMPORT UNDER ADVANCE AUTHORIZATION ARE EXEMPTED FROM PAYMENT OF BASIC CUSTOM DUTY, ADDITIONAL CUSTOMS DUTY, EDUCATION CE
SAFEGUARD DUTY BUT SUPPLY OF MARINE FREIGHT CONTAINERS BY 100% EOU ,SUPPLY OF CAPITAL GOODS AGAINST EPCG AUTHORISATION,
SUPPLY OF GOODS TO UNITED NATIONS OR INTERNATIONAL ORGANISATIONS FOR THEIR OFFICIAL USE OR SUPPLIED TO THE PROJECTS
WILL NOT BE EXEMPTED FROM PAYMENT OF APPLICABLE ANTI-DUMPING DUTY, SAFEGUARD DUTY AND TRANSITION PRODUCT SPECIFIC SAFEGUARD
e. DRAWBACK AS PER RATE DETERMINED BY CENTRAL EXCISE IS AVAILABLE FOR THE DUTY PAID FOR GOODS IMPORED FOR EXPORT UNDER ADVAN
DETAILS OF DUTY PAID MENTION WHILE APPLICATION FOR ADVANCE AUTHORIZATION. RA SHOULD CLEARLY INDICATE IN THE CONDITION SHEET OF
f. ADVANCE AUTHORIZATION IS SUBJECT TO ACTRUAL USER CONDITION AND CAN NOT BE TRASFERED EVEN IF EXPORT OBLIGATION COMPLETED. HO
HOLDER CAN COME OUT OF DUTY FREE AFTER EXPORT OBLIGATION COMPLETED.
g. IF CENVAT CREDIT FACILITY ON INPUTS AVAILED FOR EXPORTED GOODS, EVEN AFTER MANUFACTURING COMPLETED GOODS CANNOT BE EXPORT
A EXPORT OBLIGATION DISCHARGE CERTIFICATE IS REQUIRED. A CENTRAL EXCISE CERTIFICATE OR CERTIFICATE
FROM A CA SHOULD BE PRODUCED AT THE THE OF GETTING EXPORT OBLIGATION DISCHARGE CERTIFICATE FROM RA.
h. WASTE SCRAP OF MANUFACTURED PRODUCT CAN BE DISPOSED ONLY AFTER PAYMENTOF APPLICABLE DUTY
i. VALIDITY PERIOD OF IMPORT IS 12 MONTHS FROM DATE OF ISSUE OF IMPORT AUTHORIZATION. ADVANCE AUTHORIZATION FOR DEEMED EXPORT TH
CONTRACTED DURATION OF PROJECT OR 12 MONTS WHICHEVER IS HIGHER
h. NO EXPORT OR IMPORT OF AN ITEM IS ALLOWED UNDER ADVANCE AUTHORIZATION OR DFIA IF IT IS PROHIBITED. IF ADVANCE AUTORIZATION IS TH
BEFORE THE ITEM IS BEEN PROHIBITED THEN MAY BE ALLOWED SUBJECT TO DECLARATION. AS WE ALL KNOW, SOME ITEMS CAN ONLY BE IMPORTED
GENNERAL IMPORTER OR EXPORTER CANNOT IMPORT THAT ITEMES UNDER AA/DFIA. IF STE SPECIALY ISSUED A NO OBJECTION CERTIFICATE TO THA
OR EXPORTER THEN IT CAN BE IMPORTED UNDER AA/DFIA. IMORT AND EXPORT OF RESTRICTED/SCOMET ITEMS CAN BE POSSIBLE UNDER AA/DFIA SU
i. ADVANCE AUTHORIZATION SHALL ALSO BE AVAILABLE WHERE ALL OR SOME INPUTS OF EXPORT SUPPLIED FREE OF COST BY FOREIGN BUYER .
j. HOLDER OF AA/DFIA CAN PROCURE INPUTS FROM LOCAL SUPPLIER OR STES.SUCH PROCUREMENT CAN BE AGAINST ADVANCE RELEASE ORDER(AR
BACK TO BACK INLAND LC. WHEN DOMESTIC SUPPLIER. WHEN DOMESTIC SUPPLIER TRY TO OBTAIN AA FOR SUPPLY OF INPUTS TO ANOTHER AA HOL
ISSUE INVALIDATION LETTER. IF DOMESTIC SUPPLIER SEEK REFUND OF DUTY THROUGH DEEMED EXPORT MECHANISM ADVANCE RELEASE ORDER T
AA HOLDER IN DTA CAN PROCURE INPUTS FROM EOU/EHTP/BTP/STP/SEZ UNITS WITHOUT ANY ARO/IL. DUTY FREE IMPORT AUTHORIZATION HOLDER I
ADVANCE RELEASE ORDER/INVALIDATION LETTER FACILITY.
k. EXPORT PROCEEDS IS TO BE REALIZED IN FREELY CONVERTABLE CURRENCY. FOR RPA IT CAN BE REALISED IN INR SUBJECT TO MINIMUM VALUE A
DISCHARGE OF EXPORT OBLIGATION BY SEZ IF REALIZED IN FOREIGN CURENCY (FOR SEZ DEVELOPERS AND CO-DEVELOPERS NA AND CAN BE REAL
AUTHORIZATION HOLDER NEED TO FILE BILL OF EXPORT FOR EXPORTS TO SEZ UNITS AS PER SEZ RULES.
l. FOR FULLFILLMENT OF EXPORT OBLIGATION UNDER AA IS 18 MONTHS FROM THE DATE OF ISSUE OF AA. IN CASE OF SUPPLIES TO TRUNKEY PROJE
PERIOD IS CONTRACTED PERIOD OR 18 MONTHS WHICHEVER IS MORE. EXPORT OBLIGATION FOR INPUTS OF APPENDIX 4-J IS AS PER APPENDIX.
m. EXPORT ORDER PERIOD CAN BE EXTENDED SUBJECT TO AA IS UNDER BIFR/REHABITATION OF STATE GOVT. BIFR SHOULD MENTION UPTO EXTENT
IF NOT MENTIONED EXTENDED UPTO 2 YEARS FROM THE DATEOF EO OR BIFR WHICHEVER IS LATER.
n. REIMPORT OF EXPORTED GOODS UNDER DUTY EXEMPTION/REMISSION SCHEME (CONDITIONS SPECIFIED BY DOR). AA SHOULD REPORT TO RA FOR
5. INELIGIBLE CATEGORIES OF IMPORT ON SELF DECLARATION BASIS
1. ALL VEGITABLES/EDIBLES OILS AND OILSEEDS (C-15,12 OF HS)
2. ALL TYPES OF CEREALS (C-10)
3. ALL SPICES OTHER THAN LIGHT BLACK PEPPER HAVING BASIC CUSTOMS DUTY OF MORE THAN 30%(C-9,12)
4. ALL TYPES OF FRUITS/VEGITABLES HAVING CUSTOM DUTY OF MORE THAN 30%(C78)
5. HORN, HOOF AND ANY OTHER ORGAN OF ANIMAL
6. HONEY
7. ROUGH MARBLE BLOCKS/SLABS
8.ROUGH GRANITE
9.VITAMINS EXCEPT FOR USE IN FARMACITICAL INDUSTRY
* FOR EXPORT OF PERFUMES,PERFUMERY COMPOUND, FEED INGREDIENTS NO AUTHORIZATION TO BE ISSUED (HP 4.06,4.07)
* FOR EXPORT OR IMPORT OF BIOTECHNOLOGY (HP 4.07) NO OBJECTION CERTIFICATE IS REQUIRE FROM GOI,DBT
C. DUTY FREE IMPORT AUTHORIZATION SCHEME
1. APPLICABILITY- ISSUED TO ALLOW FREE IMPORT OF INPUTS. IMPORT OF OIL AND CATALYST WHICH IS CONSUMED IN THE PROCESS OF PRODUCTIO
ALSO ALLOWED. ACCOUNTING OF INPUT, IMPORTABILITY EXPORTABILITY OF ITEMS, DOMESTIC SOURCING OF INPUTS, CURRENCY OF REALIZATION O
DRAWBACK ADMISSIONIBILITY OF AA IS ALSO APPLICABLE HERE. NA FOR IMPORT OF SUGAR
2.DUTIES EXEMPTED
1. DUTY FREE IMPORT AUTHORIZATION SHALL BE EXEMPTED ONLY FROM PAYMENT OF BASIC CUSTOMS DUTY.
2. ADDITIONAL CUSTOMS DUTY/EXCISE DUTY NOT EXEMPTED CAN BE ADJUSTED AGAINST CENVAT CREDIT SUBJECT TO RULES OF DOR
3.ELIGIBILITY
DUTY FREE IMPORT AUTHORIZATION SHALL BE ISSUED ON POST EXPORT BASIS FOR PRODUCTS FOR WHICH STANDAR INPUT OUTPUT HAVE BEEN NO
MERCHANT EXPORTER REQUIRED TO MAINTAIN NAME AND ADDRESS OF SUPPORTING MANUFACTURERS PF THE EXPORT PRODUCT ON THE EXPORT
VIZ SHIPPING BILL/AWB/BILL OF EXPORT/ARE1/ARE-3
APPLICATION TO BE FILLED WITH RA FEFORE EFFECTING EXPORT UNDER DUTY FREE IMPORT AUTHORIZATION
4. VALUE ADDITION- MINIMUM 20% TO BE ACHIEVED. AA HIGHER VALUE ADDITION ITEMS IS ALSO APPLICABLE HERE.
5. VALIDITY AND TRANSFERIBILITY-
APPLICANT SHALL FILE ONLINE APPLICATION FOR DFIA. EXPORT TO BE COMPLETED WITHIN 12 MONTHS OF FILE NO FOR EXPORTER.
WHILE DOING EXPORT/SUPPLY APPLICANT HAVE TO MENTION FILE NO IN SHIPPING BILL/AWB/BILL OF EXPORT/ARE-1/ARE-3/CENTRAL EXCISE CERTIFI
AFTER COMPLETION OF EXPORTS AND REALIZATION OF PROCEEDS, REQUEST FOR DUTY FREE TRANSFERABLE EXPORT AUTHORIZATION MAY BE MA
CONCERNED RA WITHIN A PERIOD OF 12 MONTHS FROM THE DATE OF EXPORT OR 6 MONTHS FROM REALIZATION WHICHEVER IS LATER.
APPLICANT IS ALLOWED TO FILE APPLICATION BEYOND 24 MONTHS FROM THE DATE OF GENERATION OF FILE NO AS PER HP 9.03
SEPARATE DFIA TO BE ISSUED FOR EACH SION AND EACH PORT
EXPORTER UNDER DFIA TO BE MADE FROM THAT SINGLE PORT ONLY HP4.37
NO DUTY FREE IMPORT AUTHORIZATION TO BE ISSUED FOR AN EXPORT PRODUCT WHERE SION PRESCRIBES "ACTRUAL USER CONDITION"
RA TO ISSUE TRANSFERABLE DFIA WITH VALIDITY OF 12 MONTHS FROM DATE OF ISSUE. NO FURTHER REVALIDATION IS GRANTED BY RA
6. SENSITIVE ITEMS UNDER DUTY FREE IMPORT AUTHORISATION
1. IN RESPECT OF RESULTANT PRODUCTS REQUIRING FOLLOWING INPUTS, EXPORTER SHALL BE REQUIRED
TO PROVIDE DECLARATION WITH REGARD TO TECHNICAL CHARACTERISTICS, QUALITY AND SPECIFICATION IN SHIPPING BILL:
2.ALLOY STEEL INCLUDING STAINLESS STEEL, COPPER ALLOY, SYNTHETIC RUBBER, BEARINGS, SOLVENT,
PERFUMES / ESSENTIAL OIL/ AROMATIC CHEMICALS, SURFACTANTS, RELEVANT FABRICS, MARBLE,
ARTICLES MADE OF POLYPROPYLENE, ARTICLES MADE OF PAPER AND PAPER BOARD, INSECTICIDES, LEAD INGOTS,
ZINC INGOTS, CITRIC ACID, RELEVANT GLASS FIBRE REINFORCEMENT (GLASS FIBRE, CHOPPED / STRANDED MAT, ROVING
WOVEN SURFACING MAT), RELEVANT SYNTHETIC RESIN (UNSATURATED POLYESTER RESIN, EPOXY RESIN,
VINYL ESTER RESIN, HYDROXY ETHYL CELLULOSE), LINING MATERIAL.
3. WHILE ISSUING DUTY FREE IMPORT AUTHORIZATION REGIONAL AUTHORITY SHOULD MENTION TECHNICAL
CHARACTERISTICS IN RESPECT OF ABOVE INPUTS IN THE AUTHORIZATION
REMISSION SCHEMES
D. SCHEMES FOR EXPORTER OF GEMS AND JEWELLERY
1. BASIC- GEMS AND JEWELLERY EXPORTER CAN IMPORT DUTY FREE INPUTS FOR MANUFACTURE OF EXPORT PRODUCT.
GOLD, SILVER, PLATINUM JEWELLERY INCLUDING PARTLY PROCESSED JEWELLERY AND ARTICLES INCLUDING MEDALLIONS AND COINS (EXCLUDING
AND ANY ENGINEERING GOODS) WHEATHER PLAIN OR STUBBED. (GOLD SHOULD BE 8 CARATS, SILVER AND PLATINUM SHOULD BE CONTAINING MOR
THESE ITEMS CAN BE EXPORTABLE AND INPUTS OF THESE ITEMS ARE IMPORTABLE.
DFIA SCHEME NOT AVAILABLE TO THIS SECTOR.
2. SCHEMES
1. ADVANCE PROCUREMENT/REPLENISHMENT OF PRECIOUS METALS FROM NOMINATED AGENCIES - GOLD, SILVER,PLATINUM AS A INPUT OF EXPORT
IMPORETED OR PROCURED FROM NOMINATED AGENCY. EXPORT WOULD BE SUBJECT TO WASTAGE NORMS AND VALUE ADDITION.
2.REPLENISHMENT AUTHORIZATION FOR GEMS - CAN BE OBTAINED FROM RA AS PER HP. MAY BE ISSUED AGAINST EXPORT FOR WHICH INPUTS ARE F
IN CASE OF PLAIN OR STUBBED JEWELLERY VALUE OF SUCH AUTHORIZATION IS DETERMINABLE BY REALIZATION IN EXCESS OF PRESCRIBED MINIMU
THIS AUTHORIZATION SHALL BE FREELY TRANSFERABLE. REPLENISHMENT RATE AND ITEM OF IMPORT AS PER APPENDIX 4G.
3. REPLENISHMENT AUTHORIZATION- FOR DUTY FREE IMPORT OF CONSUMABLES, TOOLS AND OTHER ITEMS
4. ADVANCE AUTHORIZATION FOR PRECIOUS METALS
3. VALUE ADDITION AND WASTAGE NORMS-
VA= {(FOB VALUE OF EXPORT REALISED MINUS VALUE OF INPUTS) DIVIDED BY VALUE OF INPUTS}*100
VALUE OF INPUTES = INCLUDES DOMESTICALLY PROCURED SUCH AS GOLD/SILVER/PLATINUM CONTENT IN EXPORT PRODUCT PLUS ADMISSIBLE WAS
VALUE OF OTHER ITEMS SUCH AS GEMSTONE ETC. WHEREEVER GOLD HAS BEEN OBTAINED ON LOAN BASIS VALUE SHALL ALSO INCLUDE INTEREST
FREE FOREIGN EXCHANGE TO FOREIGN SUPPLIER.
WASTAGE OR MANUFACTURING LOSS FOR GOLD,SILVER,PLATINUM JEWELLERY ASPER HP 4.60
4. NOMINATED AGENCIES
1. MMTC LTD, THE HANDICRAFT AND HANDLOOMS EXPORTS CORPORATION OF INDIA LTD, THE STATE TRADING CORPORATION OF INDIA LTD, PEC LTD
AND DIAMOND INDIA LTD.
2. FOUR STAR EXPORT HOUSES FROM GEM AND JEWELLERY SECTOR AND 5 STAR EXPORT HOUSES FROM ANY SECTOR CAN BECOME A NOMINATED
3. RBI CAN AUTHORIZE ANY BANK AS NOMINATED AGENCY.
4. IMPORT BY NOMINATED AGENCY AS PER HP
5. A BANK AUTHORIZED BY RBI IS ALLOWED EXPORT OF GOLD SCRAP FOR REFINING AND IMPORT STANDARD GOLD BARS AS PER RBI GUIDELINES.
6. EXPORTER IS EOU/SEZ IS GOVERNED BY FTP /SEZ RULES RESPECTIVELY.
5. IMPORT AND EXPORT
1. GEOMETRICAL INSTITUTE OF AMERICA (GIA), INDIAN DIAMOND INSTITUTE, INTERNATIONAL INSTITUTE OF DIAMOND GRINDING AND RESEARCH INDIA
ARE PERMITTED TO IMPORT DIAMOND TO THEIR LABORATORIES, WITHOUT ANY IMPORT DUTY FOR CERTIFICATION AND GRADING REPORTS, WITH A C
THAT IT SHOULD BE EXPORTED WITH ALONG WITH CERTIFICATION/GRADING REPORTS. AS PER HP.
2. SIMILARLY, LIST OF AUTHORIZED LABORATORIES FOR CERTIFICATION/GRADING OF DIAMONDS OF 0.25 CARAT AND ABOVE
G)FOR FIRST 6 DIGITS
H NORMS APPLICABLE TO DOMESTICALLY PRODUCED

ESTIC STANDARD/QUALITY SPECIFICATION

DEABLE FROM

REQUIRED.
GULATIONS)

EPARTMENT OF DEFENCE PRODUCTION IS REQUIRED.

THER INDIVIDUALS, GROUPS, UNDERTAKINGS AND
RELATED MATERIALS,ITEMS OF CULTURE INCLUDING ANTIQUES
UN.ORG/DOCS/SC AND WWW.IAEA.ORG
NG BOARDS, WHICH DEALS WITH GOODS FOR IMPORT AND EXPORT.

AS PER LIMITS SCANTIONED BY BAGGAGE RULES OF MOF

S, TRIMMING AND ESTABLISHMENT REQUIRED FOR EXPORT

EPT THOSE RESTRICTED UNDER ITC(HS)

D WITHOUT AN AUTHORIZATION

AUTHORIZATION
ITEM FOR WHICH PROTOTYPE IS SHOUGHT

N HAZARDOUS

AUTHORIZATION
EXECUTE LUT/BG/BOND FOR CLEARANCE OF GOODS.
RE SOURCING MATERIAL FROM LOCAL SUPPLIOR

OME CONSUMPTION IN ACCORDANCE WITH PROVISIONS OF FTP

N 1 YEAR OR PERIOD PERMITTED BY CUSTOMS

RPOSE OF DTA SALE

/FTP/ANY OTHER LAW

URERS AND MERCHANT EXPORTER

HIRD PARTY AND EXPORTER

D AS A GIFT, SUBJECT TO ITC(HS) FREE/AUTHORIZATION

TED OR PROHIBITED

RMINED, PROVIDED-
1, 15-21, 23,30,90

D OR UNFIT FOR USE

ANCE BY CUSTOMS AUTHORITIES

NY OTHER GOODS
S SUBJECT TO RBI APPROVAL
DITIONS OF DOR
MENT OF DUTY

S THROUGH

ENT OF LOAN TAKEN BY GOVT)

TURN ALL THE BENIFITS AVAILED BY HIM UNDER FTP

PPROACH RBI FOR WRITTING OFF THE UNREALIZED AMOUNT.

BERSHIP CERTIFICATE(RCMC).

D AS RCMC

COMMITTEE MAY BE CONSTITUTED BY DGFT.

OM ANY PROVISSION UNDER FTP.

DGFT BY PERSONAL HEARING

ON, REHABITATION OF SICK UNITS

2B AND ANF FORMS.

HE GOODS THAT ARE MANUFACTURED UBDER IEM/LI/LOI

E HAVING HIGH EXPORT INTENTITY,EMPLOYMENT POTENTIAL

AS GIVEN IN SHIPPING BILL

B UPTO RS.25000 PER CONSIGNMENT
WEELERY AND ANY PRECIOUS OR SEMIPRECIOUS STONES

LIGIBLE EXPORTS. 

ERVICE TO A SERVICE CONSUMER) LOCATED IN INDIA

FINANCIAL YEAR
CRITERIA IS $ 10000
N DEEMED FOREIGN EXCHANGE AS PER RBI
CHANGE(ONLY SERVICE SECTOR)

ULD NOT BE COUNTED FOR ENTITLEMENT. 

DERING OF SERVICE.

TICIPATION,DONATION ETC)
Y THEM WITH DTA
OM ONE COUNTRY TO ANOTHER WITHOUT TOUCHING INDIA.

AKEN IN THE ACCOUNT FOR CALCULATION OF VALUE EXPORTS

S IN FREE FOREIGN EXCHANGE DURING CURRENT AND

CALCULATION OF EXPORT PERFORMANCE

 CEPA, AS DISCUSSED ABBOVE

ROMOTION
NG 3 LICENCING YEAR WHICHEVER IS LOVER.

LADING CERTIFICATE

ALISED IN FOREIGN EXCHANGE DIRECTLY FORM OVERSEAS

UNDER LEASE FINANCING TERMS OF PROVISION

L BE ADJUSTED AS CENVAT CREDIT DUTY DRAWBACK

PUTS OR DUTY REMISSION.

RIZATION OF OILS OR OILERIES

ERAL AGENCIES AS NOTIFIED DEA,MOF

ASIS OF DDP PRICES

G DEEMED EXPORT
PLIED UNDER PROJECT FINANCED BY UN OR

CERTIFICATE ISSUED BY OFFICER NOT BELOW RANK

4J) SUBJECT TO EXPORT PERFORMANCE IN PAST 2 YEARS

EMED EXPORT IN PRECEEDING FINANCIAL YEAR OR 1 CRORE

OF INPUTS UNDER AUTHORIZATION) *100 .

ESS THAN 15% , PHYSICAL EXPORT PAYMENT NOT
N FOR GEMS AND JEWELLERY SECTOR AS PER HS 4.61
LTERNATIVE INPUT

ANTITY - BOE AND SB SHOULD MATCH WITH THIS

N SPECIALY INDICATED IN SB.
ABOVE PROVISSIONS SHOULD INDICATE
ROCUREMENT/SUPPLY
R UNREGISTERED SOURCES IS SUBJECT TO THIS CONDITION)
AL CUSTOMS DUTY, EDUCATION CESS, ANTIDUMPING DUTY,
INST EPCG AUTHORISATION,
OR SUPPLIED TO THE PROJECTS
N PRODUCT SPECIFIC SAFEGUARD DUTY
ORED FOR EXPORT UNDER ADVANCE AUTHORIZATION
ATE IN THE CONDITION SHEET OF AA.
PORT OBLIGATION COMPLETED. HOWEVER, AUTHORIZATION

ETED GOODS CANNOT BE EXPORTED UNDER AA.

ATE FROM RA.

RIZATION FOR DEEMED EXPORT THIS PERIOD WILL BE

. IF ADVANCE AUTORIZATION IS THERE

ME ITEMS CAN ONLY BE IMPORTED,EXPORTED BY STE'S
O OBJECTION CERTIFICATE TO THAT IMPORTER
AN BE POSSIBLE UNDER AA/DFIA SUBJECT TO PERMISSIONS.
OF COST BY FOREIGN BUYER .
NST ADVANCE RELEASE ORDER(ARO), INVALIDATION LETTER,
LY OF INPUTS TO ANOTHER AA HOLDER RA SHOULD
NISM ADVANCE RELEASE ORDER TO BE ISSUED.
MPORT AUTHORIZATION HOLDER IS ALSO ELIGIBLE FOR
 NR SUBJECT TO MINIMUM VALUE ADDITION.
DEVELOPERS NA AND CAN BE REALISED IN INR)

OF SUPPLIES TO TRUNKEY PROJECTS INDIA OR ABROAD

NDIX 4-J IS AS PER APPENDIX.
R SHOULD MENTION UPTO EXTENTION PERIOD.

R). AA SHOULD REPORT TO RA FORM 1 MONTH OF REIMPORT.

P 4.06,4.07)

ED IN THE PROCESS OF PRODUCTION OF EXPORT PRODUCT

UTS, CURRENCY OF REALIZATION OF EXPORT PROCEEDS,

CT TO RULES OF DOR

DAR INPUT OUTPUT HAVE BEEN NOTIFIED.

EXPORT PRODUCT ON THE EXPORT DOCUMENT
O FOR EXPORTER.
-1/ARE-3/CENTRAL EXCISE CERTIFIED INVOICE.
XPORT AUTHORIZATION MAY BE MADE TO
WHICHEVER IS LATER.
AS PER HP 9.03

RUAL USER CONDITION"

ON IS GRANTED BY RA

AD INGOTS,
DED MAT, ROVING

DALLIONS AND COINS (EXCLUDING LEGAL TENDER COINS

NUM SHOULD BE CONTAINING MORE THAN 50% BY WEIGHT)

,PLATINUM AS A INPUT OF EXPORT PRODUCT CAN BE

ALUE ADDITION.
 EXPORT FOR WHICH INPUTS ARE FROM FOREIGN BUYER
N EXCESS OF PRESCRIBED MINIMUM VALUE ADDITION.
PENDIX 4G.

T PRODUCT PLUS ADMISSIBLE WASTAGES ALONG WITH

E SHALL ALSO INCLUDE INTEREST IN

RPORATION OF INDIA LTD, PEC LTD, STCL LTD, MSTC LTD,

CTOR CAN BECOME A NOMINATED AGENCY SELECTED BY RA.

D BARS AS PER RBI GUIDELINES.

ND GRINDING AND RESEARCH INDIA PVT LTD

AND GRADING REPORTS, WITH A CONDITION

CARAT AND ABOVE

 1. CURRENT ACCOUNT TRANSACTIONS
1. WITHDRAWAL OF FOREIGN EXCHANGE IS PROHIBITED
SCHEDULE - 1- TOTALLY BANNED
Ø  REMITTANCE OUT OF INCOME FROM LOTTERY WINNINGS, RACING, RIDING
Ø  FOR PURCHASE OF LOTTERY TICKETS, BANNED/ PRESCRIBED MAGAZINES, FOOTBALL POOLS, SWEEPSTAKES
Ø  PAYMENT OF COMMISSION TOWARDS EXPORTS MADE TOWARDS EQUITY INVESTMENT IN JV/WOS ABROAD OF INDIAN CO
Ø  REMITTANCE OF DIVIDEND BY ANY FOREIGN COMPANY IN INDIA TO WHICH THE REQUIREMENT OF DIVIDEND BALANCING IS APPLICABLE
Ø  PAYMENT OF COMMISSION ON EXPORTS UNDER RUPEE ROUTE, (EXCEPT COMMISSION UPTO 10% OF INVOICE VALUE FOR TEA AND TOBACOO)
Ø  PAYMENT RELATED TO CALL BACK SERVICES OF TELEPHONES
Ø  REMITTANCE OF INTEREST INCOME OF FUNDS HELD IN NRSRS ACOUNT.
SCHEDULE - 2 - APPROVAL OF GOVT
CULTURAL TOURS MOHRD (DEP OF EDUCATION AND CULTURE)
ADVERTISEMENT IN FOREIGN PRINT MEDIA MOF( DEP OF ECONOMIC AFFAIRS)
(EXCEPT PROMOTION OF TOURISM, FOREIGN INVESTMENTS AND INTERNATIONAL BIDDING
EXCEEDING USD 10,000 BY STATE GOVT AND ITS PSUS)
REMITTANCE OF HIRING CHARGES OF TRANSPONDERS MOF (DEP OF ECONOMIC AFFAIRS
REMITTANCE OF HIRING CHARGES OF TRANSPONDERS BY MOIB
TV CHANNELS
REMITTANCE OF HIRING CHARGES OF TRANSPONDERS BY MOIT
INTERNET SERVICE PROVIDERS
REMITTANCE OF PRIZE MONEY/SPONSORSHIP OF SPORTS ACTIVITY ABROAD MOHRD
BY A PERSON OTHER THAN INTERNATIONAL/NATIONAL/STATE LEVEL SPORTS BODIES,
IF THE AMOUNT INVOLVED EXCEEDS US$ 1,00,000
REMITTANCES UNDER TECHNICAL COLLABORATION AGREEMENTS WHERE PAYMENT MOIC
OF ROYALTY EXCEEDS 5 PER CENT ON LOCAL SALES AND 8 PER CENT ON EXPORTS
AND LUMP-SUM PAYMENT EXCEEDS US$ 2 MILLION
REMITTANCE OF FREIGHT FOR VESSEL BY PSU MOST(CHARTERING WING)
PAYMENT OF IMPORT THROUGH OCEAN TRANSPORT BY A GOVERNMENT DEPARTMENT MOST(CHARTERING WING)
OR A PSU ON C.I.F. BASIS (I.E., OTHER THAN F.O.B. AND F.A.S. BASIS)
MULTI-MODAL TRANSPORT OPERATORS MAKING REMITTANCE TO THEIR AGENTS ABROAD
REGISTRATION CERTIFICATE FROM THE DIRECTOR GENERAL
REMITTANCE OF CONTAINER DETENTION CHARGES EXCEEDING MOST(DIRECTOR GENERAL OF SHIPPING)
THE RATE PRESCRIBED BY DIRECTOR GENERAL OF SHIPPING
PAYMENT FOR SECURING INSURANCE FOR HEALTH FROM A COMPANY ABROAD MOF (INSURANCE DIVISION)
REMITTANCE FOR MEMBERSHIP OF P&I CLUB MOF (INSURANCE DIVISION)
SCHEDULE - 3 - APPROVAL OF RBI
REMITTANCE BY ARTIST
EXCEEDS USD 10000 FOR PRIVATE VISITS
GIFT REMITTANCE EXCEEDING USD 5000 PER REMITTER/DONOR PER ANNUM
PERSON GOING ABROAD FOR EMPLOYMENT/ IMIGRATION USD 100000
MAINTAINANCE OF CLOSE RELATIVES ABROAD EXCEEDING USD 5000
BUSINESS TRAVEL ATTENDING CONFERENCE EXCEEDING USD 25000
RELEASE OF FOREIGN EXCHANGE FOR MEDICAL TREATMENT EXCEEDING ESTIMATE PROVIDED
RELEASE OF FOREIGN EXCHAGE FOR STUDIES ABROAD NOT MORE THAN USD 100000 FOR STUDIES ABROAD
COMMISSION PER TRANSACTION, TO AGENTS ABROAD FOR SALE OF RESIDENTIAL FLATS OR COMMERCIAL PLOTS IN INDIA EXCEEDING USD 25000 OR 5% OF INWARD
REMITTANCE WHICHEVER IS HIGHER.
REMITTANCE EXCEEDING USD 1,00,000 BY WAY OF REIMBURSEMENT OF PRE-INCORPORATION EXPENCES
REMITTANCE FOR PURCHASE OF TRADE MARK OR FRANCHISE IN INDIA
REMITTANCE EXCEEDING USD 1,00,000 PER PROJECT FOR ANY CAUNSULTANCY SERVICE PROCURED FROM OUTSIDE INDIA
REMITTANCE OF ROYALITY AND PAYMENT OF LUMPSUM FEE UNDER THE TECHNICAL COLABORATION AGREEMENT WHICH HAS NOT BEEN REGISTERED WITH RBI
REMITTANCE FOR ADVERTISEMENT IN FOREIGN TELEVISION BY A PERSON WHOSE EXPORT EARNINGS
ARE LESS THAN RS. 10 LAKH DURING EACH OF THE PRECEEDING TWO YEARS
SHORT TERM CREDIT TO OVERSEAS OFFICES OF INDIAN COMPANY
2. CAPITAL ACCOUNT TRANSACTIONS
1. PERMISSIBLE CAPITAL ACCOUNT TRANSACTION
SCHEDULE-I SUBJECT TO LIMITS OF USD 50,000, USD 100000, USD 200000
(A)  INVESTMENT BY A PERSON RESIDENT IN INDIA IN FOREIGN SECURITIES.
  (B)  FOREIGN CURRENCY LOANS RAISED IN INDIA AND ABROAD BY A PERSON RESIDENT IN INDIA.
  (C)  TRANSFER OF IMMOVABLE PROPERTY OUTSIDE INDIA BY A PERSON RESIDENT IN INDIA.
  (D)  GUARANTEES ISSUED BY A PERSON RESIDENT IN INDIA IN FAVOUR OF A PERSON RESIDENT OUTSIDE INDIA.
  (E)  EXPORT, IMPORT AND HOLDING OF CURRENCY/CURRENCY NOTES.
  (F)  LOANS AND OVERDRAFTS (BORROWINGS) BY A PERSON RESIDENT IN INDIA FROM A PERSON RESIDENT OUTSIDE INDIA.
  (G)  MAINTENANCE OF FOREIGN CURRENCY ACCOUNTS IN INDIA AND OUTSIDE INDIA BY A PERSON RESIDENT IN INDIA.
  (H)  TAKING OUT OF INSURANCE POLICY BY A PERSON RESIDENT IN INDIA FROM AN INSURANCE COMPANY OUTSIDE INDIA.
   (I)  LOANS AND OVERDRAFTS BY A PERSON RESIDENT IN INDIA TO A PERSON RESIDENT OUTSIDE INDIA.
  (J)  REMITTANCE OUTSIDE INDIA OF CAPITAL ASSETS OF A PERSON RESIDENT IN INDIA.
  (K)  SALE AND PURCHASE OF FOREIGN EXCHANGE DERIVATIVES IN INDIA AND ABROAD AND COMMODITY DERIVATIVES ABROAD BY A PERSON RESID
SCHEDULE-II
(A)  INVESTMENT IN INDIA BY A PERSON RESIDENT OUTSIDE INDIA, THAT IS TO SAY,
   (I)  ISSUE OF SECURITY BY A BODY CORPORATE OR AN ENTITY IN INDIA AND INVESTMENT THEREIN BY A PERSON RESIDENT OUTSIDE INDIA; AND
  (II)  INVESTMENT BY WAY OF CONTRIBUTION BY A PERSON RESIDENT OUTSIDE INDIA TO THE CAPITAL OF A FIRM OR A PROPRIETORSHIP
CONCERN OR AN ASSOCIATION OF PERSONS IN INDIA.
  (B)  ACQUISITION AND TRANSFER OF IMMOVABLE PROPERTY IN INDIA BY A PERSON RESIDENT OUTSIDE INDIA.
  (C)  GUARANTEE BY A PERSON RESIDENT OUTSIDE INDIA IN FAVOUR OF, OR ON BEHALF OF, A PERSON RESIDENT IN INDIA.
  (D)  IMPORT AND EXPORT OF CURRENCY/CURRENCY NOTES INTO/FROM INDIA BY A PERSON RESIDENT OUTSIDE INDIA.
  (E)  DEPOSITS BETWEEN A PERSON RESIDENT IN INDIA AND A PERSON RESIDENT OUTSIDE INDIA.
  (F)  FOREIGN CURRENCY ACCOUNTS IN INDIA OF A PERSON RESIDENT OUTSIDE INDIA.
  (G)  REMITTANCE OUTSIDE INDIA OF CAPITAL ASSETS IN INDIA OF A PERSON RESIDENT OUTSIDE INDIA.
3 . LIBERALISED REMITTANCE SCHEME
1. UNDER LRS RESIDENT INDIVIDUAL (INCLUDING MINOR)CAN REMIT OUTSIDE UPTO USD 250000 PER FINANCIAL YEAR FOR ANY PERMITTED CURRENT
ACCOUNT TRANSACTION. (NA FOR CO,PF,HUF,TRUSTS) SUBJECT TO FORM A2 TO BE SUBMITTED. (MIOR GURDIAN SIGNATURE IN A2)
2. PAN CARD IS MANDATORY, GREATER THAN USD 25000
3.REINVESTMENT OF INCOME EARNED UNDER LRS IS ALLOWED NOT REQUIRED TO REPATRIATE( EXCEPT EQUITY SHARES,COMPULSURY CONVERTIB
PREFERANCE SHARE OF JV WOS.
4. AMOUNT CAN BE CLUBBED IN RESPECT OF FAMILY MEMBERS (EXCEPT CAPITAL ACCOUNT)
5.TRANSACTION NOT PERMISSIBLE UNDER FEMA AND REMITTANCE OF MARGIN/MARGIN CALLS ARE NOT PERMISSIBLE.
6. PERMISSSIBLE CAPITAL ACCOUNT TRANSACTIONS BY AN INDIVIDUALS.
OPENING FOREIGN CURRENCY ACCOUNT ABROAD WITH A BANK.
PURCHASE OF PROPERTY ABROAD.
MAKING INVESTMENT ABROAD - FOR ACQUISITION AND HOLDING SHARES OR DEBT INSTRUMENTS OF BOTH LISTED AND UNLISTED COMPANIES.
FOR QUALIFICATION SHARES FOR THE POST OF DIRECTOR
TO A FOREIGN COMPANY TOWARDS PROFESSIONAL SERVICES RENDERED
DIRECTORS REMMUNARATIONS
INVESTMENT IN UNIT OF MF,VCF,UNRATED DEBT SECURITIES, PROMITIONARY NOTES.
SETTING UP JV WOS IN INDIA
EXTENDING LOAN IN INR TO NRI RELATIVES
5. PERMISSIBLE CURRENT ACCOUNT TRANSACTIONS
PRIVATE VISIT (OTHER THAN NEPAL AND BHUTAN), GIFT DONATION, GOING ABROAD FOR EMPLOYMENT, EMIGRATION, MAINTAINANCE OF CLOSE RELA
BUSINESS TRIP, MEDICAL TREATMENT AND STUDY.(WITHOUT INSISTING ESTIMATE)
EMPLOYEE OF A COMPANY DEPUTED ABROAD NOT COME UNDER LRS
MEDICAL TREATMENT AND STUDY GTEATER THAN THE LIMIT CAN BE DONE OUT OF LRS WITH A ESTIMATE
6. PURCHASE OF ART (SUBJECT TO PROVISITION)
7. OUTWARD REMITTANCE IN THE FORM OF DD AT THE TIME OF PRIVATE VISIT ABROAD, AGAINST SELF DECLARATION
8. INDIVIDUAL CAN ALSO OPEN MAINTAIN A FCA WITH A BANK OUTSIDE INDIA FOR MAKING REMITTANCE UNDER THE SCHEME WITHOUT PRIOR RBI APP
9. BANK ARE NOT PERMITTED TO GIVE LOAN FOR DOING CAPITAL ACCOUNT REMITTANCES UNDER THE SCHEME.
10. SCHEME NOT AVAILABLE FOR SCHEDULE I SHEDULE 2 CURRENT ACCOUNT TRANSACTIONS
11. CAPITAL ACCOUNT REMITTANCE TO COUNTRIES IDENTIFIES BY FATF
12. LOAN/GIFT IN RUPEES, TO NRI/ PIO CLOSE RELATIVES (INTEREST FREE UPTO 1 YEAR)
TO BE USED FOR BORROWERS PERSONAL REQUIREMENT IN INDIA
LOAN AMOUNT TO BE CREDITED IN NRO ACCOUNT OF NRI/PIO
NOT PERMITTED TO REMIT OUTSIDE INDIA
REPAYMENT OF LOANS SHALL BE OUT OF NORMAL BANKING CHANNEL OR BY DEBIT NRO/NRE/FCNR ACCOUNT
SALE PROCEEDS OF SHARES OR SECURITIES OR IMMOVABLE PROPERTY
LOAN CAN NOT BE UTILIZED FOR I)BUSINESS OF CHITFUND II) NIDHI COMPANY III) AGRICURAL OR PLANTATION ACTIVITIES OR IN REAL ESTATE BUSINE
OR CONSTRUCTION OF FIRMHOUSES
TRADING IN TRANSFERABLE DEVELOPMENT RIGHTS
13. DOCUMENTS SHOULD BE VERIFIED BY BANK WHILE RELEASING FOREIGN EXCHANGE WITH COMPLIANCE SEC 10 (5) OF FEMA.
14. BANKS ARE ALSO REQUIRED TO KEEP RECORDS OF LRS TRANSACTIONS DIFFERENTLY.
15. RBI WILL NOT ISSUE ANY INSTRUCTION REGARDIBG TAX LAWS (TAX LAWS REQUIREMENT WILL BE APPLICABLE)
16.BANK SHOULD ENSURE KYC,AML,DUE DILLIGENCE(WHEN REQUIRED)
17. APPLICANT SHOULD HAVE MAINTAIN 1 YEAR RELATION WITH BANK TO MEKE CAPITAL ACCOUNT TRANSACTIONS (OTHERWISE CDD,ADD REQUIRED
18. PAYMENT CANBE MADE BY A CHEQUE DRAWN ON APPLICANT BANK ACCOUNT/DEBIT APPLICANT ACCOUNT/DD PO
19. BANK SHOULD CERTIFY THAT THE REMITTANCE IS NOT BEING MADE DIRECTLY OR INDIRECTLY BY INELIGIBLE ENTITIES
20. BANK SHOULD NOT EXTEND ANY KIND OF CREDIT FACILITIES TO RESIDENT INDICIDUALS TO REMITTANCE FOR CAPITAL ACCOUNT TRANSACTIONS
21. FATF SHOULD MAINTAIN A LIST OF FATF COUNTRIES.
22. REMITTANCE MADE UNDER THIS SCHEME TO BE REPORTED IN R-RETURN IN THE NORMAL COURSE.
23. UNDER USD 25000 SHOULD BE KEPT IN LESS THAN USD 25000.
24. BANK WOULD ALSO FURNISH INFORMATION ABOUT NUMBER OF APPLICANT AND TOTAL AMOUNT REMITTED ON MONTHLY BASIS THROUGH ORFS.
25. FOREIGN BANKS OPERATING IN INDIA AS WELL AS INDIAN BANKS CAN MAKE ADVERTISEMENT FOR FOREIGN CURRENCY DEPOSITS, OVERSEAS MU
SUBJECT TO APPROPRIATE DISCLOSURE ALSO SHOULD SEEK PRIOR APPROVAL OF RBI
4. OTHER REMITTANCE FACILITIES
A. REMITTANCE FACILITIES FOR RESIDENT INDIVIDUALS
1. TRAVEL
OUT OF LRS LIMIT FC NOTES AND COINS IS ALLOWED FOR TRAVEL
1. OTHER THAN IRAQ-LIBYA (5000), ISLAMIC REPUBLIC OF IRAN, RUSSIAN FEDARATION AND OTHER REPUBLICS OF COMMONWEALTH
OF INDEPENDENT STATES (FULL EXCHANGE) FOR HAJ/UMRAH (LIMIT SPECIFIED BY HAJ COMMITTEE) NOT EXCEEDING USD 3000 PER VISIT
2.IN CASE OF FOREIGN EXCHANGE PURCHASED FOR A SPECIFIC PURPOSE IS NOT UTILIZED FOR THAT PURPOSE CAN BE UTILIZED FOR OTHER PURPO
3.RESIDENT INDIVIDUAL AND EXPORTERS TO SURRENDER RECEIVED/REALIZED/UNSPENT/UNUSED FOREIGN EXCHANGE TO AN BANK WITH A PERIOD
4. TRAVELLERS CAN RETAIN FOREIGN CURRENCY,TRAVELLERS CHEQUE, CURRENCY NOTES OF USD 2000 WITHOUT ANY CEILING OF 180 DAYS
2. SALLARY
A PERSON WHO IS RESIDENT BUT NOT PERMANENTLY RESIDENT IN INDIA AND
a. IS A CITIZEN OF FOREIGN STATE OTHER THAN PAKISTAN
b. IS A CITIZEN OF INDIA WHO IS ON DEPUTATION TO THE FOREIGN OFFICE OR BRANCH OF A FOREIGN COMPANY OR SUBSIDIARY OR JOINT VENTURE
OF SUCH FOREIGN COMPANY, MAY MAKE REMITTANCE UPTO HIS NET SALARY.
3. MEDICAL EXPENCES OF NRI CLOSE RELATIVES BY RESIDENT INDIVIDUALS - SERVICES RELATED THERE TO UNDER REGULATION 2(i)
4. INTERNATIONAL CREDIT AND DEBIT CARDS (ICC/IDC) -
A. RESTRICTIONS CONTAINED IN RULE 5 FEMA (CURRENT AC) IS NA FOR THIS WHEN RESIDENTS WHILE VISIT OUTSIDE INDIA MAKING EXPENSES THR
B. ICC CAN BE ISSUED ON INR BALANCE IN NORMAL AC OR FC BALANCE IN FC ACCOUNT.
C. FOR NORMAL ACCOUNT RESIDENT CAN USE ICC ON INTERNET FOR MAKING PAYMENT OF ALL PERMISSIBLE PRODUCT IN FOREIGN EXCHAGE
D. THERE IS NO AGGRIGATE MONETARY CEILING SEPARATELY FOR USE OF ICC ON INTERNET
E. RESIDENT INDIVIDUAL MAINTAINING FOREIGN CURRENCY ACCOUNT WITH AN BANK ARE ELIGIBLE TO OBTAIN ICC ISSUED BY OVERSEAS BANK AND
F. ICC CAN NOT BE USED IN NEPAL AND BHUTAN.
G. BANK MAY ISSUE ICC TO NRI/PIO WITHOUT PRIOR APPROVAL OF RBI (CONDITION PAYMENT OF ICC CHARGES IS FROM INWARD REMITTANCE BALLA
H. WE ARE PAYING WHILE BOOKING AIR TICKETS IN INR TO FOREIGN AIRLINES OPERATING IN INDIA. CARD COMPANIES HAVE ARRANGEMENT WITH FO
THEY CAN GET THE PAYMENT IN THEIR COUNTRY AND CHOISED CURRENCY. PAYMENT TO BE MADE TO FOREIGN BANK VOSTO ACCOUNT
WITH INDIAN BABK/ FOREIGN CURRENCY ACCOUNT MAINTAINED BY AIRLINES/ MAKES PAYMENT IN FOREIGN CURRENCY OVERSEAS TO THE FOREIGN
5. STORE VALUE CARDS/ CHARGE CARDS/SMART CARDS -
BANK MAY ISSUE THESE CARDS TO RESIDENTS TRAVELLING ON PRIVATE/BUSINESS VISIT ABROAD ONLY CURRENT ACCOUNT TRANSACTIONS ARE AL
MERCHANT ESTABLISHMENT ALLOWED. OVERSEAS ATM WITHDRAWAL ALLOWED.
6. REDEMPTION OF UNUTILIZED BALANCE ON PREPAID TRAVEL CARD
# RESIDENTS WHO HAVE PURCHASED TRAVEL CARDS, ARE PERMITTED TO REFUND THE BALANCE ONLY AFTER 10 DAYS OF LAST TRANSACTION.
# THESE CARDS ARE USED AS A SUBSTITUTE OF CASH/TRAVELLERS CHEQUES. BANK SHOULD REDEEM THE UNUTILIZED BALANCE IMMEDIATELY WHE
SUBJECT TO RETENTION OF NOT SETTLED BY THE USER, UPTO $100 FOR PIPELINE TRANSACTIONS TILL COMPLETION OF SETTLEMENT CYCLE.
# TRANSACTION FEES SERCICE TAX PAYABLE IN INR.
7. GIFTS
# PERMISSION IS AVAILABLE TO PERSONS (OTHERTHAN INDIVIDUALS) TO REMIT TOWARDS DONATIONS UPTO 1% OF FOREIGN EXCHANGE EARNINGS
WHICHEVER IS LESS, FOR CREATION OF CHAIRS IN REPUTABLE EDUCATIONAL INSTITUTES, CONTRIBUTION TO FUNDS PROMOTED BY EDUCATIONAL I
CONTRIBUTION TO A TECHNICAL INSTITUTION OR BODY OF ASSOCIATION.
# ANY ADDITIONAL REMITTANCE NEEDS PRIOR APPROVAL OF RBI. APPLICATION TO BE FORWARDED WITH THE DETAILS OF THEIR FOREIGN EXCHANG
DURING LAST 3 YEARS, BRIEF BACKGROUND OF COMPANY ACTIVITY,PURPOSE OF DONATION, LIKELY BENEFITS OF THE CORPORATE.
8. COMMISSION TO AGENTS ABROAD FOR SALE OF RESIDENTIAL FLATS/COMMERCIAL PLOTS IN INDIA
# PERSONS OTHER THAN INDIVIDUALS REQUIRE PRIOR APPROVAL OF RBI IF COMMISSION EXCEEDS $25000 AND 5% OF INWARD REMITTANCE WICH I
9. REMITTANCE TOWARDS CAUNSULTANCY SERVICES
# PERSON OTHER THAN INDIVIDUAL REQUIRE PRIOR APPROVAL OF RBI IF REMITTANCE EXCEEDS $ 1 CR FOR INFRASTRUCTURE PROJECTS & $ 10 L F
10. REMITTANCE TOWARDS REIMBURSEMENT OF PRE-INCORPORATION EXPENSES
# PERSON OTHER THAN INDIVIDUAL SHALL REQUIRE PRIOR APPROVAL OF RBI FOR REMITTANCES EXCEEDING 5% OF INVESTMENT BRAUGHT INTO IN
11. PAYMENT OF FEES IN FOREIGN CURRENCY - EMBASSY AFFILIATED EDUCATION INSTITUTIONS
12. REMITTANCE TOWARDS PAYMENTS OF COLLECTED SUBCRIPTIONS TO OVERSEAS TV MEDIA COMPANY
CABLE OPERATORS/COLLECTION AGENTS IN INDIA OF OVERSEAS TV MEDIA COMPANIES CAN REMIT SUBSCRIPTION COLLECTED IN INDIA AND
ADVERTISEMENT CHARGES COLLECTED FROM ADVERTIZERS WHO ARE ELIGIBLE TO ADVERTISE ON OVERSEAS TV CHANNELS WITHOUT ANY PERMIS
13. BIDS IN FOREIGN CURRENCY FOR PROJECTS TO BE EXECUTED IN INDIA
RESIDENT COMPANY AWARDED THE CONTRACT IN INDIA ARE PERMITTED TO INCUR/RECEIVE FOREIGN EXCHANGE IN RESPECT OF GLOBAL BIDS
WHERE CENTRAL GOVT HAS AUTHORIZED SUCH PROJECTS TO BE EXECUTED IN INDIA.
14. SALE OF OVERSEAS TELEPHONE CARDS
BANK MAY ALLOW AGENTS IN INDIA OF OVERSEAS ORGANIZATION ISSUING PRE-PAID TELEPHONE CARDS TO REMIT SALE PROCEEDS OF SUCH CARD
NET OF THEIR COMMISSION TO THE ISSUER OF TELEPHONE CARDS.
15. LIBERALIZATION OF FOREIGN TECHNICAL COLLABORATION AGREEMENTS
FOREIGN EXCHANGE PAYMENT OF ROYALTY/LUMPSUM PAYMENT UNDER TECHNICAL COLLABORATION AGREEMENTS WITHOUT APPROVAL OF GOI.
16. DRAWAL OF FOREIGN EXCHANGE FOR PURCHASE OF TRADE MARK OR FRANCHISE IN INDIA
17. REMITTANCE FOR MAKING TOUR ARRANGEMENTS FOR AGENTS
1. BANK MAY EFFECT REMITTANCES AT THE REQUEST OF AGENTS IN INDIA WHO HAVE TIE-UP ARRANGEMENTS WITH HAOTEL/AGENTS ETC. ABROAD ,
TOUR ARRANGEMENTS FOR TRAVEL FROM INDIA,ALSO THEY CAN OPEN FCA FOR OVERSEAS PAYMENTS AND COLLECTION MADE IN FOREIGN EXCHAN
AND REFUND RECEIVED FROM OVERSEAS ON TOUR CANCELLATION.
2. BANK MAY ALLOW THE TOUR OPERATORS TO REMIT THE COST OF RAIL/ROAD/WATER/TRANSPORTATION VHARGES OUTSIDE INDIA WITHOUT RBI AP
3. THAE SALE OF PASSES/TICKET IN INDIA EITHER AGAINST THE PAYMENT IN INR/FC.
4. FOR COSOLIDATED TOURS INDIA,NEPAL, BHUTAN, BANGLADESH, SRILANKA ETC FOREIGNERS CAN REMIT MONEY TO INDIA ON THE NAME OF TOUR
THAT MONEY CAN BE PAID TO NEIGHOURING COUNTRIES FOR ARRANGEMENTS OF THE TOUR.
18. ISSUE OF GUARANTEE - IMPORT OF SERVICE
BANKS ARE PERMITTED TO ISSUE GUARANTEE UPTO $ 5,00,000 TO NR SERVICE PROVIDERS, IN FAVOUR OF RESIDENT SERVICE PROVIDOR WHO IS IM
PROVIDED BANK IS SATISFIED OF ABOUT BONAFIED TRANSACTION, DOCUMENTARY EVIDANCE FOR IMPORT OF SERVICE, A DIRECT CONTRACTUAL OB
FROM CONTRACT.BETWEEN R AND NR.
IN CASE OF PSU & D/U OF GOI APPROVAL FROM MOFGOI REQUIRED FOR ISSUE OF GUARANTEE FOR AN AMOUNT EXCEEDING $ 100,000 WILL BE REQU
19. INSTRUCTIONS TO BANK
1. RBI HAS NOT PRESCRIBED DOCUMENTS WHICH SHOULD BE VERIFID BY THE BANKS FOR CURRENT ACCOUNT TRANSACTIONS.
2. AS PER FEMA 10(5) BEFORE PROCESSING ANY TRANSACTION IN FOREIGN EXCHANGE ON BEHALF OF ANY PERSON BANK SHOULD OBTAIN DECLARA
COLLECT INFORMATION ABOUT THE APPLICANT AND TRANSACTION THEN RELATE THEM. ALSO CHECK RULES AND REGULATION OF THIS ACT OR OTH
BANK SHOULD PRESERVE DOCUMENTS OBTAINED FOR VERIFICATION OF RBI.
THE LIBILITY OF FURNISHING CORRECT DETAILS IN DOCUMENTS IS ON APPLICANT WHO HAS PROVIDED THE DECLARATION.
3. IN CASE THE PERSON ON WHOSE BEHALF TRANSACTION IS BEEN UNDERTAKEN REFUSE TO GIVE SATISFACTORY COMPLIANCE DOCUMENTS, HE SH
WITH REASON FOR NOT GIVING THE DOCUMENT, IF ANY EVIATIONS OF THE RULE CONTEMPTED BY THE PERSON BANK SHOULD REPORT TO RBI.
4. FOR OTHER THAN IMPORT AND REMITTANCES APPLICANT SHOULD USE FORM A2. IT SHOULD BE RETAINED BYTHE BANK FOR A PERIOD OF ONE YEA
5. FOR EFFECTING CURRENT ACCOUNT REMITTANCES NOT EXCEEDING $25000 BANK NEED THE BASIC INFORMATION VIZ NAME ADDRES OF APPLICAN
PROVIDED PAYMENT IS BEING MADE VIA CHEQUE DRAWN ON APPLICANT BANK ACCOUNT OR DEMAND DRAFT. BANK SHOULD
PREPARE DUMMY A-2 FOR PURPOSE OF REMITTANCE FOR STATISTICAL INPUTS IN BOP.
6. RECENTLY IN GROWING POPULARITY OF INTERNET BANKING, CUSTOMER CAN SUBMIT A2 ONLINE WITH ALL RELVENT DOCUMENTS UP TO $25000 FO
AND $100000 FOR CORPORATES. ADHEREANCE OF RULES AND REGULATIONS SHOULD BE MAINTAINED AS PER FEMA 10(5)
20. INCOME TAX CLEARANCE
FEMA NA . TDS APPLICABLE.
5. REMITTANCE OF ASSETS
A. BASIC
1. MEANS REMITTANCE OF ASSETS OUTSIDE INDIA IN A DEPOSIT WITH A BANK/FIRM/COMPANY,PROVIDENT FUND, SUPPERANNUATION BALANCE, AMO
MATURITY PROCEEDS OF INSURANCE POLICY, SALE PROCEEDS OF SHARES SECURITIES IMMOVABLE PROPERTIES OR ANY OTHER ASSET HELD IN IN
WITH PROVISSIONS OF FEMA.
2. NRI MEANS PERSON RESIDENT OUTSIDE INDIA WHO IS A CITIZEN OF INDIA
3. PIO MEANS CITIZEN OF ANY COUNTRY OTHERTHAN BANGLADESH/PAKISTAN WHO HAS HOLDED INDIAN PASSPORT AND HIS SPOUSE, HIS PARENTS/
PARENTS ARE CITIZEN OF INDIA AND HIS SPOUSE, HIS SPOUSE IS A CITIZEN OF INDIA.
4. EXPATITE STAFF IS A PERSON WHOSE PROVIDENT/SUPPERANNUATION/PENTION FUND MAINTAINED OUTSIDE INDIA, BY HIS PRINCIPAL EMPLOYER O
5. NOT PERMANENTLY RESIDENT IS A PERSON RESIDENT IN INDIA FOR EMPLOYMENT IN INDIA WHICH IS NOT MORE THAN 3 YEARS.
6. INDIVIDUAL FOREIGN NATIONAL MEANS A PERSON RETIRED FROM EMPLOYMENT IN INDIA, PERSON INHERTED FROM A PERSON, PERSON IS A NON-
AND HAS INHERTED ASSETS FROM HER DECEASED SPOUSE WHO WAS AN INDIAN NATIONAL RESIDENT IN INDIA
B. REMITTANCE BY INDIVIDUAL NOT NRI/PIO A FOREIGN NATIONAL
REMITTANCE SHOULD NOT EXCEED USD 1 MN PER FINANCIAL YEAR. THIS LIMIT NOT COVER SALE PROCEEDS OF ASSETS HELD ON REPATRIATION BA
IS MADE IN MORE THAN ONE INSTALLMENTS, THE REMITTANCE OF ALL INSTALLMENTS SHOULD BE MADE THROUGH SAME BANK ON SUBMISSION OF D
REMITTANCE IN RESPECT OF FOREIGN STUDENT WHO HAVE COMPLETED HIS STUDY AND CAME BACK TO INDIA, HIS BANK ACCOUNT HAS SOME BALA
TO INDIA.
THIS FACILITY NOT AVAILABLE TO NEPAL BHUTAN OR A PIO.
C. OUTWARD REMITTANCE BY NRI/PIOS
BANK MAY ALLOW NRI/PIO, ON SUBMISSION OF DOCUMENTARY EVIDENCE TO REMIT UPTO $ 1 MN OUT OF BALLANCES IN THEIR NRO ACCOUNT/SALE P
ASSETS ACQUIRED IN INDIA BY WAY OF INHERITTANCE OR LEGACY/ ASSETS AQUIRED UNDER A DEED OF SETTLEMENT EITHER OF HIS PARENTS OR R
SETTLEMENT SHOULD TAKE ON THE DEATH OF THE SETTLER.
IN CASE SETTLEMENT IS DONE DURING THE LIFETIME OF THE OWNER/PARENT, IT WOULD BE CONSIDER TO REGULAR TRANSFER BY WAY OF GIFT AN
PROCEEDS OF SUCH PROERTIES WOULD BE GUIDED BY FEMA NRO AC GUIDELINES.
D. OUTWARD REMITTANCE BY COMPANIES/ENTITIES
BANK MAY ALLOW REMITTANCES BY INDIAN COMPANIES UNDER LIQUIDATION ON DIRECTION ISSUED BY A COURT/ORDERS ISSUED BY OFFICIAL LIQUI
VOLUNTERY WINDING UP ON SUBMISSION OF AUDITORS CERTIFICATE CONFIRMING THAT ALL LIABILITIES IN INDIA HAVE BEEN EITHER FULLY PAID, W
ACCORDANCE WITH THE COMPANIES ACT.
WINDINGUP OTHERWISE BY A COURT, AN AUDITORS CERTIFICATE TO THE EFFECT THAT THERE IS NO LEGAL PROCEEDINGS PENDING IN ANY COURT
THE APPLICANT AND THE COMPANIES LIQUIDATING AND THERE IS NO LEGAL DRAWBACK IN PERMITTING THE REMITTANCE.
BANK ALSO ALLOWS INDIAN ENTITIES TO REMIT THEIR CONTRIBUTION TOWARDS THE PROVIDEND FUND/SUPERANNUATION FUND/PENSION FUND IN R
EXPERTITE STAFF RESIDENT BUT NOT PERMANENTLY RESIDENT IN INDIA.
E. OUTWARD REMITTANCES/WINDING-UP PROCEEDS OF BRANCH/OFFICE
BANK MAY PERMIT REMITTANCE OF ASSETS ON CLOSURE OR REMITTANCE OF WINDING UP PROCEEDS OF BRANCH OFFICE/LIAISON OFFICE ON SUBM
DOCUMENTS - i) RBI CERTIFICATE ESTABLISHMENT ii) AUDITORS CERTIFIVATE CONFIRMING THE MANNER IN WHICH THE REMITTABLE AMOUNT HAS B
BY STATEMENT OF ASSETS AND LIABILITIES OF THE APPLICANT AND INDICATING THE MANNER OF DISPOSAL OF ASSETS, ALSO CONFIRMING THAT AL
INCLUDING ARREARS OF GRATUITY AND OTHER BENEFITS TO THE EMPLOYEESS OF BRANCH/OFFICE HAVE BEEN FULLY MADE AND NO INCOME ACCU
OUTSIDE INDIA HAS REMAINED UNREPATRIATED TO INDIA AND BRANCH/OFFICE HAS COMPLIED WITH ALL REGULARORY REQUIREMENTS STIPULATED
REGARDING FUNTIONING. iii) A CONFIRMATION FROM THE APPLICANT THAT NO LEGAL PROCEEDINGS ARE PENDING IN ANY COURT IN INDIA AND NO L
TO THE REMITTANCE iv) A REPORT FROM REGISTERAR OF COMPANIES REGARDING COMPLIANCE WITH THE PROVISSION OF COMPANIES ACT.
F. REMITTANCE OF ASSETS REQUIRING RBI
PRIOR APPROVAL OF RBI IS NECESSERY FOR REMITTANCE OF ASSETS WHERE:
a. REMITTANCE IS EXCEEDS OF $ 1 MN PER FINANCIAL YEAR i) ON ACCOUNT OF LEGACY/INHERRITANCE TO A CITIZEN OF FOREIGN STATE ii) BY NRI PI
HELD IN NRO ACCOUNTS/ SALE PROCEEDS OF ASSETS/ THE ASSETS ACQUIRED BY WAY OF INHERRITANCE.
b. HARDSHIP WILL BE CAUSED TO A PERSON IF REMITTANCE FROM INDIA IS NOT MADE TO SUCH PERSON.
6. ACQUISITION/TRANSFER OF IMMOVABLE PROPERTY
PART - A - ACQUISITION OF IMMOVABLE PROPERTY OUTSIDE INDIA BY A PERSON RESIDENT IN INDIA
# IF PERMITTED UNDER FEMA OR AFTER TAKING APPROVAL FROM RBI.
# THESE RESTRICTIONS ARE NA FOR
i) PROPERTY HELD BY A PERSON RESIDENT IN INDIA WHO IS A FOREIGN NATIONAL
ii|) THE PROPERTY WAS ACQUIRED BY A PERSON RESIDENT IN INDIA ON OR BEFORE 8 JULY,1947 AND CONTINUED TO BE HELD BY HIM WITH
APPROVAL FROM RBI.
iii) ACQUISITION OF PROPERTY OUTSIDE INDIA BY PERSON ON A LEASE NOT EXCEEDING 5 YEARS.
# RELATIVE MEANS IN RELATION WITH INDIVIDUAL MEANS HUSBAND, WIFE, BROTHER, SISTER OR ANY FOREFATHER OR GENERATION OF THAT INDIVI
# A PERSON RESIDENT IN INDIA CAN HOLD/OWN/TRANSFER/INVEST IN ANY IMMOVABLE PROPERTY SITUATED OUTSIDE INDIA,
i) IF SUCH PROPERTY WAS ACQUIRED/HELD OR OWNED BY HIM WHEN HE WAS A RESIDENT OUTSIDE INDIA OR GIFT FROM A PERSON OUTSIDE INDIA.
ii) A PERSON RESIDENT IN INDIA WHO HAS ACQUIRED SUCH PROPERTY IN ACCORDANCE WITH THE FOREIGN EXCHANGE PROVISIONS IN FORCE AT TH
# A RESIDENT CAN PURCHASE IMMOVABLE PROPERTY OUTSIDE INDIA OUT OF FOREIGN EXCHANGE IN HIS RFC ACCOUNT
ALSO CAN ACQUIRE JOINTLY WITH A RELATIVE WHO IS A PERSON RESIDENT OUTSIDE INDIA. PROVIDED THERE IS NO OUTFLOW OF FUNDS FROM INDI
# A RESIDENT CAN SEND REMITTANCE UNDER THE LRS FOR PURCHASING IMMOVABLE PROPERTY OUTSIDE INDIA.
# COMPANY INCORPORATED IN INDIA HAVING OVERSEAS OFFICE MAY ACQUIRE IMMOVABLE PROPERTY OUTSIDE INDIA FOR ITS BUSINESS OR FOR R
OF ITS STAFF, PROVIDED TOTAL REMITTANCE DO NOT EXCEED THE FOLLOWING LIMITS PRESCRIBED FOR INITIAL AND RECURRING EXPENCES.
i) 15 % OF THE AVERAGE ANNUAL SALES OF THE INDIAN ENTITY FOR LAST 2 YEARS OR UPTO 25 % OF THE NETWORTH WICHEVER IS HIGHER FOR INIT
ii) 10% OF THE AVERAGE ANNUAL SALES FOR LAST 2 YEARS FOR RECURRING
PART - B - ACQUISITION OF IMMOVABLE PORPERTY IN INDIA BY PERSONS RESIDENTS OUTSIDE INDIA
A PERSON WHO IS A NON RESIDENT IN INDIA CAN HOLD/OWN/TRANSFER/INVEST ANY IMMOVABLE PROPERTY SITUATED IN INDIA. IF SUCH PROPERTY
HIM WHEN HE WAS A RESIDENT IN INDIA OR GIFTED FROM A RESIDENT IN INDIA.
TRANSFER INCLUDES SALE/PURCHASE/MORTGAGE/EXCHANGE/PLEDGE/GIFT/LOAN OR ANY OTHER TRANSFER OF RIGHT,TITLE,POSSESSION OR LIEN
1. ACQUISITION/TRANSFER BY NRI
i) PURCHASE OTHER THAN AGRICULTURAL LAND/PLANTATION PROPERTY/FARM HOUSE IN INDIA.
ii) TRANSFER IN INDIA TO A PERSON RESIDENT IN INDIA.
iii) TRANSFER TO A NRI OR PIO RESIDENT OUTSIDE INDIA.
THE PAYMENT FOR ACQUISITION OF IMMOVABLE PROPERTY CAN BE MADE THROUGH FOREIGN EXCHANGE OF NORMAL BANKING CHANNEL OR BY NR
THESE PAYMENTS CANNOT BE MADE BY TRAVELLERS CHEQUE OR FOREIGN CURRENCY NOTES.
2. ACQUISITION/TRANSFER BY PIO
i) PURCHASE OTHER THAN AGRICULTURAL LAND/PLANTATION PROPERTY/FARM HOUSE IN INDIA.
ii) GIFT FROM A PERSON RESIDENT IN INDIA OR FROM NRI/PIO
iii) GIFT FROM A PERSON WHO HAS ACQUIRED THE PROPERTY IN ACCORDANCE WITH FEMA.
iv) TRANSFER TO A PERSON RESIDENT IN INDIA.
v) TRANSFER TO A NRI/PIO
vi) TRANSFER AGRI LAND/FIRM HOUSE/PLANTATION PROPERTY TO A PERSON RESIDENT INDIA
WAY OF PAYMENT IS SAME AS NRI
3. ACQUISITION OF IMMOVABLE PROPERTY BY FOREIGN EMBASIES/DIPLOMATS/CONSULATE GENERALS
MAY PURCHASE SALE (EXCEPT A P F) IN INDIA PROVIDED - APPROVAL FROM MOEA GOI
PAYMENT SHOULD BE RECEIVED VIA NORMAL BANKING CHANNEL
4. A PERSON RESIDENT OUTSIDE INDIA FOR CARRINGOUT PERMITTED ACTIVITIES.
A BRANCH OR OFFICE IN INDIA ESTABLISHED BY A PERSON OUTSIDE INDIA, CAN HOLD IMMOVABLE PROPERTY IN INDIA OTHERTHAN THAT OFFICE
SUCH A PERSON IS REQUIRED TO FILE WITH THE RBI FORM IPI NOT LATER THAN 90 DAYS FROM THE DATE OF ACQUISITION.
THIS PROPERTY CAN BE MORTGAGED.
FOR BRANCH OFFICE OF PAKISTAN/BANGLADESH/NEPAL/BHUTAN/IRAQ/IRAN/RILANKA/AFGANISTAN/CHINA/HONGKONG/MAKAU PRIOR APPROVAL OF R
5. REPATRIATION SALE PROCEEDS OF IMMOVABLE PROPERTY
A FOREIGNR ACQUIRED PROPERTY IN INDIA IN ACCORDANCE WITH YHE FRMA SEC 6(5) OF THE FEMA CANNOT REPATRIATE THE SALE PROCEEDS OUT
WITHOUT PRIOR APPROVAL OF RBI.
BUT A NRI/PIO RESIDENT OUTSIDE INDIA CAN MAKE REMITTANCE AS PER FEMA SUBJECT TO AMOUNT REPATRIATED IS NOT EXCEED THE AMOUNT PA
THROUGH NORMAL BANKING CHANNEL OR THROUGH FUNDS HELD IN FCNR(B) OR NRE ACCOUNT.
IN CASE IMMOVABLE PROPERTY IN INDIA PURCHASED BY NRI/PIO OUTOFF HOUSING LOAN AVAILED AS PER FEMA IN TERMS AND RE-PAYMENT OF SUC
MADE OUT OF REMITTANCES RECEIVED FROM ABROAD THROUGH BANKING CHANNELS OR BY DEBIT TO THE NRE/FCNR ACCOUNT OF NRI
IN CASE OF RESIDENTIAL PROPERTY, THE REPATRIATION OF SALE PROCEEDS IS RESTRICTED TO NOT MORE THAN TWO PROPERTIES.
6. PROHIBITION ON TRANSFER OF IMMOVABLE PROPERTY IN INDIA BY CITIZENS OF CERTAIN COUNTRIES
FOR PAKISTAN/BANGLADESH/NEPAL/BHUTAN/IRAQ/IRAN/RILANKA/AFGANISTAN/CHINA/HONGKONG/MAKAU PRIOR APPROVAL OF RBI REQUIRED TO AC
IMMOVABLE PROPERTY IN INDIA, OTHERTHAN ON LEASE NOT EXCEEDING 5 YEARS.
7. MISCELLINIOUS
NO OBJECTION FROM BANK MAY ALLOW CREATION OF CHARGE ON IMMOVABLE ASSETS OF A PERSON RESIDENT IN INDIA EITHER IN FAVOUR OF ECB
LENDER OR THE SEECURITY TRUSTEE BUT FOLLOWING CONDITIONS TO BE FOLLOWED-
a. NO OBJECTION SHALL BE GRANTED ONLY TO A RESIDENT ECB BORROWER.
b. PERIOD OF SUCH CHARGE ON IMMOVABLE PROPERTY HAS TO BE IN LINE WITH THE MATURITY OF THE UNDERLYING ECB.

7. DEPOSIT AND ACCOUNTS

A. FOREIGN CURRENCY ACCOUNT BY PERSONS RESIDENT IN INDIA
# FCA MEANS ACCOUNT MAINTAINED IN CURRENCY OTHERTHAN CURRENCY OF INDIA/NEPAL/BHUTAN
# FEMA 10(R) PROHIBITS, RESTRICT , AND REGULATE THE OPENING, HOLDING AND MAINTAINING OF FCA AND ITS LIMITS UPTO WHICH AMOUNT CAN B
A PERSON RESIDENT IN INDIA.
# A RESIDENT WHO HELD FCA BEFORE COMMENCEMENT OF FEMA 10(R) CAN CONTINUE HIS ACCOUNT WITH PERMISSION OF RBI
# A PERSON RESIDENT IN INDIA CAN MAINTAIN FCA OUTSIDE INDIA IF HE HAD OPENED IT WHEN HE WAS A RESIDENT OUTSIDE INDIA OR GIFTED IT FR
1. EXCHANGE EARNER FOREIGN CURRENCY ACCOUNT (EEFC)
A PERSON RESIDENT IN INDIA MAY OPEN EEFC ACCOUNT IN INDIA -
PERMITTED CREDITS :-
i) 100% OF THE FOREIGN EXCHANGE EARNINGS BY WAY OF INWARD REMITTANCE THROUGH NORMAL BANKING CHANNEL (EXCEPT LOANS AND ADVA
ii) PAYMENT RECEIVED FOR THE PURPOSE OF COUNTER TRADE
iii) ADVANCE REMITTANCE RECEIVED BY EXPORTER TOWARDS EXPORT OF GOODS AND SERVICES
iv) PROFESSIONAL EARNINGS INCLUDING DIRECTORS FEES, CONSULTANCY FEES, LECTURE FEES, HONORARIUM AND SIMILAR OTHER EARNINGS REC
RENDERING SERVICES OUTSIDE.
v) INTEREST EARNED ON THE FUNDS HELD IN THE ACCOUNT
vi) RE-CREDIT OF UNUTILIZED FOREIGN CURRENCY WITHDRAWL
vii) RE-PAYMENT OF LOAN AND ADVANCES
viii) DISINVESTMENT PROCEEDS RECEIVED BY THE RESIDENT ACCOUNT HOLDER ON CONVERSION OF SHARES HELD BY HIM TO ADR/GDR UNDER DR S
PERMITTED DEBITS :-
i) PAYMENT OUTSIDE INDIA TOWARDS PERMISSIBLE CAPITAL AND CURRENT ACCOUNT TRANSACTIONS ARE ALLOWED.
ii) PAYMENT IN FC TOWARDS COST OF GOODS PURCHASED FROM A 100% EOU/EPZ/STP/EHTP
iii) PAYMENT OF CUSTOMS DUTY IN ACCORDANCE WITH THE PROVISIONS OF EXPORT IMPORT POLICY
iv) TRADE RELATED LOANS AND ADVANCES BY EXPORTER TO HIS IMPORTER OUTSIDE INDIA
v) PAYMENT BY A PERSON RESIDENT IN INDIA FOR SUPPLY OF GOODS/SERVICES INCLUDING PAYMENT OF AIR FARE AND HOTEL EXPENDITURE.
OTHER FEATURES :-
i) WITHDRAWAL IN RUPEE ARE PERMITTED FROM THE ACCOUNT, PROVIDED THE AMOUNT SO WITHDRAWN CANNOT BE CREDITED TO THE ACCOUNT.
ii) A NON-INTEREST BEARING ACCOUNT.
iii) THE CLAIM SETTLED IN RUPEES BY ECGC/INSURANCE COMPANIES IN NOT ALLOWED TO BE CREDITED HERE.
iv) THE SUMTOTAL OF ACCRUALS IN THE ACCOUNT DURING THE MONTH SHOULD BE CONVERTED INTO RUPEES ON OR BEFORE THE LAST DAY OF NE
v) FUND BASED/NON FUND BASED CREDIT FACILITIES ARE NOT ALLOWED IN THIS ACCOUNT.
vi) EXPORTER CAN REPAY PACKING CREDIT ADVANCES WHEATHER TAKEN IN INR OR FC, CAN REPAY FORM THIS ACCOUNT.
vii) BALLANCES HELD IN THE ACCOUNT MAY BE CREDITED TO NRE/FCNR (B) ACCOUNTS WHEN RESIDENT BECOME NON-RESIDENT.
2. RESIDENT FOREIGN CURRENCY ACCOUNT (RFC AC) -
A PERSON RESIDENT IN INDIA IS PERMITTED TO OPEN RFC ACCOUNT WITH A BANK IN INDIA OUT OF FOREIGN EXCHANGE RECEIVED/ACQUIRED BY HIM
ONLY CURRENT ACCOUNT TRANSACTIONS ARE ALLOWED.
i) AS PENSION OR SUPERANNUATION BENEFITS OR OTHER MONETARY BENEFITS FROM HIS OVERSEAS EMPLOYER.
ii) BY CONVERTING ASSETS WHICH WERE ACQUIRED BY HIM WHEN HE WAS A NON RESIDENT OR GIFTED FROM A RESIDENT OUTSIDE INDIA AND REPA
iii) INCOME ARISING OR ACQUIRING BEFORE JULY 8 1947 OR INCOME ARISING FROM OUTSIDE WITH PERMISSION OF RBI.
iv) LIC CLAIM/ MATURITY/ SURRENDERED VALUE SETTLED IN FOREX FROM AN INDIAN INSURANCE COMPANY OF IRDA.
OTHER FEATURES ARE-
a) BALLANCES IN RFC AC ARE FREE FROM ALL RESTRICTIONS REGARDING UTILIZATION OF FOREIGN CURRENCY BALLANCES OUTSIDE INDIA.
b) SUCH ACCOUNTS CAN BE HELD WITH RESIDENT RELATIVE AS JOINT HOLDER ON "FORMER OR SURVIOR BASIS" . HOWEVER RELETIVE CANNOT OPE
DURING THE LIFETIME OF RESIDENT ACCOUNT HOLDER.
c) NRE AC AND FCNR AC CAN BE CREDITED TO RFC AC WHEN RESIDENTIAL STATUS OF A NRI CHANGES TO THAT OF A RESIDENT.
3. RESIDENT FOREIGN CURRENCY (DOMESTIC) {RFC(D)} ACCOUNT -
a) CURRENT SAVINGS TERM DEPOSITS.
b) THE FOREIGN EXCHANGE ACQUIRED IN THE FORM OF CURRENCY NOTES, BANK NOTES,AND TRAVELLERS CHEQUES, FROM THE OVERSEAS SOURC
c) PAYMENT WHILE ON A VISIT ABROAD FOR SERVICES.
d) HONORARIUM OR GIFT OR FOR SERVICES RENDERED OR IN SETTLEMENT OF ANY LAWFUL OBLIGATION FROM ANY PERSON RESIDENT OUTSIDE IND
AND WHO IS ON A VISIT TO INDIA.
e) HONORARIUM OR GIFT WHILE ON A VISIT TO ANY PLACE OUTSIDE INDIA
f) GIFT FROM A RELATIVE
g) UPSPENT FOREIGN EXCHANGE ACQUIRED FROM A AUTHORISED PERSON FOR TRAVEL ABROAD.
h) DISINVESTMENT PROCEEDS RECEIVED BY THE RESIDENT ACCOUNT HOLDER ON CONVERSION OF SHARES HELD BY HIM TO ADR GDR UNDER THE D
g) CLAIMS RECEIVED IN FOREIGN EXCHANGE AS PROCEEDS OF LIFE INSURANCE POLICY OF INSURANCE COMPANY IN INDIA REGULATED BY IRDA.
i) THE SUMTOTAL OF ACRUALS IN THE ACCOUNT DURING THE MONTH SHOULD BE CONVERTED INTO INR WITHIN NEXT MONTH.
j) BALLANCES IN THE ACCOUNT CAN BE USED FOR ANY PERMISSIBLE CURRENT AND CAPITAL ACCOUNT TRANSACTION
k) BALLANCES MAY BE TRANSFERRED TO NRE/FCNR AC WHEN RESIDENT BECOME NR.
4. DIAMOND DOLLAR ACCOUNT(DDA)
FIRMS/COMPANIES DEALING IN DIAMONDS ARE ALLOWED TO OPEN DDA AS PER SCHEDULE II OF FEMA 10(R).
REALIZATION OF EXPORT PROCEEDS AND LOCAL SALES IN USD OF ROUGH CUT AND POLISHED DIAMONDS.
PRE-POST SHIPMENT FINANCE AVAILED IN USD CAN BE CREDITED TO THIS ACCOUNT.
PAYMENT FOR PURCHASE OF ROUGH/CUT POLISHED DIAMONDS CAN BE MADE FROM DDA
FUNDS CAN BE TRANSFERRED TO INR ACCOUNT OF THE EXPORTER.
NON INTEREST BEARING CURRENT ACCOUNT.
TOTAL ACCRUALS IN THE ACCOUNT DURING THE CALENDER MONTH TO BE CONVERTEDINTO INR WITHIN NEXT CALENDER MONTH.
5. INDIAN AGENT OF FOREIGN SHIPPING OR AIRLINE COMPANIES CAN MAINTAIN FCA IN INDIA FOR TRANSACTIONS IN FC WITH HIS PARENT COMPANY
CREDIT PERMITTED TO THIS ACCOUNT ARE FREIGHT/PASSAGE FAIR COLLECTION ETC.
6. SHIP-MANNING AND CREW MANAGING AGENCIES IN INDIA CAN MAINTAIN NON-INTEREST BEARING FOREIGN CURRENCY ACCOUNT
FOR THE PURPOSE OF UNDERTAKING TRANSACTIONS IN THE ORDINARY COURSE OF THEIR BUSINESS.
CREDITS- ONLY BY WAY OF INWARD REMITTANCE THROUGH NORMAL BANKING CHANNELS FROM THE OVERSEAS PARENT COMPANY.
DEBITS- TOWARDS VARIOUS EXPENSES IN CONNECTION WITH THE MANAGEMENT OF THE SHIPS/CREW
NO CREDIT FACILITY GRANTED AGAINST SECURITY OF FUNDS HELD IN THE ACCOUNT.
RESERVE REQUIREMENTS IS THERE IN RESPECT OF SUCH ACCOUNTS
NO EEFC FACILITY SHOULD BE ALLOWED
THE ACCOUNT SHOULD BE MAINTAINED DURING THE VALIDITY PERIOD OF THE AGREEMENT THE COMPANIES
7. PROJECT OFFICES OF FOREIGN COMPANIES CAN OPEN NON-INTEREST BEARING ONE OR MORE FOREIGN CURRENCY ACCOUNTS IN INDIA
CONDITIONS:-
PROJECT OFFICE HAS BEEN ESTABLISHED IN INDIA WITH THE PERMISSION OF PROJECT SANTIONING AUTHORITY OF RBI.
THE CONTRACT UNDER WHICH PROJECT IS SANTIONED, SPECIFICALLY PROVIDED PAYMENT IN FOREIGN CURRENCY.
EACH PROJECT HAS ONLY ONE FOREIGN CURRENCY ACCOUNT ALLOWED.
DEBITS- FOR PAYMENT OF PROJECT RELATED EXPENDITURE.
CREDITS- FOREIGN CURRENCY RECEIPT FROM PROJECT SCANTIONING AUTHORITY.
REMITTANCES FROM PARENT/GROUP COMPANY ABROAD
FCA SHOULD BE CLOSED AT COMPLETION OF PROJECT
INTER-PROJECT TRANSFER OF FUNDS WILL BE PERMITTED WITH PRIOR PERMISSION OF RBI.
IN CASE OF DISPUTE BETWEEN PROJECT COMPANY AND PROJECT SCANTIONING AUTHORITY
THE BALLANCES HELD IN THIS ACCOUNT IS CONVERTED INTO INR AND CREDITD TO SPECIAL SETTLEMENT ACCOUNT.
8. ORGANISERS OF INTERNATIONAL SEMINERS,CONFERENCES,CONVENTIONS ETC. CAN OPEN TEMPORARY FCA IN INDIA
CREDITS- ALL INWARD REMITTANCES IN FOREIGN CURRENCY TOWARDS REGISTRATION FEES, GRANT/DONATION RECEIVED FROM FOREIGN,
DEBITS- PAYMENT TOWARDS SPECIAL INVITEES, REFUND OF REGISTRATION FEES, GRANTS ETC IF ANY, BANK CHARGES, CONVERSION INTO RUPEE.
ALL OTHER DEBIT CREDIT REQUIRED PRIOR APPROVAL OF RBI.
ACCOUNT TO BE CLOSED IMMEDIATELY AFTER CONFERENCE.
9. A CONSTRUCTION CONTRACT OR A TRUNKEY PROJECT OUTSIDE INDIA FOR EXPORTING GOODS AND SERVICES ON DEFFERED PAYMENT TERMS.
CAN OPEN A FCA WITH APPROVAL.
10. A UNIT LOCATED IN SEZ - CAN OPEN FCA
THIS ACCOUNT CAN BE USED FOR TRADE WITH DTA OR FOREIGN
FOREIGN EXCHANGE PURCHASED IN INDIA CANNOT BE CREDITED TO THIS ACCOUNT WITHOUT APPROVAL OF RBI.
FUNDS HELD IN THIS ACCOUNT CANNOT BE CREDITED TO UNITS IN DTA BUT UNITS IN SEZ.
BALLANCES HELD IN THIS AC ARE SUBJECT TO FEMA CURRENT AC RULES.
11. A COMPANY RECEIVING FDI CAN OPEN FCA. SHOULD BE CLOSED WITHIN 6 MONTHS.
12. FOREIGN CURRENCY ACCOUNTS CAN BE HELD OUTSIDE INDIA
FOLLOWING PERSONS CAN OPEN FCA OUTSIDE INDIA :-
i) A BANK IN INDIA HAVING FOREIGN BRANCH/HEAD OFFICE/CORRESPONDENT OUTSIDE INDIA.
ii) A SHIPPING OR AIRLINE COMPANY.
iii) LIC OR GIC AND ITS SUBSIDIARIES
iv) AN INDIAN FIRM/COMPANY/BODY CORPORATE IN THE NAME OF ITS FOREIGN OFFICE/BRANCH/REPRESENTATIVE
v) A PROJECT EXPORTER
vi) A STUDENT GONE ABROAD FOR STUDIES
vii) A PERSON WHO IS ON A VISIT TO FOREIGN COUNTRY
viii) PERSON GOING ABROAD FOR ATTENDING EXIBITION.
ix) A FOREIGN CITIZEN OR A INDIAN CITIZEN (RESIDENT IN INDIA) BEING AN EMPLOYEE ON DEPUTATION OF FOREIGN COMPANY/INDIAN COMPANY
WHICH HAS BRANCH/OFFICE/GROUP IN INDIA/OUTSIDE
x) AN INDIAN COMPANY CAN OPEN FCA ABROAD FOR ODI
xi) INDIAN RESIDENT CAN OPEN FCA FOR THE PURPOSE OF SENDING REMITTANCE UNDER LRS
xii) RAISING FUNDS THROUGH FOREIGN ECB, ADR , GDR FOR REPATRIATION TO INDIA MAY HELD IN FCA ABROAD
13.OTHER FEATURES :-
i) MAY BE OPENED, HELD, MAINTAINED IN THE FORM OF CURRENT,SAVINGS OR TERM DEPOSIT AC
ii) ACCOUNT CAN BE HELD SINGLY OR JOINTLY
iii) ON DEATH OF AC HOLDER GIVE THE FUNDS TO NOMINEE MAY BE OUTSIDE INDIA
iv) IF NOMINEE IN INDIA WANT TO USE THESE FUNDS FOR FOREIGN OBLIGATIONS RBI APPROVAL REQUIRED
v) IF ACCOUNT HELD OUTSIDE INDIA NOMINEE HAS TO BRING BACK THE FUNDS TO INDIA.
B. FOREIGN CURRENCY AC IN INDIA BY A PERSON RESIDENT OUTSIDE INDIA
FEMA RESTRICTS A PERSON OUTSIDE INDIA TO OPEN AN ACCOUNT IN INDIA
1. THESE RESTRICTION IS NOT APPLICABLE
i) DEPOSITS IN RUPEE ACCOUNT AND SPECIAL RUPEE ACCOUNT MAINTAINED BY FOREIGN DEPLOMATIC MISSIONS AND DEPLOMATICPERSONNEL.
ii) FOREIGN CURRENCY ACCOUNT MAINTAINED BY DEPLOMATIC MISSIONS, DEPLOMATIC PERSONNEL AND NON-DEPLOMATIC STAFF WHO ARE NATIO
AND HOLD PASPORT OF FOREIGN EMBICIES IN INDIA. CONDITIONS:-
THE PERMISSIBLE CREDIT TO THE ACCOUNT WILL BE INWARD REMITTANCE RECEIVED FROM OUTSIDE INDIA THROUGH BANKING CHANNELS.
TRANSFER OF FUNDS FROM RUPEE ACCOUNT OF THE DEPLOMATIC MISSON IN INDIA
FUND HELD IN SUCH ACCOUNT IF CONVERTED TO INR CANNOT BE CONPERTED BACK TO FOREIGN CURRENCY.
ACCOUNTS MAYBE HELD IN CURRENT/TERM DEPOSIT AC. FOR DEPLOMATIC PERSONNEL AND NON DEPLOMATIC STAFF IT MAY BE OPENED AS SAVING
RATE OF INTEREST IS AVAILABLE FOR SAVINGS AND TERM DEPOSITS
FUNDS IN THIS ACCOUNT MAY BE REPATRIATED OUTSIDE INDIA WITHOUT PRIOR APPROVAL OF RBI.
iii) DEPOSITS WITH BANK MAINTAINED IN RUPEE BY PESON RESIDENT IN NEPAL AND BHUTAN
iv) DEPOSIT WITH BANK BY ANY MULTILATERAL ORGANIZATIONS AND ITS SUBSIDIARY AFFILIATED BODIES AND OFFICIALS IN INDIA, OF WHICH INDIA I
2. NON RESIDENT EXTERNAL RUPEE ACCOUNT SCHEME- (NRE AC) -
i) NRIs ARE PERMITTED TO OPEN AND MAINTAIN THESE ACCOUNTS WITH AUTHORIZED DEALERS AND BANKS OF RBI.
ii) THIS ACCOUNT CAN BE MAINTAINED IN SAVINGS CURRENT RECURRING OR FIXED DEPOSIT ACCOUNT
iii) JOINT ACCOUNT CAN BE OPENED WITH TWO NRIs OR A NRI WITH A RESIDENT RELATIVE ON FORMER OR SURVIVOR BASIS.
iv) DURING THE LIFETIME OF NRI RESIDENT INDIVIDUAL CAN OPERATE THE ACCOUNT AS ATTORNEY HOLDER.
v) INWARD AND OUTWARD REMITTANCE IS PERMITTED
vi) CREDITS PERMITTED ARE INWARD REMITTANCE, INTEREST ACCRUED, INTEREST ON INVESTMENT, TRANSFER FORM OTHER NRE OR FCNR AC,
MATURITY PROCEEDS OF INCESTMENTS.
vii) DEBITS ALLOWED FROM THIS ACCOUNT ARE LOCAL DISBURSEMENTS, TRANSFER TO ANOTHER NRE/FCNR AC AND INVESTMENT IN INDIA.
viii) CURRENT INCOME LIKE RENT, DIVIDEND, PENSION, INTEREST OF NRI ARE ALSO PERMITTED TO CREDIT IN NRE ACCOUNT.
ix) A BANK CAN GIVE LOAN(ALL FUND BASED AND NON FUND BASED) AGAINST SECURITY OF FUNDS AVAILABLE IN THIS ACCOUNT (PRE MATURE WITHD
x) NRE ACCOUNT IS DESIGNATED AS RESIDENT ACCOUNT AND FUND HELD IN THESE ACCOUNTS CAN BE TRANSFERRED TO RFC ACCOUNT.
xi) IN THE EVENT OF DEATH OF ACCOUNT HOLDER, BALLANCES IN THE ACCOUNT CAN BE TRANSFERRED TO NR NOMINEE AC HOLDER
xii) REQUEST FROM A RESIDENT NOMINEE TO KNOCK OFF HIS FOREIGN CURRENCY LIABILITY IS SUBJECT TO APPROVAL OF RBI.
xiii) OPERATIONS IN NRE AC MAY BE MAY BE ALLOWED IN TERMS OF POWER OF ATTORNEY BUT RESTRICTED TO LOCAL PAYMENTS OR
xiv) IN CASES WHERE THE BANK AND THE ACCOUNT HOLDER DESIGNATED HIM TO MAKE INVESTMENT THEN ONLY HE CAN MAKE INVESTMENT
xv) A POA IS NOT ALLOWED TO OPEN A NRE ACCOUNT, REPATRIATE FUNDS OUTSIDE, MAKE PAYMENT BY WAY OF GIFT TO A RESIDENT ,
TRANSFER FUND TO ANOTHER NRE ACCOUNT
xvi) INCOME FROM INTEREST ON BLLANCES HELD IN NRE ACCOUNT IS EXEMPTED FROM INCOME AND WEALTH TAX.
xvii) RATE OF INTEREST AS PER RBI.
3. FOREIGN CURRENCY NON RESIDENT ACCOUNT (FCNR)
NRIS ARE PERMITTED TO OPEN AND MAINTAIN THIS ACCOUNTS WITH BANKS AUTHORIZED BY RBI.
DEPOSIT MAY BE ACCEPTED IN ANY PERMISSIBLE CURRENCY
THE ACCOUNT CAN BE MAINTAINED ONLY IN THE FORM OF FIXED DEPOSIT
OTHER CONDITIONS LIKE CREDIT/DEBIT/JOINT ACCOUNT, LOANS/OVERDRAFT,OPERATION BY POWER OF ATTORNEY
AS APPLICABLE TO NRE AC WILL BE APPLICABLE TO FCNR AC AS WELL
THE RATE OF INTEREST AND TENOR AS PER RBI.
4. NON RESIDENT ORDINARY ACCOUNT (NRO)
i) ANY PERSON RESIDENT OUTSIDE INDIA MAY OPEN AND MAINTAIN THIS ACCOUNT WITH BANK AUTHERISED BY RBI
TO DEPOSIT THEIR EARNINGS IN INR OR FOREIGN CURRENCY.
ii) POST OFFICE MAY MAINTAIN SAVINGS ACCOUT FOR FOREIGNERS BUT PROPORTIONATE NRO ACCOUNT SHOULD BE MAINTAINED WITH BANKS.
iii) NRO ACCOUNT CAN BE OPENED BY FOREIGNER VISITING INDIA FOR REMITTED FUNDS WITH HIM THROUGH NORMAL BANKING CHANNEL IN INDIA FO
NO LOCAL FUNDS WILL BE CREDITED.
iv) INDIVIDUAL/ENTITIES OF PAKISTAN WITH RBI APPROVAL TO OPEN THIS ACCOUNT.
v) INDIVIDUAL/ENTITIES OF BANGLADESH WITH APPROVAL OF FRO/FRRO MAY OPEN THIS ACCOUNT.
vi) ACCOUNT CAN BE MAINTAINED IN SAVINGS, CURRENT, RECURRING AND FIXED DEPOSITS.
vii) ACCOUNT MAY BE HOLD JOINTLY WITH RESIDENTS.
viii) INWARD REMITTANCES FROM OUTSIDE INDIA
ix) CREDITS- INWARD REMITTANCES FROM OUTSIDE INDIA, LEGITIMATE INCOMES IN INDIA, GIFT LOAN RECEIVED FROM RESIDENT.
x) DEBITS- LOCAL PAYMENTS,REMITTANCE TO ABROAD UPTO I MILLION, TRANSFER TO NRE ACCOUNT UPTO 1 MILLION.
xi) LOANS AGAINST THE DEPOSITS CAN BE GRANTED IN INDIA TO THE ACCOUNT HOLDER AND THIRD PARTY
SUBJECT TO USUAL NORMS AND MARGIN REQUIREMENTS. LOAN AMOUNT CANNOT BE USED FOR AGRICULTURAL/PLANTATION/REALESTATE ACTIVIT
xii) NRO ACCOUNT CAN BE TREATED AS NORMAL RESIDENT ACCOUNT WHEN A PERSON RESIDENT RETURNS IN INDIA.
xiii) OPERATIONS IN NRE AC MAY BE MAY BE ALLOWED IN TERMS OF POWER OF ATTORNEY BUT RESTRICTED TO LOCAL PAYMENTS OR
xiv) POA OPERATIONS HAS BEEN LIMITED TO LOCAL PAYMENTS AND REMITTANCE TO NON RESIDENTS.
xv) TO FACILITATE FOREIGN NATIONAL TO COLLECT THEIR PENDING DUES IN INDIA, BANK MAY
xvi) BANKS HAVE BEEN PERMITTED TO ISSUE NRI/PIO INTERNATIONAL CREDIT CARDS, WITHOUT PRIOR APPROVAL OF RBI TO FCNR,NRO,NRE ACCOUN
SUBJECT TO BALANCE CAME TO THIS ACCOUNT BY INWARD REMITTANCES.
xvii) REMITTANCES (NET OF APPLICABLE TAXES) TO BE ALLOWED TO BE MADE BY AUTHORIZED DEALER ON PRODUCTION OF REQUISIT INFORMATION
PRESCRIBED BY CBDT,MOF,GOI.
5. SPECIAL NON RESIDENT RUPEE ACCOUNT -
i) REGISTERED FOREIGN PORTFOLIO INVESTOR(RFPI) MAY OPEN AN SNRR AC WITH BANK IN INDIA FOR ROUTING THE RECEIPTS AND PAYMENTS RELA
OF SECURITIES UNDER PORTFOLIO INVESTMENT SCHEME IN ACCORDANCE WITH FEMA. SNRR ACCOUNT SHALL BE A NON INTEREST BEARING CURRE
ii) THE PERMITTED CREDITS TO THIS ACCOUNTS ARE a) INWARD REMITTANCES b) SALE PROCEEDS OF SECURITIES IN INDIA c) TRANSFER FROM THE F
OF THE RFPI
iii) THE PERMITTED DEBITS ARE a) PURCHASE OF SECURITIES IN INDIA b) TRANSFER TO THE FOREIGN CURRENCY ACCOUNT OF THE RFPI
6. ESCROW ACCOUNT -
RESIDENT OR NON RESIDENT MAY OPEN ESCROW IN INR, WITH AN BANK IN INDIA.
TRANSACTION WILL BE IN ACCORDANCE WITH THE FEMA REGULATIONS AND SEBI REGULATIONS
THE ACCOUNT SHALL BE NON INTEREST BEARING
NO FUND AND NON FUND BASED FACILITIES IS PERMITTED AGAINST THE ACCOUNT
7. ACCEPTANCE OF DEPOSITS BY A COMPANY IN INDIA FROM NRI ON REPATRIATION BASIS
A COMPANY INCORPORATED IN INDIA INCLUDING NBFC REGISTERED WITH THE RBI, CANNOT ECCEPT DEPOSITS ON REPATRIATION BASIS.
8. ACCEPTANCE OF DEPOSITS BY INDIAN PRORIATORSHIP CONCERN/FIRM/COMPANY FROM NRI ON REPATRIATION BASIS
AN INDIAN PROPRIATORSHIP FIRM OR A COMPANY REGISTERED WITH RBI CAN ACCEPT DEPOSITS FROM NRI ON REPATRIATION BASIS.
INDIAN COMPANIES ACCEPT DEPOSITS FROM NRI BY ISSUE OF COMMERCIAL PAPER
9. SHIPPING AIRLINE COMPANY
INCORPORATED OUTSIDE INDIA CAN OPEN FCA FOR MEETING LOCAL EXPENSES IN INDIA OF SUCH AIRLINE OR SHIPPING COMPANY. CREDITS PERMIT
FREIGHT OR PASSAGE FARE COLLECTION IN INDIA OR BY INWARD REMITTANCE TO BANKING CHANNEL FROM ITS OFFICE OUTSIDE INDIA.
8. BORROWING AND LENDING IN FOREIGN CURRENCY
A. EXTERNAL COMMERCIAL BORROWINGS (ECB)
1. BASIC -
ECBS ARE COMMERCIAL LOAN RAISED BY ELIGIBLE RESIDENT ENTITIES FROM RECOGNISED NON-RESIDENT ENTITIES.
ENTITIES SHOULD FOLLOW PARAMETERS SUCH AS MINIMUM MATURITY, PERMITTED AND NOT PERMITTED END USES, MAXIMUM ALL IN COST CEILING
PARAMETERS SHOULD APPLY IN TOTALLY NOT ON STANDALONE BASIS.
TRACK 1 - MEDIUM TERM FOREIGN CURRENCY DENOMINATED ECB WITH MINIMUM AVERAGE MATURITY OF 3/5 YEARS.
TRACK 2 - LONG TERM FOREIGN CURRENCY DENOMINATED ECB WITH MINIMUM AVERAGE MATURITY OF 10 YEARS.
TRACK 3 - INR DENOMINATED ECB WITH MINIMUM AVERAGE MATURITY OF 3/5 YEARS.
FORMS - BANK LOANS, FLOATING RATE NOTES, FIXED RATE BONDS, NON-CONVERTIBLE-PARTIALY CONVERTIBLE-OPTIONALY CONVERTIBLE PREFER
OR DEBENTURES,BUYERS CREDIT,SUPPLIERS CREDIT, FOREIGN CURRENCY CONVIRTABLE BONDS(FCCBs), FINANCIAL LEASE, FOREIGN CURRENCY E
APPROVAL ROUTE - UNDER THIS ROUTE THE BORROWER ARE REQUIRED TO SEND THEIR REQUESTS TO RBI THROUGH THEIR BANKS FOR EXAMINA
AUTOMATIC ROUTE - WHERE THERE IS NO REQUIREMENT OF RBI APPROVAL.
PROVISIONS - ARE SAME UNDER BOTH THE ROUTES, ONLY DIFFERENCE IN ELIGIBILITY, AMOUNT AND END USE
DEBT EQUITY RATIO - BORROWING ENTITY WILL BE GOVERNED BY GUIDELINES ON DEBT EQUITY RATIO ISSUED.
PROCEDURE OF RAISING ECB - FOR APPROVAL ROUTE CASES BORROWER MAY APPROACH RBI WITH AN APPLICATION IN PRESCRIBED FORMAT OF E
THROUGH BANK. SUCH CASES SHALL BE CONSIDERED KEEPING IN VIEW THE OVERALL GUIDELINES, MACRO-ECONOMIC SITUATION, AND MERITS OF T
BY EMPOWERED COMMITTEE SET UP BY RBI. THE EMPOWERED COMMITTEE WILL HAVE EXTERNAL AS WELL AS INTERNAL MEMBERS. ENTITIES DESIR
UNDER AUTOMATIC ROUTE MAY APPROACH BANK WITH THEIR PROPOSAL ALONG WITH FORM 83.
TRACK 1 -
PERIOD AND AMOUNT - 3 YEARS OF ECB UPTO USD 50 MILLION OR ITS EQUIVALENT AND 5 YEARS OF ECB BEYOND 50 MILLION
BORROWERS - COMPANIES IN MANUFACTURING AND SOFTWARE DEVELOPMENT SECTOR, SHIPPING AND AIRLINE COMPANIES, SIDBI, EXIM BANK
LENDERS - INTERNATIONAL BANKS, INTERNATIONAL CAPITAL MARKETS, MULTILATERAL FINANCIAL INSTITUTIONS (IFC,ADB ETC), REGIONAL FINANCIA
OWNED (WHOLELY OR PARTIALY) FINANCIAL INSTITUTIONS, EXPORT CREDIT AGENCIES, SUPPLIERS OF EQUIPMENT, FOREIGN EQUITY HOLDERS,PRU
REGULATED FINANCIAL ENTITIE, SPENSION FUNDS , INSURANCE COMPANIES , SOVEREIGN WEALTH FUNDS, FINANCIAL INSTITUTIONS LOCATED IN INT
SERVICES CENTERS IN INDIA, OVERSEAS BRANCHES/SUBSIDIARIES OF INDIAN BANKS.
INTEREST RATE - PERIOD OF 3-5 YEARS 6MONTHS LIBOR + 300 BPS AND PERIOD MORETHAN 5 YEARS - 6 MONTHS LIBOR + 450 BASIS POINTS
PENAL RATE - MAXIMUM 2 % OVER AND ABOVE CONTRACTED INTEREST RATE.
END USE - IMPORT OF CAPITAL GOODS AND SERVICES, TECHNICAL KNOWHOW AND LICENCE FEES AS PART OF CAPITAL GOODS, LOCAL SOURCING O
NEW PROJECTS, MODERNIZATION/EXPANSION OF EXISTING UNITS, ODI IN JV/WOS, ACQUISITION OF SHARES OF PSUS AT ANY STAGE OF DISINVESTM
PROGRRAME OF GOI, REFINANCING OF EXISTING TRADE CREDITS RAISED FOR IMPORT OF CAPITAL GOODS, PAYMENT OF CAPITAL GOODS ALREADY
REFINANCING OF EXISTING ECBS PROVIDED THE REMAINING MATURITY IS NOT REDUCED.
SIDBI CAN RAISE ECB ONLY FOR BORROWERS IN MSME. SEZ CAN RAISE ECB ONLY FOR OWN REQUIREMENTS, SHIPPING/AIRLINE COMPANIES CAN RA
IMPORT OF VASSELS, AIRCRAFTS RESPECTIVELY
ECB CAN BE USED FOR GENERAL CORPORATE PURPOSE INCLUDING WORKING CAPITAL PROVIDED IT IS RAISED FROM DIRECT/INDIRECT EQUITY HOL
COMPANY FOR A MINIMUM MATURITY OF 5 YEARS.
ECB ONLY ON APPROVAL ROUTE FOR IMPORT OF SCEOND HAND GOODS, ON-LENDING BY EXIM BANK.
TRACK 2 -
PERIOD AND AMOUNT - 10 YEARS IRRESPECTIVE OF AMOUNT
BORROWERS - ALL ENTITIES AS PER ABOVE TRACK 1, COMPANIES IN INFRASTRUCTURE SECTORS, HOLDING COMPANIES, CIC, REITs AND INVITs COM
LENDERS- ALL ENTITIES LISTED IN TRACK 1 EXCEPT OVERSEAS BRANCHES/SUBSIDIARIES OF INDIAN BANKS.
INTEREST RATE - MAXIMUM RATE LIBOR+ 500 BPS. REMAINING CONDITION IS AS PER TRACK 1.
END USE - END USE OF ALL PURPOSES EXCLUDING THE FOLLOWING - REAL ESTATE ACTIVITIES, INVESTING IN CAPITAL MARKET, USING THE PROCEE
DOMESTICALLY, ON LENDING TO OTHER ENTITIES WITH ANY OF THE ABOVE OBJECTIVES, PURCHASE OF LAND, HOLDING COMPANIES CAN ALSO USE
FOR PROVIDING LOANS TO THEIR ISPVs.
TRACK 3 -
PERIOD AND AMOUNT - SAME AS TRACK 1.
BORROWERS - ALL ENTITIES LISTED UNDER TRACK 1 AND 2. ALL NBFCs, NBFC-MFIs(NOT PROFIT SEEKING REGISTERED UNDER COMPANIES ACT), TRU
REGISTERED UNDER SOCITIES REGISTRATION ACT 1860 AND INDIAN TRUST ACT 1882 AND STATE/MULTI LEVEL COOPERATIVE ACTS, NON-GOVERNME
WHICH ARE ENGAGED IN MICRO FINANCE ACTIVITIES, COMPANIES ENGAGED IN MISSLENIOUS SERVISES R & D, TRAINING ETC (OTHERTHAN EDUCATIO
SUPPORTING INFRASTRUCTURE, COMPANIES PROVIDING LOGISTICS SERVICES, DEVELOPERS IN SEZs AND NMIZs.
LENDERS - SAME AS TRACK 2. NBFC-MFIs CAN AVAIL LOAN FROM OVERSEAS ORGANIZATIONS AND INDIVIDUALS.
ALL IN COST SHOULD BE IN LINE WITH THE MARKET CONDITIONS.
END USE- NBFCs CAN USE ECB PROCEEDS ONLY FOR LENDING TO INFRASTRUCTURE SECTORS, PROVIDING HYPOTHECATED LOANS TO DOMESTIC E
OF CAPITAL GOODS/EQUIPMENTS, PROVIDING CAPITAL GOODS/EQUIPMENT TO DOMESTIC ENTITIES BY WAY OF LEASE & HIRE PURCHASE,
DEVELOPERS SEZs AND NMIZs CAN RAISE ECB ONLY FOR PROVIDING INFRASTRUCTURE FACILITIES WITHIN SEZ/NMIZs
NBFC MFIs CAN RAISE ECB ONLY TO SHG OR FOR BONAFIED MICROFINANCE ACTIVITIES INCLUDING CAPACITY BUILDING.
FOR OTHER ELIGIBLE ENTITIES UNDER THIS TRACK ECB PROCEEDS CAN BE USED FOR ALL PURPOSES EXCEPT - REAL-ESTATE ACTIVITIES,INVESTING
USING THE PROCEEDS FOR EQUITY INVESTMENT DOMESTICALLY, ON-LENDING TO OTHER ENTITIES WITH ANY OF THE ABOVE OBJECTIVES, PURCHAS
2. FEATURES -
a) INDIVIDUAL LIMITS - AMOUNT OF ECB WHICH CAN BE RAISED IN FINANCIAL YEAR UNDER AUTOMATIC ROUTE-
UPTO USD 750 MN OR EQUIVALENT FOR THE COMPANIES IN INFRASTRUCTURE AND MANUFACRURING SECTOR.
UPTO USD 200 MN OR EQUIVALENT FOR THE COMPANIES IN SOFTWARE DEVELOPMENT SECTOR
UPTO USD 100 MN OR EQUIVALENT FOR THE COMPANIES ENGAGED IN MICROFINANCE ACTIVITIES.
UPTO USD 500 MN OR EQUIVALENT FOR REMAINING ENTITIES.
ECB PROPOSALS BEYOND AFORESAID LIMITS WILL COME UNDER APPROVAL ROUTE.
FOR COMPUTATION OF INDIVIDUAL LIMITS UNDER TRACK 3 EXCHANGE RATE PREVAILING ON THE DATE OF AGREEMENT SHOULD BE TAKEN INTO ACC
IN CASE ECB IS RAISED FROM DIRECT EQUITY HOLDERS, INDIVIDUAL ECB LIMITS WILL WILL BE CONSIDERED.
FOR ECB RAISED UNDER AUTOMATIC RUTE ECB LIMIT OF THE BORROWER SHOULD NOT BE MORE THAN 4 TIMES THE EQUITY CONTRIBUTED BY THE L
FOR ECB RAISED UNDER APPROVAL ROUTE THIS RATIO SHOULD NOT BE MORE THAN 7:1.
THE RATIO IS NOT BE APPLICABLE IN TOTAL OF ALL ECBs RAISED BY AN ENTITY UPTO 5 MN OR EQUIVALENT.
b) CURRENCY OF BORROWING-
ECB CAN BE RAISED IN FREELY CONVERTIBLE FOREIGN CURRENCY OR IN INR.
IN CASE OF RUPEE DENOMINATED ECB, NON RESIDENT LENDER OTHERTHAN FOREIGN EQUITY HOLDER, SHOULD MOBILISE INDIAN RUPEES THROUG
UNDERTAKEN THROUGH BANKS IN INDIA.
CHANGE OF CURRENCY OF ECB FROM ONE CONVERTIBLE FOREIGN CURRENCY TO ANY OTHER CONVERTIBLE FOREIGN CURRENCY IS PERMITTED.
CHANGE OF CURRENCY OF ECB FROM INR TO FOREIGN CURRENCY IS NOT PERMITTED.
CHANGE OF CURRENCY OF ECB INTO INR CAN BE AT EXCHANGE RATE PREVAILING ON THE DATE OF AGREEMENT
c) HEDGEING REQUIREMENTS-
ENTITIES RAISING ECB UNDER TRACK 1 AND 2 ARE REQUIRED TO FOLLOW GUIDELINES FOR HEDGING, IF ANY BY THE CONCERNED SECTORAL REGUL
d) SECURITY FOR RAISING ECB -
BANKS ARE PERMITTED TO ALLOW CREATION OF CHARGE ON IMMOVABLE ASSETS, MOVABLE ASSETS AND ISSUE OF CORPORATE/PERSONAL GUARA
OVERSEAS LENDER/SECURITY TRUSTEE TO SECURE THE ECB TO BE RAISED BY BORROWER SUBJECT TO
i) THE UNDERLYING ECB IS IN COMPLIANCE WITH THE EXTANT ECB GUIDELINES.
ii) A SECURITY CLAUSE IN THE LOAN AGREEMENT REQUIRING THE ECB BORROWER TO CREATE CHARGE
iii) NO OBJECTION CERTIFICATE, WHENEVER APPLICABLE FROM EXISTING LENDER IN INDIA
e) REFINANCING OF ECB

3. CREATION OF CHARGE AND GUARANTEE

a) CREATION OF CHARGE ON IMMOVABLE ASSETS -
SUBJECT TO PROVISION CONTAINED IN FEMA.
PERMISSION SHOULD NOT BE GIVEN AS A PERMISSION TO ACQUIRE IMMOVABLE ASSET.
IN THE EVENT OF INVOCATION OF CHARGE ASSET TO BE SOLD TO ONLY TO INDIAN RESIDENT.
b) CREATION OF CHARGE ON MOVABLE ASSETS-
IN THE EVENT OF INVOCATION OF CHARGE ASSET MAY TAKE OVER TO THE OVERSEAS LENDER, SUBJECT TO OUTSTANDING UNDER THE ECB.
c) CREATION OF CHARGE OVER FINANCIAL SECURITIES-
PLEDGE OF SHARES OF BORROWING COMPANY HELD BY PROMOTERS AS WELL AS IN DOMESTIC ASSOCIATE COMPANIES OF THE BORROWER IS PER
PLEDGE ON OTHER FINANCIAL SECURITIES VIZ.. BONDS AND DEBENTURES, GOVT SECURITIES, GOVT SAVING CERTIFICATES, DEPOSIT RECEIPT OF SE
AND UNITS OF UTI ,MFs , STANDING IN THE NAME OF ECB BORROWER IS PERMITTED.
SECURITY CAN BE CASH, CASH EQUIVALENTS, INCLUDING RUPEE ACCOUNT OF THE BORROWER WITH BANKS ALSO ESCROW ARRANGEMENT OR DEB
IN CASE OF INVOCATION OF PLEDGE, TRANSFER OF FINANCIAL SECURITIES SHALL BE IN ACCORDANCE WITH THE FDI/FII POLICY AND FEMA (ISSUE OF
d) ISSUE OF CORPORATE OR PERSONAL GUARANTEE -
CORPORATE GUARANTEE - COPY OF BORD RESOLUTION WITH NAME OF AUTHORISED OFFICIALS
PERSONAL GUARANTEE - SELF REQUEST FORM WITH DETAILS OF ECB
SUBJECT TO FEMA GUARANTEE REGULATIONS.
e) ISSUE OF GUARANTEE BY INDIAN BANKS AND FINANCIAL INSTITUTIONS
ISSUANCE OF BG, SBLC , LOU, LOC BY INDIAN BANKS, AIFI, NBFCs ARE NOT PERMITTED AND SHOULD NOT INVEST IN FCCBs IN ANY MANNER.
4. PARKING OF ECB AND CONVERSION OF ECB
ECB PROCEEDS ARE PERMITTED TO BE PARKED ABROAD AS WELL AS DOMESTICALLY
a) PARKING OF ECB PROCEEDS ABROAD -
ECB PROCEEDS MENT ONLY FOR FOREIGN CURRENCY EXPENDITURE CAN BE PARKED ABROAD PENDING UTILIZATION.
TILL UTILIZATION THESE FUNDS CAN BE INVEST IN a) DEPOSIT/CERTIFICATE OF DEPOSIT OR OTHER PRODUCTS OFFERED BY BANKS RATED NOT LESS
AND OTHER MANDATORY INSTRUMENTS OF ONE YEAR MATURITY HAVING MINIMUM RATING INDICATED ABOVE c) DEPOSITS WITH OVERSEAS BRANCH
BANKS ABROAD
b) PARKING OF ECB PROCEEDS DOMESTICALLY -
ECB BORROWERS ALSO ALLOWED TO PARK ECB PROCEEDS IN TERM DEPOSITS WITH BANKS WITH BANKS IN INDIA WITH MAXIMUM PERIOD OF 12 MON
c) CONVERSION OF ECB
INTO EQUITY IS PERMITTED FOR FOLLOWING CONDITIONS -
i) THE BORROWING COMPANY IS COVERED UNDER AUTOMATIC ROUTE OR APPROVAL FROM FIBP FOREIGN EQUITY PARTICIPATION
ii) THE FOREIGN EQUITY HOLDING AFTER SUCH CONVERSION OF DEBT INTO EQUITY IS WITHIN THE APPLICABLE SECTORAL CAP.
iii) APPLICABLE PRICING GUIDELINES FOR SHARES ARE COMPLIED WITH.
FOR CONVERSION OF ECB RATES INTO EQUITY THE EXCHANGE RATE PREVAILING ON THE DATE OF AGREEMENT WILL APPLY.
5. REPORTING OF ECB
a) LOAN REGISTRATION NUMBER (LRN)
ANY DECLINE IN RESPECT OF ECB AS WELL AS PAYMENT OF ANY FEES, CHARGES FOR RAISING FOR RAISING ECB SHOULD POSSIBLE ONLY AFTER OB
LRN BORROWERS ARE REQUIRED TO SUBMIT DULY CERTIFIED FORM 83, WHICH ALSO CONTAINS TERMS AND CONDITIONS OF ECB , IN DUPLICATE TO
FORWARD IT TO RBI (BOP SD)(DSIM). LOAN AGREEMENT NOT REQUIRED TO SUBMIT TO RBI.
b) CHANGES IN TERMS AND CONDITIONS OF ECB
PERMITTED CHANGES IN ECB PARAMETERS SHOULD BE REPORTED TO DSIM THROUGH REVISED FORM 83, IN ANY CASE NOT LATER THAN 7 DAYS FRO
c) REPORTING OF ACTRUAL TRANSACTION
BORROWERS ARE REQUIRED TO REPORT ACTRUAL ECB TRANSACTIONS THROUGH ECB 2 RETURN THROUGH BANK ON MONTHLY BASIS TO REACH DS
FROM THE CLOSE OF THE MONTH TO WHICH IT RELATES. CHANGES, IF ANY, IN ECB PARAMETERS SHOULD ALSO BE INCORPORATED IN ECB2 RETURN
d) CONVERSION OF ECB INTO EQUITY
FOR PARTIAL CONVERSION, THE CONVERTED PORTION IS TO BE REPORTED TO RBI IN FORM FC-GPR AND MONTHLY REPORTING TO DSIM IN ECB 2 RE
"ECB PARTIALY CONVERTED TO EQUITY"
FOR FULL CONVERSION, THE ENTIRE PORTION IS TO BE REPORTED TO RBI IN FORM FC-GPR AND REPORTING TO DSIM IN ECB2
"ECB FULLY CONVERTED TO EQUITY"
FOR CONVERSION OF ECB INTO EQUITY IN PHASES, REPORTING THROUGH ECB2 RETURN WILL ALSO BE IN PHASES.
6. FOREIGN CURRENCY BOND
a) FOREIGN CURRENCY CONVERTIBLE BONDS (FCCBs)
THE ISSUANCE OF FCCBs BRAUGHT UNDER ECB GUIDELINES IN 2005.ISSUANCE OF FCCB SHOULD COMPLY WITH FOREIGN CURRENCY GUIDELINES IN
OTHER REQUIREMENTS i) MINIMUM MATURITY 5 YEARS. ii) THE CALL AND PUT OPTION IF ANY SHALL NOT BE EXERCISEBLE PRIOR TO 5 YEARS iii) ISSU
WARRANTS iv) ISSUE RELATED EXPENSES NOT EXCEEDING 4% OF ISSUE SIZE AND IN CASE OF PRIVATE PLACEMENT 2%. V) OTHERs REQUIREMENT C
OF FEMA (ISSUE SECURITY). + SHEDULE I REGULATIONS AND ALSO SUBJECT TO ALL REGULATION OF ECB.
b) FOREIGN CURRENCY EXCHANGIBLE BONDS (FCEBs)
ISSUANCE ONLY UNDER APPROVAL ROUTE WITH MINIMUM MATURITY OF 5 YEARS. THE BONDS ARE EXCHANGIBLE TO EQUITY SHARES OF OTHER COM
OFFERED COMPANY IN ANY MANNER EIHER WHOLELY OR PARTLY ON THE BASIS OF EQUITY RELATED WARRENTS ATTACHED TO DEBT INSTRUMENTS
FEMA (ISSUE SECURITY), SHEDULE IV REGULATIONS, (ELIGIBILITY IN RESPECT OF ISSUER, OFFERRED COMPANY, SUBSCRIBER, PERMITTED END USES
OF FCCB SHOULD BE WITHIN CEILING SPECIFIED BY RBI OF ECB.
7. POWERS DELEGATED TO BANKS TO DEAL WITH ECB CASES
1. CHANGE REPAYMENT/DRAWDOWN SHEDULE OF ECB
2. CHANGE CURRENCY OF BORROWING TO ANY CONVERTIBLE CURRENCY (INR DENOMINATED ECB NOT PERMITTED)
3. CHANGE IN BANK CANBE POSSIBLE AFTER OBTAINING NOC FORM EXISTING BANK.
4. NAME OF THE BORROWER COMPANY CAN BE CHANGED SUBJECT TO CHANGE IN NAME FROM REGISTERAR OF COMPANY
5. ECB CAN BE TRANSFERRED FROM ONE COMPANY TO ANOTHER ON ACCOUNT OF RE-ORGANIZATION AT BORROWERS LEVEL IN THE( MERGER, DEM
ACQUISITION) AS PER APPLICABLE LAWS.
6. CHANGE IN THE RECKNOGISED LENDER CAN BE POSSIBLE SUBJECT TO i) ORIGINAL LENDER AS WELL AS NEW LENDER RECOGNISED RENDERS AS
ii) THERE IS NO CHANGE IN THE OTHER TERMS AND CONDITIONS OF ECB. IF NOT REFER RBI
7. CHANGE IN NAME OF LENDER CAN BE POSSIBLE ON BANK SATISFACTION
8. PREPAYMENT OF ECB MAY BE ALLOWED SUBJECT TO COMPLIANCE WITH STIPULATED MINIMUM AVEAGE MATURITY AS APPLICABLE TO CONTRACTE
9. BANK MAY DIRECTLY APPROACH TO DSIM CANCELLATION OF LRN, SUBJECT TO ENSURING THAT DRAWDOWN AGAINST THE SAID LRN HAS TAKEN P
ECB-2 RETURN TILL DATE IN RESPECT OF ALLOTED LRN HAVE BEEN SUBMITTED TO DSIM
10. END USE OF ECB PROCEEDS AVAILED IN AUTOMATIC ROUTE CAN BE CHANGED, PROVIDED THE END USE IS PERMISSIBLE UNDER AUTOMATIC ROU
11. BANKS MAY APPROVE REDUCTION IN AMOUNT OF ECB WITH OR WITHOUT CHANGE IN REPAYMENT SCHEDULE, AVERAGE MATURITY PERIOD AND A
ENSURING COMPLIANCE WITH APPLICABLE ECB GUIDELINES.
12. CHANGE IN ALL IN COST OF ECB IRRESPECTIVE OF NUMBER OF OCATIONS.
13. RE-FINANCING OF EXISTING ECB CAN BE DONE BY BANK BY RAISING NEW ECB, OUTSTANDING MATURITY OF ORIGINAL ECB IS LOWER THAN THE E
PERMITTED SUBJECT TO SAME CONDITIONS.
WHILE PERMITTING CHANGES UNDER THE DELEGATED POWER BANK SHOULD ENSURE THAT i) REVISED AVERAGE MATURITY/ ALL IN C
WITH WITH ECB GUIDELINES. ii) CHANGES SHOULD BE REPORTED TO RBI/DSIM NOT LATER THAN 7 DAYS FROM THE CHANGE EFFECTED IN REVISED
SHOULD ALSO BE REFLECTED IN ECB2 RETURNS APPROPRIATELY.
8. ECB FACILY FOR WORKING CAPITAL OF AIRLINE COMPANIES
AIRLINE COMPANIES REGISTERED UNDER COMPANIES ACT,1956 AND PROCESSING SCHEDULE OPERATOR PERMIT LICENCE FROM DGCA FOR PASSEN
ARE ELIGIBLE TO RAISE ECB. SUCH ECBs WILL BE ALLOWED BASED ON THE CASH FLOW, FOREIGN EXCHANGE EARNINGS AND CAPABILITY TO SERVIC
RAISED FOR A MINIMUM AVERAGE MATURITY PERIOD OF 3 YEARS AND WILL BE SUBJECT TO FOLLOWING TERMS AND CONDITIONS-
i) THE OVERALL ECB CEILING FOR THE ENTIRE CIVIL AVIATION SECTOR IS USD 1 BILLION AND FOR INDIVIDUAL AIRLINE COMPANY IS USD 300 MILLION.
ii) THE LIMIT CAN BE UTILISED FOR WORKING CAPITAL/REFINANCING OF OUTSTANDING WORKING CAPITAL RUPEE LOANS AVAILED FROM DOMESTIC B
THIS LIMIT CANNOT BE ROLLED OVER.
iii) FOREIGN EXCHANGE FOR REPAYMENT OF ECB SHOULD NOT BE ACCESSED FROM INDIAN MARKETS AND THE LIABILITY SHOULD BE MITIGITED ONL
EARNINGS OF THE BORROWING COMPANY.
9. ECB FACILITY FOR CONSISTENT FOREIGN EXCHANGE EARNERS UNDER USD 10 BILLION
INDIAN COMPANIES IN MANUFACTURING, INFRASTRUCTURE AND HOTEL SECTOR (WITH A TOTAL PROJECT COST OF INR 250 CRORE ), CAN RAISE ECB
OUTSTANDING RUPEE LOANS AVAILED FOR CAPITAL EXPENDITURE FROM DOMESTIC BANKING SYSTEM AND FRESH RUPEE CAPITAL EXPENDITURE SU
1. THE BORROWER SHOULD BE CONSISTENT FOREIGN EXCHANGE EARNER DURING PAST 3 FINANCIAL YEAR AND SHOULD NOT BE IN THE CAUTION LI
2. THE MAXIMUM POSSIBLE ECB THAT CAN BE AVAILED BY AN INDIVIDUAL COMPANY WILL BE LIMITED TO 75 % OF THE AVERAGE ANNUAL EXPORT EAR
THE LAST 3 FINANCIAL YEARS OR 50 % OF THE HIGHEST FOREIGN EXCHANGE EARNINGS REALIZED IN ANY OF THE IMMEDIATE PAST 3 FINANCIAL YEA
3. IN CASE OF SPVs, COMPLETED ONE YEAR OF EXISTENCE, FROM THE DATE OF INCORPORATION AND DO NOT HAVE SUFFICIENT TRACK RECORD/PA
PERFORMANCE FOR 3 FINANCIAL YEARS THE MAXIMUM POSSIBLE ECB CAN BE TAKEN IS LIMITED TO 50 % OF THE ANNUAL EXPORT EARNINGS REALIZ
FINANCIAL YEAR.
4. THE FOREIGN EXCHANGE REPAYMENT OF ECB SHOULD NOT BE ACCESSED FROM INDIAN MARKETS AND THE LIABILITY ARISING FROM ECB SHOULD
OUT OF FOREIGN EXCHANGE EARNINGS OF THE BORROWING COMPANY.
5. THE OVERALL CEILLING FOR SUCH ECB IS USD 10 BILLION AND THE MAXIMUM ECB THAT CAN BE AVAILED BY INDIVIDUAL COMPANY IS 3 BILLION
6. INDIAN COMPANIES IN ABOVE 3 SECTORS WHICH HAVE ESTABLISHED JV/WOS OR HAVE ACQUIRED ASSET OVERSEAS IN COMPLIANCE WITH REGUL
CAN RAISE ECB FOR REPAYMENT OF ALL TERM LOANS HAVING AVERAGE RESIDUAL MATURITY OF 5 YEARS AND ABOVE AND CREDIT FACILITIES AVAIL
DOMESTIC BANKS FOR OVERSEAS INVESTMENT IN JV/WOS. THE MAXIMUM ECB THAT CAN BE AVAILED OF BY INDIVIDUAL COMPANY IS 75 % OF THE A
EXPORT EARNINGS REALIZED DURING THE LAST 3 FINANCIAL YEARS OR 75% OF THE ASSESSMENT MADE ABOUT THE AVERAGE FOREIGN EXCHANGE
FOR NEXT 3 FINANCIAL YEARS OF INDIAN COMPANIES FROM THE JV/WOS ASSETS ABROAD AS CERTIFIED BY STATUTORY AUDITORS/CA/CPA/CATEGO
REGISTERED WITH SEBI OR AN INVESTMENT BANKER OUTSIDE INDIA REGISTERED WITH APPROPRIATE REGULATORY AUTHORITY IN THE HOST COUN
IN THE FORM OF DIVIDEND/REPATRIATED PROFIT/OTHER FOREX INFLOWS LIKE ROYALTY, TECHNICAL KNOW-HOW, FEE ETC. FROM OVERSEAS JV/WO
RECKNONED AS FOREIGN EXCHANGE EARNINGS FOR THIS PURPOSE.
7. IN THIS SCHEME ECB CANNOT BE RAISED FOR OVERSEAS BRANCHES.
10. ECB RAISED UNDER ERSTWHILE USD 5 MILLION SCHEME
BANKS ARE PERMITTED TO APPROVE EXTEND OF REPAYMENT PERIOD FOR LOAN RAISED UNDER ERSTWHILE USD 5 MILLION SCHEME, PROVIDED THE
FROM THE OVERSEAS LENDER AND RESCHEDULEMENT IS WITHOUT ANY ADDITIONAL COST. SUCH APPROVAL WITH EXISTING AND REVISED REPAYME
WITH LRN NO SHOULD BE COMMIUNICATED TO RBI WITHIN 7 DAYS. SUBSEQUENTLY IN ECB 2 RETURN.
11. ECB FACILITY FOR LOW COST AFFORDABLE HOUSING PROJECTS
1. LCAHP IS DEFINED IN FDI CIRCULAR.
2. ECB PROCEEDS SHALL NOT BE UTILIZED FOR ACQUISITION OF LAND.
3. DEVELOPERS/BUILDERS REGISTERED AS COMPANY MAY TAKE ECB FOR LOW COST AFFORDABLE HOUSING PROJECTS, PROVIDED THEY HAVE MINI
IN UNDERTAKING RESIDENTIAL HOUSING PROJECTS, HAVE GOOD TRACK RECORD IN TERMS OF QUALITY, DELIVERY AND PROJECT AND REGULATORY
ALL REGULATORY FROM VARIOUS DEPARTMENT INCLUDING REVENUE WITH RESPECT TO LAND USAGE/ENVIRONMENT CLEARANCE ECT.THEY SHOUL
ANY OF THEIR FINANCIAL COMMITMENTS TO BANKS OR IF ANY OTHER. BUILDERS/DEVELOPERS MEETING ELIGIBILITY CRITERIA CAN APPLY TO NHB IN
FORWARD THE APPLICATION TO RBI.
4.ECB SHOULD BE SWAPED INTO RUPEES FOR ENTIRE MATURITY ON FULLY HEDGED BASIS.
5. HFC REGISTERED AND OPERATING UNDER NHB CAN TAKE ECB FOR FINANCING LOW COST AFFORDABLE HOUSING UNITS. MINIMUM NOF OF HFC FO
SHOULD NOT BE LESS THAN 300 CRORE. ECB SHOULD BE WITHIN OVERALL LIMIT OF 16 TIMES OF THEIR NOF AND NNPA SHOULD NOT EXCEED 2.5% O
THE MAXIMUM LOAN AMOUNT SCANTIONED TO INDIVIDUAL BUYER IS 25 LAKH SUBJECT TO CONDITION THAT COST OF INDIVIDUAL HOUSING UNIT SHA
HFC WHILE MAKING THE APPLICATION, SHALL SUBMIT A CERTIFICATE FROM NHB FOR AVAILMENT OF ECB IS FOR FINANCING INDIVIDUAL HOUSING AN
RATE SPREAD CHARGED BY THEM TO THE ULTIMATE BUYER IS REASONABLE.
6. NHB CAN TO RAISE ECB ON BEHALF OF LOW COST AFFORDIBLE HOUSING UNITS. RATE IS ASPER RBI PRESCRIBED RATE. BUT SPREAD IS AS PER NH
7. NHB/HFC/DEVELOPERS/BUILDERS IS NOT PERMITTED TO RAISE ECB ON FCCBs.
8. THE AGGRIGATE LIMIT OF USD 1 BN EACH FOR FINANCIAL YEAR 2013-14, 14-15, 15-16 IS FIXED FOR ECB UNDER THE LOW COST AFFORDABLE HOUSI
11. RUPEE DENOMINATED BONDS OVERSEAS
1. ELIGIBLE RESIDENT ENTITIES CAN ISSUE PLAIN VANNILA RUPEE DENOMINATED BONDS TO OVERSEAS IN A FATF COMPLIANT FINANCIAL CENTERS.
PLASED PRIVATELY OR LISTED IN STOCK EXCHANGE AS PER HOST COUNTRY REGULATIONS. CAN BE ISSUED ON APPROVAL OR AUTOMATIC ROUTE.
IS USD 750 MILLION OR EQUIVALENT PER FINANCIAL YEAR, BEYOND THIS LIMIT RBI APPROVAL REQUIRED.
2. THE BOND SHALL HAVE MINIMUM MATURITY OF OF 5 YRARS. THE CALL AND PUT OPTION, IF ANY, SHALL NOT BE EXERCISABLE PRIOR TO COMPLET
3. ANY CORPORATE OR BODY CORPORATE IS ELIGIBLE TO ISSUE SUCH BONDS. REITs AND INVITs UNDER SEBI ARE ALSO ELIGIBLE.
4.ANY INVESTOR FROM FATF COMPLIANT JURIDICTION CAN INVEST IN THIS.INDIAN BANKS SHALL NOT HAVE ACCESS TO THESE BONDS. SUBJECT TO
NORMS CAN ACT AS ARRANGER AND UNDERWRITER. IN CASE OF AN INDIAN BANK UNDERWRITTING AN ISSUE, ITS HOLDING CAN NOT BE MORE THAN
AFTER 6 MONTHS OF THE ISSUE.
5. ALL IN COST OF BORROWING BY ISSUANCE OF RUPEE DENOMINATED BOND SHOULD BE COMMENSURATE WITH PREVAILING MARKET CONDITIONS
6. THE PROCEEDS OF BORROWING CAN BE USED FOR ALL PURPOSES EXCEPT THE FOLLOWING - REALESTATE ACTIVITIES OTHERTHAN DEVELOPMEN
TOWNSHIP/AFFORDABLE HOUSING PROJECTS, INVESTING IN CAPITAL MARKET AND USING THE PROCEEDS OF EQUITY INVESTMENT DOMESTICALLY.
ACTIVITIES PROHIBITED AS PER FDI GUIDELINES, ON LENDING TO OTHER ENTITIES FOR ANY OF THE ABOVE PURPOSES AND PURCHASE OF LAND.
7. THE EXCHANGE RATE FOR FOREIGN CURRENCY RUPEE CONVERSION SHALL BE THE MARKET RATE ON THE DATE OF SETTLEMENT FOR THE PURP
UNDERTAKEN FOR ISSUE AND SERVICING THE BONDS.
8. THE OVERSEAS INVESTORS ARE ELIGIBLE TO HEDGE THEIR EXPOSURE IN RUPEE THROUGH PERMITTED DERIVATIVE PRODUCTS WITH BANKS IN IN
ALSO ACCESS TO THE DOMESTIC MARKET THROUGH BRANCHES/SUBSIDIARIES OF INDIAN BANKS ABROAD OR BRANCHES OF FOREIGN BANK HAVING
ON BACK TO BACK BASIS.
9. THE BORROWING BY FINANCIAL INSTITUTIONS SHALL BE SUBJECT TO LEVERAGE RATIO PRESCRIBED, BY SECTORAL REGULATOR AS PER PRUDEN
10. OTHER PROVISIONS OF ECB FRAMEWORK REGARDING REPORTING, OBTAINING LRN, PARKING OF PROCEEDS, SECURITY GUARANTEE FOR BORR
CONVERSION INTO EQUITY, CORPORATES UNDER INVESTIGATION ETC WILL BE APPLICABLE FOR BORROWING UNDER RUPEE DENOMINATED BONDS
12. ROUTING OF FUNDS RAISED ABROAD TO INDIA
INDIAN COMPANIES OR THEIR BANKS NOT ALLOWED TO ISSUE ANY GUARANTEE/CREATE CONTINGENT LIABILITY/OR OFFER ANY SECURITY IN ANY FO
OVERSEAS HOLDING/ASSOCIATE/ SUBSIDIARY/GROUP COMPANIES AND ALSO, THIS CANNOT BE USED IN INDIA EXCEPT FOR THE PURPOSE EXPLICITL
IN THE RELEVANT REGULATIONS. PENAL ACTION IS THERE FOR THEM FOR NOT ACTING AS PER REGULATIONS.
B. TRADE CREDIT
1. BASIC
1.TRADE CREDIT REFERS TO CREDIT EXTENDED BY OVERSEAS SUPPLIER/BANK FOR MATURITY UPTO 5 YEARS FOR IMPORT OF GOODS IN INDIA. TRAD
SUPPLIERS CREDIT AND BUYERS CREDIT. SUPPLIERS CREDIT RELATES TO CREDIT FOR IMPORTS INTO INDIA EXTENDED BY OVERSEAS SUPPLIER AND
TO LOAN FOR PAYMENT OF IMPORTS INTO INDIA ARRANGED BY IMPORTER FROM OVERSEAS BANK OR FINANCIAL INSTITUTION. IMPORT SHOULD BE A
OF DGFT.
2. BANKS ARE PERMITTED TO APPROVE TRADE CREDIT FOR IMPORT OF NON CAPITAL OR CAPITAL GOODS UPTO USD 20 MN OR EQUIVALENT PER IMP
20 MILLION RBI APPROVAL NEEDED.
3. MATURITY FOR TRADE CREDIT ARE SAME FOR THE BOTH ROUTES.FOR NON CAPITAL GOODS MATURITY PERIOD IS UPTO 1 YEAR AND FOR CAPITAL
THE DATE OF SHIPMENT. THE CONTRACT PERIOD IS 6 MONTHS AT THE BEGINNING AND CAN BE ROLLED OVER UPTO 5 YEARS
4. ALL IN COST CEILING FOR RAISING TRADE CREDIT IS 350 BPS OVER 6 MONTHS LIBOR. AIC INCLUDES ARRANGER FEE, UPFRONT FEE, MANAGEMEN
CHARGES, OUT OF POCKET AND LEGAL EXPENSES.
5. BANKS ARE PERMITTED TO ISSUE GUARANTEE/LOU/LOC IN FAVOUR OF OVERSEAS SUPPLIER/BANK UPTO USD 20 MN FOR MAXIMUM PERIOD OF 1 Y
AND FOR MAXIMUM PERIOD OF 3 YEARS FOR CAPITAL GOODS.
6. BANKS ARE REQUIRED TO SUBMIT DETAILS OF APPROVAL, DRAWAL, UTILIZATION AND REPAYMENT OF TRADE CREDIT APPROVED BY ALL ITS BRAN
STATEMENT TO RBI. EACH TRADE CREDIT TO BE GIVEN UNIQUE IDENTIFIVATION NUMBER BY BANK.
7. BANKS ARE ALSO REQUIRED TO FURNISH DATA ON ISSUANCE OF GUARANTEE/LOU/LOC BY QUARTERLY INTERVALS TO RBI.
C. OTHER BORROWING AND LENDING IN FOREIGN CURRENCY
1. BORROWING IN FOREIGN CURRENCY BY A BANK
BANK IN INDIA MAY BORROW IN FOREIGN CURRENCY SUBJECT TO -
1. THE BORROWING MAY BE FROM HEADOFFICE OR BRANCH OR CORRESPONDENT OUTSIDE INDIA OF BANK OR ANY OTHER ENTITY AS PERMITTED BY
2. THE AGGRIGATE AMOUNT OF BORROWING BY ALL BRANCHES OF BANK FROM ALL PERMITIBLE SOURCES CAN BE UPTO 100 % OF THE UNIMPIRED T
BANK IN INDIA OR SUCH OTHER LIMIT AS DESIDED BY RBI FROM TIME TO TIME OR USD 10 MILLION WHICHEVER IS MORE.
3. A BRANCH OUTSIDE INDIA OF A BANK MAY BORROW OUTSIDE INDIA, SUBJECT TO RBI GUIDELINES AND RA OF THE COUNTRY WHERE BRANCH IS LO
4. A BANK MAY BORROW FROM A BANK OUTSIDE INDIA FOR THE PURPOSE OF GRANTING PRE-SHIPMENT OR POST-SHIPMENT CREDIT TO HIS EXPORT
5. BORROWING SHALL BE SUBJECT TO COMPLIANCE WITH PRUDENTIAL NORMS, INTEREST RATE DIRECTIVES AND GUIDELINES ISSUED BY RBI FROM T
2. LENDING IN FOREIGN CURRENCY BY A BANK
BANK IN INDIA OR ITS BRANCH OUTSIDE MAY LEND IN FOREIGN CURRENCY -
1. LOAN MAY BE EXTENDED BY A BRANCH OUTSIDE INDIA OF A BANK IN NORMAL COURSE OF BANKING BUSINESS OUTSIDE INDIA.
2. LOAN MAY BE EXTENDED BY BANK TO ITS CONSTITUENTS IN INDIA FOR MEETING THEIR FOREIGN EXCHANGE REQUIREMENTS, OR FOR THEIR RUPE
REQUIREMENTS OR CAPITAL EXPENDITURE.
3. CREDIT FACILITY MAY BE EXTENDED TO A JV/WOS HELD BY INDIAN ENTITY AND CREDIT FACILITIES ARE COMPLIANCE WITH FEMA( ISSUE OF SECUR
4. LOAN MAY BE GRANTED TO CONSTITUENTS OF RFC ACCOUNT, AGAINST THE SECURITY OF FUNDS HELD IN SUCH ACCOUNT.
5. LOAN MAY BE EXTENDED BY BANK OR ITS BRANCH OUTSIDE INDIA, AGAINST THE SECURITY OF FUNDS HELD IN NRE/FCNR ACCOUNT.
6. LOAN MAY BE EXTENDED BY A BANK TO ANOTHER BANK.
7. LOAN OR CREDIT FACILITIES EXTENDED BY A BANK OR ITS BRANCH OUTSIDE INDIA, WILL BE SUBJECT TO COMPLIANCE WITH PRUDENTIAL NORMS.
3. BORROWING IN FOREIGN CURRENCY BY A PERSON
1. A PERSON RESIDENT IN INDIA MAY BORROW BY WAY OF LOAN/OVERDRAFT OR ANY OTHER FACILITY, FROM A BANK SITUATED OUTSIDE INDIA FOR
PROJECT, CIVIL CONSTRUCTION CONTRACT OVERSEAS, PROVIDED THE TERMS AND CONDITIONS STIPULATED BY THE AUTHORITY WHICH HAS GRAN
AS PER FEMA.
2. A IMPORTER IMPORTING GOODS TO INDIA CAN AVAIL FOREIGN CURRENCY CREDIT FOR A PERIOD NOT EXCEEDING 6 MONTHS EXTENDED BY THE O
GOODS PROVIDED IMPORT IS IN COMPLIANCE WITH THE EXIM POLICY OF GOI.
3. AN INDIVIDUAL RESIDENT IN INDIA MAY BORROW A SUM NOT EXCEEDING $ 250000 OR ITS EQUIVALENT FROM ITS CLOSE RELATIVE OUTSIDE INDIA,
THAT - THE MINIMUM MATURITY PERIOD OF THE LOAN IS 1 YEAR, LOAN IS FREE OF INTEREST, THE AMOUNT OF LOAN RECEIVED BY INWARD REMITTAN
FREE FOREIGN EXCHANGE THROUGH NORMAL BANKING CHANNEL OR TO DEBIT TO THE NRE/FCNR ACCOUNT OF THE NR LENDER.
4. LENDING IN FOREIGN CURRENCY BY A PERSON
1. AN INDIAN ENTITY MAY LEND HIS JV/WOS ABROAD CONSTITUTED IN ACCORDANCE WITH THE FEMA.
2. EXIM,IDBI,IFCI,ICICI,SIDBI OR OTHER INSTITUTIONS MAY EXTEND LOAN TO THEIR CONSTITUENTS IN INDIA, OUTOFF FOREIGN CURRENCY BORROWIN
RAISED BY THESE INSTITUTIONS WITH THE APPROVAL OF CG FOR THE PURPOSE OF ONWARD LENDING.
3. INDIAN COMPANIES MAY GRANT LOANS TO THEIR EMPLOYEES IN BRANCHES OUTSIDE INDIA FOR PERSONAL PURPOSE, PROVIDED THE LOAN SHAL
PURPOSES IN ACCORDANCE WITH THE LENDER STAF WALFARE SCHEME , LOAN RULES AND OTHER TERMS AND CONDITIONS APPLICABLE TO STAFF
D. STRUCTURED OBLIGATION
1. NR GUARANTEE FOR DOMESTIC FUND BASED AND NON FUND BASED FACILITIES
BORROWING AND LENDING IN INR BETWEEN TWO RESIDENT NOT ATTRACT ANY PROVISION OF FEMA. IN CASES WHERE RUPEE FACILITY WHICH IS EIT
FUND BASED OR IN THE FORM OF DERIVATIVE CONTRACT BY RESIDENT THAT ARE SUBSIDIARIES OF MNCS, IS GUARANTED BY A NR, THERE IS NO INV
FOREIGN EXCHANGE UNTILL GUARANTEE IS INVOKED - AND NR BORROWER IS REQUIRED TO MEET THE LIABILITY UNDER THE GUARANTEE . TERMS A
1. NR GUARANTOR MAY DISCHARGE THE LIABILITY BY i) PAYMENT OUT OF RUPEE BALLANCES HELD IN INDIA ii) BY REMITTING FUNDS TO INDIA iii) BY
ACCOUNT MAINTAINED BY BANK.
2. NR GUARANTOR MAY ENFORCE HIS CLAIM AGAINST THE RESIDENT BORROWER AND ON RECOVERY HE MAY SEEK REPATRIATION OF AMOUNT, IF T
EITHER BY INWARD REMITTANCE OR BY DEBIT TO FCNR/NRE ACCOUNT. IN CASE THE LIABILITY IS DISCHARGED BY PAYMENT OUT OFF RUPEE BALLAN
RECOVERED CAN BE CREDITED TO NRO ACCOUNT OF THE NR GUARANTOR.
3. GENERAL PERMISSION AVAILABLE WHO IS THE PRINCIPLE DEBTOR TO MAKE PAYMENT TO A PERSON RESIDENT OUTSIDE INDIA, WHO HAS MET THE
4. IN CASES WHERE LIABILITY MEET BY NON RESIDENT OUT OF FUNDS REMITTED TO INDIA OR BY DEBIT TO FCNR/NRE ACCOUNT. THE REPAYMENT M
FCNR/NRE/NRO ACCOUNT OF THE GUARANTOR PROVIDED, THE AMOUNT CREDITED SHALL NOT EXCEED RUPEE EQUIVALENT OF THE AMOUNT PAID B
THE INVOKED GUARANTEES
5. BANKS ARE REQUIRED TO FURNISH AT QUARTERLY INTERVALS THE DETAILS OF GUARANTEE AVAILED OR INVOKED, BY ALL ITS BRANCHES.
2. FACILITY OF CREDIT ENHANCEMENT
ELIGIBLE NR ENTITIES - MFI (IFC,ADB ETC.) AND GOVT OWNED (WHOLLY OR PARTIALY) TO DOMESTIC DEBT RAISED THROUGH ISSUE OF CAPITAL MAR
RUPEE DENOMINATED BONDS AND DEBENTURES, IS AVAILABLE TO ALL BORROWERS ELGIBLE TO RAISE ECB UNDER AUTOMATIC ROUTE UNDER THIS
i) UNDERLYING DEBT INSTRUMENT SHOULD HAVE A MINIMUM AVERAGE MATURITY OF 3 YRARS.
ii) PREPAYMENT CALL AND PUT OPTION IS NOT AVAILABLE FOR SUCH CAPITAL MARKET INSTRUMENTS UPTO AN AVERAGE MATURITY PERIOD OF 3 YE
iii) GUARANTEE FEE AND OTHER COST IN CONNECTION WITH THE CREDIT ENHANCEMENT WILL BE RESTRICTED TO A MAXIMUM 2% OF THE PRINIPLE A
iv) ON INVOCATION OF CREDIT ENHANCEMENT, IF GUARANTOR MEETS THE LIABILITY AND IF THE SAME IS PERMISSIBLE TO REPAID IN FOREIGN CURR
NON RESIDENT ENTITY, ALL IN COST CEILING AS APPLICABLE TO RELEVANT MATURITY PERIOD OF THE TRADE CREDIT/ECB
v) IN CASE OF DEFAULTS AND IF THE LOAN IS SERVICED IN INR , THE APPLICABLE RATE OF INTEREST WILL BE CUPPON OF THE BONDS OR 250 BPS OV
MARKET YIELD OF 5 YEARS GOI, AS ON THE DATE OF NOVATION, WHICHEVER IS HIGHER.
vi) NBFC-IFC PROPOSING TO AVAIL CREDIT ENHANCEMENT FACILITY SHOULD COMPLY WITH THE ELIGIBILITY CRITERIA AND PRUDENTIAL NORMS LAID
NOVATED LOAN IS DESIGNATED IN FOREIGN CURRENCY, IFC SHOULD HEDGE THE ENTIRE FOREIGN CURRENCY EXPOSURE AND REPORTING ARRANG
TO BE APPLICABLE TO NOVATED LOANS ALSO.
 CO
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OM THE DIRECTOR GENERAL OF SHIPPING

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ABROAD BY A PERSON RESIDENT IN INDIA.

DENT OUTSIDE INDIA; AND
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UNLISTED COMPANIES.

INTAINANCE OF CLOSE RELATIVES,

EME WITHOUT PRIOR RBI APPROVAL. Master Direction - Establishment of Liaison/ Branch/ Project Offices in India by Foreign Entities

Opening and Maintenance of Rupee/Foreign Currency Vostro Accounts of Non-resident Exchange Houses

Master Direction - Insurance

Master Direction - Miscellaneous
S OR IN REAL ESTATE BUSINESS Master Direction - Money Changing Activities

ERWISE CDD,ADD REQUIRED)

L ACCOUNT TRANSACTIONS.

HLY BASIS THROUGH ORFS.

CY DEPOSITS, OVERSEAS MUTUAL FUNDS
ONWEALTH
D 3000 PER VISIT
UTILIZED FOR OTHER PURPOSE.
TO AN BANK WITH A PERIOD OF 180 DAYS.
CEILING OF 180 DAYS

SIDIARY OR JOINT VENTURE IN INDIA

GULATION 2(i)

NDIA MAKING EXPENSES THROUGH IT.

IN FOREIGN EXCHAGE

ED BY OVERSEAS BANK AND OTHER REPUTEDED AGENCIES.

INWARD REMITTANCE BALLANCES/NRE/FCNR ACCOUNT.

AVE ARRANGEMENT WITH FOREIGN AIRLINES
OSTO ACCOUNT
OVERSEAS TO THE FOREIGN AIRLINE.

UNT TRANSACTIONS ARE ALLOWED. OVERSEAS

OF LAST TRANSACTION.
BALANCE IMMEDIATELY WHEN REQUESTED.
SETTLEMENT CYCLE.

EIGN EXCHANGE EARNINGS OR $50L

 OMOTED BY EDUCATIONAL INSTITUTES,

OF THEIR FOREIGN EXCHANGE EARNINGS

CORPORATE.

NWARD REMITTANCE WICH IS HIGHER.

CTURE PROJECTS & $ 10 L FOR OTHER PROJECTS

ESTMENT BRAUGHT INTO INDIA OR $ 1L HIGHER

ECTED IN INDIA AND

NELS WITHOUT ANY PERMISSION OF RBI.

SPECT OF GLOBAL BIDS

E PROCEEDS OF SUCH CARDS IN INDIA,

THOUT APPROVAL OF GOI.

OTEL/AGENTS ETC. ABROAD , FOR MAKING THEIR

N MADE IN FOREIGN EXCHANGE FROM TRAVELLERS

TSIDE INDIA WITHOUT RBI APPROVAL.

NDIA ON THE NAME OF TOUR OPERATOR IN INDIA.

RVICE PROVIDOR WHO IS IMPORTING SERVICE

 A DIRECT CONTRACTUAL OBLIGATION ARISING

DING $ 100,000 WILL BE REQUIRED.

NK SHOULD OBTAIN DECLARATION FROM THE APPLICANT,

LATION OF THIS ACT OR OTHER ACT IS NOT BREACHED

PLIANCE DOCUMENTS, HE SHOULD GIVE IN WRITING

HOULD REPORT TO RBI.
K FOR A PERIOD OF ONE YEAR.
NAME ADDRES OF APPLICANT AND BENEFICIARY,

DOCUMENTS UP TO $25000 FOR INDIVIDUALS

RANNUATION BALANCE, AMOUNT CLAIMED

NY OTHER ASSET HELD IN INDIA IN ACCORDANCE

HIS SPOUSE, HIS PARENTS/GRAND

HIS PRINCIPAL EMPLOYER OUTSIDE INDIA.

PERSON, PERSON IS A NON-RESIDENT WIDOW

HELD ON REPATRIATION BASIS. IN CASE REMITTANCE

E BANK ON SUBMISSION OF DOCUMENTARY EVIDENCE.
K ACCOUNT HAS SOME BALANCE CAN BE REMITTED

THEIR NRO ACCOUNT/SALE PROCEEDS OF ASSETS/

THER OF HIS PARENTS OR RELATIVES. THE

ANSFER BY WAY OF GIFT AND REMITTANCE OF SALE

S ISSUED BY OFFICIAL LIQUIDATOR IN CASE OF

BEEN EITHER FULLY PAID, WINDING UP IS IN

GS PENDING IN ANY COURT IN INDIA AGAINST

ON FUND/PENSION FUND IN RESPECT OF THEIR

CE/LIAISON OFFICE ON SUBMISSION OF FOLLOWING

REMITTABLE AMOUNT HAS BEEN ARRIVED SUPPORTED
ALSO CONFIRMING THAT ALL LIABILITIES IN INDIA
MADE AND NO INCOME ACCURING FROM SOURCES
REQUIREMENTS STIPULATED BY RBI
NY COURT IN INDIA AND NO LEGAL DRAWBACK
OF COMPANIES ACT.

FOREIGN STATE ii) BY NRI PIOS OUT OF BALLANCES

HELD BY HIM WITH

GENERATION OF THAT INDIVIDUAL.

A PERSON OUTSIDE INDIA.

PROVISIONS IN FORCE AT THE TIME OF SUCH ACQUISITION.

TFLOW OF FUNDS FROM INDIA.

OR ITS BUSINESS OR FOR RESIDENTIAL PURPOSE

CURRING EXPENCES.
CHEVER IS HIGHER FOR INITIAL

N INDIA. IF SUCH PROPERTY i) IS ACQUIRED/HOLD BY

TITLE,POSSESSION OR LIEN.

BANKING CHANNEL OR BY NRO/NRE/FCNR ACCOUNT.

THERTHAN THAT OFFICE

AKAU PRIOR APPROVAL OF RBI REQUIRED

TE THE SALE PROCEEDS OUT OF INDIA

OT EXCEED THE AMOUNT PAID WHILE ACQUISITION

MS AND RE-PAYMENT OF SUCH LOAN ARE

CCOUNT OF NRI
PROPERTIES.

VAL OF RBI REQUIRED TO ACQUIRE/TRANSFER

A EITHER IN FAVOUR OF ECB

UPTO WHICH AMOUNT CAN BE HELD IN THIS ACCOUNTS BY

SIDE INDIA OR GIFTED IT FROM A RESIDENT OUTSIDE.

(EXCEPT LOANS AND ADVANCES)

MILAR OTHER EARNINGS RECEIVED BY A PROFESSIONAL

HIM TO ADR/GDR UNDER DR SCHEME 2014.

HOTEL EXPENDITURE.

REDITED TO THE ACCOUNT.

EFORE THE LAST DAY OF NEXT MONTH .

RECEIVED/ACQUIRED BY HIM -
NT OUTSIDE INDIA AND REPATRIATED TO INDIA.

CES OUTSIDE INDIA.

VER RELETIVE CANNOT OPERATE THE ACCOUNT

ROM THE OVERSEAS SOURCES.

RSON RESIDENT OUTSIDE INDIA.

M TO ADR GDR UNDER THE DR SCHEME 2014

DIA REGULATED BY IRDA.

WITH HIS PARENT COMPANY.

Y ACCOUNT

T COMPANY.

ACCOUNTS IN INDIA

ED FROM FOREIGN,
CONVERSION INTO RUPEE.

FFERED PAYMENT TERMS.

MPANY/INDIAN COMPANY

DEPLOMATICPERSONNEL.
ATIC STAFF WHO ARE NATIONALS OF FOREIGN COUNTRIES

ANKING CHANNELS.

T MAY BE OPENED AS SAVINGS AC

S IN INDIA, OF WHICH INDIA IS A MEMBER NATION.

THER NRE OR FCNR AC,

ESTMENT IN INDIA.

CCOUNT (PRE MATURE WITHDRAWAL NOT ALLOWED)

TO RFC ACCOUNT.
AC HOLDER

AYMENTS OR
N MAKE INVESTMENT
O A RESIDENT ,
AINTAINED WITH BANKS.
ANKING CHANNEL IN INDIA FOR MAXIMUM 6 MONTHS.

ATION/REALESTATE ACTIVITIES.

AYMENTS OR

TO FCNR,NRO,NRE ACCOUNT HOLDERS.

OF REQUISIT INFORMATION IN THE FORMAT

CEIPTS AND PAYMENTS RELATING TO PURCHASE AND SALE

N INTEREST BEARING CURRENT ACCOUNT.
IA c) TRANSFER FROM THE FOREIGN CURRENCY ACCOUNT

NT OF THE RFPI

ATRIATION BASIS.
ATION BASIS.

COMPANY. CREDITS PERMITTED TO SUCH AC ARE ONLY

OUTSIDE INDIA.

XIMUM ALL IN COST CEILING ETC.

NALY CONVERTIBLE PREFERANCE SHARES

ASE, FOREIGN CURRENCY EXCHANGIBLE BONDS (FCEBs).
THEIR BANKS FOR EXAMINATION. EXIM BANK

PRESCRIBED FORMAT OF ECB FOR EXAMINATION

SITUATION, AND MERITS OF THE SPECIFIC PROPOSALS
L MEMBERS. ENTITIES DESIROUS TO RAISE ECB

ANIES, SIDBI, EXIM BANK

B ETC), REGIONAL FINANCIAL INSTITUTIONS, GOVERNMENT
EIGN EQUITY HOLDERS,PRUDENTIALY
STITUTIONS LOCATED IN INTERNATIONAL FINANCIAL

+ 450 BASIS POINTS

 GOODS, LOCAL SOURCING OF CAPITAL GOODS,
ANY STAGE OF DISINVESTMENT UNDER DISINVESTMENT
F CAPITAL GOODS ALREADY IMPORTED BUT UNPAID,

AIRLINE COMPANIES CAN RAISE ECB ONLY FOR

RECT/INDIRECT EQUITY HOLDER OR FROM A GROUP

S, CIC, REITs AND INVITs COMING UNDER SEBI

ARKET, USING THE PROCEEDS OF EQUITY INVESTMENT

COMPANIES CAN ALSO USE ECB PROCEEDS

NDER COMPANIES ACT), TRUST AND CO-OPERATIVES

TIVE ACTS, NON-GOVERNMENT ORGANIZATIONS(NGOs)
ETC (OTHERTHAN EDUCATIONAL INSTITUTES), COMPANIES

TED LOANS TO DOMESTIC ENTITIES FOR ACQUISITION

HIRE PURCHASE,

STATE ACTIVITIES,INVESTING IN CAPITAL MARKET,

OVE OBJECTIVES, PURCHASE OF LAND
SHOULD BE TAKEN INTO ACCOUNT.

UITY CONTRIBUTED BY THE LATTER.

SE INDIAN RUPEES THROUGH SWAPS/OUTRIGHT SALE

CURRENCY IS PERMITTED.

NCERNED SECTORAL REGULATOR OF FOREIGN CURRENCY.

RPORATE/PERSONAL GUARANTEE IN FAVOUR OF

NG UNDER THE ECB.

S OF THE BORROWER IS PERMITTED.

TES, DEPOSIT RECEIPT OF SECURITIES

ROW ARRANGEMENT OR DEBT SERVICE RESERVE AC.

POLICY AND FEMA (ISSUE OF SECURITY BY A NR PERSON)

Bs IN ANY MANNER.

D BY BANKS RATED NOT LESS THAN AA- b) TREASURY BILLS

TS WITH OVERSEAS BRANCHES/SUBSIDIARIES OF INDIAN

MAXIMUM PERIOD OF 12 MONTHS.

LD POSSIBLE ONLY AFTER OBTAINING LRN NO. TO OBTAIN

S OF ECB , IN DUPLICATE TO THE BANK. BANK WILL

NOT LATER THAN 7 DAYS FROM CHANGES EFFECTED.

ONTHLY BASIS TO REACH DSIM WITHIN 7 WORKING DAYS

RPORATED IN ECB2 RETURN.

ORTING TO DSIM IN ECB 2 RETURN WITH REMARKS

N CURRENCY GUIDELINES INCLUDING SECTORAL CAP.

E PRIOR TO 5 YEARS iii) ISSUANCE WITHOUT ANY
V) OTHERs REQUIREMENT CONTAINED IN REGULATION 21

UITY SHARES OF OTHER COMPANY, IS CALLED THE

HED TO DEBT INSTRUMENTS. REGULATION 21
RIBER, PERMITTED END USES ETC). ALL IN COST

LEVEL IN THE( MERGER, DEMERGER, AMALGAMATION,

RECOGNISED RENDERS AS PER ECB GUIDELINES.

 APPLICABLE TO CONTRACTED LOAN UNDER THIS RULES.
THE SAID LRN HAS TAKEN PLACE AND MONTHLY

BLE UNDER AUTOMATIC ROUTE.

GE MATURITY PERIOD AND ALL IN COST DULY

L ECB IS LOWER THAN THE EXISTING ECB IS ALSO

VERAGE MATURITY/ ALL IN COST IN COMPLY

NGE EFFECTED IN REVISED FORM 83, THESE CHANGES

CE FROM DGCA FOR PASSENGER TRANSPORTATION

AND CAPABILITY TO SERVICE THE DEBT. ECB CAN BE

MPANY IS USD 300 MILLION.

AVAILED FROM DOMESTIC BANKING SYSTEM.

Y SHOULD BE MITIGITED ONLY OUT OF FOREIGN EXCHANGE

50 CRORE ), CAN RAISE ECB FOR REPAYMENT OF

EE CAPITAL EXPENDITURE SUBJECT TO :-
D NOT BE IN THE CAUTION LIST OF RBI.
ERAGE ANNUAL EXPORT EARNINGS REALIZED DURING
DIATE PAST 3 FINANCIAL YEAR, WHICHEVER IS HIGHER.
FFICIENT TRACK RECORD/PAST
L EXPORT EARNINGS REALIZED DURING THE LAST

ARISING FROM ECB SHOULD BE KNOCKED OF ONLY

 L COMPANY IS 3 BILLION
N COMPLIANCE WITH REGULATION OF FEMA
ND CREDIT FACILITIES AVAILED OF FROM
L COMPANY IS 75 % OF THE AVERAGE ANNUAL
ERAGE FOREIGN EXCHANGE EARNINGS POTTENTIAL
AUDITORS/CA/CPA/CATEGORY 1 MERCHANT BANKER
THORITY IN THE HOST COUNTRY. THE PAST EARNINGS
TC. FROM OVERSEAS JV/WOS/ASSETS WILL BE

ION SCHEME, PROVIDED THERE IS CONCENT LETTER

TING AND REVISED REPAYMENT SCHEDULE ALONG

, PROVIDED THEY HAVE MINIMUM 3 YEARS EXPIRANCE

PROJECT AND REGULATORY CLEARANCE FROM
LEARANCE ECT.THEY SHOULD ALSO NOT HAVE DEFAULTED
TERIA CAN APPLY TO NHB IN FORMAT. NHB WILL

TS. MINIMUM NOF OF HFC FOR PAST 3 FINANCIAL YEAR

HOULD NOT EXCEED 2.5% OF THE NET ADVANCES.
DIVIDUAL HOUSING UNIT SHALL NOT EXCEED 30 LAKH.
NG INDIVIDUAL HOUSING AND ENSURE THAT INTEREST

E. BUT SPREAD IS AS PER NHB.

W COST AFFORDABLE HOUSING SCHEME.

LIANT FINANCIAL CENTERS. THE BONDS CAN BE EITHER

VAL OR AUTOMATIC ROUTE. AUTOMATIC ROUTE LIMIT

CISABLE PRIOR TO COMPLETION OF MINIMUM MATURITY.

THESE BONDS. SUBJECT TO APPLICABLE PRUDENTIAL

ING CAN NOT BE MORE THAN 5% OF THE ISSUE SIZE

AILING MARKET CONDITIONS.

S OTHERTHAN DEVELOPMENT OF INTEGRATED
VESTMENT DOMESTICALLY.
ND PURCHASE OF LAND.
SETTLEMENT FOR THE PURPOSE OF TRANSACTION

PRODUCTS WITH BANKS IN INDIA.THE INVESTORS CAN

S OF FOREIGN BANK HAVING PRESENCE IN INDIA

EGULATOR AS PER PRUDENTIAL NORMS.

RITY GUARANTEE FOR BORROWINGS,
PEE DENOMINATED BONDS OVERSEAS.

ER ANY SECURITY IN ANY FORM FOR BORROWING BY THEIR

OR THE PURPOSE EXPLICITLY PERMITTED

RT OF GOODS IN INDIA. TRADE CREDIT INCLUDES

BY OVERSEAS SUPPLIER AND BUYERS CREDIT REFERS
UTION. IMPORT SHOULD BE AS PERMISSIBLE UNDER FTP

MN OR EQUIVALENT PER IMPORT TRANSACTIONS. BEYOND

O 1 YEAR AND FOR CAPITAL GOODS IT IS 5 YEARS FROM

 PFRONT FEE, MANAGEMENT FEE, HANDLING/PROCESSING

OR MAXIMUM PERIOD OF 1 YEAR FOR NON CAPITAL GOODS

APPROVED BY ALL ITS BRANCHES IN A CONSOLIDATED

ER ENTITY AS PERMITTED BY RBI.

100 % OF THE UNIMPIRED TRIER I CAPITAL OF THE

UNTRY WHERE BRANCH IS LOCATED.

ENT CREDIT TO HIS EXPORTER CONSTITUENT IN INDIA.
LINES ISSUED BY RBI FROM TIME TO TIME.

MENTS, OR FOR THEIR RUPEE WORKING CAPITAL

WITH FEMA( ISSUE OF SECURITY)

NR ACCOUNT.

WITH PRUDENTIAL NORMS.

UATED OUTSIDE INDIA FOR EXECUTION OF TRUNKEY

UTHORITY WHICH HAS GRANTED PROJECT APPROVAL

ONTHS EXTENDED BY THE OVERSEAS SUPPLIER OF

E RELATIVE OUTSIDE INDIA, SUBJECT TO CONDITION

CEIVED BY INWARD REMITTANCE IN

EIGN CURRENCY BORROWING

, PROVIDED THE LOAN SHALL BE GRANTED FOR PERSONAL

ONS APPLICABLE TO STAFF RESIDENT IN INDIA AND ABROAD.

RUPEE FACILITY WHICH IS EITHER FUND BASED OR NON

ED BY A NR, THERE IS NO INVOLVEMENT OF
R THE GUARANTEE . TERMS AND CONDITIONS-
TING FUNDS TO INDIA iii) BY DEBIT TO HIS FCNR/NRE

ATRIATION OF AMOUNT, IF THE LIABILITY IS DISCHARGED

ENT OUT OFF RUPEE BALLANCES, THE AMOUNT

DE INDIA, WHO HAS MET THE LIABILITY UNDER GUARANTEE.

COUNT. THE REPAYMENT MAY BE MADE BY CREDIT TO
ENT OF THE AMOUNT PAID BY NR GUARANTOR AGAINST

Y ALL ITS BRANCHES.

UGH ISSUE OF CAPITAL MARKET INSTRUMENTS, SUCH AS

OMATIC ROUTE UNDER THIS CONDITIONS -

E MATURITY PERIOD OF 3 YEARS

IMUM 2% OF THE PRINIPLE AMOUNT INVOLVED.
O REPAID IN FOREIGN CURRENCY TO ELIGIBLE

F THE BONDS OR 250 BPS OVER THE SCEONDARY

ND PRUDENTIAL NORMS LAID DOWN AND IN CASE OF
RE AND REPORTING ARRANGEMENT AS APPLICABLE TO ECB
In this chapter we touch upon some of the main regulations and policies laid down by DGFT in its Trade Policy 2015-2020. These regulations and proced
General Provisions Regarding Imports And Exports
For latest circulars and guidelines of DGFT, their website http://dgftcom.nic.in
should be accessed.
Export and imports free unless regulated
Exports and Imports shall be 'Free' except in cases where they are regulated by way of
prohibition', 'restriction' or 'exclusive trading through State Trading Enterprises (STEs)'
as laid down in Indian Trade Classification (Harmonised System) [ITC (HS)] of Exports
and Imports. There are some items which are 'free' for import/ export, but subject to conditions stipulated in other Acts or in law for the time being in force
as amended from time to time.
Compliance with laws
Every exporter or importer shall comply with the provisions of Foreign Trade (Development
and Regulation) Act, as well as provisions of any other law for the time being in force.
All imported goods shall also be subject to domestic Laws/Rules/Orders/Regulations/
Technical specifications/environmental/safety and health norms applicable to domestically
produced good, unless specifically exempted. Goods to be utilized/consumed in manufacture
of export products, as notified by DGFT, may be exempted from domestic standards/quality
specifications.
Interpretation Policy
If any question or doubt arises in respect of the interpretation of any provision contained in the Foreign Trade Policy, or regarding the classification of any
Procedure
The Director General of Foreign Trade may, in any case specify the procedure to be followed by
an exporter or importer or by any licensing or any other competent authority for the purpose of implementing the provisions of the Act, the Rules and the
procedures shall be included in the Handbook of procedures, Schedule of DEPB Rate and in
ITC (HS) and published means of a Public Notice. Such procedures may, in like manner, do biw be amended from time to time.
Exemptions from Policy/ Any request for relaxation of the provisions Procedure
Any request for relaxation of the Policy or of any procedure, On the ground that a strict application
or the procedure is likely to have an adverse impact on trade, may be made to the Director
General of Foreign Trade for such relief as may be necessary. The Director General of Foreign Trade may in public interest, exempt any person or class
Restricted Goods
Any goods/service, the export or import of which is 'Restricted under Indian Trade Classification
(Harmonised System) {ITC(HS)} may be ex- ported or imported only in accordance with an Authorisation/Permission or in accordance with the procedure
Public Notice issued in this regard.
State Trading Enterprise(s)
Any goods, the import or export of which is governed through Enterprise(s) exclusive or special privileges granted to State Trading Enterprise(s), may be
Importer Exporter Code
No export or import shall be made by any person without an Importer-Exporter Code (IEC) number unless specifically exempted.

Transist Policy
Transit of goods through India from or to countries adjacent to India shall be regulated oman of smit min accordance with the bilateral treaties between of
Actrual User Condition
India and those countries and will be subject to such restrictions as may be specified by DGFT in accordance with International Conventions. Goods whic
Second Hand Goods
All second hand goods (except second hand capital goods permitted in the policy such as
refurbished/reconditioned spares), shall be restricted for imports and may be imported
only in accordance with the provisions of the Trade Policy, ITC (HS), Handbook, Public
Notice or a license/certificate/permission issued in this behalf.
Import of Samples
Import of samples shall be governed by the provisions contained in Handbook of Procedures
Import of Gifts
Import of gifts shall be 'free' where such goods are otherwise freely importable under ITC (HS).
In other cases, such imports shall be permitted against an authorization issued by DGFT.
Passenger Baggage
Bona fide household goods and personal effects may be imported as part of passenger baggage
as per limits, terms and conditions thereof in Baggage Rules notified by Ministry of Finance.
Samples of such items that are otherwise freely importable under FTP may also be import-
ed as part of passenger baggage without an Authorization. Exporters coming from abroad are also allowed to import drawings, patterns, labels, price tags
required for export, as part of their passenger baggage without an Authorization.
Import for Export
Goods imported, in accordance with FTP may be exported in same or substantially the same form without an Authorisation provided be imported or expo
Goods, including capital goods (both new and second hand), may be imported for export provided, importer clears goods under Customs Bond; Goods a
"Restricted"/"Prohibited"/subject to "exclusive trading through State Trading Enterprises" or
any conditionality/requirement under Export Policy of the ITC (HS); Export is against freely
Convertible currency.
16. Re-import of goods repaired abroad
Capital goods, equipments, components, parts and accessories, repaired abroad whether im-
ported or indigenous, except those restricted under ITC (HS), may be sent abroad for
repairs, testing, quality improvement or up gradation or standardization of technology
and re-imported without a license/certificate/ raba permission.
17. Import of goods used in Projects abroad
Project contractors after completion of projects abroad, may import without an Authorization, goods including capital goods used in the project, provided t
18. Sales on High Seas
Sale of goods on high seas for import into India may be made subject to the Foreign Trade Policy or any other law for the time being in force.
19. Import under Lease Fi-
No specific permission of RA (Regional Aunancing thority) is required for lease financed capital goods.
20. Clearance of Goods from Customs
Goods already imported/shipped/arrived, in advance, but not cleared from customs can also be cleared against Authorization, Licence, Certificate,Permis
21. Execution of BG/LUT
Wherever any duty free import is allowed or where otherwise specifically stated, the importer shall execute a Legal Undertaking (LUT)/Bank Guarantee (B
22. Private/Public Bonded ware- houses for Import.
Private/Public bonded warehouses may be set up in Domestic Tariff Area (DTA) as per terms and conditions of notification issued by Department of Reve
23. Free Exports
All goods may be exported without any restriction except to the extent such exports are regulated by ITC(HS) or any other provision of the Foreign Trade
24. Export of Samples
Export of samples and Free of charge goods shall be governed by the provisions given in Handbook of procedures.
25. Export of Passenger Baggage
Bona-fide personal baggage may be exported either along with passenger or, if unaccompanied, within one year before or after passenger's departure fro
30. Export of Repaired Goods
Goods or parts thereof except those restricted under ITC (HS), on being exported and found defective, damaged or otherwise unfit for use may be import
Such goods shall be allowed clearance without a licence/certificate/permission/Authorization. and in accordance with customs notification issued in this b
31. Private Bonded Warehouses for Exports
Private bonded warehouses exclusively for exports may be set up in DTA as per the terms and conditions of the notifications issued by Exports Departme
32. Denominations of Export Contracts
All export contracts and invoices shall be Contracts denominated either in freely convertible currency or Indian rupees but the export proceeds shall be re

However export proceeds against specific exports may also be realized in rupees provided it is through a freely convertible Vostro account of a non-resid
33. Non-realization of Export Proceeds-
If an exporter fails to realize export proceeds Proceeds within time specified by RBI, he shall, without prejudice to any liability or penalty under any law in
34. Exemption from Service Tax in DTA
For all goods and services which are exported from units in Domestic Tariff Area(DTA), remission of service tax levied and related to exports, shall be allo
35. Exemption from Service Tax in EOU/EHTP/STP/BTP
For units in EOU/EHTP/STP/BTP, exemption/ remission of service tax levied and related to exports, shall be allowed, as per prescribed procedure in the
hese regulations and procedures are, however, subject to dynamic revisions and amendments. However, we shall touch only upon the broad policy framework, whic

aw for the time being in force. The item wise export and import policy shall be, as specified in ITC (HS) published and notified by Director General of Foreign Trade,

ding the classification of any item in the ITC (HS) or Schedule of DEPB (Duty Entitlement Pass Book) Rate the said question or doubt shall be referred to the Directo

f the Act, the Rules and the Orders made thereunder. Such

exempt any person or class of persons from any provision of the Policy.

cordance with the procedure prescribed in a Notification/

ading Enterprise(s), may be imported or exported by the State Trading Enterprise(s) as specified in the ITC (HS) Book subject to the condi- tions specified therein. T

bilateral treaties between of the provision india and those countries and will be subject to such restrictions as may be specified by DGFT in accordance with interna
 al Conventions. Goods which are importable freely without any 'Restriction may be imported by any person. However, if such imports require an Authorization, actua

s, patterns, labels, price tags, buttons, belts, trimming and embellishment

rovided be imported or exported is no that item restricted for import or export in ITC (HS). Capital goods, which are freely importable and freely exportable, may be im
der Customs Bond; Goods are freely exportable, i.e., are not

sed in the project, provided they have been used for at least one year.

e being in force.

, Licence, Certificate,Permission issued subsequently. This Facility will not be available to “Restricted” items. Or Items Traded Through STEs.

ng (LUT)/Bank Guarantee (BG)/Bond with the Customs Authority before clearance of goods through the Customs

sued by Department of Revenue. Any person may import goods except prohibited items, arms and ammunition, hazardous waste and chemicals and warehouse the

ovision of the Foreign Trade Policy or any other law for the time being in force. The Director General of Foreign Trade may however, specify through a public notice
ter passenger's departure from India. However, items mentioned as restricted in ITC (HS) shall require an Authorization. Government of India officials proceeding ab

e unfit for use may be imported for repair and subsequent re-export.
s notification issued in this behalf.

issued by Exports Department of Revenue.Such warehouses shall be entitled to procure the goods from domestic manufacturers without payment of duty. The supp

e export proceeds shall be realized in freely convertible currency.

ostro account of a non-resident bank situated in any country other than a member country of ACU or Nepal or Bhutan. The free foreign exchange remitted by the bu

or penalty under any law in force, be liable to return all benefits/ incentives availed against such exports and action in accordance with provisions of Foreign Trade (

lated to exports, shall be allowed, as per prescribed procedure in Handbook of Procedures

prescribed procedure in the Handbook of Procedures.

n the broad policy framework, which is long-term in nature and gives us a gist of the options/incentives available to importers and This also gives us an idea of what

Director General of Foreign Trade,

oubt shall be referred to the Director General of Foreign Trade whose decision thereon shall be final band binding.

the condi- tions specified therein. The Director General of Foreign Trade may, however, grant a license! certificate/permission to any other person to import or expor

y DGFT in accordance with international Conventions.

orts require an Authorization, actual user alone may import such good(s) unless actual user condition is specifically dispensed with by DGFT.

ble and freely exportable, may be imported for export on execution of LUT/BG with Customs Authority.

rough STEs.

and chemicals and warehouse them in such bonded warehouses. Such goods may be cleared for home consumption in accordance with provisions of FTP and aga

er, specify through a public notice such terms and conditions according to which any goods, not included in the ITC(HS), may be exported without a license/certifica
ment of India officials proceeding abroad on official postings shall, however, be permitted to carry along with their personal baggage, food items (free, restricted or pro

without payment of duty. The supplies made by a domestic supplier to the notified warehouses shall be treated as physical exports provided the payments for the s

reign exchange remitted by the buyer to his non-resident bank (after deducting the bank service charges) on account of this transaction would be taken as the expo

e with provisions of Foreign Trade (Development &Regulation) Act, Rules and Orders made there under and FTP.In case an Exporter is unable to realise the export
also gives us an idea of what is permitted and what is restricted within the existing policy framework. exporters.

her person to import or export any of these goods.

ith provisions of FTP and against Authorisation, wherever required. Customs duty as applicable shall be paid at the time of clearance of such goods. If such goods a

ted without a license/certificate/permission.

d items (free, restricted or prohibited) strictly for their personal consumption. Samples of such items that are otherwise freely exportable under FTP may also be exp

vided the payments for the same are made in free foreign exchange.

n would be taken as the export realization under the export promotion schemes of the Policy.Contracts for which payments are received through the Asian Clearing U

unable to realise the export proceeds for reasons beyond his control (force-majeure), he may approach RBI for writing off the unrealised amount as per procedure l
f such goods. If such goods are not cleared for home consumption within a period of one year or such extended period as the customs authorities permit, importer o
e under FTP may also be exported as part of passenger baggage without an Authorization.not mentioned in ITC(HS). as restricted items for export.

d through the Asian Clearing Union (ACU) shall be denominated in ACU Dollar.

ed amount as per procedure laid down in Handbook of Procedures.

authorities permit, importer of such goods shall re-export the goods.
s for export.