RBI/2015-16/249
A.P. (DIR Series) Circular No.30
November 26, 2015
To,
All Authorised Dealer Category – I Banks
Madam/ Sir
Advance Remittance for Import of aircrafts /helicopters / other
aviation related purchases
Attention of Authorised Dealers Category - I (AD Category - I) banks is
invited to clause 3(f) of
A. P. (DIR Series) Circular No.77 dated June 29, 2007,
in terms of which AD Category I banks could allow advance remittance, without
bank guarantee or an unconditional, irrevocable standby letter of credit up to
USD 50 million, in the case of import of aircrafts/ helicopters/ other aviation
related purchases by scheduled air transport operators permitted by the Director
General of Civil Aviation (DGCA), after ensuring that the requisite approval of
the Ministry of Civil Aviation (MoCA)/ DGCA / other agencies in terms of the
extant Foreign Trade Policy, had been obtained by the company for import.
- Director General of Foreign Trade vide
Notification No. 24/2015-2020 dated
October 9, 2015 has announced amendment in Policy condition 1 of Chapter 88 of
ITC (HS), 2012-Schedule – 1 (Import Policy). Accordingly, AD Category – I banks
may, while allowing advance remittance without bank guarantee or an
unconditional, irrevocable standby letter of credit up to USD 50 million, ensure
that only the requisite approval of DGCA for import of aircrafts/helicopters in
terms of the extant Foreign Trade Policy has been obtained by the company for
operating Scheduled or Non-Scheduled Air Transport Services (including Air Taxi
Services). In other words, the approval from MoCA will not be required.
- All other terms & conditions mentioned in the
A. P. (DIR Series) Circular
No.77 dated June 29, 2007 remain unchanged.
- AD Category - I banks may bring the contents of this circular to the notice
of their constituents and customers.
- The directions contained in this circular have been issued under section
10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999)
and are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(A K Pandey)
Chief General Manager
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