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A.P. (DIR Series) Circular No.100
May 2, 2003
To
All Authorised Dealers in Foreign Exchange
Madam/Sirs,
Export of Goods and Services-Exports to Warehouses Abroad
Attention of authorised dealers is invited to note `B’ of paragraph C.6 of Annexure to A. P. (DIR Series) Circular No.12 dated September 9, 2000 in terms of which Reserve Bank on an application made to it may permit individual exporters to hire warehouses abroad, subject to certain conditions.
2. It has now been decided that authorised dealers may consider the applications received from exporters and grant permission for opening / hiring of warehouses abroad subject to the following conditions : -
a) Applicant’s export outstanding does not exceed 5 per cent of exports made during the previous year.
b) Applicant has a minimum export turnover of USD 1,00,000/- during the last year.
c) Period of realisation should be as applicable i.e., 180 days for non-status holder exporters and 365 days for status holder exporters.
d) All transactions should be routed through the designated branch of the authorised dealer.
3. Authorised dealers may grant such permissions, initially for one year and renewal thereof may be considered subject to the applicant satisfying the requirement at 2 (a). Authorised dealers granting the permission should maintain a proper record of the approvals granted.
4. Authorised dealers may bring the contents of this circular to the notice of their constituents concerned.
5. The directions contained in this circular have been issued under Section 10 (4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).
Yours faithfully,
Grace Koshie
Chief General Manager
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