|
Normal Transit Period (NTP) for Exports to Iraq under U.N. Guidelines
IECD
No. 3-04.02.02 dated 10th July 2002
Please
refer to our circular No. 12/ 04.02.02/ 2000-01 dated March 7, 2001 advising
banks to extend the concessional rate of interest in respect of exports to Iraq
under U.N. guidelines for a maximum period of 90 days.
2.
Based on the general experience of banks/ exporters in respect of export
of goods to Iraq in realising the proceeds in time, the issue has been
re-examined by us in consultation with Foreign Exchange Dealers' Association of
India and on reconsideration, the NTP has been enhanced to a maximum of 120 days
from the date of shipment of goods to Iraq under U.N. guidelines by duly
amending the relevant rule vide their AR Circular No. 04/ 2002 dated April 1,
2002 (copy enclosed). Accordingly, banks may charge interest on post-shipment
credit for exports to Iraq under U.N. Guidelines as a special case for a
temporary period as under:
|
Interest
rates
|
|
a)
On demand bills for transit period (as specified by FEDAI) upto 120 days
|
Not
exceeding PLR minus 2.5 percentage points.
|
|
b) Usance bills:
|
|
|
i) Upto 120 days
|
Not
exceeding PLR minus 2.5 percentage points
|
|
ii) Beyond 120 days and upto six
months from
the date of shipment
|
Not
exceeding PLR plus 0.5 percentage point
|
3.
Please acknowledge receipt.
Foreign
Exchange Dealers' Association of India (Registered under Section 25 of The
Companies Act, 1956)
17th
Floor, Maker Towers `F' Cuffe Parade, Mumbai - 400005
Tel.:
218 4432/ 218 2549/ 218 4200 FAX: 218 9946 TLX: 011-82767 FEDA IN
E-mail:
[email protected] Website: www.fedai.org.in
Normal
Transit Period Exports to Iraq under U N Guidelines
AR
Circular No. 4 dated 1st April 2002
Please
refer to FEDAI Rule 2 A.4 (ii) and Circular AR 1/ 2001 dated 2nd
February 2001.
With
the approval of our Managing Committee the Rule stands amended as under:
"Rule
2 A.4 (ii) - Exports to Iraq:
In respect of exports to Iraq under United
Nations Guidelines, where payment under letters of credit is made on arrival of
goods upon issuance of certificate by U.N. Agency to the effect that the exports
conform to the guidelines laid down by United Nations, the applicable Normal
Transit Period shall be for a maximum of 120 days from the date of shipment for
which concessional rate of interest shall be recovered.
The
concessional rates of interest as advised by RBI from time to time for the first
90 days and beyond 90 days (upto 120 days) are applicable for this
transactions".
Please
be guided accordingly and make a suitable note against the relevant Rule in the
Rule Book in your possession.
|