SCHEDULE III - Regulation 6(3) - Trade Credit - Foreign Exchange Management (Borrowing or Lending In Foreign Exchange ) Regulations, 2000

SCHEDULE III [See Regulation 6(3)] Trade Credit 1 [(1) Foreign currency credit/loan extended for imports into India by the overseas supplier, bank and financial institution, is hereinafter referred to as Trade Credit - (a) for original maturity of up to five years, subject to the terms and conditions as may be stipulated by the Reserve Bank from time to time, in respect of a company resident in India engaged exclusively in the development of infrastructure; (b) for original maturity of less than three years in respect of other resident entities. Depending upon the source of finance, such trade credit includes suppliers credit or buyers credit. Explanation : For the purpose of this regulation, infrastructure means infrastructure as defined under the External Commercial Borrowing (ECB) policy from time to time. ] 2. 2 [Authorised Dealers (ADs) in foreign exchange are permitted to approve trade credits up to USD 20 million per import transaction for import of all items permissible under the Foreign Trade Policy (except Gold) with a maturity period (from the date of shipment) up to one year. For import of capital goods, ADs are permitted to approve trade credits up to USD 20 million per import transaction with a maturity period of more than one year and up to five years in respect of a company resident in India engaged exclusively in the development of infrastructure and less than three years in respect of other resident entities. No roll-over / extension will be permitted by the AD beyond the permissible period.] 3. Trade Credit exceeding USD 20 million per import transaction will require the prior approval of the Reserve Bank of India. --------------------------- 1. Substituted vide NOTIFICATION No. FEMA 270/2013-RB Mumbai, March 19, 2013 w.e.f. September 11, 2012. before it was read as, 1. Foreign currency credit/loan extended for imports in to India by the overseas supplier, bank and financial institution for original maturity of less than 3 years is hereinafter referred to as Trade Credit for imports. Depending upon the source of finance, such trade credit includes suppliers credit or buyers credit. 2. Substituted vide NOTIFICATION No. FEMA 270/2013-RB Mumbai, March 19, 2013 w.e.f. September 11, 2012. before it was read as, Authorised Dealers (ADs) in foreign exchange are permitted to approve trade credits up to USD 20 million per import transaction for import of all items permissible under the Foreign Trade Policy (except Gold) with a maturity period (from the date of shipment) up to one year. For import of capital goods, ADs are permitted to approve trade credits up to USD 20 million per import transaction with a maturity period of more than one year and less than three years. No roll-over/extension will be permitted by the AD beyond the permissible period.