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TMI BlogTrade Credits for Imports into India – Review and SimplificationX X X X Extracts X X X X X X X X Extracts X X X X ..... sent instructions have been reviewed in the light of experience gained and recent developments. Consequently, it is clarified that the extant guidelines covering such credits for imports of all items up to USD 20 million per import transaction with a maturity period up to one year remain unchanged. Credits up to USD 20 million per import transaction with a maturity period exceeding one year but less than three years would now be permitted only for import of capital goods. The reporting arrangements for such credits have been further simplified. The revised guidelines are set out below. 3. It is clarified that credit extended for imports directly by the overseas supplier, bank and financial institution for original maturity of less than thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if any. The all-in-cost ceilings will be reviewed from time to time. 7. As hitherto, ADs shall not issue guarantee, letter of undertaking or letter of comfort in favour of overseas lender on behalf of their importer constituent for trade credit without prior approval of the Reserve Bank. 8. As regards reporting arrangements, ADs are required to furnish details of approvals, drawal, utilisation, and repayment of trade credit granted by all its branches, in a consolidated statement, during the month, in form TC (format in Annex) from April 2004 onwards to the Director, Division of International Finance, Department of Economic Analysis and Policy, Reserve Bank of India, Central Office Building, 8th floor, Fort, Mumbai - 400 001 (and in MS-E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod of credit Type of Crdit** Item of Import / proposed Import All-in-cost No. of Days/Mon./Yr Unit of time period SC / BC STC / LTC Description Category*** 12 13 14 15 16 17 18 I. Supplier's Credit (SC) II. Buyer's Credit (BC) III. Short-term Trade Credit (STC) (maturity period up to one year) IV. Long-term Trade Credit (LTC) (maturity period more than one year & less than three years) V. Total Trade Credit (TC) (I+II) *: or Supplier **: Please type respective code such as SC or BC; STC or LTC. ***: Petroleum Oil Lubricants (POL), Capital Goods (CG), Others (OT) Note 1: The format of the loan identification number is : TC/(Name of the Bank/branch)/(Identification No.) Note 2: Information in column nos. 8 to 13 should be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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