Trade Credit for Imports [See Regulations 4(B)(ii) & 6(B)(iii)]

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..... e Credits can be raised for the purpose of import of non-capital and capital goods as permitted under the extant Foreign Trade Policy of the DGFT and for purchase of non-capital and capital goods within a Special Economic Zone (SEZ) or from a different SEZ subject to terms and conditions as stipulated by the Reserve Bank from time to time. Explanation : SEZ is as defined in the SEZ Act, 2005 . 2. .....

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..... ific sector. ii. For import of capital goods Maximum period of three years or for a period as per the guidelines issued by the Reserve Bank from time to time. 5. Recognised Lenders Overseas suppliers, banks and other financial institutions, foreign equity holders and financial institutions in International Financial Services Centres (IFSCs) in India or any other entities as decided by the Reserve .....

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..... rporate and / or personal guarantee as security for the borrowing subject to terms and conditions as specified by the Reserve Bank from time to time. Further, AD Category I banks are permitted to issue bank guarantees in favour of overseas supplier, bank or financial institution duly ensuring the underlying import /trade credit complies with extant norms. 8. Reporting requirements The reporting re .....

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