7A.2 Authorised dealers should
not open letters of credit or allow remittances for the import of goods included
in the negative lists unless the importer submits a licence marked For Exchange
Control Purposes'. Special conditions, if any, attached to the licence should
be adhered to while opening letters of credit or making remittances.
Import Licences for c.i.f.
7A.9 (i) Import licences wherever issued are
for the c.i.f. value of the goods to be imported which includes commission,
if any, allowed by the supplier/manufacturer. Import licences cannot be used
to the full amount in cover of f.o.b. cost of the goods leaving insurance, freight
and commission to local agent of the supplier, as additional charges to be paid
in rupees over the amount specified in the import licence. (See paragraph 7A.13
(ii) Importers sometime enter into contracts
on f.o.b. terms and agree to the suppliers paying for the freight to be reimbursed
to them along with the cost of the goods. Authorised dealers in such cases should,
before making the remittance of freight charges, ascertain the actual freight
amount paid with reference to the original freight bill or memo issued by the
shipping company or the amount stated on the relative bill of lading.
Imports by Government/Public Sector
7A.9A As per the procedure laid down by Government
of India, import contracts by Central/State Governments, Central & State
Public Sector undertakings and autonomous bodies are required to be made on
FOB/FAS basis in respect of transportation of Government owned / controlled
cargo by foreign flag vessels (i.e. ocean transportation of cargo) . In case
of the import contracts entered into on terms other than FOB/FAS, a No Objection
Certificate from the Ministry of Surface Transport (MOST), Government of India
is required to be obtained. Authorised dealers, before opening import letters
of credit or releasing foreign exchange for imports, should ensure that necessary
No Objection Certificate is obtained by the concerned Government organisation
in cases of import contracts made on terms other than FOB/FAS.
Endorsement on Import Licences
7A.15 (i) Authorised dealers should note to
endorse on import licences, under their stamp and signature, the details of
letters of credit opened or forward contracts booked or remittances made in
foreign currency as also the amount of insurance, freight and commission paid
by the importer locally in rupees [See paragraph 7A.9].
(ii) Authorised dealers may likewise endorse
the value of the back-to-back inland letters of credit opened by them on behalf
of duty free licence holders (including transferees) as required in terms of
the relevant provisions of the Export Import Policy.
Surrender of Import Licences to Exchange
7A.19 Exchange Control copy of
import licence submitted by importer for opening letters of credit or making
remittances should be retained by authorised dealer and forwarded to Reserve
Bank after it has been fully utilised along with R Returns pertaining to the
period during which the last remittances under the licences were made.