A.P.(DIR Series) Circular No.27

March 2, 2001

To

All Authorised Dealers in Foreign Exchange

Dear Sirs,

Attention of authorised dealers is invited to paragraph B.5 of the annexure to A.P. (DIR Series) Circular No.12 dated September 9, 2000, in terms of which they may negotiate House Airways Bills (HAWBs) issued by consolidating Cargo Agents, only if the relative letter of credit specifically provides for negotiation of HAWB, in lieu of Airway Bills issued by the airline company. It has now been decided that authorised dealers may also accept Forwarder’s Cargo Receipts (FCR) issued by IATA approved agents, in lieu of bill of lading, for negotiation/collection of shipping documents, in respect of export transactions backed by letters of credit, only if the relative letter of credit specifically provides for negotiation of this document, in lieu of bill of lading. Further, the relative sale contract with the overseas buyer should also provide that FCR may be accepted in lieu of bill of lading as a shipping document.

2. Authorised dealers may bring the contents of this circular to the notice of their constituents concerned.

3. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Any contravention or non-observance of these directions is subject to the penalties prescribed under the Act.

Yours faithfully,

Chief General Manager