The Director-General of Foreign Trade (DGFT) has issued a trade notice clarifying that the date of message between Indian and foreign banks will be considered for the registration of L/Cs due to fraudulent practices.
A trade notice issued on Monday stated that “In this regard, information has been received from sources that fraudulent backdated Letters of Credit (L/C) showing the date of issuance, as on or prior to 13.5.2022, are being submitted by some unscrupulous exporters for the issue of RCs, but as per the L/C, message exchange date between Foreign and the Indian bank / Swift message is after 13.05.2022.”
“The said matter has been considered and it is clarified that for registration of L/C with the RAs of DGFT, apart from the L/C date, the message exchange date between the Indian and foreign bank / Swift date should also be on or prior to 13.5.2022. This issues with the approval of competent authority,” the DGFT said.
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