Date of Message Exchange b/w Indian and Foreign Banks to be considered for Registration of L/Cs due to Fraudulent Practices: DGFT [Read Circular]

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.

To Read the full text of the Circular CLICK HERE

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