Foreign Trade Policy – “letter of credit” becomes ‘irrevocable commercial letter of credit'.

By Vijay Kumar

Para 1.5 of the FTP reads as, In case an export or import that is permitted freely under FTP is subsequently subjected to any restriction or regulation, such export or import will ordinarily be permitted notwithstanding such restriction or regulation, unless otherwise stipulated, provided that shipment of export or import is made within original validity with respect to available balance and time period of an irrevocable letter of credit established before date of imposition of such restriction. However, a time limit for operationalising such LCs may be prescribed.

This is now ‘irrevocable commercial letter of credit'.

NOTIFICATION NO. 20(RE-2006)/2004-2009, Dated: August 13, 2007