Transitional Arrangements

1.5

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 commercial letter of credit [OLD- irrevocable letter of credit] established before date of imposition of such restriction. However, a time limit for operationalising such LCs may be prescribed.

(In above para the words "irrevocable commercial letter of credit" has been substituted vide NTF NO. 20/2007, DT. 13/08/2007)

(Please refer P. CIR. NO. 04/2007, DT. 16/08/2007 - Transitional Arrangements under Para 1.5 of Foreign Trade Policy, 2004-2009 - regd. NTF. NO. 20/2007, DT. 13/08/2007)