4.15.1

Before opening the L/C, the bank will ensure that the necessary BG / LUT has been executed by the Advance Authorisation holder/ non-transferable DFIA and an endorsement to that effect has been made on the authorisation.

However, execution of BG/LUT shall not be required against DFRC or transferable DFIA . After opening the inland L/C, the bank shall make the following endorsement on the Exchange Control and Customs copy of the Advance Authorisation/ DFRC/ DFIA :

“The value of this Advance Authorisation/ DFRC/ DFIA stands reduced by a sum of Rs. ________ , being the value of the inland LC No.________ opened today by the licensee in favour of M/s ____________________ (name and address of the indigenous supplier).”