CIR. NO. 04/2003-04-RB, DT. 19/07/2003
- Document type
- Circular
- Reference no.
- D
- Dated
- Category
- A.P. (DIR Series) Circulars
Merchanting Trade Transactions-Clarifications - Short term credit
Merchanting Trade Transactions-Clarifications - Short term credit
2. While undertaking bonafide merchanting trade transactions on behalf of their trader clients, authorised dealers should ensure that the terms of payment for the import leg and the export leg of the transactions are such that :
i. the liability for the import leg of the transaction is extinguished by the payment received for the export leg of the transaction without any delay; and
ii. the entire merchant trade transaction is completed within a period of 6 months.
3. Authorised dealers may bring the contents of this circular to the notice of their constituents concerned.
4. The directions contained in this circular have been issued under section 10(4) and section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).
Yours faithfully,
Grace Koshie
Chief General Manager