7A.5
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Letters of Authority
Authorised dealers may open letters of credit or make remittances where the Exchange Control copy of relative import licence has been issued in the name of a party other than the applicant, provided the applicant produces a letter of authority obtained from the import licence holder in his favour authorising him, inter alia, to open letters of credit or make remittances in payment towards import under the licence (subject to the terms and conditions, if any, stipulated in this regard in the Import Policy in force). Authorised dealers may also open letters of credit or make remittances towards imports permitted without licences on behalf of agents appointed by eligible importers, after satisfying themselves by reference to the Import Policy in force that the latter are permitted to utilise services of agents for the purpose of opening letters of credit etc. for the imports in question. In all such cases, the responsibility for production of the Customs Bills of Entry, where required, will rest on the letter of authority holder or agent and an undertaking to do this must be taken from him.