Date of messages between banks to seen for registration of L/C due to fraudulent practices

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The DGFT vide Trade Notice No. 09/2022-23 dated May 23, 2022 received information from sources that fraudulent back dated Letter of Credit (“L/C”) thus clarified that for registration of L/C with the RAs of DGFT, apart from the L/C date, the message exchange date between the Indian and foreign bank / Swift date should also be on or prior to May 13, 2022.

Reference is invited to Notification No. 06/2015-2020 dated May 13, 2022 amending the export policy of wheat under S.No.59 of Chapter 10 of Schedule – 2 of the ITC (HS) Export Policy from ‘Free’ to ‘Prohibited’ with immediate effect read with Trade Notice No. 06/2022- 2023 dated May 14, 2022, Trade Notice No. 07/2022-2023 dated May 17, 2022 and Trade Notice No. 08/2022-2023 dated May 17, 2022.

In this regard, information has been received from sources that fraudulent back dated Letter of Credit (L/C) showing date of issuance, as on or prior to May 13, 2022, are being submitted by some unscrupulous exporters for issue of RCs, but as per the L/C, message exchange date between Foreign and the Indian bank / Swift message is after May 13, 2022.

The said matter has been considered and it is clarified that for registration of L/C with the RAs of DGFT, apart from the L/C date, the message exchange date between the Indian and foreign bank / Swift date should also be on or prior to May 13, 2022.

The Trade Notice can be accessed at: https://content.dgft.gov.in/Website/dgftprod/2cfeb827-3451-4890-bf3d-cd848a61bba3/Trade%20Notice%20No.09%20dated%2023rd%20May%202022.pdf

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