Usance import under purchases or sales contracts

FEPD Circular – 24
Newly introduced import policy order (IPO) allows industrial and commercial imports through purchases/sales contracts without Letters of Credit (LCs) within annual limits. Short-term external trade finance is allowed under supplier’s/buyer’s credit, with specific guidelines for importers and Authorized Dealers (ADs) to ensure compliance. ADs must verify importers’ performance, obtain credit reports, and ensure financing arrangements are in place before facilitating imports.