What is the Procedure for remittances against replacement Imports?
A.1. i. In case import of an item does not require license under the Export-Import Policy in force and there is a need for remittance of foreign exchange for import of replacement goods for a defective item imported earlier, the remittance should be made after ensuring that there is no double payment for the same import. ii. Where goods are short-supplied, damaged, short-landed or lost in transit, the procedure laid down below should be followed for payment against replacement goods : a. In cases where no letter of credit has been opened or remittances made, Exchange Control copy of the import license may be automatically treated as valid for the replacement consignment, provided it is shipped within the validity period of the license. b. If the Exchange Control copy has already been utilized to cover the opening of a letter of credit against the original goods which have been lost, the original endorsement to the extent of the value of the lost goods may be cancelled by the branches w
