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Bhalchandra R (DYM)     15 May 2014

Bank guarantee in us doller

Respected Sirs,

We and our customer both are in India. We have to supply the material upto Indian Port only. Thereafter customer will export it. Our Customer in Indai will make our payment in US Doller.

For claiming the advance payment we have to give bank guarantee having value in USD in favour of our customer in India.

Our bank wanted following things from us for issuing the BG :

1.FEMA Declaration

2. Underlying contract

Please advice is this required?




 1 Replies

c.p.s. ramachary (1500)     22 May 2014

According to Foreign Exchange Management (Export of Goods and Services) Regulations2000, every exporter of goods or software in physical form or through any other form, either directly or indirectly, to any place outside India, other than Nepal and Bhutan, shall furnish to the specified authority, a declaration in one of the forms set out in the Schedule and supported by such evidence as may be specified, containing true and correct material particulars as warranted in the declarations.Please see the notification No.FEMA 23 /2000-RB dated 3rd May 2000 issued by Reserve Bank of India. Under lying contact, even though, does not form basis to enforce the BG, the bank may require it for reference and administrative reasons. You have to furnish them invariably.






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