Foreign Exchange Department releases guidelines


December 20, 2001
2 MIN READ
A
A+
A-

December 20, 2001

KATHMANDU: The Foreign Exchange Department of the Nepal Rastra Bank, in order to control the misutilization of convertible foreign currency while making transactions through letters of credit, has issued the following guidelines to obtain business credibility information before making import and export transactions:

1. Information must be obtained regarding the Business Credibility of the exporting foreign firm, company or organization before opening an import license.

2. Information must be obtained regarding the Business Credibility of importing foreign buyers before negotiating or purchasing export documents.

3. The concerned commercial banks should themselves obtain such information through agencies collecting them or through the representatives of established agencies.

4. No transaction is allowed with the firms, companies or other agencies which have been rated as “Credit Risk”, “High Credit Risk”, or “Rating Not Determined”.

5. The validity of the Business Credibility Information taken once will be for only three months.

6. Such Business Credibility Information will not be required while opening letter of credit on the basis of the global tender called by government and semi-government agencies.

7. Information obtained by one bank can be used by other banks as well.

8. This arrangement will be required for the opening of letters of credit amounting to US$ 15,000 or more. (This also implies to the revised amount which comes to be US$ 15,000 or more).

9. This arrangement will be effective from 1 Magh 2058 (14 January 2002).

10. Other arrangements related to import and export letters of credit will remain the same.