RBI liberalises import norms for aircraft, copters

Mumbai: Liberalising the procedure for import for the civil aviation sector, the Reserve Bank on Friday allowed airlines to make advance payment up to $ 50 million toward purchase of aircraft, helicopters and other aviation equipment.
The airlines operating scheduled air transport services can now make "advance remittance, without bank guarantee or an unconditional, irrevocable standby Letter of Credit, up to US$ 50 million, for direct import of each aircraft/helicopter/other aviation-related purchases," the RBI said in a notification here.
The central bank has also asked the authorised dealer banks to undertake the transactions after following the KYC (Know Your Customer) guidelines with respect to the Indian importer and the overseas manufacturer.
The notification further said the advance payments should be made as per the terms of the contract between the buyer and the seller, in the account of the manufacturer.
30/06/07 PTI/The Hindu

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Categories: Foreign Jun 2007, General Aviation Jun 2007