Payment period for raw material imports extended till June
The extended period not applicable for imports under EDF
The central bank has allowed the extended usance period against imports of industrial raw materials – to 360 days from 180 – to remain in place till June 2024.
Previously, this facility was available till December this year.
The usance period is the time permitted by custom, between the date of the bill and its payment.
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According to a central bank circular issued on Thursday (14 December), such a facility will be applicable in case of industrial raw material imports, including back to back imports, and imports of agricultural implements and chemical fertilisers under the buyer's credit.
Buyer's credit refers to the credit available to an importer from overseas lenders, such as banks and other financial institutions, for goods they are importing.
The extended usance period will not be applicable for imports under loans of the Export Development Fund, the circular added
