Implementing Guidelines in Reporting Import Bills on L/Cs Opened with One Bank and Paid from Foreign Exchange Source from Another Bank

BSP CIRCULAR LETTER Series of 1993Series of 1993

TO : All Commercial Banks

SUBJECT : Implementing Guidelines in Reporting Import Bills on L/Cs Opened with One Bank and Paid from Foreign Exchange Source from Another Bank

1. AABs may sell foreign exchange to importer/clients to pay for import bills with L/Cs opened thru another bank provided that:

1.1 It is acceptable to the L/C opening bank;

1.2 The L/C has been negotiated.

2. The transaction shall be reported under "Schedule 13A", a newly created schedule shown as Annex I hereof, entitled "FX Sold/Bought for Payment of Import Bills with L/Cs Opened thru Another Bank". This schedule will serve as a supporting schedule to existing "Schedule 13" entitled "Schedule of Negotiation on Regular Import Letters of Credit" and will be reported as Item No. 7 under "Merchandise Imports" of the Daily Summary of FX Acquisition and disposition, IOS Form I Schedule I.

3. Examples of the reporting procedures for these transactions are attached as Annex II hereof.

4. The appropriate accounting entries are likewise shown in the attached Annex III.

Strict compliance herewith is enjoined.

EDGARDO P. ZIALCITA Deputy Governor