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December 2011

A.P. (DIR Series) Circular No. 44, dated 15-11-2011 — Trade credits for imports into India — Review of all-in-cost ceiling.

By Gaurang Gandhi, Chartered Accountant
Reading Time 2 mins
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This Circular has revised the all-in-cost ceiling for Trade Credits as under:

Maturity period        All-in-cost over 6 month LIBOR*
                                Existing                                               Revised

Up to one year           200 bps                                            350 bps

More than one year and up to three years

* For the respective currency of credit or applicable benchmark

The all-in-cost ceilings include arranger fee, upfront fee, management fee, handling/processing charges, out-of-pocket and legal expenses, if any. This increased all-in-cost ceiling is applicable up to March 31, 2012.

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