December 2013
A. P. (DIR Series) Circular No. 63 dated 18th October, 2013 Memorandum of Procedure for channeling transactions through Asian Clearing Union (ACU)
By Gaurang Gandhi, Chartered Accountant
Reading Time 2 mins
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This circular states that the ACU Board of Directors at their meeting held on 19th June, 2013 have decided to include only transactions involving export/import of goods and services among ACU countries as eligible for payment under the ACU Mechanism. As a result, the old Para 7 and sub-paragraph (b) of Para 8 stands revised as follows: –
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Extant Para 7 and Para 8(b) to the Annex of A.P.(DIR Series) Circular No.35 dated 17th February, 2010
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Revised Para 7 and Para 8 (b) to the Annex of A.P.(DIR Series) Circular No.35 dated 17th February, 2010
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7. Eligible Payments
Transactions that are eligible to be made through ACU are payments –
(a) from a resident in the territory of one participant to a resident in the territory of another participant;
(b) for current international transactions as defined by the Articles of Agreement of the International Monetary Fund;
(c) permitted by the country in which the payer resides;
(d) not declared ineligible under paragraph 8 of this Memorandum; and
(e) for export/import transactions between ACU member countries on deferred payment terms.
Note: – Trade transactions with Myanmar may be settled in any freely convertible currency, in addition to the ACU mechanism.
8. Ineligible Payments
(b) payments which are not on account of current international transactions as defined by the International Monetary Fund, except to the extent mutually agreed upon between Reserve Bank and the other participants
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7. Eligible Payments
Transactions that are eligible to be made through ACU are payments –
(a) for export/import transactions between ACU member countries including export and import on deferred payment terms; and
(b) not declared ineligible under paragraph 8 of this
Memorandum
Note: – Trade transactions with Myanmar may be settled in any freely convertible currency, in addition to the ACU mechanism.
8. Ineligible Payments
(b) payments that are not on account of export/import transactions between ACU members countries except to the extent mutually agreed upon between the Reserve Bank and the other participants
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