onsignment sales are allowed by the Exchange Regulation only for perishable items such as green house products (flower, herbs, etc.), animal carcass, etc.
Documents required for Permit Approval
a) Duly signed contract by seller & buyer
b) Undertaking letter of our customer that consignment will be settled within a maximum of 90 days from date of the Foreign Exchange Permit.
c) Seller’s invoice
d) Export License Valid for the year
e) Tax registration certificate (TIN certificate)
f) Export permit application form duly filled, signed & stamped (as appropriate) by the customer.
g) NBE issues delinquent list of exporters periodically. Customer’s name should not appear in the delinquent exporters list of NBE for the period. If the name appears, there should be subsequent list indicating the given customer has cleared all outstanding items at NBE.
Expectations from importers on CAD basis
a) Exporter should know foreign counter part as detail as possible with regard to financial soundness, reliability, integrity, full address, etc.
b) Sales/Purchase contract should exist between the two parties (importer and exporter).
c) Follow up of payment should be done by exporter as nonpayment or even delay of remittance above 90 days will put name of exporter in delinquent list freezing further exports until proceeds are received.