Guwahati: The Directorate General of Foreign Trade has directed Regional Authorities to physically verify all documents of applicants for the export of wheat before issuing Registration Certificates (RCs).

The directive was issued to guarantee that exporters are not awarded RCs based on incorrect documentation.

To close the gap, Regional Authorities have agreed to conduct physical verifications of all Letters of Credit, whether authorised or in the process.

The order specifies the following additional checks:

1. Physical verification must include validation/endorsement from the recipient bank.
2. In cases where the LC date is on or before May 13, 2022, but the swift message/message exchange date between the Indian and foreign banks is after May 13, 2022, Regional Authorities may conduct a full investigation and, if these are found to be antedated, immediate proceedings under the FT (D&R) Act, 1992 against the exporters will be initiated. Such incidents will be investigated further and sent to enforcement agencies such as the Economic Offence Wing (EOW) / Central Bureau of Investigation (CBI). If any banker is found to be involved in situations where ante-dating is proved, the required legal processes will be undertaken.
3. The Government of India had previously restricted wheat exports (on May 13, 2022) in order to manage India's overall food security situation and to support the needs of neighbouring and vulnerable countries that are adversely affected by sudden changes in the global wheat market and are unable to access adequate wheat supplies.