HC Deb 06 August 1976 vol 916 cc1068-9W
Mr. Woodall

asked the Chancellor of the Exchequer what are the limits within which British companies can "lead" and "lag" their foreign currency transactions.

Mr. Denzil Davies

The Exchange Control Act 1947 requires United Kingdom residents, broadly speaking, to ensure that receipts due from nonresidents are not waived or delayed and that payments to be made to nonresidents are not met before they are due. The general permission to exporters given under the Act is subject to the condition that the period of credit extended does not exceed six months from the date of exportation, or if exported under a contract which is covered by ECGD insurance, such longer period of credit as that Department has approved. In the case of imports the general rule is that payment may not be made before shipment, although partial payment in advance may be allowed for imports of capital goods.

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