Regulatory basis for the amount range of a 2nd Local L/C (Purchase Confirmation)
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In a lecture, I heard that "a 2nd Local L/C (Purchase Confirmation) can only be issued within the amount of the 1st Local L/C." I am wondering if there are any relevant laws or manuals that stipulate this rule. I am trying to find the specific regulatory basis, but I could not find anything regarding the amount limits even after reviewing the Foreign Trade Act and the Foreign Trade Management Regulations. I would appreciate it if you could let me know the relevant clauses.
Answer 1
- 0✓Regarding this matter, there are precedents in the Q&A cases from the Ministry of Trade, Industry and Energy (MOTIE). Common sense dictates that this is equivalent to exporting 10 units while attempting to purchase 100 units all at a zero tax rate; the fact that the supporting document is a Purchase Confirmation does not make it an exception. You should consider it as: zero-rated purchases are only possible within the scope of zero-rated sales.Machine translated
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