Third party payments for export / import transactions - আরবিআই - Reserve Bank of India
Third party payments for export / import transactions
RBI/2013-14/364 November 8 , 2013 To All Category-I Authorised Dealer Banks Madam / Sir,
Attention of Authorized Dealer Category – I banks is invited to various provisions of FEMA Notification No. 14 dated May 3, 2000 dealing with the manner of receipt & payment for trade transactions. Normally payment for exports has to be received from the overseas buyer named in the Export Declaration Form (EDF) by the exporter and the payment shall be received in a currency appropriate to the place of final destination as mentioned in the EDF irrespective of the country of residence of the buyer. Similarly, the payments for the import should be made to the original overseas seller of the goods and the AD should ensure that the importer furnishes evidence of import, such as, Exchange Control copy of the Bill of Entry to satisfy itself that goods equivalent to the value of remittance have been imported. 2. With a view to further liberalising the procedure relating to payments for exports/imports and taking into account evolving international trade practices, it has been decided as under: i. EXPORT TRANSACTIONS AD banks may allow payments for export of goods / software to be received from a third party (a party other than the buyer) subject to conditions as under:
Note: Restricted cover Group II country is country which experiences chronic political and economic problems as well as balance of payment difficulties. ii. IMPORT TRANSACTIONS AD banks are allowed to make payments to a third party for import of goods, subject to conditions as under:
3. These instructions will come into force with immediate effect. 4. AD Category – I banks may bring the contents of this Circular to the notice of their constituents concerned. 5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, (C.D Srinivasan) |