Payment of import can be made to NR account of the exporter. Import Payment: Import Payment within 6 months from the date of shipment. Settlement of import delays allowed due to disputes, financial difficulties, etc.
Interest to be paid as below: => Supplier’s and Buyer’s Credits beyond 6 months upto 3years to be treated as trade credits. => Beyond 3 yrs not allowed.
Remittance for import of books : => No time limit of 6 months. => No person to import or bring into India any foreign currency, without permission of RBI.
Import of Indian Currency: => Indian resident gone out can bring Max Rs. 25000 while returning from his visit. => From Nepal or Bhutan, One can bring any amount upto Rs 100 denomination. => A person may: a. Send any amount to India in any form other than currency notes and traveller’s cheque b. Less than 10K USD( Currency notes + TCs) or less than 5K ( Currency notes), no CDF required
Form A1 => Form A1 is not necessary for any import payment now as per Master Circular on imprt of Goods and Services Dated July 01, 2014. => Exchange control copy of copy of Bill of Entry to be obtained by bank. Banks and AD can freely open LCs and allow remittances for import. => Foreign exchange acquired to be used for the same purpose in declaration or for other purpose for which foreign exchange is permitted. => When foreign exchange is remitted for import of goods or services, bank to ensure that importer furnishes exchange control copy of Bill of Exchange and satisfy remittance equivalent amount of goods are imported.
1. Trade Credits: It can be extended directly by the overseas supplier, Bank or Financial Institution with a maturity of 5 years. 2. Supplier’s Credit: Credit for Imports into India by overseas supplier. 3. Buyer’s Credit: Loans for payment of Imports into India arranged by the importer from a Bank or financial institution outside India for maturity of less than 5 years. 4. Trade Credits (TC) greater than 5 years are under ECB guidelines. 5. TC maximum can be allowed up to $ 20 Million Per Import Transaction for 1 year, for Capital goods up to 5 yrs maturity. No rollover permitted beyond permissible above period. 6. All-in-one cost ceilings include arranger fee, upfront fee, management fee, handling/ processing charges, out of pocket and legal expenses. Up to 5 years : 6 Months LIBOR+ 350 bps 7. Guarantee for purpose of imports by ad banks: A. Up to $ 20 M for 1 yr non-capex except gold and 3 yrs for capex goods. B. Period should match with the import LC period. 8. Reporting: Details of Approvals, Drawal, Utilization and Repayment of trade credits by all it’s branches every month in form tc report so as to reach not later than 10th of every month to RBI.
ADVANCE REMITTANCE : Advance remittance allowed subject to: 1. Greater than 2 L USD, LC/ guarantee required. Guarantee by Indian bank, counter guarantee from foreign bank required. 2. Upto 5 Crore USD without LC or guarantee, Good Track record and Bonafides of Customer.
Policy to be framed by Board of Directors of Bank: => PSU greater than 1L USD , without guarantee, waiver from FinMin reqd => Payment directly to manufacturer's account => Import to be done within 6 months from date of advance remittance for capex goods in 3 yrs. => If ‘e’ not possible, then repatiriate the funds or use for other foreign exchange required purpose.
Interest on Import Bills Imports made, but payment not made 6 months LIBOR + 350 bps max rate