Businesses in India engage in various transactions of imports and exports to achieve their ultimate business objectives and in the process derive economic benefits through a strategic planning. These transactions are governed by Reserve Bank of India (RBI) through their designated commercial banks in India who are also known as ‘Authorized Dealer' Banks. These AD banks are required to ensure full compliances of regulatory directives issued by RBI from time-to-time for the foreign currency transactions executed by them at the request of their business customers.
Here are the prevailing regulations and the stipulated timelines for compliances:
1. Bill of Entry – As per the Master direction on Import of Goods and Services dated January 01, 2016 as updated from time to time, the importer is required to furnish documentary evidence (Bill of Entry) within 3 months from date of remittance of foreign exchange.
2. BOE outstanding in IDPMS – As per the Master direction on Import of Goods and Services dated January 01, 2016 as updated from time to time, remittances against imports should be completed not later than six months from the date of shipment, except in cases where amounts are withheld towards guarantee of performance.
3. Advance against exports – As per RBI guidelines, shipment must be made within one year from the date of receipt of advance or the advance must be refunded. Further the relevant export documents are to be submitted to concerned AD Bank within 21 days from date of shipment
4. Export Bills not realized & shipping bills outstanding in EDPMS – As per FEMA Notification no. FEMA 23(R)/2015-RB dated January 12, 2016, the amount representing the full export value of goods / software / services should be realized and repatriated within 9 months as specified by RBI.
5. GR Waiver – As per RBI guidelines, bill of entry must be submitted within one month of re-import of the exported item from India and in case the goods have been exported for testing purpose and have been destroyed during the testing, a certificate issued by testing agency that the goods have been destroyed during testing must be submitted.
In summation, it is utmost important for the businesses to fully comply to these stated regulations and adhere to the timelines. Any non-compliance to these regulations may result in adverse action on the importer/exporter, including investigation by different Law Enforcement Agencies (LEA). Also, such entities under investigation may be restricted from further transactions under FEMA till No Objection Certificate is obtained from relevant LEA.
Tags:
Export-Import
