FEMA ON EXPORT OF GOODS AND SERVICES

FEMA 1999 SECTION 7 (1)

EVERY EXPORTER SHALL FURNISH TO RBI OR SUCH OTHER AUTHORITY, A DECLARATION CONTAINING TRUE AND CORRECT MATERIAL PARTICULARS INCLUDING AMOUNT, REPRESENTING FULL EXPORT VALUE OR THE VALUE OF EXPORTS, EXPECTED TO BE REALISED.

FEMA NOTIFICATION NO.23

FEMA ON EXPORTS
1. 2. 3. 4. STATUTORY BASIS FOR CONTROL IE CODE NO. ON ALL COPIES OF DECLARATION FORMS DECLARATION FORMS: GR:EXPORTS MADE OTHER THAN BY POST SDF:WHERE EDI SYSTEM IS INTRODUCED PP:BY POST PARCEL EXCEPT ON VALUE PAYABLE AND CASH ON DELIVERY BASIS SOFTEX:SOFTWARE IN NON PHYSICAL FORM ALL FORMS PRINTED/SERIALLY NUMBERED/SUPPLIED BY RBI

DECLARATION FORMS
EXPORT DECLARATION FORMS
GR/SDF(IN DUPLICATE TO CUSTOMS; CUSTOMS WILL VERIFY&SEND ORIGINAL TO RBI AND DUPLICATE TO EXPORTER) PP(IN DUPLICATE TO AD;AD COUNTERSIGNS & GIVES ORIGINAL TO EXPORTER POSTAL AUTHORITIES AFTER DESPATCH OF GOODS TO RBI. SOFTEX(IN TRIPLICATE TO MIN OF IT ORIGINAL TO RBI,DUPLICATE TO EXPORTER,TRIPLICATE FOR RECORD. CUSTOMS WILL CERTIFY VALUE DECLARED BY EXPORTER.

Exporter

GR/SDF in duplicate & goods 1

Customs

One copy certified for value Exchange control copy 2

One copy of GR Sent to RBI 2 Exchange control copy Of GR/SDF with docs 3

Authorised dealer

Exch control copy Sent with R return, fortnightly Once payment is recd 4

RBI

Exporter

SOFTEX in triplicate 1

DOE STPI

One copy certified for value Exchange control copy 2

One copy of Softex Sent to RBI 2 Exchange control copy Of SOFTEX with docs 3 Exch control copy Sent with R return fortnightly Once payment is recd 4

Authorised dealer

RBI

PP evidenced for despatch with docs 5

Exporter

PP in duplicate With declaration for value 1

AD

Both copies certified for value 2

PP sent to RBI with R return Once payment Is recd. 6 PPs with parcel for despatch 3

Post Office

One copy of PP evidencing despatch 4

RBI

FEMA ON EXPORTS
DECLARATION FORMS SIGNIFICANCE
TO BRING BACK

FULL EXPORT PROCEEDS WITHIN THE PRESCRIBED TIME LIMIT IN THE PRESCRIBED MANNER EXPORTER SHOULD SUBMIT TO AD,THE DUPLICATE COPY OF GR FORM WITH SHIPPING DOCS WITHIN 21 DAYS FROM THE DATE OF SHIPMENT.

DECLARATION FORMS
AD TO REPORT TO RBI IN FORTNIGHTLY STATEMENT ENC ALONGWITH R RETURN ON REALISTION OF EXPORT PROCEEDS, AD AFTER DUE CERTIFICATION, SHOULD BE RETAINED BY ADs. ADs SHOULD ENSURE, THROUGH RANDOM CHECK OF THE DUPLICATE FORMS BY THE INTERNAL/ CONCURRENT AUDITORS DUPLICATE COPIES OF DECL FORMS ARE NOT TO BE RETURNED TO EXPORTER EXCEPT FOR RECTIFICATION OF ERRORS

PAYMENT FOR EXPORTS

1. 2. THROUGH AN AUTHORISED DEALER(AD) DD/PO/CHEQUES/ FCY NOTES/TC: FROM THE BUYER DIRECTLY WITHOUT ANY MONETARY LIMIT IF THE EXPORTER IS A CUSTOMER OF THE AD WITH GOOD TRACK RECORD AND PRIMA FACIE THE INSTRUMENT REPRESENTS PAYMENT FOR EXPORTS. FROM FCNR / NRE ACCOUNTS INTERNATIONAL CREDIT CARDS: GR/SDF TO BE RELEASED ONLY WHEN THE PAYMENT IS RECD IN THE NOSTRO ACCOUNT/CERTIFICATE TO BE PRODUCED FROM THE CREDIT CARD SERVICING BANK IN INDIA TO THE EFFECT THAT IT HAS RECD THE EQUIVALENT AMOUNT IN FOREIGN EXCHANGE.

3. 4.

REALISATION OF EXPORT PROCEEDS

EXPORTS PROCEEDS TO BE RECD WITHIN SIX MONTHS FROM DATE OF SHIPMENT FOR SOFTWARE,DATE OF EXPORT ie. DATE OF INVOICE HOW MANY DAYS IN SIX MONTHS? IF EXPORTED TO APPROVED INDIAN WAREHOUSES ABROAD, WITHIN 15 MONTHS FROM DATE OF SHIPMENT FOR EXTENSION, RBI APPROVAL NECESSARY.

REALISATION OF EXPORT PROCEEDS

IF EXPORTER COULD NOT REALISE WITHIN SPECIFIED TIME,BUT EXPECTS EXPORT PROCEEDS TO REALISE IF THE TIME LIMIT IS EXTENDED, APPLY IN FORM ETX IN DUPLICATE WITH DOC EVIDENCE TO AD; IF PERIOD EXTENDS BEYOND 180 DAYS FROM DOS, EXPORTER TO OBTAIN APPROVAL IN FORM ETX FROM RBI OVERDUE EXPORT BIILS BEYOND PRESCRIBED PERIOD, TO BE REPORTED BY AD TO RBI IN HALF YEARLY STATEMENT XOS IN JUNE/DECEMBER.

REDUCTION IN INVOICE VALUE / TRADE DISCOUNT

1. 2. AFTER EXPORT BILLS IS NEG/ SENT FOR COLLECTION AD MAY APPROVE REDUCTION NOT TO EXCEED 10% OF INVOICE VALUE: IF NOT GOLD/SILVER/DIAMONDS IF NOT COMMODITIES REGULATED BY EXPORT QUOTA SYSTEM / FLOOR PRICE STIPULATIONS EXPORTER NOT IN CAUTION LIST EXPORTER TO SURRENDER EXPORT INCENTIVES RECD IF ANY

3. 4.

REDUCTION IN INVOICE VALUE

NO PERCENTAGE LIMIT IF: 1. EXPORTER IN BUSINESS FOR >3YEARS; SATISFACTORY TRACK RECORD 2. EXPORT OUTSTANDING NOT > 5% OF AVERAGE ANNUAL TURNOVER DURING PRECEEDING 3 CALENDAR YEARS 3. CERTIFICATE FROM CA INDICATING TOTAL EXPORT REALISATION DURING EACH OF PRECEEDING 3 YEARS, EXPORT BILLS OUTSTANDING BEYOND THE PRESCRIBED PERIOD, AND AVERAGE OUTSTANDING

CHANGE OF BUYER
IF DEFAULT OF ORIGINAL BUYER SAME TERMS AND CONDITIONS WITHOUT APPROVAL OF RBI/BY AD CHANGE OF BUYER WITH 10% REDUCTION IN INVOICE VALUE CHANGE AND REDUCTION IN INVOICE VALUE >10%,SUBJECT TO PREVIOUS SLIDE.

DESPATCH OF SHIPPING DOCUMENTS

DIRECT TO CONSIGNEE/AGENTS PROVIDED IRREVOCABLE LC RECD FOR FULL VALUE AND UNDERLYING CONTRACT PROVIDES FOR SUCH DESPATCH EVEN IF NO IRREVOCABLE LC, AD CAN DO BASED ON TRACK RECORD OF EXPORTER AND ARRANGEMENTS MADE BY EXPORTER FOR REALISATION OF EXPORT PROCEEDS EXPORTER CAN SEND DIRECT IF 100%ADVANCE PAYMENT IS RECD

DESPATCH OF SHIPPING DOCUMENTS: AP DIR 10 DTD 14TH AUGUST 2002

AD TO PERMIT UNITS IN SEZ TO DESPATCH EXPORT DOCUMENTS DIRECT TO THE CONSIGNEE OUTSIDE INDIA SUBJECT TO : EXPORT PROCEEDS ARE REPATRIATED THROUGH THE AD NAMED IN THE DECLARATION FORM, AND DUPLICATE COPY OF THE RESPECTIVE DECLARATION FORM IS SUBMITTED TO THE AD FOR MONITORING PURPOSES BY THE EXPORTER WITHIN 21 DAYS FROM THE DATE OF SHIPMENT.

1.

2.

ADVANCE PAYMENTS
WHERE ADVANCE PAYMENT IS RECD BY EXPORTER(WITH/WITHOUT INTEREST): 1. SHIPMENT OF GOODS WITHIN ONE YEAR FROM DATE OF RECEIPT OF ADVANCE 2. RATE OF INTEREST PAYABLE IF ANY, NOT TO EXCEED LIBOR + 100 BPS & 3. DOCS COVERING SHIPMENT ARE ROUTED THRO THE AD THRO WHOM ADVANCE PAYMENT IS RECD.

ADVANCE PAYMENTS
IF EXPORTER IS UNABLE TO MAKE SHIPMENT WITHIN THE TIME FRAME, NO REFUND OF UNUTILISED PORTION OF ADVANCE PAYMENT OR PAYMENT OF INTEREST,SHALL BE MADE AFTER THE EXPIRY OF ONE YEAR, WITHOUT RBI APPROVAL EVEN IF THE EXPORT AGREEMENT PROVIDES FOR SHIPMENT OF GOODS EXTENDING BEYOND THE PERIOD OF ONE YEAR FROM THE DATE OF RECEIPT OF ADVANCE,PRIOR APPROVAL OF RBI IS REQUIRED.

WRITE OFF OF EXPORT PROCEEDS

1. 2. 3.

IF AMOUNT OUTSTANDING >=360 DAYS AND DOC EVIDENCE BY EXPORTER THAT PROCEEDS NOT REALISABLE IN SPITE OF HIS EFFORTS:
BUYER DECLARED INSOLVENT OVERSEAS BUYER NOT TRACEABLE GOODS AUCTIONED/DESTROYED BY CUTOMS/PORT/HEALTH AUTHORITIES WITH CERTIFICATE BY CHAMBER OF COMMERCE/ INDIAN EMBASSY COST OF LEGAL ACTION DISPROPORTIONATE EXPORTER HAS CLEAN TRACK RECORD SURRENDERED INCENTIVES PRO RATA

4. 5. 6.

TRADE CREDITS FOR IMPORTS INTO INDIA

UPTO USD 20 MIO; EXCEEDING USD 20 MIO REQUIRES APPROVAL OF RBI MATURITY PERIOD(FROM DATE OF SHIPMENT) UPTO ONE YEAR EXCEEDING ONE YEAR AND UPTO THREE YEARS ONLY FOR CAPITAL GOODS NO ROLL OVER CAN BE PERMITTED BY AD BEYOND THIS PERIOD THREE YEARS AND ABOVE COME UNDER ECB AD WILL NOT ISSUE GUARANTEE/LETTER OF UNDERTAKING/COMFORT IN FAVOUR OF OVERSEAS LENDER ON BEHALF OF THEIR IMPORTER WITHOUT APPROVAL OF RBI.

SUPPLIERS/BUYERS CREDIT
SHORT TERM LOANS FOR PAYMENT OF IMPORTS INTO INDIA EXTENDED BY OVERSEAS SUPPLIER (SUPPLIERS CREDIT) ARRANGED BY IMPORTER FROM A BANK OR FINANCIAL INSTITUTION OUTSIDE INDIA(BUYERS CREDIT) FOR MATURITY LESS THAN THREE YEARS REQUIRES PRIOR APPROVAL OF RBI

TRADE CREDIT
AD TO REPORT IN FORM TC TO RBI EVERY MONTH EACH TRADE CREDIT TO BE GIVEN A UNIQUE ID 1. THE CREDIT IS EXTENDED FOR A PERIOD LESS THAN ONE/THREE YEARS 2. AMOUNT DOES NOT EXCEED USD 20 MILLION PER IMPORT TRANSACTION 3. ALL IN COST PER ANNUM PAYABLE FOR THE CREDIT DOES NOT EXCEED LIBOR +50BPS FOR CREDIT UPTO ONE YEAR AND 4. LIBOR + 125 BPS FOR CREDIT FOR PERIODS BEYOND ONE YEAR AND UPTO THREE YEARS. 5. FOR THE CURRENCY OF THE CREDIT 6. ALL IN COST INCLUDES ARRANGER FEE,UPFRONT FEE,MANAGEMENT FEE,PROCESSING CHARGES,OUT OF POCKET EXPENSES AND LEGAL EXPENSES IF ANY.

NORMAL TRANSIT PERIOD (NTP)

AVERAGE PERIOD NORMALLY INVOLVED FROM DATE OF NEGOTIATION/PURCHASE/ DISCOUNT OF A BILL, TILL RECEIPT OF BILL PROCEEDS IN NOSTRO ACCOUNT CONCESSIONAL RATE OF INTEREST IS AVAILABLE FOR THE NTP+USANCE PERIOD LAID DOWN BY FEDAI

NORMAL TRANSIT PERIOD (NTP)

NOTIONAL DUE DATE= Date of Purchase/Discount/Negotiation of bill + NTP(given by FEDAI) + USANCE PERIOD(if any) + DAYS OF GRACE (if available) FIXED DUE DATE: ..DAYS FROM THE DATE OF SHIPMENT; HENCE NO NTP WILL BE AVAILABLE.

CRYSTALLISATION
TRANSFERRING OF EXCHANGE RISK TO THE EXPORTER/ IMPORTER BY CONVERTING THE LIABILITY FROM FCY TO INR FBP/FBN/FBD: AT CURRENT BILLS BUYING RATE +INTEREST (FOR THE NTP&USANCE PERIOD, IF ANY). CRYSTALLISATION TO BE DONE AT THE TT SELLING RATE/EXCHANGE RATE/ORIGINAL BILLS BUYING RATE, WHICHEVER IS HIGHER. INTEREST TO BE RECOVERED FROM DUE DATE TO DATE OF CRYSTALLISATION IF BILLS ARE REALISED AFTER CRYSTALLISATION, THEN AD TO ADJUST AS PER THE TT BUYING RATE.DIFFERENCE IF ANY TO BE RECOVERED/PAID TO THE EXPORTER

CRYSTALLISATION
AD TO CRYSTALLISE THIS LIABILITY ON THE : 1. 30TH DAY AFTER THE EXPIRY DATE OF NTP(UNPAID DEMAND BILLS) 2. 30TH DAY AFTER THE EXPIRY OF THE NOTIONAL DUE DATE(UNPAID USANCE BILLS) 3. 30TH DAY AFTER THE ACTUAL DUE DATE(WHERE FIXED DUE DATE) 4. IF THE 30TH DAY IS A HOLIDAY OR SATURDAY, THEN ON THE NEXT WORKING DAY 5. CAN BE DONE BEFORE 30TH DAY ALSO ON WRITTEN REQUEST OF EXPORTER

CRYSTALLISATION: AN EXAMPLE
DATE OF PURCHASE:1ST SEP 2006 VALUE: USD 100,000 DUE DATE: 1ST OCT 2006 EXCHANGE RATE(BILLS BUYING):48/ON 31ST OCT 2006: SITUATION ONE: TT SELLING RATE IS Rs.50/ SITUATION TWO: TT SELLING RATE IS Rs.47/-

CRYSTALLISATION: AN EXAMPLE
ON 1ST SEP 2006 FBP Dr. 48,00,000 CUSTOMER A/C Cr. 48,00,000 ON 31ST OCT 2006: SITUATION ONE: RUPEE LIABILITY ON UNPAID EXPORT BILLS Dr. FBP Cr. PROFIT AND LOSS A/C Cr.

50,00,000 48,00,000 2,00,000

CRYSTALLISATION: AN EXAMPLE
ON 1ST SEP 2006 FBP Dr. 48,00,000 CUSTOMER A/C Cr. 48,00,000 ON 31ST OCT 2006: SITUATION TWO: RUPEE LIABILITY ON UNPAID EXPORT BILLS Dr. CUSTOMER A/C Dr. FBP Cr.

47,00,000 1,00,000 48,00,000

CRYSTALLISATION
ON REALISATION: Dr: MIRROR NOSTRO A/C (TT BUYING RATE) Cr: RUPEE LIABILITY ON UNPAID EXPORT BILLS DIFFERENCE TO BE PAID/ RECOVERED FROM CUSTOMER

FEMA ON IMPORT OFGOODS AND SERVICES

STATUTORY OBLIGATION
SEC 10(5) OF FEMA ON IMPORTER
TO SUBMIT A DECLARATION TO AN AD TO SATISFY NOT TO EVADE / CONTRAVENE FEMA GUIDELINES TO USE FOR THE DECLARED PURPOSE OR FOR ANY PERMITTED PURPOSES{sec.10(6)} TO PRODUCE SATISFACTORY DOCUMENTARY EVIDENCE FOR HAVING IMPORTED THE GOODS WITHIN 3 MONTHS FROM THE DATE OF REMITTANCE

Goods
Open General Licence OGL Negative List

Restricted

Quantity

Value

Thro Canalising Agencies STC &MMTC

Licence

FEMA ON IMPORTS
IE CODE NO. IMPORTABILITY OF GOODS
HS CODE NO. LICENCE FEATURES 1. AD TO ENDORSE ON EC COPY UNDER STAMP AND SIGNATURE DETAILS OF LC OPENED/FORWARD CONTRACTS BOOKED/AMT OF INSURANCE & FREIGHT PAID IN RUPEES 2. LICENCES ISSUED FOR CIF VALUE OF GOODS IN RUPEES & FCY {AT RATE: DATE OF ISSUE OF LICENCE} 3. FULLY UTILISED LICENCE TO BE RETAINED BY AD 4. SHIPMENT/DESPATCH BEFORE DATE OF EXPIRY OF LICENCE[LAST DATE OF MONTH]

IMPORT LICENCE
EXPRESSED IN RUPEES AND FCY. LICENCE VALID FOR FCY VALUE. LICENCE FULLY UTILIZED TO BE RETAINED BY AD. LICENCE VALID TILL THE LAST DATE OF THAT MONTH IN WHICH THE LICENCE EXPIRES. SHIPMENT/DESPATCH SHOULD TAKE PLACE BEFORE THE EXPIRY OF LICENCE. LICENCES ISSUED FOR CIF VALUE OF GOODS IN RUPEES & FCY {AT RATE: DATE OF ISSUE OF LICENCE}.

HANDLING OF IMPORT LICENCES

1. 2. 3. 4. AD TO ENDORSE ON THE EXCHANGE CONTROL COPY OF THE IMPORT LICENCE UNDER THEIR STAMP AND SIGNATURE: DETAILS OF LC OPENEED FORWARD CONTRACTS BOOKED REMITTANCES MADE IN FOREIGN CURRENCY AMOUNT OF INSURANCE&FREIGHT PAID BY EXPORTER LOCALLY IN RUPEES LICENCE ISSUED FOR CIF VALUE OF GOODS;CANNOT BE USED FOR FOB VALUE OF GOODS LEAVING INSURANCE AND FREIGHT TO LOCAL AGENT OF SUPPLIER

PAYMENT FOR IMPORTS

PRESCRIBED APPLICATION: FORM A1 UNDER LC OR COLLECTION BASIS: PAYMENT NOT TO BE ACCEPTED IN CASH UNDER ANY CIRCUMSTANCES, PAYMENT OF IMPORT BILL SHOULD NOT BE ACCEPTED IN CASH

TIME LIMIT
BASIC RULE:PAYMENT SHOULD BE MADE WITHIN SIX MONTHS FROM THE DATE OF SHIPMENT DEFERRED PAYMENT BEYOND SIX MONTHS;APPROVAL OF RBI {TREATED AS ECB} IMPORTER CAN WITHHOLD AMOUNT NOT EXCEEDING 15% OF COST OF GOODS TOWARDS GUARANTEE OF PERFORMANCE (NO INTEREST)

TIME LIMIT
BEYOND SIX MONTHS:AD CAN DO IF SATISFIED WITH REASONS(BEYOND THE CONTROL OF IMPORTER) OF DELAY AND NO INTEREST FOR ADDITIONAL PERIOD IF INTEREST TO BE PAID: IN THE CURRENCY OF INVOICE AT PRIME RATE OF THE COUNTRY OR LIBOR FOR THE CURRENCY UPTO MAX. OF 60 DAYS BEYOND 180 DAYS FROM DATE OF SHIPMENT; PROVIDED THE IMPORT BILL IS PAID

1. 2. 3. 4.

ADVANCE PAYMENTS
DOCUMENTARY EVIDENCE FOR COST OF GOODS AND INSISTENCE OF OVERSEAS SUPPLIER: DIRECT TO OVERSEAS SUPPLIER VALID IMPORT LICENCE UPTO USD 1,00,000 EITHER IMPORT OF RAW MATERIALS OR CAPITAL GOODS -EXCEEDING USD 1,00,000, AN IRREVOCABLE STANDBY LC/A BANK GUARANTEE FROM A BANK OF INTERNATIONAL REPUTE/AD IN INDIA TO BE OBTAINED.

ADVANCE PAYMENTS
WHERE THE IMPORTER(OTHER THAN PSU/DEPTT OF THE GOVT) IS UNABLE TO OBTAIN BANK GUARANTEE AND THE BANK IS SATISFIED WITH THE TRACK RECORD/BONAFIDES OF THE IMPORTER, THE REQUIREMENT OF BF/LC NEED NOT BE INSISTED UPON FOR ADVANCE REMITTANCES UPTO USD ONE MILLION. FOR PSUs AND GOVT DEPTT, BG/LC IS WAIVED FOR REMITTANCES EXCEEDING USD 1,00,000 IF THE IMPORTER FAILS TO IMPORT THE GOODS WITHIN THE STIPULATED PERIOD, THEN THE AMOUNT TO BE REPATRIATED IMMEDIATELY.

EVIDENCE OF IMPORT
EXCHANGE CONTROL COPY OF BILL OF ENTRY WITHIN 3 MONTHS FROM DATE OF REMITTANCE {CAPITAL GOODS:TWELVE MONTHS}; IF THE VALUE OF IMPORT IS > USD 1,00,000 IMPORTER TO GIVE UNDERTAKING TO PROVIDE DOC EVIDENCE WITHIN 15 DAYS FROM THE CLOSE OF THE RELEVANT PERIOD. FOLLOW UP FOR THE NEXT THREE MONTHS AD TO REPORT IN HALF YEARLY STATEMENT BEF(FOR VALUES >USD100,000) [JUN/DEC],TO RBI WITHIN 15 DAYS FROM END OF THE HALF YEAR

EVIDENCE OF IMPORT
AP:DIR 15/9 DATED 9TH SEP 2002/18TH AUG 2003 WHERE THE FOREX REMITTED FOR IMPORT IS LESS THAN USD 1,000,000/- OR ITS EQUIVALENT AD MAY ACCEPT EITHER: 1. EXCHANGE CONTROL COPY OF BILL OF ENTRY FOR HOME CONSUMPTION OR 2. A CERTIFICATE FROM THE CEO OR AUDITOR OF THE COMPANY THAT THE GOODS FOR WHICH REMITTANE WAS MADE HAVE ACTUALLY BEEN IMPORTED INTO INDIA PROVIDED: THE IMPORTER IS A COMPANY LISTED ON A STOCK EXCHANGE IN INDIA AND ITS NET WORTH IS NOT LESS THAT Rs. 100 CRORES AS ON THE DATE OF THE LAST AUDITED BALANCE SHEET OR THE IMPORTER IS A PUBLIC SECTOR COMPANY OR AN UNDERTAKING OF THE GOVT OF INDIA OR ITS DEPARTMENTS

EVIDENCE OF IMPORT
1. 2. 3. 4. 5. 6. IF BILL ON DA BASIS, BILL OF ENTRY SHOULD BE SUBMITTED BEFORE REMITTANCE AD SHOULD ACK RECEIPT OF BILL OF ENTRY GIVING: IMPORTERS NAME AND ADDRESS WITH CODE NUMBER IMPORT LICENCE AND DATE BANKS REFERENCE OF LC NUMBER NUMBER AND DATE OF DOC EVIDENCE AMOUNT OF IMPORT PARTICULARS OF GOODS IMPORTED

PRECAUTIONS WHILE HANDLING IMPORT DOCUMENTS

BY AD FOR HANDLING DOCS RECD BY THEM UNDER LC OR COLLECTION BASIS AD TO CHECK: 1. IMPORTERS LINE OF BUSINESS 2. FINANCIAL STATUS 3. FREQUENCY OF IMPORTS TO ESTABLISH GENUINENESS OF BUSINESS FOR BILLS OF LARGE VALUES,TO CHECK THAT THE IMPORTER IS KNOWN TO BE TRADING IN ITEMS MENTIONED IN SHIPPING DOCS OR THAT THE ITEMS ARE REQUIRED FOR HIS ACTUAL USE.

REMITTANCES FOR BILLS RECD DIRECTLY BY IMPORTER

AD MAY HANDLE REMITTANCES UPTO USD 100,000/ BILLS RECD BY WHOLLY OWNED SUBSIDIARY OF FOREIGN COMPANIES FROM PRINCIPALS BILLS RECD BY SUPER STAR/STAR/TRADING/ EXPORT HOUSES,100% EOUs, UNITS IN FTZs, PSUs, LTD COMPANIES BILLS IN RESPECT OF BOOKS/MAGS/ LIFE SAVING DRUGS/EQUIPMENTS BY HOSPITALS/BY REPUTED INSTITUTIONS LIFE TIFR,C-DOT/IIT

BILLS RECD DIRECTLY FROM SELLER

AT THE REQUEST OF IMPORTER CLIENTS UPTO USD 100,000/ SUBJECT TO CERTAIN RESTRICTIONS AP:DIR:66 DTD 6TH FEB 2004

CRYSTALLISATION
OF IMPORT BILLS RECD UNDER LC FROM FCY TO INR 1. ON 10TH DAY OF RECEIPT OF DOCUMENTS AT THE LC OPENING BRANCH IN CASE OF DEMAND BILLS 2. ON DUE DATE IN CASE OF USANCE BILLS AT BILLS SELLING RATE IF 10TH DAY IS HOLIDAY/SATURDAY, THEN THE NEXT WORKING DAY CAN BE DONE BEFORE 10TH DAY ON WRITTEN REQUEST OF IMPORTER