Presentation on

Advance remittance against import allowed upto USD 2,00,000 for goods and upto USD 5,00,000 for services LC/Guarantee required for exceeding the limit

Merchanting Trade: AD – 1 category Bank may handle bonafide merchanting trade transaction

Importer can also make payment to Third Party subject to certain conditions.

Remittance should be generally made within six months from the date of shipment.

Importer to submit Evidence of Import ex. Bill of Entry to AD For non-physical Imports – CA

I mport of Goods & Services
Certificate

Export of Goods & Services

	The full export value of goods exported should be received through AD Bank in convertible foreign exchange through Banking channel.
	Exporter to fully realize and repatriate the export proceeds within nine months of export.
	Exporters may open Exchange Earner’s Foreign Currency Account (EEFC Account).
	Advance against exports should not carry interest higher than LIBOR + 100 BP, Export to be made within one year.
	Prior Approval required for export of machinery, equipment etc. on lease/hire basis.
	Write off of export bills allowed upto 5% by exporter and upto 10% by AD, of total export proceeds during the previous calendar year.

Basic Definitions -Import

“ import of goods” with its grammatical variations and cognate expressions, means bringing goods into India from a place outside India;
“import of service” means the supply of any service, where

1. 
   the supplier of service is located outside India,
   
2. 
   the recipient of service is located in India, and
   
3. 
   the place of supply of service is in India;
   

Basic Definitions -Export

“ export of goods” with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India;
“export of services” means the supply of any service when

1. 
   the supplier of service is located in India,
   
2. 
   the recipient of service is located outside India, (c) the place of supply of service is outside India,
   

4. 
   the payment for such service has been received by the supplier of service in convertible foreign exchange, and
   
5. 
   the supplier of service and recipient of service are not merely establishments of a distinct person in accordance with explanation 1 of section 5;