Merchanting trade transactions require timely reciprocal remittances, verified documentation, controlled third-party payments, and dealer monitoring of both transaction legs. Merchanting Trade Transactions must be completed within six months between outward and inward remittances, unless an Authorised Dealer allows an extension ... Summary
Merchanting trade transactions require timely reciprocal remittances, verified documentation, controlled third-party payments, and dealer monitoring of both transaction legs.
Merchanting Trade Transactions must be completed within six months between outward and inward remittances, unless an Authorised Dealer allows an extension for satisfactorily explained delay. Payments must ordinarily be made to the overseas seller and received from the overseas buyer, with third-party arrangements requiring Authorised Dealer approval. Transaction documents must establish genuineness. Authorised Dealers may process related cross-border account entries only after verifying genuineness, must update relevant monitoring-system entries, and must ensure that both transaction legs are completed in the prescribed manner and period.
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