Merchanting trade rules require same bank routing, document verification, earmarked advances, credit facilities, and strict reporting. Revised guidelines require AD Category I banks to route both export and import legs of merchanting or intermediary trade transactions through the same bank, verify transactional documents for genuineness, complete transactions within prescribed timeframes, permit short term supplier's or buyer's credit and export LC discounting, ensure one to one matching and trader capability, hold and earmark advance export receipts, secure import advances by reputable bank guarantees, and file gross reporting for R returns with half yearly default reporting to the Reserve Bank under FEMA.
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Provisions expressly mentioned in the judgment/order text.
Merchanting trade rules require same bank routing, document verification, earmarked advances, credit facilities, and strict reporting.
Revised guidelines require AD Category I banks to route both export and import legs of merchanting or intermediary trade transactions through the same bank, verify transactional documents for genuineness, complete transactions within prescribed timeframes, permit short term supplier's or buyer's credit and export LC discounting, ensure one to one matching and trader capability, hold and earmark advance export receipts, secure import advances by reputable bank guarantees, and file gross reporting for R returns with half yearly default reporting to the Reserve Bank under FEMA.
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