Import of Goods and Services rules clarify FEMA based RBI compliance for banks on remittances, documentation, and advance payment safeguards. This Master Circular consolidates RBI directions under FEMA governing the Import of Goods and Services and details obligations of AD Category - I banks: ensure conformity with Foreign Trade Policy and KYC/AML norms, discontinue Form A 1, obtain and verify import licences and documentary evidence of import, and observe time limits for settlement. It prescribes conditions for advance remittances (including guarantees or standby LCs above specified thresholds), sectoral exceptions for rough diamonds, aircraft and BPO equipment, rules on interest for usance bills, replacement imports, third party payments, preservation and verification of import evidence, reporting via BEF/XBRL, and specific regimes for gold, precious metals, factoring and merchanting trade.
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Import of Goods and Services rules clarify FEMA based RBI compliance for banks on remittances, documentation, and advance payment safeguards.
This Master Circular consolidates RBI directions under FEMA governing the Import of Goods and Services and details obligations of AD Category - I banks: ensure conformity with Foreign Trade Policy and KYC/AML norms, discontinue Form A 1, obtain and verify import licences and documentary evidence of import, and observe time limits for settlement. It prescribes conditions for advance remittances (including guarantees or standby LCs above specified thresholds), sectoral exceptions for rough diamonds, aircraft and BPO equipment, rules on interest for usance bills, replacement imports, third party payments, preservation and verification of import evidence, reporting via BEF/XBRL, and specific regimes for gold, precious metals, factoring and merchanting trade.
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