third party payment againt export

[Mukund Thakkar]

Dear Team,

on of my client frequently received export payments thru third party. which has allowable and what is the implication as per FEMA. any procedure to regularized. the payments because bank is asking no brc is loaded due to this transaction. please advise if possible urgently.

AI Summary

Export Payments via Third Party Permissible with Declaration Under FEMA Notification No. 317/2014-RB; BRC Not Required A client frequently receives export payments through a third party, raising concerns about compliance with the Foreign Exchange Management Act (FEMA). The bank requires clarification due to the absence of a Bank Realization Certificate (BRC). A response indicates that such transactions are permissible if declared appropriately, referencing Notification No. FEMA. 317/2014-RB. This amendment to the Foreign Exchange Management (Export of Goods and Services) Regulations allows third-party payment declarations, ensuring exporters comply with the necessary procedures. The regulations have been amended several times since their inception to accommodate such practices.