Merchanting Trade Transaction?

[Asked by Guest]

What if Inward Remittance received under Merchanting Trade transaction is taken in normal Advance against Export and payment is made out of the same fund for Merchanting Trade Payment. Now the Invoice of Merchanting Trade is sitll not clear in Bank, And other Invoices were settled under that Foreign Remittance and Invoice of Merchanting Trade is still pending with bank.

What is the best solution now?

AI Summary

Merchanting trade remittance: file Form ETX and seek RBI extension to regularise uncleared invoice matching promptly.
Where an inward remittance for merchanting trade has been treated as a general advance against export and used to settle other export invoices while the merchanting invoice remains uncleared, the recommended remedial step is to file Form ETX and seek an extension from the Reserve Bank to regularise the receipt-invoice mismatch; procedural questions on Form ETX filing and the RBI extension procedure were left outstanding.