TaxTMI 
TaxTMI 
What is the maximum time limit for outward foreign remittance against import as per RBI guidelines?
Foreign Remittance
13 Aug 2019 
4 Replies 
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Import remittance deadline extended for eligible shipments, subject to original contract terms and renegotiation with suppliers.
Remittances for normal imports must be completed within six months from shipment, except where amounts are withheld as performance guarantees. AD Category I banks may allow delayed settlement for disputes or financial difficulties, with interest on delayed payments allowable only for a limited period. Deferred payment arrangements up to five years qualify as trade credits under ECB and trade credit procedures. Import of books is exempt from time limits provided interest rules are followed. A temporary extension for pandemic-related disruptions allows a longer completion period for eligible shipments, subject to contract terms and any supplier renegotiation. (AI Summary)
Remittances for normal imports must be completed within six months from shipment, except where amounts are withheld as performance guarantees. AD Category I banks may allow delayed settlement for disputes or financial difficulties, with interest on delayed payments allowable only for a limited period. Deferred payment arrangements up to five years qualify as trade credits under ECB and trade credit procedures. Import of books is exempt from time limits provided interest rules are followed. A temporary extension for pandemic-related disruptions allows a longer completion period for eligible shipments, subject to contract terms and any supplier renegotiation. (AI Summary)