Payment to Dubai in AED not allowed by Bank as Certificate of Origin is in Iran

[Shahid Memon]

One of my client is importing date from Dubai. Port of Loading is Dubai & certificate of origin is from Iran. The bank are refusing to make payment. Is payment banned in such cases? Few importer from our region are able to make payment in this case. Kindly guide what can be done to resolve.

Also, Bank have informed that if payment is directly from Iran then import payment will be allowed to be made in INR.

[YAGAY andSUN]

In our view you should try to pay in Freely Convertible Currency to Dubai. If problem still persist then you should be in touch with RBI.

AI Summary

Cross-border payment restrictions: banks may refuse AED transfers when origin is Iran; use convertible currency or consult central bank. Banks are refusing AED payments for imports loaded in Dubai when the certificate of origin lists Iran; some importers nonetheless manage payments and one bank suggested payments originating directly from Iran might be processed in INR. Advisers recommend paying in a freely convertible currency to Dubai and, if problems persist, consulting the central bank for resolution.