Partial Payment of Invoice for Raw Materials to Oversea Supplier

[Danish Azfar]

Dear Experts, 

We’ve one situation in which need your help.

We have imported some raw materials from oversea supplier. We have found some pcs of Raw material NG at the Incoming quality check and supplier agree to not pay for that NG Qty.

Now we are doing the payment to Supplier after the deduction of the NG material Value, but bank is not processing the partial payment, they are saying we need to do Full invoice value payment.  

But as per our understanding, various other companies is importing the material from oversea suppliers and facing the same issue and obviously need to do the payment after deduction.

Please help us on this situation by providing your guidance.

AI Summary

Partial import remittance requires supplier credit note or revised invoice to satisfy FEMA and RBI documentation norms.
Partial remittance against an import invoice for raw materials is treated as documentary-compliance sensitive under FEMA and RBI import payment controls. Where goods are rejected at quality check, the net payable amount is generally supported by a supplier-issued credit note or a revised invoice referencing the original import invoice. In the presence of such documents, along with the bill of entry and other import records, banks may process remittance for the reduced amount; without supplier-issued documentary support, banks may insist on full invoice value payment.