Import of Goods without remittance

[paresh zatakia]

a person has imported goods but not sent any remittance to the suppier,what is the consequence of it?

[Surender Gupta]

Sir, your query required more details and information about situation, circumstances, benefits availed if any etc.

[Guest]

As per FEMA you are expected to settle trade remittance within 180 days. Depends on whether you received documents by D/A through bank or supplier sent you documents directly. If through bank, you must ask for extension if you intend paying. Your bank will apply to RBI for permission if any interest payment is involved. If there is a dispute, you must settle it with party if you have accepted a bill of exchange otherwise they can obtain a decree against you from court where you are as obviously you have accepted documents at your bank, and move for attachment of any receivables of yours in their country or your assets here. This can be done even if there is a quality dispute for which you must file a seperate claim. Also if you enter into a contract, there would be an arbitration clause.

AI Summary

Importing Without Payment: FEMA Requires Settlement Within 180 Days; Extensions Possible with Bank and RBI Involvement A query was raised regarding the consequences of importing goods without remitting payment to the supplier. One response highlighted the need for more details on the situation. Another response explained that under FEMA regulations, trade remittances should be settled within 180 days. If documents were received through a bank, an extension can be requested, and the bank may apply to the RBI if interest payments are involved. In case of disputes, legal action or arbitration may be pursued, and assets could be attached if bills of exchange are accepted and not settled.