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

FEMA settlement obligations: failure to remit can lead to recovery actions including decree, attachment, and arbitration. Under FEMA, trade remittances must be settled within 180 days; if documents were taken through a bank, the importer must seek a bank extension and the bank may apply to the central bank for permission regarding delayed payment or interest. Acceptance of a bill of exchange exposes the importer to supplier-initiated judicial decree and attachment of receivables or assets, while quality disputes require separate claims and contractual arbitration clauses may govern dispute resolution.