Tools without importing to india

[chaganti srinivas]

Dear Sirs, We have developed tool in China and paid the amount except some final amount. Now we wish to keep at some other place in China for getting the moulded parts. Please let me know how to clear the Bank and Customs formalities for payment and clearancec without bringing tool to India. Srinivas

[Rama Krishana]

If your making payment for tools or products, it is mandatory to get such products in India within stipulated time. But, if you have to keep the tools outside India, for remittance in foreign exchange from India, in my view, prior permission from RBI must be obtained.

AI Summary

Prior permission from the banking regulator required when remitting foreign exchange for tools kept abroad instead of importing. Payment from India for tools developed abroad requires that the tools be imported into India within the stipulated period; if the tools are to be retained overseas and payments remitted from India, prior permission from the banking regulator is required before effecting foreign exchange remittance, and bank and customs formalities must be coordinated to ensure compliance.