Personal account payment

[yujin kim]

Dear sir

 

We have purchased UV lamp from China.

This China company provide us his personal account. because his company account is not accepted foregn currency.

We remit money to his personal account with inv & packing .

but China bank, ICBC not accepted this payment because this is payment of goods to personal account.

It must be company account and the account company name should be matched with invoice.

So, Chinese said to me, to receive this payment, please change the payment mode to tuition, accessory, living fee etc.

For payment of goods, can we change the payment mode with support inv and remit to personal account ?

Can it be audit problem ?

[YAGAY andSUN]

Such types of transactions may lead to violation of FEMA provisions.  Talk to your Authorised Dealer in this regard.

 

AI Summary

Cross-border remittance compliance: mislabeling goods payment to personal account risks FEMA violations and audit exposure. Remitting payment for imported goods to a supplier's personal account, when the beneficiary name does not match the invoice and the bank requires corporate accounts for trade payments, risks contravening FEMA. Altering the stated payment purpose to a non-trade category to secure receipt may create regulatory and audit exposure; consult the authorised dealer before changing payment details or transaction classification.