Payment to foreign related parties

Time limit for import remittances requires completion within shipment based period; delayed settlements may be permitted with regulated interest adjustments.
Remittances against imports must be completed within six months from shipment except where amounts are withheld; AD Category I banks may permit delayed settlement for disputes or financial difficulties and may allow interest on overdue or usance bills for delays under three years at prescribed trade credit rates. Pre payments require deduction of proportionate interest for the unexpired usance at the claimed rate or prevailing LIBOR; absent a separate interest claim, deduction is at prevailing LIBOR. (AI Summary)