Counter-trade via escrow account permits adjustment of import and export values subject to compliance with international pricing and escrow conditions. Counter-trade arrangements allow adjustment of import and export values through an Escrow Account in US Dollars provided transactions are at international prices and compliant with the Foreign Trade Policy and FEMA; no interest is payable on escrow balances though short-term deposits up to three months per year are permitted, no credit facilities may be granted against balances, applications must be made via AD Category I banks to the Reserve Bank, and opening is permissible under Regulation 7(4) of FEM (Deposit) Regulation, 2016.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Counter-trade via escrow account permits adjustment of import and export values subject to compliance with international pricing and escrow conditions.
Counter-trade arrangements allow adjustment of import and export values through an Escrow Account in US Dollars provided transactions are at international prices and compliant with the Foreign Trade Policy and FEMA; no interest is payable on escrow balances though short-term deposits up to three months per year are permitted, no credit facilities may be granted against balances, applications must be made via AD Category I banks to the Reserve Bank, and opening is permissible under Regulation 7(4) of FEM (Deposit) Regulation, 2016.
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