TaxTMI 
TaxTMI 
Foreign Exchange Management Act, 1999- Advance Remittance for Import of Goods - Liberalisation
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...., 2008 To All Authorised Dealer Category - I Banks Madam / Sir, Foreign Exchange ManaAct, 1999- Advance Remittance for Import of Goods - Liberalisation Attention of Authorised Dealer Category - I (AD Category-I) banks is invited to A. P. (DIR Series) Circular No.106 dated June 19, 2003 and A. P. (DIR Series) Circular No.15 dated September 17, 2003, in terms of which - (i) AD C....
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....ent / Undertaking of the Government of India / State Government) is unable to obtain bank guarantee from overseas suppliers and the AD Category - I bank is satisfied about the track record and bonafides of the importer, the requirement of the bank guarantee / standby letter of credit may not be insisted upon for advance remittance up to USD 1,000,000 or its equivalent. AD Category - I banks may fr....
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....urer / supplier. c) The AD Category - I banks should undertake the transactions based on their commercial judgment and after being satisfied about the bonafides of the transactions. d) Advance payments should be made strictly as per the terms of the sale contract and should be made directly to the account of the manufacturer / supplier concerned. e) Physical import of goods into India sho....
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....anged. 6. Advance remittance for import of rough diamonds and import of aircraft/helicopters/other aviation related products shall be governed by the instructions issued vide A. P. (DIR Series) Circular No. 34 dated March 2, 2007, A. P. (DIR Series) Circular No.77 dated June 29, 2007 and A. P. (DIR Series) Circular No. 08 dated August 21, 2008 issued in this regard. 7. AD Category - I banks ....