TaxTMI 
TaxTMI 
TaxTMI 
Master Direction – Import of Goods and Services (Updated as on January 12, 2026)
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....rom time to time to incorporate the changes in the regulatory framework and published through amendment notifications. 2. Within the contours of the Regulations, Reserve Bank of India also issues directions to Authorised Persons under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999. These directions lay down the modalities as to how the foreign exchange business has to be conducted by the Authorised Persons with their customers/constituents with a view to implementing the regulations framed. 3. Instructions issued on import of goods and services into India have been compiled in this Master Direction. The list of underlying circulars/ notifications which form the basis of this Master Direction is furnished in the Appendix. Reporting instructions can be found in Master Direction on reporting (Master Direction No. 18 dated January 01, 2016). 4. It may be noted that, whenever necessary, Reserve Bank shall issue directions to Authorised Persons through A.P. (DIR Series) Circulars in regard to any change in the Regulations or the manner in which relative transactions are to be conducted by the Authorised Persons with their customers/ constituents. T....
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....e Management Act, 1999 from time to time. (ii) AD Category - I banks should follow normal banking procedures and adhere to the provisions of Uniform Customs and Practices for Documentary Credits (UCPDC), etc. while opening letters of credit for import into India on behalf of their constituents. (iii) Compliance with the provisions of Research & Development Cess Act, 1986 may be ensured for import of drawings and designs. (iv) AD Category - I banks may also advise importers to ensure compliance with the provisions of Income Tax Act, wherever applicable. (v) Any reference to the Reserve Bank should first be made to the Regional Office of the Foreign Exchange Department situated in the jurisdiction where the applicant person resides, or the firm / company functions, unless otherwise indicated. If, for any particular reason, they desire to deal with a different office of the Foreign Exchange Department, they may approach the Regional Office of its jurisdiction for necessary approval. Such references should be routed through the Compliance Head of the AD bank. Section II - General Guidelines for Imports B.1. General Guidelines Rules and regulations to be followed by the AD Catego....
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.... (i) In terms of the extant regulations, remittances against imports should be completed not later than six months from the date of shipment, except in cases where amounts are withheld towards guarantee of performance, etc. 6Further, for the disruptions due to outbreak of COVID-19 pandemic, with effect from May 22, 2020, the time period for completion of remittances against normal imports (except in cases where amounts are withheld towards guarantee of performance etc.) was extended from six months to twelve months from the date of shipment for such imports made on or before July 31, 2020. (ii) AD Category - I banks may permit settlement of import dues delayed due to disputes, financial difficulties, etc. However, interest if any, on such delayed payments, usance bills or overdue interest is payable only for a period of up to three years from the date of shipment and may be permitted in terms of the directions in para C.2 of Section III below. B.5.2. Time Limit for Deferred Payment Arrangements Any deferred payment arrangements (including suppliers' and buyers' credit) entered into, for up to three years in case of import of capital goods and up to one year or the operating cycl....
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....verned by Foreign Exchange Management (Export and Import of Currency) Regulations 2000, issued by Reserve Bank vide 11Notification No. FEMA 6(R)/2015-RB dated December 29, 2015. (ii) Reserve Bank may allow a person to bring into India currency notes of Government of India and / or of Reserve Bank subject to such terms and conditions as the Reserve Bank may stipulate. B.6.1. Import of Foreign Exchange into India A person may- (i) Send into India, without limit, foreign exchange in any form other than currency notes, bank notes and travellers cheques; (ii) Bring into India from any place outside India, without limit, foreign exchange (other than unissued notes), subject to the condition that such person makes, on arrival in India, a declaration to the Custom Authorities at the Airport in the Currency Declaration Form (CDF) annexed to these Regulations; provided further that it shall not be necessary to make such declaration where the aggregate value of the foreign exchange in the form of currency notes, bank notes or travellers cheques brought in by such person at any one time does not exceed USD 10,000 (US Dollars ten thousand) or its equivalent and/or the aggregate value of fo....
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....utside India or a guarantee of an AD Category - I bank in India, if such a guarantee is issued against the counter-guarantee of an international bank of repute situated outside India, is obtained. (b) In cases where the importer (other than a Public Sector Company or a Department/Undertaking of the Government of India/State Government/s) 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 remittances up to USD 5,000,000 (US Dollar five million). AD Category - I banks may frame their own internal guidelines to deal with such cases as per a suitable policy framed by the bank's Board of Directors. (c) A Public Sector Company or a Department/Undertaking of the Government of India / State Government/s which is not in a position to obtain a guarantee from an international bank of repute against an advance payment, is required to obtain a specific waiver for the bank guarantee from the Ministry of Finance, Government of India before making advance remittance exceeding USD 100,000. ....
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....ter" in IDPMS. For non-EDI ports, AD banks of the importer shall upload the BoE data in IDPMS as per message format "Manual BoE reporting" on daily basis on receipt of BoE from the customer/Customs Office. ix. AD banks will enter BOE details and mark off ORMs as per the message format "BOE Settlement" x. In case of payment after receipt of BoE, the AD bank shall generate ORM for import payments made by the importer customer as per the message format "BOE Settlement" xi. Multiple ORMs can be settled against single BoE and also multiple BoEs can be settled against one ORM. C.1.3. Advance Remittance for Import of Aircrafts/Helicopters, other Aviation Related Purchases and Shipping Vessels 1. As a sector specific measure, entities which have been permitted under the extant Foreign Trade Policy to import aircrafts and helicopters (including used / second hand aircraft and helicopters) or any other person who has been granted permission by the Directorate General of Civil Aviation (DGCA) to operate Scheduled or Non-Scheduled Air Transport Service (including Air Taxi Services), can make advance remittance without bank guarantee or an unconditional, irrevocable Standby Letter of Credi....
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....d aviation sector related products, AD Category - I bank should ensure that the amount of advance remittance is immediately repatriated to India. Prior approval of the concerned Regional Office of the Reserve Bank will be required in case of any deviation from the above stipulations. 15viii. Concerned AD Category I banks to ensure generation of ORMs, BoE entries and BoE settlement with the respective ORMs etc. as per extant IDPMS guidelines. 164. Importers are allowed to make advance remittance for import of shipping vessel, without bank guarantee, or an unconditional, irrevocable standby Letter of Credit, up to USD 50 million, subject to the conditions mentioned in para C.1.3.3 above, as applicable. C.1.4. Advance Remittance for the Import of Services AD Category - I bank may allow advance remittance for import of services without any ceiling subject to the following conditions: (a) Where the amount of advance exceeds USD 500,000 or its equivalent, a guarantee from a bank of international repute situated outside India, or a guarantee from an AD Category - I bank in India, if such a guarantee is issued against the counter-guarantee of a bank of international repute situated o....
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....ing to the lost goods has been settled in favour of the importer. It may be ensured that the consignment being replaced is shipped within the validity period of the license. 20AD bank should ensure that proper remark/indicator is entered for ORM mark off/closure of Bills in IDPMS etc. as per extant IDPMS guidelines. C.4. Guarantee for Replacement Import In case replacement goods for defective import are being sent by the overseas supplier before the defective goods imported earlier are reshipped out of India, AD Category-I banks may issue guarantees at the request of importer client for dispatch/return of the defective goods, according to their commercial judgment. C.5. Import of Equipment by Business Process Outsourcing (BPO) Companies for their Overseas Sites AD Category - I bank may allow BPO companies in India to make remittances towards the cost of equipment to be imported and installed at their overseas sites in connection with the setting up of their International Call Centres (ICCs) subject to the following conditions: (i) The BPO company should have obtained necessary approval from the Ministry of Communications and Information Technology, Government of India and othe....
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....emi- precious stones can receive import bills directly from the suppliers without any ceiling. AD Category - I banks may undertake such transactions subject to the following conditions: (i) The import would be subject to the prevailing Foreign Trade Policy. (ii) The transactions are based on their commercial judgment and they are satisfied about the bonafides of the transactions. (iii) AD Category - I banks should do the KYC and due diligence exercise and should be fully satisfied about the financial standing / status and track record of the importer customer. Before extending the facility, they should also obtain a report on each individual overseas supplier from the overseas banker or reputed overseas credit rating agency. C.6.3. Receipt of import documents by the AD Category - I bank directly from overseas suppliers (i) At the request of importer clients, AD Category - I bank may receive bills directly from the overseas supplier as above, provided the AD Category - I bank is fully satisfied about the financial standing/status and track record of the importer customer. (ii) Before extending the facility, the AD Category - I bank should obtain a report on each individual ove....
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....tions etc. as per IDPMS guidelines. C.7.2. Evidence of Import in Lieu of Bill of Entry (i) AD Category - I bank may accept, in lieu of Exchange Control Copy of Bill of Entry for home consumption, a certificate from the Chief Executive Officer (CEO) or auditor of the company that the goods for which remittance was made have actually been imported into India provided:- (a) The amount of foreign exchange remitted is less than USD 1,000,000 or its equivalent and (b) The importer is a company listed on a stock exchange in India and whose net worth is not less than Rs.100 crore as on the date of its last audited balance sheet, or, the importer is a public sector company or an undertaking of the Government of India or its departments. (ii) The above facility may also be extended to autonomous bodies, including scientific bodies/academic institutions, such as Indian Institute of Science / Indian Institute of Technology, etc. whose accounts are audited by the Comptroller and Auditor General of India (CAG). AD Category - I bank may insist on a declaration from the auditor/CEO of such institutions that their accounts are audited by CAG. 26(iii) Outward Remittance Message has to be creat....
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....ntaining the following particulars: * importer's full name and address with code number; * number and date of BoE and the amount of import; and * a recap advice on number and amount of BoE and ORM not settled for the importer. 31(viii) The importer needs to preserve the printed 'Importer copy' of BoE as evidence of import and acknowledgement slip for future use. Extension and Write Off (ix) AD Category I banks shall give extension for submission of BoE beyond the prescribed period in terms of the extant guidelines on the matter, and the same will be reported in IDPMS as per the message "Bill of Entry Extension" and the date up to which extension is granted will be indicated in "Extension Date" column. (x) AD Category I banks can consider closure of BoE/ORM in IDPMS that involves write off to the extent of 5% of invoice value in cases where the amount declared in BoE varies from the actual remittance due to operational reasons and AD bank is satisfied with the reason/s submitted by the importer. (xi) AD Category I banks may close the BoE for such import transactions where write off is on account of quality issues; short shipment or destruction of goods by the port / C....
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....IS audit and assurance of the "BOE Settlement" process in IDPMS. Data and process followed by AD Category -I bank for "BOE Settlement" should be preserved in terms of the guidelines under Cyber Security Framework in the bank. (ii) Internal inspectors or auditors (including external auditors appointed by AD Category - I bank) should carry out verification of the documents evidencing import other than which are available in IDPMS, e.g. Exchange Control copies of Postal Appraisal Forms, or Customs Assessment Certificates, etc. (iii) Documents evidencing import into India should be preserved by AD Category - I bank for a period of one year from the date of their verification. However, in respect of cases which are under investigation by investigating agencies, documents, and/or data, process may be destroyed only after obtaining clearance from the investigating agency concerned. C.10. Follow-up for Import Evidence (i) In case an importer does not furnish any documentary evidence of import, as required under paragraph C.7. of Section III, within 3 months from the date of remittance involving foreign exchange 35irrespective of value, the AD Category - I bank should rigorously follow-....
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....nth under report as well as the cumulative position as at the end of the said month beginning from the 1st month of the Financial Year. The return code R132 is named as 'Import of gold by EOUs, units in SEZ/EPZ and nominated agencies(M)'. Both the returns shall be submitted, even if there is 'Nil' position, by the 10th of the following month / half year, to which it relates C.11.2. Import of Gold Jewellery Including Jewellery Made of Precious Metals or/and Studded With Diamonds / Precious Stones /Semi-precious. Suppliers' and Buyers' credit (trade credit) including the usance period of Letters of Credit opened for import of gold in any form, including jewellery made of gold/precious metals or/and studded with diamonds/semi- precious/precious stones, should not exceed 90 days from the date of shipment. C.11.3. Import of Gold by Qualified Jewellers as notified by IFSCA i. 42The following directions enable resident Qualified Jewellers to import gold through IIBX or any other exchange approved by IFSCA and DGFT, Government of India: * AD banks may allow Qualified Jewellers to remit advance payments for eleven days for import of gold through IIBX in compliance to t....
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....s under FEMA, 1999, FTDR Act 1992, Foreign Trade Policy and regulations of IFSCA. AD banks may frame their own internal guidelines to deal with such cases, with the approval of their Board of Directors. iv. Reporting requirement by AD banks * AD bank shall create Outward Remittance Message (ORM) for all such outward remittances in IDPMS in terms of extant guidelines. * All these transactions need to be reported in FETERS in terms of extant guidelines. * AD bank shall report the import of gold through QJ in CIMS as prescribed at para C.11.1 above. v. The above mentioned arrangement is for the sole purpose of facilitating physical import of gold through IIBX or any similar exchange authorised by IFSCA, by Qualified Jewellers in India. C.11.4 Import of gold by valid India-UAE CEPA Tariff Rate Quota Holders as notified by -The International Financial Services Centres Authority (IFSCA) AD Category-I banks may allow valid India-UAE CEPA Tariff Rate Quota (TRQ) Holders to remit advance payment for eleven days for import of gold through IIBX subject to the directions as mentioned in A.P. (DIR Series) Circular No.04 dated May 25, 202243. C.12. Import of Other Precious Metals C.....
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....r, on outright purchase basis subject to the condition that although ownership of the same shall be passed on to the importers at the time of import itself, the price shall be fixed later as and when the importer sells to the user. C.12.3 Import of Silver by Qualified Jewellers as notified by -The International Financial Services Centres Authority (IFSCA)46 AD Category-I banks may allow Qualified Jewellers to remit advance payment for eleven days for import of silver through IIBX subject to the conditions as mentioned in A.P. (DIR Series) Circular No.04 dated May 25, 2022. C.13. Import Factoring (i) AD Category - I bank may enter into arrangements with international factoring companies of repute, preferably members of Factors Chain International, without the approval of Reserve Bank. (ii) They will have to ensure compliance with the extant foreign exchange directions relating to imports, Foreign Trade Policy in force and any other guidelines/directives issued by Reserve Bank in this regard. C.14. Merchanting Trade47 C.14.1. AD banks may handle the Merchanting Trade Transactions (MTT) subject to the following guidelines: * For a trade to be classified as merchanting trade, ....
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....export leg, prior to the payment for import leg, may be parked either in Exchange Earners Foreign Currency (EEFC) account or in an interest-bearing INR account till the import leg liability arises. It shall be strictly earmarked/ lien-marked for the payment of import leg and the liability of the import leg, as soon as it arises, shall be extinguished out of these funds without any delay. If such receipts are kept in interest-bearing INR account, hedging thereof may be allowed by the AD bank at the request of its customer, as per extant regulations. No fund/non-fund-based facilities shall be extended against these balances. * In case of discounting of export leg LC where payment for import leg is still to be made (even if partially), the proceeds shall be utilized in the manner prescribed at point no. 2 (viii) above. * Payment for import leg may also be allowed to be made out of the balances in EEFC account of the merchant trader. * Merchanting traders may be allowed to make advance payment for the import leg on demand made by the overseas supplier. In case where inward remittance from the overseas buyer is not received before the outward remittance to the overseas supplier, A....
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....ilar Organization; provided, the MTT is in adherence to all other provisions except the delays in timelines (either for outlay or completion period of MTT or both) attributed to reasons mentioned at a, b and c above. ii. In addition to above, write-off as at (i) shall be subject to following conditions: * AD bank shall satisfy itself with the bonafides of the transactions and ensure that there are no KYC/AML concerns. * The transaction shall not be under investigation under FEMA by any of the investigating agency/ies. * The counterparty to the merchant trader is not from a country or jurisdiction in the updated FATF Public Statement on High Risk & Non-Co-operative Jurisdictions on which FATF has called for counter measures. C.14.4 Third Party payments Third party payments for export and import legs of the MTT are not allowed. C.14.5 Payment of Agency Commission Agency commission is not allowed in MTTs. However, AD banks may allow payment of agency commission up to a reasonable extent by way of outward remittance under exceptional circumstances, subject to the following conditions: * MTT has been completed in all respects. * The payment of agency commission shall not....
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....or online purchases from overseas exporters electronically through credit card, debit card and net banking and * charge back from the overseas exporters. (d) The permitted debits in the OPGSP Import Collection account will be: * payment to overseas exporters in permitted foreign currency; * payment to Indian importers for returns and refunds; * payment of commission at rates/frequencies as defined under the contract to the current account of the OPGSP; and * bank charges 49C.16. Settlement of Import transactions in currencies not having a direct exchange rate To further liberalize the procedure and facilitate settlement of import transactions where the invoicing is in a freely convertible currency and the settlement takes place in the currency of the beneficiary, which though convertible, does not have a direct exchange rate, it has been decided that AD Category-I banks may permit settlement of such import transactions (excluding those put through the ACU mechanism), subject to conditions as under: * Importer shall be a customer of the AD Bank, * Signed contract / invoice is in a freely convertible currency, * The beneficiary is willing to receive the payment in ....
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....s in SEZ/EPZ, and (iii) Nominated Agencies July 9, 2004 9 34 Import of Gold on Loan Basis - Tenor of Loan and Opening of Stand-By Letter of Credit February 18, 2005 10 1 Import of Goods of Value USD 100,000 and Less -Clarification on Follow up for Evidence of Import July 12, 2005 11 33 Liberalisation of Export and Import procedures February 28, 2007 12 34 Import of Goods of Value USD 100,000 and Less -Clarification on Follow up for Evidence of Import March 2, 2007 13 63 Import of Equipments by BPO Companies in India for International Call Centre May 25, 2007 14 77 Advance Remittance for Import of aircrafts / helicopters / other aviation related purchases June 29, 2007 15 18 Direct Receipt of Import Bills / Documents - Liberalisation November 7, 2007 16 37 Direct Receipt of Import Bills / Documents for Import of Rough Precious & Semi-Precious Stones April 16, 2008 17 03 Advance Remittance for Import of Rough Diamonds August 4, 2008 18 08 Advance Remittance for Import of Rough Diamonds August 21, 2008 19 09 Foreign Exchange Management Act, 1999- Advance Remittance for Import of Goods - Liberalisation August 21, 2008 20 12 Foreign Exchan....
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....ance thereof February 12, 2015 50 79 Guidelines on Import of Gold by Nominated Banks / Agencies February 18, 2015 51 96 Merchanting Trade to Nepal and Bhutan April 30, 2015 52 16 Processing and settlement of import and export related payments facilitated by Online Payment Gateway Service Providers September 24, 2015 53 29 Import of Goods into India - Evidence of Import November 26, 2015 54 30 Advance Remittance for Import of aircrafts / helicopters /other aviation related purchases November 26, 2015 55 42 Settlement of Export/ Import transactions in currencies not having a direct exchange rate February 4, 2016 56 57 Import of Rough, Cut and Polished Diamonds March 31, 2016 57 65 Import of goods- Import Data Processing and Monitoring System (IDPMS) April 28, 2016 58 05 Import Data Processing and Monitoring System (IDPMS) October 06, 2016 59 11[(1)/14(R)] Foreign Exchange Management (Manner of Receipt and Payment) Regulations 2016 October 20, 2016 60 27 Evidence of Import under Import Data Processing and Monitoring System (IDPMS) January 12, 2017 61 33 Import of goods and services- Extension of time limits for Settlement of import payme....
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....6/2000-RB dated May 3, 2000" 12 Modified vide A.P. (DIR Series) Circular No. 19 dated January 12, 2026. Prior to modification it read as "B.8.1 An authorised dealer may give a guarantee in respect of any debt, obligation or other liability incurred by a person resident in India and owned to a person resident outside India, as an importer, in respect of import on deferred payment terms in accordance with the approval by the Reserve Bank of India for import on such terms. B.8.2 An authorised dealer may give guarantee, Letter of Undertaking of Letter of Comfort in respect of any debt, obligation or other liability incurred by a person resident in India and owned to a person resident outside India (being an overseas supplier of goods, bank or a financial institution), for import of goods, as permitted under the Foreign Trade Policy announced by Government of India from time to time and subject to such terms and conditions as may be specified by Reserve Bank of India from time to time. B.8.3 An authorised dealer may, in the ordinary course of his business, give a guarantee in favour of a non-resident service provider, on behalf of a resident customer who is a service importer, subjec....
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...., 2016 prior to modification it read as "In case of all imports, where value of foreign exchange remitted / paid for import into India exceeds USD 100,000 or its equivalent, it is obligatory on the part of the AD Category- I bank through which the relative remittance was made, to ensure that the importer submits" 24 Sub points of point no. (i) and point no.(ii) modified vide AP (DIR Series) Circular No. 27 dated January 12, 2017 prior to modification they read as "(a) The Exchange Control Copy of the Bill of Entry for Home Consumption, or (b) The Exchange Control Copy of the Bill of Entry for warehousing, in case of 100% Export Oriented Units, or (c) Customs Assessment Certificate or Postal Appraisal Form, as declared by the importer to the Customs Authorities, where import has been made by post, or Courier Bill of Entry as declared by the courier companies to the Customs Authorities in cases where goods have been imported through couriers, as evidence that the goods for which the payment was made have actually been imported into India, or (d) The Exchange Control Copy of the Ex-Bond Bill of Entry or Bill of Entry issued by Customs Authorities by any other similar nomenclature ....
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....IR Series) Circular No.65 dated April 28, 2016 prior to modification it read as "exceeding USD 100,000" 36 Modified. Prior to modification it read as "including issuing registered letters to the importer" 37 Modified. Prior to modification it read as" On operationalization of IDPMS, all outstanding import remittances, irrespective of the amount involved, will be reported into the system by banks and submission of a separate BEF statement would be discontinued from a date, to be notified separately". which was modified vide AP (DIR Series) Circular No.65 dated April 28, 2016 prior to modification it read as "AD Category - I banks should henceforth submit a statement on half-yearly basis as at the end of June & December of every year, in form BEF furnishing details of import transactions, exceeding USD 100,000 in respect of which importers have defaulted in submission of appropriate document evidencing import within 6 months from the date of remittance using the online eXtensible Business Reporting Language (XBRL) system on a Bank-wide basis instead of the present system of branch-wise submission, to the respective Regional Offices of the RBI. The Statement should be submitted with....