TaxTMI 
TaxTMI 
Master Direction – Import of Goods and Services (Updated as on January 12, 2026)
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.... Exchange Management (Current Account Transaction) Rules, 2000. These Regulations are amended from 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 rela....
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....ce and Foreign Exchange Management (Current Account Transactions) Rules, 2000 framed by the Government of India vide Notification No. G.S.R.381 (E) dated May 3, 2000 and the Directions issued by Reserve Bank under Foreign Exchange 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 j....
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....e value of remittance have been imported. ^4AD bank should ensure that all import remittances outstanding on the notified date of IDPMS are uploaded in IDPMS. ^5ommitted B.5. Time Limit for Settlement of Import Payments B.5.1. Time limit for Normal Imports (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 p....
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....be indicated in "Extension Date" column. B.6. Import of Foreign Exchange / Indian Rupees (i) Except as otherwise provided in the Regulations, no person shall, without the general or special permission of the Reserve Bank, import or bring into India, any foreign currency. Import of foreign currency, including cheques, is governed 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 Regu....
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....for Imports C.1. Advance Remittance C.1.1. Advance Remittance for Import of Goods (i) AD Category - I bank may allow advance remittance for import of goods without any ceiling subject to the following conditions: (a) If the amount of advance remittance exceeds USD 200,000 or its equivalent, an unconditional, irrevocable standby Letter of Credit or a guarantee from an international bank of repute situated outside 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 ....
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.... India / State Government/s, AD Category - I banks may permit the advance remittance subject to the above conditions and a specific waiver of bank guarantee from the Ministry of Finance, Government of India, where the advance payments is equivalent to or exceeds USD 100,000/- (USD one hundred thousand only). ^14viii. Based on the AD code declared by the importer, the banks shall download the Bill of Entry (BOE) issued by EDI ports from "BOE Master" 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, entiti....
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....he purpose of submission of documentary evidence of import. vi. Prior to making the remittance, the AD Category - I bank may ensure that the requisite in principle approval of the Ministry of Civil Aviation in case of Scheduled Air Service Operators and in other cases approval of the Director General of Civil Aviation / other agencies in terms of the extant Foreign Trade Policy has been obtained by the company, for import. vii. In the event of non-import of aircraft and 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. ....
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.... Replacement Imports Where goods are short-supplied, damaged, short-landed or lost in transit and the Exchange Control Copy of the import licence has already been utilised to cover the opening of a letter of credit against the original goods which have been lost, the original endorsement to the extent of the value of the lost goods may be cancelled by the AD Category - I bank and fresh remittance for replacement imports may be permitted without reference to Reserve Bank, provided, the insurance claim relating 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.....
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....in case of specified sectors As a sector specific measure, AD Category - I banks are permitted to allow remittance for imports by non-status holder importers up to USD 300,000 where the importer of rough diamonds, rough precious and semi-precious stones has received the import bills / documents directly from the overseas supplier and the documentary evidence for import is submitted by the importer at the time of remittance. Status holder importers as defined in the Foreign Trade Policy dealing in the import of rough diamonds, rough precious and semi- 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 ea....
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....umentary evidence due to genuine reasons such as non- arrival of consignment, delay in delivery/ customs clearance of consignment, etc., AD bank may, if satisfied with the genuineness of request, allow reasonable time, not exceeding three months from the date of remittance, to the importer to submit the evidence of import. ^25(iii) AD banks are required to create Outward Remittance Message (ORM) for all such outward remittances irrespective of value and shall perform the subsequent activity viz document submission, outward remittance data, matching with ORM, closing of transactions 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 l....
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.... is as under: (iv) AD banks shall enter BoE details (BoE number, port code and date) for ORM associated with the advance payments for import transactions as per the message format "BOE settlement". (v) In case of payment after receipt of BoE, the AD bank shall generate ORM for import payments made by its importer customer as per the message format "BOE settlement". (vi) Multiple ORMs can be settled against single BoE and also multiple BoE can be settled against one ORM. ^30(vii) On settlement of ORM with evidence of import AD Category - I bank shall in all cases issue an acknowledgement slip to the importer containing 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 guideline....
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....e to follow up for outward remittance made for import (i.e. unsettled ORM) in terms of extant guidelines and instructions on the subject. In cases where relevant evidence of import data is not available in IDPMS on due dates against the ORM, AD Category - I bank shall follow up with the importer for submission of documentary evidence of import. Similarly, if BoE data is not settled against ORM within the prescribed period, AD Category - I banks shall follow up with the importer in terms of extent instructions. ^34C.9. Verification and Preservation (i) Internal inspectors and IS auditors (including external auditors appointed by AD Category - I bank) should carry out verification and 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....
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....AD Category - I banks shall henceforth submit the following returns under Centralised Information Management System (CIMS) having URL: https://sankalan.rbi.org.in from December 26, 2023 onwards. • Return on half yearly basis (end March / end September), showing the quantity and value of gold imported by the nominated banks/ agencies/ qualified jewellers/ EOUs/ SEZs in Gem & Jewellery Sector, mode of payment-wise under return code R133 named 'Import of gold by EOUs, units in SEZ/EPZ and nominated agencies(HY)' • Return on monthly basis showing the quantity and value of gold imports by the nominated agencies (other than the nominated banks)/ EOUs/ qualified jewellers/ SEZs in Gem & Jewellery sector during the month 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 Jeweller....
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....opriate authority/ies. ii. IFSC Authority (IFSCA) will conduct all required due diligence on the exchange - IIBX including all other entities involved in enabling import of Gold by QJs in terms of the IFSCA regulations. IFSCA shall also put in place necessary system to ensure that the advance remittance received from QJs are solely for the purpose for import of gold through IIBX. iii. AD bank shall ensure that: • all required documentation, custom duty related procedures and filing Bill of Entry (BoE) as evidence of import, etc. is complete for the import of gold by QJ within the specified applicable period. • single/multiple ORMs created and matched with corresponding BoEs and closed appropriately in IDMPS. • the importer - that is QJs comply with the related extant instructions relating to imports 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 remittanc....
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.... not under investigation and is not a frequent offender. AD banks may submit a half yearly report (half year shall be April- September and October-March) of such extensions allowed customer-wise, to the respective Regional Office of the Reserve Bank within 15 days of the end of the respective half year^45. (b) AD Category - I banks should ensure that due diligence is undertaken and Know Your Customer (KYC) norms and Anti-Money Laundering (AML) guidelines, issued by the Reserve Bank are adhered to while undertaking import of the precious metals and rough, cut and polished diamonds. Further, any large or abnormal increase in the volume of business should be closely examined to ensure that the transactions are bonafide and are not intended for interest / currency arbitrage. C.12.2. Import of Platinum / Silver on Unfixed Price Basis The nominated agency/bank may allow import of platinum and silver, 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 n....
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....ities. However, the AD bank shall ensure that the requisite details are made available /retrievable at the time of Inspection/Audit/investigation of the transactions. • The entire MTT shall be completed within an overall period of nine months and there shall not be any outlay of foreign exchange beyond six months^48. The commencement date of merchanting trade shall be the date of shipment / export leg receipt or import leg payment, whichever is first. The completion date shall be the date of shipment / export leg receipt or import leg payment, whichever is the last. • Short-term credit either by way of suppliers' credit or buyers' credit may be extended for MTT to the extent not backed by advance remittance for the export leg, including the discounting of export leg LC by the AD bank, as in the case of import transactions. However, Letter of Undertaking (LoU)/ Letter of Comfort (LoC) shall not be issued for supplier's/ buyer's credit. • Any receipts for the 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 l....
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.... be received by them from the overseas buyers. AD banks shall satisfy themselves about the capabilities of the merchanting trader to perform the obligations under the order. The merchanting trade shall result in profit which shall be determined by subtracting import payments and related expenses from export proceeds for the specific MTT. C.14.3 Write-off of unrealized amount of export leg: i. AD bank may write-off the unrealized amount of export leg, without any ceiling, on the request made by the Merchanting trader, in the following circumstances: • The MTT buyer has been declared insolvent and a certificate from the official liquidator specifying that there is no possibility of recovery of export proceeds has been produced. • The goods exported have been auctioned or destroyed by the Port / Customs / Health authorities in the importing country and a certificate to that effect has been produced. • The unrealized amount of the export leg represents the balance due in a case settled through the intervention of the Indian Embassy, Foreign Chamber of Commerce or similar Organization; provided, the MTT is in adherence to all other provisi....
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....goods consigned to the importers of Nepal and Bhutan from third countries under merchanting trade from India would qualify as traffic-in-transit, if the goods are otherwise compliant with the provisions of the India-Nepal Treaty of Transit and Indo-Bhutan Treaty of Transit respectively. C.15. Processing of import related payments through Online Payment Gateway Service Providers (OPGSPs) AD Category-l banks have been permitted to offer facility of payment for imports of goods and software of value not exceeding USD 2,000 by entering into standing arrangements with the OPGSPs subject to the following:- (a) The balances held in the Import Collection account shall be remitted to the respective overseas exporter's account immediately on receipt of funds from the importer and, in no case, later than two days from the date of credit to the collection account. (b) The AD Category -I bank will obtain a copy of invoice and airway bill from the OPGSP containing the name and address of the beneficiary as evidence of import and report the transaction in R-Return under the foreign currency payment head. (c) The permitted credits in the OPGSP Import Collection account will be: ....
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....ased on the declaration by the concerned importer. c. The declarations referred above may also be received on a quarterly basis from the importers in a consolidated manner (by combining several bills in one declaration) for bulk reconciliation and closing of IDPMS entries. ii. Accordlingly, AD banks shall also review the charges levied for handling these small-value import transactions, keeping in view the revised procedure/relaxations mentioned above and ensure that the same are commensurate with the services rendered. AD banks shall not levy any penal charges (penalty) for delays in adherence to any regulatory guidelines. Appendix Consolidated List of Circulars on Import of Goods and Services Sr. No AP (DIR Series) Circular No Subject Date of Circular 1 106 Import of goods and services into India. June 19, 2003 2 4 Merchanting Trade Transactions - Clarifications - Short term credit July 19, 2003 3 9 Evidence of Import - Liberalisation August 18, 2003 4 15 Advance Remittance for Imports September 17, 2003 5 49 Advance Remittance for Imports December 15, 2003 6 66 Imports into India - Direc....
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.... April 03, 2012 29 83 Import of precious and semi precious stones- Clarification February 20, 2013 30 103 Import of Gold by Nominated Banks/Agencies May 13, 2013 31 107 Import of Gold by Nominated Banks/Agencies June 4, 2013 32 122 Import of Gold by Nominated Banks/Agencies June 27, 2013 33 15 Import of Gold by Nominated Banks /Agencies/Entities July 22, 2013 34 39 Export import of Currency September 6, 2013 35 70 Third party payments for export / import transactions November 8, 2013 36 71 Advance Remittance for Import of Rough Diamonds November 8, 2013 37 73 Import of Gold by Nominated Banks /Agencies/Entities November 11, 2013 38 82 Import of Gold by Nominated Banks/Agencies/Entities December 31, 2013 39 95 Merchanting Trade Transactions January 17, 2014 40 100 Third party payments for export / import transactions February 04, 2014 41 103 Import of Gold / Gold Dore by Nominated Banks /Agencies /Entities - Clarifications February 14, 2014 42 115 Merchanting Trade Transactions - Revised guidelines March 28, 2014 4....
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.... CIMS Project implementation - Discontinuation of submission in legacy XBRL December 22, 2023 66 14 Guidelines on import of gold by Tariff Rate Quota (TRQ) holders under the India-UAE CEPA as notified by-The International Financial Services Centres Authority (IFSCA) January 31, 2024 67 07 Import of Shipping Vessel - Relaxation June 13, 2025 68 11 Merchanting Trade Transactions (MTT) - Review of time period for outlay of foreign exchange October 01, 2025 69 12 Export Data Processing and Monitoring System (EDPMS) & Import Data Processing and Monitoring System (IDPMS) - reconciliation of export /import entries - Review of Guidelines October 01, 2025 70 19 Foreign Exchange Management (Guarantees) Regulations, 2026 January 12, 2026 ^1 Modified vide AP (DIR Series) Circular No.65 dated April 28, 2016 and AP (DIR Series) Circular No.5 dated October 06, 2016 prior to modification it read as ''Issue of acknowledgement" ^2 Inserted vide AP (DIR) Series Circular 42 dated February 4, 2016 ^3 Modified vide AP DIR Series Circular No. 27 dated January 12, 2017 prior to modification it read as "Exchange Control Copy of the Bil....
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....ny or a Department / Undertaking of the Government of India / State Government, no guarantee for an amount exceeding USD 100,000 or its equivalent shall be issued without the prior approval of the Ministry of Finance, Government of India. B.8.4 An authorised dealer may, subject to the directions issued by the Reserve Bank of India in this behalf, permit a person resident in India to issue corporate guarantee in favour of an overseas lessor for financing import through operating lease effected in conformity with the Foreign Trade Policy in force and under the provisions of the Foreign exchange Management (Current Account Transactions) Rules, 2000 framed by the Government of India vide Notification No. G. S. R. 381 (E) dated May 3, 2000 and the Directions issued by Reserve Bank of India under Foreign Exchange Management Act, 1999 from time to time." ^13 Inserted vide AP (DIR Series) Circular dated No.5 dated October 06, 2016 ^14 Point viii to xi. Inserted vide AP (DIR Series) Circular No.5 dated October 06, 2016 ^15 Inserted vide AP (DIR Series) Circular No.65 dated April 28, 2016 and AP (DIR Series) Circular No.5 dated October 06, 2016 ^16 Inserted vide AP(DIR Series)....
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....ntary evidence due to genuine reasons such as non- arrival of consignment, delay in delivery/ customs clearance of consignment, etc., AD bank may, if satisfied with the genuineness of request, allow reasonable time, not exceeding three months from the date of remittance, to the importer to submit the evidence of import. ^25 Inserted vide AP (DIR Series) Circular No.65 dated April 28, 2016 and AP (DIR Series) Circular No.5 dated October 06, 2016 ^26 Inserted vide AP (DIR Series) Circular No.65 dated April 28, 2016 and AP (DIR Series) Circular No.5 dated October 06, 2016 ^27 Clarification: ORM not applicable for non physical imports ^28 Modified vide AP (DIR series circular) No.5 dated October 05, 2016 prior to modification it read as "Issue of Acknowledgement : AD Category - I bank should acknowledge receipt of evidence of import e.g. Exchange Control Copy of the Bill of Entry, Postal Appraisal Form, or Customs Assessment Certificate, etc., from importers by issuing acknowledgement slips containing all relevant particulars relating to the import transactions." ^29 Inserted vide AP (DIR Series) Circular No.27 dated January 12, 2017 ^30 Inserted vide AP (DIR Series) ....