Advance payment for exports and imports and delayed payment for imports

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....hall route the advance payment and its subsequent payments through the same Authorised Dealer. If an importer may route the transactions through any other Authorised Dealer, the importer has intimated the change to both the Authorised Dealers. • Advance remittance for imports: An Authorised Dealer may allow advance import payments after verifying genuineness and consider specifying thresholds for advance payment the payment may require a standby Letter of Credit or a guarantee beyond specified limits. • Interest on advance or delayed payments: An Exporter or Importer any interest payable must not exceed the prescribed all-in-cost ceiling of trade credit under Foreign Exchange Management (Bo....

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....f advance payment; • the rate of interest, if any, payable on the advance payment shall not exceed 100 basis points above • the London Inter-Bank Offered Rate (LIBOR) or • other applicable benchmark as may be directed by the Reserve Bank, as the case may be; and • the documents covering the shipment are routed through the authorised dealer through whom the advance payment is received; • When exporter unable to make shipment, partly or fully,  within one year from the date of receipt of advance payment, • no remittance towards refund of unutilized portion of advance payment or towards payment of interest, • shall be made after the e....

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.... for export of goods subject to the conditions as under: (i) Firm irrevocable supply orders and contracts should be in place. The contract with the overseas party/ buyer should be vetted and the same shall clearly specify the nature, amount and delivery timelines of the products over the years and penalty in case of non-performance or contract cancellation. Product pricing should be in consonance with prevailing international prices. (ii) Company should have capacity, systems and processes in place to ensure that the orders over the duration of the said tenure can actually be executed. (iii) The facility is to be provided only to those entities, which have not come under the adverse notice of Enforcement Directora....

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....e basis. c) BG / SBLC issued from India in favor of overseas buyer should not be discounted by the overseas branch / subsidiary of bank in India. Note: AD Category - I banks may also be guided by the Master Circular on Guarantees and Co-acceptances issued by Department of Banking Regulation. (xii) AD Category - I banks may allow the purchase of foreign exchange from the market for refunding advance payment credited to EEFC account only after utilizing the entire balances held in the exporter's EEFC accounts maintained at different branches/banks. Receipt of advance where manufacture and export take more than one year [ See para C.2(3) of Master Direction No. 16/2015-16 Dated 01-01-2016 ] AD Category- I banks....