TMI BlogForeign Exchange Management Act - 1999 Import of Goods into IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... port Policy in force and Foreign Exchange Management (Current Account Transactions) Rules, 2000 framed by 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 from time to time. 3. Authorised dealers have to 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. In respect of import of drawings and designs, compliance with the provisions of Research Development Cess Act, 1986 may be ensured. Authorised dealers may also advise importers to ensure compliance with the provisions of Income Tax Act, wherever applicable. 4. Authorised dealers may bring the contents of this circular to the notice of their constituents concerned. 5. The directions contained in this circular have been issued under Section 10(4) and Section 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Yours faithfully, Grace Koshie Chief General Manager Annexure[A.P.(DIR Series) Circular No.106 dated June 19, 2003] IMPOR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instructions contained in sub-paragraphs (i) and (ii) above. A.5 Time Limit for Settlement of Import Payments 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. Deferred payment arrangements including payments beyond a period of six months from date of shipment are treated as External Commercial Borrowings (ECBs). For deferred or delayed payment imports, authorised dealers may adhere to the instructions issued vide A.P.(DIR Series) Circular No.25 dated September 27, 2002 read with regulations 5(3) of Notification No. FEMA 3/2000-RB dated 3 rd May 2000. ii. Authorised dealers may permit settlement of import dues delayed due to disputes, financial difficulties etc. Interest in respect of such delayed payments may be permitted in terms of the directions in para A.7 below. NOTE: Remittances against import of books may be allowed without restriction as to time limit, provided, interest payment, if any, is as per the instructions in para A.7 A.6 Advance Remittance Authorised dealers may allow advanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.10.1 Evidence of Import i. In case of all imports, where value of foreign exchange remitted/paid for import into India exceeds USD 25,000 or its equivalent, it is obligatory on the part of the authorised dealers through whom the relative remittance was made, to ensure that the importer submits :- a. the Exchange Control copy of the Bill of Entry for home consumption, or b. in case of 100% Export Oriented Units the Exchange Control copy of the Bill of Entry for warehousing, 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, as an evidence that the goods for which the payment was made have actually been imported into India. ii. Where imports are made in non-physical form, i.e., software or data through internet/datacom channels and drawings and designs through e-mail/fax, a certificate from a Chartered Accountant that the software/data/ drawing/ design has been received by the importer, may be obtained. Note: Authorised dealers should advise importers to keep Customs Authorities informed of the imports made by them under this clause. iii. In respect of imports ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsist on a declaration from the auditor/CEO of such institutions that their accounts are audited by CAG. A.11 Follow up for Import Evidence i. In case an importer does not furnish any documentary evidence of import, as required under paragraphs A.10.1 2 above, within 3 months from the date of remittance involving foreign exchange exceeding USD 25,000, the authorised dealer should rigorously follow-up for the next 3 months, including issue of registered letters to the importer. ii. Authorised dealers should forward to Reserve Bank a statement on half- yearly basis as at the end of June December of every year, in form BEF (format enclosed) furnishing details of import transactions, exceeding USD 25,000 in respect of which importers have defaulted in submission of appropriate document evidencing import within 6 months from the date of remittance. The said half-yearly statement should be submitted to the Regional Office of Reserve Bank under whose jurisdiction the authorised dealer is functioning, within 15 days from the close of the half-year to which the statement relates. A.12 Receipt of import Bills/Documents i. Import bills and documents should be received f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be fixed later, as and when the importer sells the gold to the users. NOTE : Instructions contained in this paragraph would also apply to import of platinum and silver. A.14 Import factoring Authorised dealers may enter into arrangements with international factoring companies of repute, preferably members of Factors Chain International, without approval of Reserve Bank. However, authorised dealers will have to ensure compliance with the extant exchange control directions relating to imports, EXIM policy in force and any other guidelines/directives issued by Reserve Bank in this regard. Section-B Merchanting Trade Authorised dealers may take necessary precautions in handling merchanting trade transactions or intermediary trade transactions to ensure that (a) goods involved in the transactions are permitted to be imported into India, (b) such transactions do not involve foreign exchange outlay for a period exceeding three months, and (c) all rules, regulations and directions applicable to export out of India (except Export Declaration Form) are complied with in respect of the export leg and all rules, regulations and directions applicable to import (except Bi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of statement for the previous half-year should not be reported again in Part I of the statement for the current half-year. vii. In case no transaction is required to be reported, 'NIL' statement should be submitted. viii. Statement should be submitted within 15 days from the close of the half-year to which it relates. Part I Information regarding importers who have defaulted in submission of the documentary evidence of import Sr.No. Importer/ Exporter Code No. Name and address of the Importer No.and date of import licences, if any Brief description of goods Date of remittance/ payment Currency and amount Rupee equiva-lent Remarks 1 2 3 4 5 6 7 8 9 A . Import by parties other than Public Sector Undertakings/Government Departments 1 2 3 4 Etc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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