Foreign Remittance, FEMA - Foreign Exchange Management

What is the maximum time limit for outward foreign remittance against import as per RBI guidelines?

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1 Dated: 13-8-2019 By:- YAGAY andSUN

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.
(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
Deferred payment arrangements (including suppliers’ and buyers’ credit) upto five years, are treated as trade credits for which the procedural guidelines as laid down in the Master Circular for External Commercial Borrowings and Trade Credits may be followed.
B.5.3. Time Limit for Import of Books
Remittances against import of books may be allowed without restriction as to the time limit, provided, interest payment, if any, is as per the instructions in para C.2 of Section III of this Circular.

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2 Dated: 19-8-2019 By:- DR.MARIAPPAN GOVINDARAJAN

Thanks Yagay for the useful information.

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