Foreign Exchange Management Act, 1999- Advance Remittance for Import of Goods - Liberalisation

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....Advance Remittance for Import of Goods - Liberalisation Attention of Authorised Dealer Category - I (AD Category-I) banks is invited to A. P. (DIR Series) Circular No.106 dated June 19, 2003 and A. P. (DIR Series) Circular No.15 dated September 17, 2003, in terms of which - (i) AD Category - I banks are permitted to make advance remittance without any limit on behalf of their importer constituen....

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....iers 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 remittance up to USD 1,000,000 or its equivalent. 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 Direct....

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....ied about the bonafides of the transactions. d) Advance payments should be made strictly as per the terms of the sale contract and should be made directly to the account of the manufacturer / supplier concerned. e) Physical import of goods into India should be made within six months (three years in case of capital goods) from the date of remittance and the importer should give an undertaking to ....