¨ ¨Import trade is regulated by Director General of Foreign Trade (DGFT) and imports into India should be in conformity with the Foreign Trade Policy and ITC(HS) code in force and FEMA rules and RBI notifications from time to time. ¨
General Guidelines for Imports
¨Import payment application :Request to be made to the bank giving all requisite details and remittance is for bona fide trade transaction as per applicable laws in force. No Form A-1.
¨Import Licenses : Exchange control copy of import licenses is required for opening an LC, if the item to be imported is under restricted category.
¨Time limit for Import Payment : Normal imports, maximum 6 months from the date of shipment. In case of advance remittance, maximum 6 months from the date of remittance. No time limit for import of books. ¨
¨Import of foreign exchange into India :
a) a person can send into India, without limit, foreign exchange in any form other than currency notes, bank notes and traveler cheques.
b) A person may bring into India, without limit, foreign exchange subject to the declaration at customs in Currency Declaration Form (CDF) if the amount of foreign currency exceeds :USD 10,000/- equ .or aggregate value of foreign currency notes alone exceeds USD 5000/- equ.
¨Import/ Export of Indian Currency : ¨ ¨a) A person may bring/ or take out of India, currency notes up to an amount not exceeding Rs.25000/- except Pakistan and Bangladesh. ¨ b) A person may bring/ or take out of India, currency notes for any amount in denomination upto to Rs.100/-.
Advance Remittances for Import of Goods
¨Banks allow advance remittances without any ceiling subject to ¨
¨i) If the amount exceeds USD 200,000 or equ.and in case of import of services, if the amount exceeds USD 500,000 or equ., an unconditional LC or guarantee from an international bank is required.
¨Ii) If the bank is satisfied, advance remittance can be made up to USD 5 Mio without requirement of LC/Guarantee. ¨
iii) In case of PSU or Deptt. of Govt. if the amount exceeds USD 100,000 or equ, specific waiver of LC/ Guarantee from Ministry of finance, Govt. of India is required. ¨
iv) No limit for advance remittance for rough diamonds without LC or guarantee subject to certain conditions. ¨
v) Advance remittance for import of aircraft/ helicopters or aviation related purchases without LC or bank guarantee, limit is up to USD 50 Mio or equ. subject to certain conditions.
Evidence of Import
Physical Imports :
¨If the value of forex exceeds USD 100,000 or equ., banks to ensure that exchange control copy of bill of entry, custom assessment certificate or postal appraisal form etc. has been submitted. ¨
Non Physical Imports :
If the imports are in the form of software, data through internet, drawings and design through e-mails/ fax etc, a certificate from chartered accountant that same has been received by the importer, may be obtained. ¨
Verification & Preservation :
Documents regarding evidence of import should be preserved for one year from the date of verification. However if the investigation is going-on, it should be preserved till logical end.
Follow-up for Evidence of Import
¨i) If the importer does not submit evidence of import within 3 months from the date of remittance for amount exceeding USD 100,000 or equ., bank will follow up for the next 3 months. ¨
¨ii) Bank will submit a statement on half yearly basis at the end of June and December every year in form BEF furnishing details of import transactions, exceeding USD 100,000 or equ. In respect of which importers have defaulted in submission of evidence of import with 6 months from the date of remittance. The captioned statement will be submitted within 15 days of following month. ¨
¨Iii) In case of remittance below USD 100,000 or equ., Bank should be satisfied about the genuineness of import transaction. ¨ ¨Now BEF statement has been discontinued and new system has been introduced i.e. ¨IDPMS (Import Data Processing and Monitory System) ¨
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