Sunday, December 15, 2013

Third party payments for export / import transactions

The Reserve Bank of India (RBI) has said that normally payment for exports has to be received
from the overseas buyer named in the Export Declaration Form (EDF) by the exporter and the
payment shall be received in a currency appropriate to the place of final destination as  mentioned in the EDF irrespective of the country of residence of the buyer. Similarly, the payments for the import should be made to the original overseas seller of the goods and the AD should ensure that the importer furnishes evidence of import, such as, Exchange Control copy of the Bill of Entry to satisfy itself that goods equivalent to the value of remittance have been imported. AD banks may allow payments for export of goods / software to be received from a third party (a party other than the buyer) subject to conditions as specified. AD banks are also allowed to make payments to a third party for import of goods, subject to conditions as specified.

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