The full value of export of goods shall be received through an AD bank in the manner specified under foreign exchange Management (manner of receipt and payment) Regulations, 2000, and payment can be made in the form of a bank draft, pay order, banker’s or personal cheques, foreign currency notes/foreign currency travelers’ cheques or international credit cards of the buyer.
- What is the time period for the realization and repatriation of export proceeds?
The time period for realization and repatriation of export proceeds shall be 9 months from the date of export.
- Can RBI extend the period of 9 months for realization and repatriation of exports?
The 9 months period of export proceeds realization can be extended for another 6 months by RBI under specific circumstances.
- Is third-party payment for Export/import transactions permitted under FEMA?
Yes, third-party payment for exports/imports transactions is permitted under FEMA subject to fulfillment of certain conditions that are prescribed by RBI.
- Can an exporter receive advance payment for exports from the buyer of the goods?
Yes, under FEMA Act an exporter is permitted to receive advance payments for the export transactions against certain obligations that may be specified by RBI in this regard.
- Can an exporter set off the export receivables against import payments?
Yes, an exporter is permitted to set off the export receivables against import payments subject to fulfillment of certain conditions specified by RBI and for the purpose of the same RBI has delegated the power to AD Category-I bank to deal with cases related to set-off.
- Can an exporter make a provision for commission on exports?
Yes, subject to the satisfaction of AD category-I bank, an exporter is allowed to make provision for commission on exports either by the way of remittance or deduction from the value which is given in invoice and the application for the same has been submitted by the exporter.
- (1) Are exporters allowed to set up offices outside India?
Yes, exporters are allowed to set up offices outside India provided that at the time of setting up of the office, AD Category-I banks may allow remittances towards initial expenses up to 15% of average annual sales/income during the last 2 financial years or 25%of net worth whichever is higher.
- (2) Is an exporter allowed to open up any warehouse outside India?
Yes, subject to the satisfaction of AD Category-I bank an exporter after duely submitting an application for the same and only when he fulfills certain conditions that are specified under FEMA will be allowed to open up any warehouse outside India.
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