- What is the time limit for the settlement of import payments?
Import payments should be settled down within a period of 6 months from the date of shipment.
- Can an extension be granted for settlement of import payments and which authority is liable to grant an extension?
Yes, an extension of extra 3 years can be granted in case of failure to settle import payments subject to the satisfaction of AD Category-I banks.
- Is third-party payment for import transactions permitted?
Yes, AD banks are permitted to make payments on behalf of a third party against the import of goods, subject to the fulfillment of certain conditions specified under FEMA.
- Is Advance Remittance for import of goods allowed to be received?
Yes, AD Category-I has the power to allow advance remittances for import of goods without any limit but subject to fulfillment of certain conditions.
- How can an importer receive a license under FEMA?
Except for the good that is included in the Negative List, AD Category-I banks are allowed to freely provide letters of credit and allow remittances for import. While opening letters of credit, a copy of the license should be called for.AD Category-I banks may preserve the copies of utilized licenses till they are verified by the internal Auditors or the Inspectors.
- What are the provisions regarding the import of currency under FEMA?
(a) Any person who is a resident in India is allowed to take outside India (other than to Nepal and Bhutan) currency notes of Government of India notes up to an amount not exceeding Rs 25,000 per person or such other amount and subject to such conditions as notified by Reserve Bank of India from time to time.
(b)May also take or send outside India (other than to Nepal and Bhutan) commemorative coins not exceeding two coins each
(c) who had gone out of India on a temporary visit, may bring into India at the time of his return from any place outside India (other than to Nepal and Bhutan) currency notes of Government of India notes up to an amount not exceeding Rs 25,000 per person or such other amount and subject to such conditions as notified by Reserve Bank of India from time to time.
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