How does Importer Bank in India handle import document and Bills?
According to Reserve Bank of India update as on 31st May, 2022, the directions on Banking operational process on import bills and import documents is given below:
C.6. Receipt of Import Bills/Document
Concerned AD Category banks to ensure generation of ORMs, BoE entries and BoE settlement with the respective ORMs in compliance with IDPMS guidelines as applicable.
C.6.1 Receipt of import documents by the importer directly from overseas suppliers
Import bills and documents should be received from the banker of the supplier by the banker of the importer in India. AD Category – I bank should not, therefore, make remittances where import bills have been received directly by the importers from the overseas supplier, except in the following cases:
(i) Where the value of import bill does not exceed USD 300,000.
(ii) Import bills received by wholly-owned Indian subsidiaries of foreign companies from their principals.
(iii) Import bills received by Status Holder Exporters as defined in the Foreign Trade Policy, 100% Export Oriented Units / Units in Special Economic Zones, Public Sector Undertakings and Limited Companies.
(iv) Import bills received by all limited companies viz. public limited, deemed public limited and private limited companies.
C.6.2. Receipt of import documents by the importer directly from overseas suppliers in case of specified sectors
As a sector specific measure, AD Category - I banks are permitted to allow remittance for imports by non-status holder importers up to USD 300,000 where the importer of rough diamonds, rough precious and semi-precious stones has received the import bills / documents directly from the overseas supplier and the documentary evidence for import is submitted by the importer at the time of remittance. Status holder importers as defined in the Foreign Trade Policy dealing in the import of rough diamonds, rough precious and semi- precious stones can receive import bills directly from the suppliers without any ceiling. AD Category - I banks may undertake such transactions subject to the following conditions:
(i) The import would be subject to the prevailing Foreign Trade Policy.
(ii) The transactions are based on their commercial judgment and they are satisfied about the bonafides of the transactions.
(iii) AD Category - I banks should do the KYC and due diligence exercise and should be fully satisfied about the financial standing / status and track record of the importer customer. Before extending the facility, they should also obtain a report on each individual overseas supplier from the overseas banker or reputed overseas credit rating agency.
C.6.3. Receipt of import documents by the AD Category – I bank directly from overseas suppliers
(i) At the request of importer clients, AD Category – I bank may receive bills directly from the overseas supplier as above, provided the AD Category – I bank is fully satisfied about the financial standing/status and track record of the importer customer.
(ii) Before extending the facility, the AD Category – I bank should obtain a report on each individual overseas supplier from the overseas banker or a reputed overseas credit agency. However, such credit report on the overseas supplier need not be obtained in cases where the invoice value does not exceed USD 300,000 provided the AD Category – I bank is satisfied about the bonafides of the transaction and track record of the importer constituent.
Bank directions to be read by each Importer in India
Banking regulations on Exports and Imports in India
Importing from India? Click here to read Bank process in India
Bank conditions on advance payment against Import of Rough Diamonds in India Bank conditions to remit advance for import in India Terms of Banker on Issue of Guarantee to Importer in India Government condition on Third Party Payment for Import Transactions in India Bringing Foreign Exchange into India, India government rules Time Limit for Settlement of Import Payments, Bank regulations in India
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