Key regulatory guidelines

(A) Exports :

 Please ensure you select the correct Authorised Dealer (AD) code of the bank while filing
the shipping bill at the time of export. The AD code should be selected basis where the
export proceeds for the shipment would be realised and/ or the export documents would
be submitted
 Exporters are required to submit the export documents (consisting of the invoice,
transport document, shipping bill/ softex form, insurance copy, if applicable) to the bank
within 21 days of shipment
 Direct dispatch of documents to the overseas consignee by the exporter is permitted only
for:
o Status holder exporters and units in Special Economic Zones (SEZs). The export
proceeds should be repatriated through the AD bank named in the shipping bill/
Export Declaration Form (EDF) and the same, along with export documents, should
be submitted to the AD bank within 21 days from the date of shipment/ export
o Other clients, up to USD 1 million per export shipment, provided the export
proceeds are received in full.
In all other cases, exporters are required to route the export documents through
their AD bank and the AD bank may dispatch the documents to the overseas banks/
consignee
 The export proceeds should be realised and repatriated to India within 9 months from the
date of export for all exporters
 Please approach the AD Bank for extension required (if any) beyond 9 months. If payment
is not forthcoming, you can also approach the AD bank for write-off of the export bill (if
the bill is outstanding for more than one year and is subject to limits prescribed by the
RBI)
 Any export bill remaining unregularised (i.e., shipment made and documents — along
with payment details — not submitted to the bank, or payment not realised/ part realised)
beyond a period of 9 months would be treated as overdue, and if it is unrealised beyond
2 years from the date of shipment, would lead to the exporter getting caution-listed.
Hence, it is extremely important for all exporters to ensure that all their bills are regularised
within 9 months. In case of any delay beyond 9 months, exporters should take due steps
for export bill extension or write-off.
 Caution-listing of export bills may impact business as there are restrictions on bank
transactions for such exporters as per regulatory guidelines. Hence, exporters should
avoid having any unregularised export bills above 2 years
 In case the export proceeds are received in advance, the shipment should be
completed within one year of the date of such advance and the relevant export
documents should be submitted to the bank with whom the advance payment has
been received
 In cases where the shipment cannot be made within one year or the export order is
cancelled, exporters are advised to refund the unutilised portion of advance remittance
to foreign buyer within the expiry period of one year of receipt of advance. Any refund
of advance after the expiry of one year shall require prior approval from RBI
  In cases where no money is to be realised for an export — such as when goods are
sent to prospective buyers as sample/ for testing etc., exporters must obtain a
Guaranteed Remittance (GR) waiver from their AD bank prior to dispatch of the goods
 While receiving remittances, the purpose of payment(s) should be correctly
mentioned/ intimated to the AD bank to avoid future inconvenience in regularisation
of the transaction. Some important Purpose Codes are given below:

Sr.
Purpose Code Purpose of remittance Description
No.
Advance receipt against Advance received against export
1 P0103
export of physical goods
Realisation of export bill sent Payments received for exports
2 P0102
on collection after dispatch of goods
Software implementation/ Software consultancy (which does
3 P0802
consultancy not involve softex forms)
Payment received for data base,
Data base, data processing data processing charges (whether
4 P0803
charges in advance/ non advance) and
involving filing of softex forms
Payments received for software
exports (whether advance/ non
5 P0807 Off-site software export
advance) and covered under
softex forms
Goods sold under
Payment received for export leg of
6 P0108 merchanting/ receipt against
MTT (both advance/ non advance)
export leg

 In certain cases, the remittance could be received from an entity other than the buyer/
consignee (third party). Exporters should ensure that the name of such third party
should be duly declared in the EDF/ shipping bill and invoice at the time of shipment
 Manner of receipt of payment against export bill should be in convertible foreign
currency only
 ICICI Bank cannot handle documents wherein the counterparty or shipping company/
vessel or any other party directly or indirectly involved in a transaction is a sanctioned
person/ restricted person as per the sanctions promulgated by the United Nations
Security Council (UNSC), the United States (including its Office of Foreign Assets
Control (OFAC)), Her Majesty’s Treasury of the United Kingdom (UK HMT), European
Union (EU) and India (together, “Sanctions Authorities”). ICICI Bank also cannot handle
documents in respect to exports or linkages with any comprehensive sanctioned
countries, as promulgated by the foregoing Sanctions Authorities (currently — Syria,
Sudan, Cuba, North Korea, Iran and the Crimea Region of Ukraine).
(B) Imports:

 In case of advance payments for import of goods, the importer should submit the
evidence of import to the bank within 90 days from the date of payment as follows:
o Bill of Entry (BOE) details as appearing in Import Data Processing and
Monitoring System (IDPMS) or importer’s copy of the BOE for the respective
import payment (where the import is through Electronic Data Interchange (EDI)
ports)
o Courier BOE in case the import is through courier
o Customs Assessment Certificate or Postal Appraisal Form in case the import is
through post.
 Please note that with the advent of IDPMS, importers need not submit the physical
BOE to the Bank. However, the BOE details would need to be provided to the Bank to
match the outstanding import payment with the actual import in IDPMS
 The proforma invoice should clearly mention the payment terms as advance. In case
of part payment of advance, the original proforma invoice should be submitted to the
Bank for endorsement of the part paid amount
 In case of import of restricted items (as per ITC (HS) 2017 of Directorate General of
Foreign Trade (DGFT)), original import licence is required while effecting the import
payment for endorsement of the paid amount
 Remittance for imports should be completed within 6 months from the date of
shipment. In case of delayed payment (beyond 6 months), the importer should provide
the reasons for delay to the satisfaction of the AD Bank
 In case of Direct Imports (where the payment is made after shipment of goods),
importers can receive import documents directly from the overseas supplier only in
the following cases:
o Where the value of import (invoice value) does not exceed USD 3 Lakh or,
o Where the importer is a 100% Export Oriented Unit (EOU)/ unit in SEZ/ status
holder importer, irrespective of value, or,
o Where the importer is a public limited, deemed public limited or private limited
company, irrespective of value, or,
o Where the importer is a wholly-owned Indian subsidiary of a foreign company,
from their principals, irrespective of value.

Thus, in all other cases, the import documents must necessarily be routed through the
AD Bank on collection basis.
 In case of import of rough diamonds, rough precious and semi-precious stones, direct
import is permitted only up to USD 3 Lakh. Thus, where import of such commodities
is exceeding USD 3 Lakh, the import documents must necessarily be routed through
the AD Bank under collection (sight/ usance)
 In case of import of rough diamonds (advance/ direct), the overseas supplier should
have The Gem & Jewellery Export Promotion Council (GJEPC) recommendation,
which is available on the following link https://gjepc.org
 In certain cases, the remittance could be done to an entity other than the supplier/
consignee (third party). Importers should ensure that the name of such third party
should be mentioned in the BOE and invoice at the time of payment
 ICICI Bank cannot handle documents wherein the counterparty or shipping company/
vessel or any other party directly or indirectly involved in a transaction is a sanctioned
 person/ restricted person as per the sanctions promulgated by the UNSC, the United
States, including its OFAC, UK HMT, EU and India (together, “Sanctions Authorities”).
ICICI Bank also cannot handle documents in respect of exports or linkages with any
comprehensive sanctioned countries, as promulgated by the foregoing Sanctions
Authorities (currently — Syria, Sudan, Cuba, North Korea, Iran and the Crimea Region
of Ukraine).

(C) Merchant Trade Transactions (MTT) :

 The commodity involved in MTT transactions should be permitted for export/ import
under the prevailing Foreign Trade Policy of India as on the date of shipment
 The Merchant Trader should route both legs of the import and export transaction
through the same AD bank
 Third party payments are not permitted under MTT transactions (i.e., supplier of goods
is an entity other than the entity to whom payment is being made or remittance is
received by an entity other than the one to whom goods are being consigned)
 The entire cycle of the MTT should be completed within 9 months — i.e., export
remittance, import payment and the underlying trade transaction involving movement
of goods from seller to buyer
 In case the import payment under the MTT transaction is made first, the export
proceeds should be realised within 4 months
 The Purpose Code to be used for the import leg of the MTT transaction is S0108 and
for the export leg it is P0108 (irrespective of whether the same is paid in advance)
 ICICI Bank cannot handle documents wherein the counterparty or shipping company/
vessel or any other party directly or indirectly involved in a transaction is a sanctioned
person/ restricted person as per the sanctions promulgated by the UNSC, the United
States, including its OFAC, UK HMT, EU and India (together, “Sanctions Authorities”).
ICICI Bank also cannot handle documents in respect of exports or linkages with any
comprehensive sanctioned countries, as promulgated by the foregoing Sanctions
Authorities (currently — Syria, Sudan, Cuba, North Korea, Iran and the Crimea Region
of Ukraine).

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