RBI/2015-16/385
A.P. (DIR Series) Circular No. 65
April 28, 2016
To
All Category-I Authorised Dealer Banks
Madam / Sir,
Import of Goods: Import Data Processing and Monitoring System (IDPMS)
Attention of Authorised Dealers is invited to Section 5 of the Foreign
Exchange Management Act 1999 (42 of 1999), read with Government of India
Notification No. G.S.R. 381(E) dated May 3, 2000 viz. Foreign Exchange
Management (Current Account Transaction) Rules, 2000 on import of goods read
with A.P. (DIR Series) Circular No. 9 dated August 24, 2000 which provides the
procedure, mode/manner of payment for imports and submission of related returns.
- Reserve Bank of India had constituted a Working Group (Chairman: Shri A.
K. Pandey, CGM, FED) comprising of representatives from Customs, Directorate
General of Foreign Trade (DGFT), Special Economic Zone (SEZ), Foreign Exchange
Dealers Association of India (FEDAI) and select Authorised Dealer banks (AD
banks), to suggest putting in place a comprehensive IT- based system to
facilitate efficient processing of all import transactions and effective
monitoring thereof. The Working Group had recommended development of a robust
and effective IT- based system “Import Data Processing and Monitoring System
“(IDPMS) on the lines of “Export Data Processing and Monitoring System” (EDPMS)
in consultation with the Customs authorities and other stakeholders.
- To track the import transactions through banking system, Customs will modify
the Bill of Entry format to display the AD Code of bank concerned, as reported
by the importers. Primary data on import transactions from Customs and SEZ will
first flow to the RBI secured server and thereupon depending on the AD code
shall be shared with the respective banks for taking the transactions forward.
The AD bank shall enter every subsequent activity, viz. document submission,
outward remittance data, etc. in IDPMS so as to update the RBI database on real
time basis. It is therefore, necessary that AD banks upload and download data on
daily basis.
- For non EDI (manual) Customs ports, till they are upgraded to EDI (computerised)
ports, nodal branch of AD Category – I banks will upload Bills of Entry (BoE)
data based on original BoE with stamp/signature of the Customs as submitted by
importer. Under no circumstances, AD category – I banks will process the
transactions till the concerned BoE is reflected in the IDPMS. Customs will
share a copy of manual BoE with respective Regional Office of RBI for
information as they presently do for shipping bills in the case of exports.
- The date of operationalization of IDPMS will be notified shortly. All import
remittances outstanding as on the notified date shall have to be uploaded in
IDPMS. Further, to facilitate smooth processing of import transactions and
closure of BoE and advance remittances in IDPMS, the following guidelines will
be followed by the AD category – I banks:
- Write off of import bills
i) AD Category I banks can consider closure of bills in IDPMS that involve write
off to the extent of 5% of invoice value in cases where the amount declared in
BoE varies from the actual remittance marginally due to discounts, fluctuation
in exchange rates, change in the amount of freight, insurance, etc. Cases, where
write off is on account of quality issues; short shipment or destruction of
goods by the port / Customs / health authorities, may be closed with remarks
subject to submission of satisfactory documentation for the same, irrespective
of the amount involved.
ii) While allowing write off, AD Category - I banks must ensure that:
- The case is not the subject matter of any pending civil or criminal suit;
- The importer has not come to the adverse notice of the Enforcement Directorate
or the Central Bureau of Investigation or any such other law enforcement agency;
and
- There is a system in place under which internal inspectors or auditors of the AD
category – I banks (including external auditors appointed by authorised dealers)
should carry out random sample check / percentage check of write-off of import
bills; and
iii) Cases not covered by the above instructions / beyond the above limits, may
be referred to the concerned Regional Office of Reserve Bank of India.
iv) The above guidelines are only meant to facilitate closure of bills in IDPMS
and do not in any way absolve the importer from remitting / receiving the amount
in case circumstances change.
- Extension of Time
i) AD Category – I banks can consider granting extension of time for settlement
of import dues up to a period of six months at a time (maximum up to the period
of three years) irrespective of the invoice value for delays on account of
disputes about quantity or quality or non-fulfilment of terms of contract;
financial difficulties and cases where importer has filed suit against the
seller. In cases where sector specific guidelines have been issued by Reserve
Bank of India for extension of time (i.e. rough, cut and polished diamonds), the
same will be applicable.
ii) While granting extension of time, AD Category –I banks must ensure that:
- The import transactions covered by the invoices are not under investigation by
Directorate of Enforcement / Central Bureau of Investigation or other
investigating agencies;
- While considering extension beyond one year from the date of remittance, the
total outstanding of the importer does not exceed USD one million or 10 per cent
of the average import remittances during the preceding two financial years,
whichever is lower; and
- Where extension of time has been granted by the AD Category – I banks, the date
up to which extension has been granted may be indicated in the ‘Remarks’ column.
iii) Cases not covered by the above instructions / beyond the above limits, may
be referred to the concerned Regional Office of Reserve Bank of India.
- Follow-up for Evidence of Import
i) As per extant guidelines, AD Category - I banks have to submit a statement on
half-yearly basis as at the end of June & December of every year, in form BEF
furnishing details of import transactions, exceeding USD 100,000 in respect of
which importers have defaulted in submission of appropriate document evidencing
import within six months from the date of remittance using the online eXtensible
Business Reporting Language (XBRL) system on bank-wide basis to the respective
Regional Offices of the RBI.
ii) On operationalization of IDPMS, all outstanding import remittances,
irrespective of the amount involved, will be uploaded into the system and
submission of a separate BEF statement would be discontinued from a date to be
notified separately.
iii) AD Category – I banks are required to follow up submission of evidence of
import and remittance within stipulated time irrespective of the amount
involved.
- AD Category – I banks shall put in place a system to ensure that all import
transactions and related remittances are processed only through IDPMS from the
date to be notified shortly. The AD category – I banks should, therefore be in
readiness mode for switching to the proposed IT based system. The requisite
message formats and technical specifications have been shared with AD category
–I banks via e-mail. These have also been placed on website
(https://edpms.rbi.org.in).
- Authorised Dealers may bring the contents of this circular to the notice of
their constituents and customers concerned.
- The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999) and are without prejudice
to permissions / approvals, if any, required under any other law.
Yours faithfully,
(A. K. Pandey)
Chief General Manager
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