RBI/2013-14/479
A.P. (DIR Series) Circular No.100
February 4, 2014
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Third party payments for export / import transactions
Attention of Authorized Dealer Category – I banks is invited to
A. P. (DIR
Series) Circular No.70 dated November 8, 2013, in terms of which they have been
permitted to allow third party payments for export of goods & software / import
of goods subject to the conditions stated therein.
- In view of the difficulties faced by exporters / importers in meeting the
condition “firm irrevocable order backed by a tripartite agreement should be in
place” specified in the abovementioned Circular, it has been decided that this
requirement may not be insisted upon in case where documentary evidence for
circumstances leading to third party payments / name of the third party being
mentioned in the irrevocable order/ invoice has been produced. This shall be
subject to conditions as under:
(i) AD bank should be satisfied with the bona-fides of the transaction and
export documents, such as, invoice / FIRC.
(ii) AD bank should consider the FATF statements while handling such
transaction.
- Further, with a view to liberalising the procedure, the limit of USD 100,000
eligible for third party payment for import of goods, stands withdrawn.
- All other terms & conditions mentioned in the
A. P. (DIR Series) Circular
No.70 dated November 8, 2013 remain unchanged.
- AD Category – I banks may bring the contents of this Circular to the notice
of their constituents concerned.
- The directions contained in this circular have been issued under sections
10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999)
and are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(C. D. Srinivasan)
Chief General Manager