Payments for Imports / Exports

Payments for Import / Export are Covered under FEMA (Foreign Exchange Management Act), with RBI (Reserve Bank of India) being the nodal and monitoring Bank.

Documents of Export / Import are required to be routed through Banks though there are relaxations for advance payments, status holders etc. Also RBI may give relaxation in specific cases on application by the importer and exporter.

The payments for import are supposed to be made with in six months and the proof of payment is to be submitted with the bank. The payments for export are supposed to be received with in six months, though there are relaxations for status holders.

Incase of Project Exports or for other purposes where payments are expected to be received in longer terms than allowed, a prior permission from RBI is needed.