RBI Allows Advance Payment for Ship Imports up to $50 Million
RBI Allows Advance Payment for Ship Imports up to $50 Million
Attention of Authorised Dealer (AD) Category – I banks is invited to Para C.1 of Master Direction – Import of Goods and Services (MD-Imports) dated January 01, 2016.
2. With a view towards enhancing ease of doing business and keeping in view the sector-specific constraints, it has been decided to allow importers to make advance remittance for import of shipping vessel, without bank guarantee, or an unconditional, irrevocable standby Letter of Credit, up to USD 50 million, subject to the conditions mentioned in para-C.1.3.3 of MD-Imports, as applicable.
3. AD banks may bring the contents of this circular to the notice of their constituents concerned.
4. 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.
Summary:
The RBI has relaxed norms to improve ease of doing business. Importers can now make advance remittances up to USD 50 million for the import of shipping vessels without needing a bank guarantee or irrevocable standby Letter of Credit, subject to the conditions in Para C.1.3.3 of the Master Direction – Import of Goods and Services (MD-Imports).
These directions are issued under FEMA, 1999 (Sections 10(4) & 11(1)) and do not override any other required approvals under other laws. Authorized Dealer (AD) Category-I banks are advised to inform relevant clients.
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