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Recently, i received 50% advance from a buyer and then i shipped the consignment. on receipt of documnets , i informed the buyer and he made payment for balance 50% immediately and i sent the documents through courier directly.
when i went to bank to submit documents for regularisation, i was told by the bank that advance means 100% payment before date of bill of lading. since we received 50% advance and 50% after date of bill of lading, we were expected to send documents to buyer through bank.
now, bank has sent documents to RBI for their comments.
we would like to know more about this and what what we should do now. what action normally RBI takes in such cases etc.
total value is US$2800.00
Free Member, Joined :09/15/2004
No of Topics Posted : 5
Reply/Comments : 8
Shocked to read this i think your bank really needs to clarify from RBI and if we have such a rule i think it should be highlighted to DGFT also .Such rules need to amended
Free Member, Joined :10/01/2002
No of Topics Posted : 1
Reply/Comments : 13
Advance means advance before the delivery/date of bill of lading. The definition is right. But this has to be specified to the bank that it is 50% advance and 50% after despatch.
Have you received the money through bank transfer?
Free Member, Joined :01/18/2007
No of Topics Posted : 0
Reply/Comments : 4
yes. payment has been received though telegraphic transfer to bank.
Free Member, Joined :09/15/2004
No of Topics Posted : 5
Reply/Comments : 8
The payment has come by T/T to the and in this case there should be no problem. Bank should not raise a point. Usually when bank receives a payment by T/T ,it will ask you to fill up one form declaring the details of payment. You can fill up this form and submit your invoice and shipping bill along with that.
And bank will credit money to your current account in Indian Rupees.
You can ask your bank as to which rule of RBI manual has not been followed in this case.
Free Member, Joined :01/18/2007
No of Topics Posted : 0
Reply/Comments : 4
ICICI bank says that if 100% payment is not received before date of bill of lading then documents to the buyer should be sent through them.
on page no. 6 of RBI master circular on export of goods and services it says that exporter are exempted from submitting documents to bank if value is less than US$25000.00
Bank had sent documents to RBI with my one year performance certificate from CA. Now RBI has asked for three years performance certificate also whether in past i have routed documents though bank or not.
Free Member, Joined :09/15/2004
No of Topics Posted : 5
Reply/Comments : 8
There is no rule as such laid down by RBI. You can present the documents to the bank and ask them to release the GR form or Govt regulatory form to regularise the transaction. You need to just correlate the payment received by bank transfer to bank and fill up the FIRC form and ask the bank to release the GR. A copy of set of documents may be given to bank with payment receipt proof
Free Member, Joined :10/14/2002
No of Topics Posted : 0
Reply/Comments : 1
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