Export of Goods and Services – Receipt of advance payment for export of goods Involving shipment (manufacture and ship) beyond one year .

Export of Goods and Services – Receipt of advance payment for export of goods Involving shipment (manufacture and ship) beyond one year . – FEMA – 81 – Dated:- 21-2-2012 – RBI/2011-12/403 A.P. (DIR Series) Circular No.81 February 21, 2012 To All Category – I Authorised Dealer Banks Madam / Sir, Export of Goods and Services – Receipt of advance payment for export of goods Involving shipment (manufacture and ship) beyond one year Attention of Authorised Dealer Category – I (AD Category I) banks is invited to the sub-regulation (2) of Regulation 16 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, notified vide Notification No.FEMA.23/RB-2000, dated 3rd May 2000, as amended from time to time, in t

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or the overseas buyer. ii. compliance with the Anti Money Laundering standards has been ensured; iii. the AD Category-I bank should ensure that export advance received by the exporter should be utilized to execute export and not for any other purpose i.e., the transaction is a bona-fide transaction; iv. progress payment, if any, should be received directly from the overseas buyer strictly in terms of the contract; v. the rate of interest, if any, payable on the advance payment shall not exceed London Inter-Bank Offered Rate (LIBOR) + 100 basis points; vi. there should be no instance of refund exceeding 10% of the advance payment received in the last three years. vii. the documents covering the shipment should be routed through the same auth

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