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 .
81 Dated:- 21-2-2012 Circular
FEMA
Superseded vide A.P. (DIR Series) Circular No. 20 dated 16-01-2026 w.e.f. 01-10-2026

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) Re

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ubject to the following conditions:-

   i.     the KYC and due diligence exercise has been done by the AD Category -I bank for 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 int

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