The Reserve Bank of India (RBI) issued draft EXIM Guidelines to promote ease of doing business, wherein majority of powers is proposed to be delegated to the authorized dealer (AD) banks.
The key points of the draft EXIM Guidelines are outlined below:
- Submission of documents for service exports: Submission of all export documents with AD Banks within 21 days from the date of invoice. Earlier, such requirement was only with respect to export of goods/software.
- Timeline for advance against export and import: No timelines have been prescribed for advance against export and import transactions, which are currently 12 months and 6 months respectively and the same is proposed to be guided as per the terms of the contract.
- Timeline for merchanting trade: Timeline for completion of merchanting trade transactions is proposed to be reduced to 6 months from the current timeline of 9 months.
- No specific provisions have been provided for third-party payments, write-offs, netting-off, export/import on a lease or hire basis. In this regard, AD Banks are required to establish the bank’s board approved policy within 6 months from the date of issuance of final EXIM Guidelines.
Source: Press Release issued by RBI dated 2 July 2024
