Objectives & Agenda :
The webinar shall throw some light regarding the procedures involved in exports and imports. This webinar shall touch upon the documents involved in the imports and exports. It shall also impart knowledge regarding the settlement of import and export bills and the evidence for doing so.
3. Legends used in the Presentation
ACU Asian Clearing Union
AD Authorised Dealer
BOE Bill of Entry
CA Chartered Accountant
EDF Export Declaration Form
EDI Electronic Data Interchange
EPZ Export Processing Zone
FATF Financial Action Task Force
FCR Forwarder’s Cargo Receipts
FEMA Foreign Exchange Management Act
FTP Foreign Trade Practices
FTWZ Free Trade Warehousing Zone
FTZ Free Trade Zone
GOI Government of India
IATA International Air Transport Association
IDPMS Import Data Processing and Monitoring System
IIT Indian Institute of Technology
IS Information Systems
KYC Know Your Customer
OPGSP Online Payment Gateway Service Providers
ORM Outward Remittance Message
RBI Reserve Bank of India
SEZ Special Economic Zone
SOFTEX Software Exports
STPI Software technology Parks of India
4. Presentation Schema
Introduction
Procedural
Aspects in
Exports
Export through
Customs and EDI
Ports
Export through
Post
SOFTEX Forms
Invoicing of
Software
Exports
Short Shipments
and Shut-out
Shipments
Export of
Services
Consolidation of
Air cargo / Sea
Cargo
Exemption from
Declaration
Procedural
Aspects in
Imports
Settlement of
ORM with BOE
Extension and
Write off
Receipt of
Import
Documents
Evidence of
Import
Verification and
Preservation
Processing of
Import Related
Payments
through OPGSP
Settlement of
Import
Transactions in
Specified Case
5. Introduction
Export – Sec 2(l) of FEMA, 1999
• Taking out of India to a place outside India any goods,
• Provision of services from India to any person outside India
Import – Sec 2(p) of FEMA, 1999
• Bringing into India any goods or services
FEMA contains the laws and provisions relating to management foreign exchange and currencies
Its objective is to facilitate external trade and payments and promote the orderly development and
maintenance of foreign exchange market in India
Amongst other things, it contains the regulations relating to the export and import of goods, services and
currencies
The procedures involved in export of goods and services are laid out in the Master Direction No. 16/2015-16 –
Export of Goods and Services
The procedures relating to import of goods and services are contained in the Master Direction No. 17/2016-17 –
Import of Goods and Services
6. Regulations Covered
S.No Particulars
1 Procedural Aspects in case of Exports
2 SOFTEX Forms and Invoicing
3 Exemption from Export Declaration
4 Procedural Aspects in case of Imports
5 Receipt of Import Documents
6 Evidence of Imports
7 Verification of Import Evidence and Payments
8. Export of Goods through Customs Ports
Customs shall certify the value declared and give running serial number on the two copies of Export Declaration
Form (EDF), submitted by exporter at Non- Electronic Data Interchange (EDI) port
Customs shall retain the original EDF for transmission to the RBI and return the duplicate copy to the exporter
At the time of shipment of goods, exporters shall submit the duplicate copy of the EDF to Customs.
After examining the goods, Customs shall certify the quantity in the form and return it to the exporter for
submission to AD for negotiation or collection of export bills
Within 21 days from the date of export, exporter shall lodge the duplicate copy together with relative shipping
documents and an extra copy of the invoice to the AD named in the EDF
After the documents have been negotiated / sent for collection, the AD shall report the transaction through
Export Data Processing and Monitoring System (EDPMS) to the RBI and retain the documents at their end
In case of exports made under deferred credit arrangement or to joint ventures abroad against equity
participation or under rupee credit agreement, the number and date of the RBI approval and/or number and
date of the relative RBI circular shall be recorded at the appropriate place on the EDF
Where duplicate copy of EDF is misplaced or lost, AD may accept copy of duplicate EDF duly certified by Customs
9. Export of Goods/Software through EDI Ports
The shipping bill shall be submitted in duplicate to the authority concerned (Commissioner of Customs or the
SEZ, if the export is made through it)
After verifying and authenticating, the authority concerned shall hand over to the exporter, one copy of the
shipping bill marked ‘Exchange Control (EC) Copy’ for being submitted to the AD bank within 21 days from the
date of export for collection/negotiation of shipping documents
The manner of disposal of EC copy of Shipping Bill shall be the same as that for EDF.
The duplicate copy of the form together with a copy of invoice etc. shall be retained by ADs and may not be
submitted to the RBI
10. Export of Goods through Post
Postal Authorities shall allow export of goods by post only if the original copy of the EDF has been countersigned by an AD
The procedure relating to export of goods through post is as follows:
AD shall countersign EDF after ensuring that the parcel has been addressed to their branch or correspondent bank in the country of
import and return the original copy to the exporter, who shall then submit the EDF to the post office with the parcel
The duplicate copy of EDF shall be retained by the AD to whom the exporter shall submit relevant documents together with an extra copy
of invoice for negotiation/collection, within 21 days
The concerned overseas branch shall be instructed to deliver the parcel to consignee against payment or acceptance of relative bill
AD may, however, countersign EDF covering parcels addressed direct to the consignees, provided
• Irrevocable letter of credit for the full value of export has been opened in favour of the exporter and has been advised through
the AD concerned, Or
• Full value of the shipment has been received in advance by the exporter through an AD, Or
• The AD is satisfied, on the basis of the standing and track record of the exporter and the arrangements made for realization of the
export proceeds.
• In such cases, particulars of advance payment/letter of credit / AD’s certification of standing, etc., of the exporter should be
furnished on the form under proper authentication.
Any alteration in name and address of consignee on the EDF form should also be authenticated by AD
11. Mid-sea Trans-shipment of Catch by Deep Sea Fishing
Vessels
The exporters may submit the EDF, duly signed by the Master of the vessel instead of Custom certification, indicating the
composition of the catch, quantity, export value, date of shipment (date of transfer of catch), etc. duly supported by a certificate
from an international cargo surveyor
Bill of Lading / receipt of trans-shipment issued by the carrier vessel should include the EDF Number
The prescribed period of realization and repatriation should be reckoned with reference to the date of transfer of catch as certified
by the Master of the vessel or the date of the invoice, whichever is earlier
The EDF, both original and duplicate, should indicate the number and date of Letter of Permit issued by Ministry of Agriculture for
operation of the vessel
The exporter will complete the EDF in duplicate and both the copies may be submitted to the Customs at the registered port of the
vessel or any other port as approved by Ministry of Agriculture.
EDF (Original) will be retained by the Customs for capturing of data in Customs’ Electronic Data Interchange
Customs will give their running serial number on both the copies of EDF and will return the duplicate copy to the exporter as the
value certification of the export has already been done as mentioned above
Rules, Regulations and Directions issued in respect of the procedure for submission of the EDF by exporter to the AD Category-I
banks, and the disposal of these forms by these banks will be same as applicable to the other exporters
• Since deep sea fishing involves continuous sailing outside the territorial limit, trans-shipment of catches
takes place in the high sea leading to procedural constraints in regulatory reporting requirement
• For mid-sea trans-shipment of catches by Indian owned vessels, as per the norms prescribed by the Ministry
of Agriculture, GOI, the EDF declaration procedure in this regard has been rationalized
13. SOFTEX Forms
All software exporters can now file single as well as bulk SOFTEX form in the form of a statement in excel format to the
competent authority for certification.
Since the SOFTEX data from STPI/SEZ are being transmitted in electronic format to RBI, the exporters have to submit the
SOFTEX form in duplicate
STPI/SEZ will retain one copy and handover duplicate copy to exporters after due certification.
As hitherto, the exporters have to provide information about all the invoices including the ones lesser than USD 25,000, in
the bulk statement in excel format.
A common “SOFTEX Form” has been devised to declare single as well as bulk software exports
RBI has extended the facility for online generation of the EDF Form Number and the SOFTEX Form Number (Single as well
as Bulk for use in off-site software exports).
The facility of manual allotment of single as well bulk SOFTEX form number by Regional Offices of RBI has been dispensed
with accordingly
14. Steps to file SOFTEX Online
• Login to http://stpionline.stpi.in using the username and password. If there is no username, a user can be registered by
uploading various details like Director details, Board resolution, Financial Statements, Service Agreement, Memorandum
and Articles of Association and other documents.
15. Contd..
• On clicking on “SOFTEX Form”, the following screen will appear. The instructions can be used to download “Excel CSV File
Format” and fill up the details. Then CSV file must be uploaded and Application ID can be generated.
16. Invoicing of Software Exports
Long duration contracts involving series of transmissions –
- the exporters should bill their overseas clients periodically, i.e., at least once a month or on reaching the ‘milestone’ as
provided in the contract and
- the last invoice / bill should be raised not later than 15 days from the date of completion of the contract.
It would be in order for the exporters to submit a combined SOFTEX form for all the invoices raised on a particular overseas
client, including advance remittances received in a month.
For contracts involving only ‘one-shot operation’, the invoice/bill should be raised within 15 days from the date of
transmission.
- The exporter should submit declaration in Form SOFTEX in quadruplicate in respect of export of computer software and
audio / video / television software
- to the designated official concerned of the GOI at STPI / EPZ /FTZ /SEZ for valuation / certification
- within 30 days from the date of invoice / the date of last invoice raised in a month, as indicated above.
The invoices raised on overseas clients will be subject to valuation of export declared on SOFTEX form by the designated
official concerned of the GOI and consequent amendment made in the invoice value, if necessary
17. Citing of Specific Identification Numbers
Export of Services to which none of the form apply
In all applications / correspondence with the RBI, the specific identification number as available on the EDF and
SOFTEX forms should invariably be cited.
Third Party Export Proceeds
• In case of Export of services to which none of the Forms apply, the exporter may export without furnishing any declaration,
• but shall be liable to realise the amount of foreign exchange which becomes due or accrues on account of such export,
• and to repatriate the same to India in accordance with prescribed regulations
Realization of export proceeds in respect of export of goods / software from third party should be duly
declared by the exporter in the appropriate declaration form (EDF)
Random Verification
In all the above procedures, AD Category – I bank should ensure, by random check of the relevant duplicate forms by their
internal / concurrent auditors, that non-realization or short realization allowed, if any, is within the powers delegated to
them or has been duly approved by the RBI, wherever necessary
18. Short Shipments and Shut out Shipments
When part of a shipment covered by an EDF already filed
with Customs is short-shipped, the exporter must give
notice of short-shipment to the Customs.
In case of delay in obtaining certified short-shipment
notice from the Customs, the exporter should give an
undertaking to the AD banks to the effect that it has filed
the short-shipment notice with the Customs and that it
will furnish it as soon as it is obtained.
Where a shipment has been entirely shut out and there is
delay in making arrangements to re-ship, the exporter
will give notice in duplicate to the Customs, attaching
thereto the unused duplicate copy of EDF and the
shipping bill.
The Customs will verify that the shipment was actually
shut out, certify the copy of the notice as correct and
forward it to the RBI together with unused duplicate copy
of the EDF.
In this case, the original EDF received earlier from
Customs will be cancelled. If the shipment is made
subsequently, a fresh set of EDF should be completed.
• Shut out takes place when exporter determines to
shut the export movement of goods after completion
of export customs clearance procedures
• May be because of cancellation of export order, non
completion of the quality specifications or change of
goods shipped or for any other reasons
• A short shipment takes place when cargo is
listed on a shipping list but not included in
a shipment, or not received by the recipient,
notably when the quantity received is less than
the quantity listed.
19. Consolidation of Air Cargo/Sea Cargo
Where air cargo is shipped under consolidation, the airline company’s Master Airway Bill will be issued to
the Consolidating Cargo Agent.
The Cargo agent in turn will issue his own House Airway Bills (HAWBs) to individual shippers.
AD Category – I banks may negotiate HAWBs only if the relative letter of credit specifically provides for
negotiation of these documents in lieu of Airway Bills issued by the airline company.
AD Category – I banks may accept Forwarder’s Cargo Receipts (FCR) issued by International Air Transport Association (IATA)
approved agents, instead of bill of lading, for negotiation / collection of shipping documents, in respect of export
transactions backed by letters of credit,
if the relative letter of credit specifically provides for negotiation of this document, in lieu of bill of lading even if the
relative sale contract with the overseas buyer does not provide for acceptance of FCR as a shipping document, in lieu of
bill of lading
Further, AD may, at their discretion, also accept FCR issued by Shipping companies of repute/IATA approved agents (in lieu
of bill of lading), for purchase/discount/collection of shipping documents even in cases, where export transactions are not
backed by letters of credit, provided their 'relative sale contract' with overseas buyer provides for acceptance of FCR as a
shipping document in lieu of bill of lading.
21. Exemption from Declaration
The requirement of declaration of export of goods and software in the prescribed form will not apply to the below-mentioned cases
The exporters shall, however, be liable to realize and repatriate export proceeds as per FEMA Regulations
Trade samples of goods and publicity material supplied free of payment
Personal effects of travellers, whether accompanied or unaccompanied
Goods supplied under the orders of Central Govt. or of such officers as may be appointed by the Central Govt. in this behalf or of the
military, naval or air force authorities in India for military, naval or air force requirements
By way of gift of goods accompanied by a declaration by the exporter that they are not more than Rs. 5 lakhs in value
Aircrafts or aircraft engines and spare parts for overhauling and/or repairs abroad subject to their reimport into India within a
period of 6 months
Goods imported free of cost on re-export basis
22. Contd...
The following goods which are permitted by the Development Commissioner of the SEZs, Electronic Hardware Technology Parks,
Software Technology Parks or FTZ to be re-exported, namely
• Imported goods found defective, for the purpose of their replacement by the foreign suppliers/collaborators
• Goods imported from foreign suppliers/collaborators on loan basis
• Goods imported from foreign suppliers/collaborators free of cost, found surplus after production operations.
Goods listed in the above clause, to be re-exported by units in SEZs, under intimation to the Development Commissioner of
SEZs/concerned Assistant or Deputy Commissioner of Customs
Replacement goods exported free of charge in accordance with the provisions of Foreign Trade Policy in force, for the time being
Goods sent outside India for testing subject to re-import into India
Defective goods sent outside India for repair and re-import provided the goods are accompanied by a certificate from an authorised
dealer in India that the export is for repair and re-import and that the export does not involve any transaction in foreign exchange
Exports permitted by the RBI, on application made to it, subject to the terms and conditions, if any, as stipulated in the permission
24. Settlement of Outward Remittance Message with
Bill Of Entry
• Based on the AD code declared by the importer, the banks shall download the Bill of Entry (BOE) issued by EDI ports from
“BOE Master” in IDPMS.
• For non-EDI ports, AD bank of the importer shall upload the BoE data in IDPMS as per message format “Manual BOE
reporting” on daily basis on receipt of BoE from the customer/Customs office
• In order to enhance the ease of doing business and reduce transaction costs, submission of hardcopy of evidence of
import documents (BOE Exchange Control copy) has been discontinued as the same is available in IDPMS
Revised Procedure
AD banks shall enter BOE details like BOE number, port code and date for ORM associated with the advance payments for import
transactions as per the message format “BOE settlement”
In case of payment after receipt of BOE, the AD bank shall generate ORM for import payments made by its importer customer as
per the message format “BOE settlement”
Multiple ORMs can be settled against single BOE and also multiple BOE can be settled against one ORM
On settlement of ORM with evidence of import AD Category – I bank shall in all cases issue an acknowledgement slip to the
importer containing the following particulars:
• importer's full name and address with code number
• number and date of BoE and the amount of import and
• a recap advice on number and amount of BoE and ORM not settled for the importer
The importer needs to preserve the printed ‘Importer copy’ of BoE as evidence of import and acknowledgement slip for future use
25. Extension and Write off
Extension and write off cases not covered by the extant guidelines may be referred to the concerned Regional Office of RBI for
necessary approval
The above operational guidelines for extension and write off are meant to facilitate closure of bills in IDPMS and will be subject to
guidelines on the matter and not absolve the importer from remitting or receiving the amount in case of change in circumstances
AD Bank shall settle and close ORM or BOE with appropriate “Adjustment Indicator” in IDPMS
AD Category I banks may close the BOE for such import transactions where write off is on account of quality issues, short shipment or
destruction of goods by the port / Customs / health authorities in terms of extant guidelines on the matter subject to submission of
satisfactory documentation by the importer irrespective of the amount involved.
AD Category I banks can consider closure of BOE or ORM in IDPMS that involves write off to the extent of 5% of invoice value in cases
where the amount declared in BOE varies from the actual remittance due to operational reasons and AD bank is satisfied with the
reasons submitted by the importer
AD Category I banks shall give extension for submission of BOE beyond the prescribed period in terms of the extant guidelines on the
matter, and the same will be reported in IDPMS as per the message “Bill of Entry Extension” and the date up to which extension is
granted will be indicated in “Extension Date” column
26. Follow-up for Evidence of Import
AD Category – I banks shall continue to follow up for outward remittance made for import (i.e. unsettled ORM) in terms of
extant guidelines and instructions on the subject
Similarly, if BOE data is not settled against ORM within the prescribed period, AD Category – I banks shall follow
up with the importer in terms of extent instructions
In cases where relevant
evidence of import data is not
available in IDPMS on due
dates against the ORM,
AD Category – I bank shall
follow up with the
importer for submission
of documentary evidence
of import
28. Importer Directly from Overseas Suppliers
Where the value of import bill does not exceed USD 300,000
Import bills received by wholly-owned Indian subsidiaries of foreign companies from
their principals
Import bills received by Status Holder Exporters, 100% Export Oriented Units or Units
in Special Economic Zones, Public Sector Undertakings and Limited Companies
Import bills received by all limited companies viz. public limited, deemed public limited
and private limited companies
Receipt of import documents by the importer directly from overseas suppliers
• Import bills and documents should be received from the banker of the supplier by the banker of the importer in India
• AD Category – I bank should not, therefore, make remittances where import bills have been received directly by the
importers from the overseas supplier, except in the following cases:
Status Holders as per FTP
Status Holders are business leaders
who have excelled in international
trade and have successfully
contributed to country’s foreign trade.
Status Holders are expected to not
only contribute towards India’s exports
but also provide guidance and
handholding to new entrepreneurs
29. Importer Directly from Overseas Suppliers in case
of Specified Sectors
Receipt of import documents by the importer directly from overseas suppliers in case of specified sectors
As a sector specific
measure, AD
Category - I banks
are permitted to
allow remittance
for imports by non-status holder
importers up to USD 300,000
where the importer of rough
diamonds, rough precious and
semi-precious stones
has received the
import bills or
documents directly
from the overseas
supplier
And documentary
evidence for import
is submitted by the
importer at the time
of remittance
However the above ceiling of USD 300,000 does not apply to Status holder importers as defined in the Foreign Trade
Policy (FTP) who are dealing in the import of rough diamonds, rough precious and semi- precious stones
AD Category - I banks may undertake such transactions subject to the following conditions:
The import would be subject to the prevailing FTP
The transactions are based on their commercial judgment and they are satisfied about the bonafides of the transactions
AD Category - I banks should do the KYC and due diligence exercise and should be fully satisfied about the financial
standing and track record of the importer customer
Before extending the facility, they should also obtain a report on each individual overseas supplier from the overseas
banker or reputed overseas credit rating agency
30. AD Category – I Bank Directly from Overseas
Suppliers
Receipt of import documents by the AD Category – I bank directly from overseas suppliers
At the request of importer clients,
AD Category – I bank may receive
bills directly from the overseas
supplier, provided
the AD Category – I bank is fully
satisfied about the financial
standing and track record of the
importer customer
Before extending the facility,
the AD Category – I bank should
obtain a report on each
individual overseas supplier from
the overseas banker or a reputed
overseas credit agency
However, such credit report on the overseas
supplier need not be obtained in cases where
the invoice value does not exceed USD 300,000
PROVIDED
the AD Category – I bank is satisfied about the
bonafides of the transaction and track record
of the importer constituent
32. Evidence of Physical Imports
Irrespective of the value of foreign exchange remitted or paid for import into India, it is obligatory on the part of the AD
Category– I bank through which the relative remittance was made, to ensure the submission of the following:
For goods imported and stored in Warehouses in Free Trade Warehousing Zone (FTWZ) or SEZ Unit warehouses or any
Customs bonded warehouses,
the Exchange Control Copy of the BOE issued by Customs Authorities by any other similar nomenclature, the importer shall
submit applicable BOE number, port code and date for marking evidence of import under IDPMS
Customs Assessment Certificate or Postal Appraisal Form or Courier Bill of Entry, as declared by the importer to the
Customs Authorities, where import has been made by post
BOE number, port code and date for marking evidence of import under IDPMS
33. Contd..
In respect of imports on Delivery
against acceptance basis, AD
Category – I bank shall verify the
evidence of import from IDPMS at
the time of effecting remittance of
import bill
However, if importers fail to produce
documentary evidence due to
genuine reasons, AD bank may allow
reasonable time to the importer, to
submit the evidence of import
AD banks are required to create ORM
for all such outward remittances
irrespective of value and shall
perform the subsequent activity as
per IDPMS guidelines
However the time allowed by the AD bank cannot exceed 3 months from the date of remittance
Subsequent activity may include document submission, outward remittance data, matching with
ORM and closing of transactions
34. Evidence of Import in Lieu of Bill of Entry
AD Category – I bank, in lieu of Exchange Control Copy of
BOE, may accept a certificate from the CEO or auditor of
the company that the goods for which remittance was
made have actually been imported into India provided
The amount of foreign exchange remitted is less than
USD 1 million or its equivalent
The importer is a listed company in India and whose net
worth is at least Rs.100 crore as on the date of its last
audited balance sheet
or
the importer is a public sector company or an
undertaking of the GOI or its departments
AND
The above facility may also be extended to autonomous bodies,
including scientific bodies or academic institutions such as IIT
whose accounts are audited by the CAG
AD Category – I bank may insist on a declaration from the
auditor or CEO of such institutions that their accounts are
audited by CAG
In case of EDI ports, ORM has to be created and BOE has to be
downloaded from “BOE Master “in IDPMS
In case of Non-EDI ports, duplicate copy or customs
certified copy have to be submitted or BOE waiver
must be obtained from RBI
35. Evidence of Non-Physical Imports
Where imports are made in
non-physical form such as
software or data through
internet / data communication
channels or drawings and
designs through e-mail / fax,
a certificate from a CA that
the software / data / drawing/
design has been received by
the importer, may be
obtained
AD bank should advise
importers to keep Customs
Authorities informed of the
imports made by them under
this clause
In case an importer does
not furnish any
documentary evidence
of import, as required
within 3 months from
the date of remittance
involving foreign
exchange irrespective of
value,
the AD Category – I bank
should rigorously follow-
up for the next 3
months, by using
various modes of
communications
It should, however, be
ensured that at least one
communication with the
importer in this regard is
by issuance of
registered letter
All outstanding import
remittances, irrespective
of the amount involved,
should be reported by
the AD Category-I banks
in IDPMS
Follow-up for Import Evidence
37. Verification and Preservation
Internal inspectors and Information System (IS) auditors (including external auditors appointed by AD Category – I bank)
should carry out verification and IS audit and assurance of the “BOE Settlement” process in IDPMS
Data and process followed by AD Category –I bank for “BOE Settlement” should be preserved in terms of the
guidelines under Cyber Security Framework in the bank
Internal inspectors or auditors should carry out verification of the documents evidencing import other than which
are available in IDPMS
Documents evidencing import into India should be preserved by AD Category – I bank for a period of 1 year from the
date of their verification
However, in respect of cases which are under investigation by investigating agencies, documents, and/or data, process
may be destroyed only after obtaining clearance from the investigating agency concerned
38. Processing of Import Related Payments through OPGSP
The balances held in the Import Collection account shall be remitted to the respective overseas exporter's account immediately
on receipt of funds from the importer and not later than 2 days from the date of credit to the collection account
The AD Category –I bank will obtain a copy of invoice and airway bill from the OPGSP containing the name and address of the
beneficiary as evidence of import and report the transaction in R-Return* under the foreign currency payment head
• Collection from Indian importers for online purchases from overseas
exporters electronically through credit card, debit card and net banking
and
• Charge back from the overseas exporters
Permitted credits in the OPGSP Import
Collection account
• Payment to overseas exporters in permitted foreign currency
• Payment to Indian importers for returns and refunds
• Payment of commission at rates/frequencies as defined under the
contract to the current account of the OPGSP and
• Bank charges
Permitted debits in the OPGSP Import
Collection account
* R-Return is control return for foreign exchange transactions which is submitted to RBI, Foreign Exchange Department
AD Category-I Bank can offer payment facility for imports not exceeding USD 2,000 by entering into standing arrangement with
OPGSP, subject to following:-
39. Settlement of Import Transactions in Currencies
not having a Direct Exchange Rate
AD Category-I banks may permit settlement of import transactions where the invoicing is in a freely convertible currency
but the settlement takes place in the currency of the beneficiary, which though convertible, does not have a direct
exchange rate (excluding those put through the ACU mechanism), subject to conditions as under:
However, the counterparty to the importer of the AD bank must not be from a country or jurisdiction in the
updated FATF Public Statement on High Risk & Non Co-operative Jurisdictions on which FATF has called for
counter measures (North Korea and Iran)
Importer shall be a customer of the AD Bank
Signed contract / invoice is in a freely convertible currency
The beneficiary is willing to receive the payment in the currency of beneficiary instead of the original (freely convertible)
currency as full and final settlement
AD bank is satisfied with the bonafides of the transactions