Third party payments for export/import transactions - RBI clarifies
AUTHORIZED Dealer Category - I banks have been permitted to allow third party payments for export of goods & software/import of goods subject to certain conditions one of which is that “ firm irrevocable order backed by a tripartite agreement should be in place ”. In view of the difficulties faced by exporters/importers in meeting this condition, it has been decided that this requirement may not be insisted upon in case where documentary evidence for circumstances leading to third party payments/name of the third party being mentioned in the irrevocable order/ invoice has been produced. This shall be subject to conditions as under:
(i) AD bank should be satisfied with the bona-fides of the transaction and export documents, such as, invoice/FIRC.
(ii) AD bank should consider the FATF statements while handling such transaction.
Further, with a view to liberalising the procedure, the limit of USD 100,000 eligible for third party payment for import of goods, stands withdrawn.
A P (DIR Series) CIRCULAR No. 100/RBI., Dated: February 4, 2014