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By : veguru vijayakumar babu, General Manager, Sujana Group Of Companies
Activity:  1 comments  485 views  last activity : 07 06 2010 20:18:04 +0000
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In terms of extant instructions under FEMA, remittances against  normal  imports should be completed within six months from the date of shipment, except in cases where amounts are held up towards guarantee of performance.

In case of disputes and financial difficulties etc, Authorised Dealers (AD s) can permit the settlement of import dues beyond six months. In such cases of delayed payments, interest together with other foreign currency costs,  may be remitted at not more than 75 bp over  6 months LIBOR for a period of one year from shipment and at not more than 125 bp over 6 months LIBOR for a period of more than one year and less than 3 years from shipment.

In case imports are made under deferred payment arrangements, like Suppliers credits and Buyers credits, payment for import can be made beyond six months. Under these trade credits, in case of import of raw material, payment can be permitted up to one year from shipment. In case of import of capital goods, payment for import can be made after one year and up to less than three years from shipment. Interest and other costs in foreign currency in case of these trade credits is to be made  as prescribed in the above paragraph.

Remittances against import of books is allowed without any time limit provided, interest payment if any conforms to the method prescribed above.

1 comments on "Time Limits for Import Payments"
  Commented by  Hardik Patel, Team Lead (Staffing and Recruitment), Rishabh Softwares Pvt. Ltd. / Rishi Infotech Pvt. Ltd    | 07 22 2008 15:03:07 +0000
Rating : -1 
good one.
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