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Export to iran

29 December 2016

Please help me with this anyone We have buyer based in dubai whose sister concern is in iran. The goods will be going to iran and the payment comes from dubai fully advance and my bank is kotak mahindra. Can the bank reject the payment on basis that the goods are goint to iran

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2 Replies

Ajit Hegde (CA - Final) (1367 Points)
Replied 17 February 2017

As per my knowledge iran is barred from transacting in USD and thats the reason the payment is routed thru dubai.

It is a well followed practice by banks in iran. The question is whether you can get bank advice of payment or any confirmation from the buyer. Because as per FEMA regulations export realisation should happen within 180 days.

In which case you should be able to link the receipt to the goods exported

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pdgoenka (Dy Mgr) (123 Points)
Replied 22 February 2017

Iran is on OFAC list ( office of foreign asset controla ) of USA. Any entity participating in financial transactions with OFAC listed countries will get their assets in US frozen.

You can ask your buyer to remit funds through ACU dollar and open a/c with Name : Indian Bank....they are presently settling all payments to Iran on behalf of all OMCs in India who had been importing crude from Iran.

Kotak mahindra may not issue eBRC which may put your IEC on caution list in EDPMS of RBI.