Procedure for export consignment

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This query is : Resolved

GOPALA KRISHNA (Querist)

13 October 2012 Dear Sir,

We want export one consignment for malasia and payment will be received from indian office. The buyer is in india and consignee (work execution) is in abroad. Kinldy explain me what is the procedure to be followed and how to make documentation

U S Sharma

U S Sharma (Expert)

13 October 2012 discuss with your CHA who works with customs for clearance of goods stating the order nature and payment nature, he will guide you after looking at the order terms.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

13 October 2012 As per para 2.40 of the Foreign Trade Policy,

All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realised in freely convertible currency.

However export proceeds against specific exports may also be realized in rupees provided it is through a freely convertible Vostro account of a non resident bank situated in any country other than a member country of ACU or Nepal or Bhutan.
Additionally, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his non-resident bank (after deducting the bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP.

Contracts for which payments are received through Asian Clearing Union (ACU)] shall be denominated in ACU Dollar. Central Government may relax provisions of this paragraph in appropriate cases. Export contracts and Invoices can be denominated in Indian rupees against EXIM Bank / Government of India line of credit.

NOTED THAT IF YOUR PAYMENT RECEIVED IN BANK AS AN ADVANCE COLLECT FIRC FROM BANK AND SUBMIT IT IN AFTER MAKING IN BANK ALONGWITH EXCHANGE CONTROL COPY, INVOICE, FIRC, CERTIFICATE OF ORIGIN, BILL OF LADING /AWB .

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