FEMA 1999 on Trade Finance 2019 | Princeton Academy | 12 June 2019 | JW Marriott, Juhu Tara Rd, Uditi Tarang Housing Colony, Juhu Tara, Juhu, Mumbai, Maharashtra 400049, India

Recently some of leading corporate received notice from Reserve Bank of India for non submission of bill of entry, non fulfilment of export obligations after receiving advance remittances and cases where import of goods not done after sending advance remittance to overseas suppliers. It is also learnt that issuance of bill of entry hard copy is dispensed with. EDPMS and IDPMS are put to operation. These are the some of the developments in the recent past.

In the advent of electronic data taking over the export and import transactions most of the guidelines of under FEMA 1999 has been modified.

From the time FEMA was introduced in June 2000, till today lot of relaxations have been introduced by Reserve Bank for smooth facilitation of trade operations. In most of the cases exchange control administration is decentralized and the Authorized Dealers are being delegated with powers to handle the transactions.

In case of exports, dispatch of documents directly to consignee, reduction in invoice value, write off, netting off export receivables, allowing export through ware house abroad, agency commission remittance, export claims, handling advance remittance and delayed presentation of regulatory documents etc., powers are delegated to Authorized Dealers for approving such transactions subject to certain conditions.

Likewise, import transactions are also liberalized. Authorized dealers are delegated with requisite powers to approve advance remittance for imports with/without the guarantee from the overseas seller, trade credit transactions (supplier’s credit / buyer’s credit), merchanting trade and high-sea sales transactions etc.,

Regarding outward remittances Authorised Dealers can permit most of the current account transactions and also capital account transactions subject to certain limits.

In spite of the wide range of delegated authority, still there are some gaps in understanding and interpreting these guidelines.

This workshop will exclusively address the changes introduced by Reserve Bank of India through Master Directions and AP DIR circulars with case studies on the following issues.

Clear distinction between current and capital account transactions

Export related regulatory issues – trade discount, reduction in invoice value, Regulatory waiver, and dispatch of documents directly to the consignee, advance remittance, write off, netting off

Import related regulatory issues – time limit for import payment, interest payments, advance remittance for imports, import of services, trade credit – supplier’s credit and buyer’s credit, High sea sales, Merchanting trade.

Who should attend?
• Managers who are handling exports, banking and regulatory compliance
• Managers who are handling imports and remittances
• Procurement department dealing with imports
• Finance personnel who deal with banks and regulatory authorities
• Bankers who are dealing in trade finance and compliance