Master Circular on Import of Goods and Services
This circular outlines the guidelines and regulations for importing goods and services into India.
General Guidelines: Importers must comply with the Foreign Exchange Management Act (FEMA) and the Foreign Trade Policy. They must also obtain an Importer-Exporter Code (IEC) and follow the procedures for import licenses, advance remittances, and third-party payments.
Import Licenses: Import licenses are required for certain goods, and the importer must obtain them from the Director General of Foreign Trade (DGFT).
Obligations of Purchaser of Foreign Exchange: The purchaser of foreign exchange must ensure that the import transaction is genuine and that the foreign exchange is used only for the intended purpose.
Time Limit for Settlement of Import Payments: The time limit for settling import payments varies depending on the type of import, with normal imports having a time limit of six months, deferred payment arrangements having a time limit of one year, and imports of books having a time limit of three months.
Import of Foreign Exchange/Indian Rupees: Foreign exchange can be imported into India, but Indian currency and currency notes cannot be imported or exported except in certain circumstances.
Third Party Payment for Import Transactions: Third-party payments are allowed for import transactions, but the importer must ensure that the payment is made from a legitimate source.
Operational Guidelines: The circular outlines the procedures for advance remittances, including those for the import of goods, rough diamonds, aircraft, and other aviation-related items.
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