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 Exchange Management (Current Account Transactions) Rules, 2000.
Import Licences: Importers must obtain the necessary licences and permits from the relevant authorities before importing goods.
Obligation of Purchaser of Foreign Exchange: The purchaser of foreign exchange is responsible for ensuring that the import transaction is in compliance with the FEMA regulations.
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.
Third Party Payment for Import Transactions: Third-party payments for import transactions are allowed, but the importer must ensure that the payment is made in accordance with the FEMA regulations.
Operational Guidelines: The circular outlines the operational guidelines for imports, including advance remittance for the import of goods, rough diamonds, and aircrafts/helicopters.
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