The major updates include:
1.Export realisation:
Export proceeds invoiced in convertible foreign currency generally need to be realised within nine months from the date of export, subject to the applicable provisions.
2. Set-off of transactions:
Set-off of eligible export receivables and import payables is permitted subject to prescribed conditions, including transactions falling in different calendar years and involving goods and services.
3.EDPMS and IDPMS closure:
Requests for write-off or closure of eligible export and import entries may be considered by the Authorised Dealer (AD) Bank based on supporting documents, justification, and verification.
4.Unrealised export proceeds:
Restrictions on future exports are focused on the specific buyer whose export proceeds remain unrealised, subject to the applicable conditions.
5.Import payment timelines:
Import payments are linked to the commercial contract, subject to the applicable Trade Credit Guidelines.-
6.PAN requirement:
PAN is mandatory for the relevant regulatory reporting of exports and imports, including services.
7.Wider reporting coverage:
Reporting requirements extend to specified service transactions and merchanting trade transactions.
Businesses should review their existing trade processes to identify any changes needed in documentation, payment monitoring, bank reporting, and transaction closure.