RBI Draft Export-Import Directions for Authorised Dealers
Why in the news
The RBI released a draft direction that gathers its rules on export and import dealings of authorised dealers (ADs), and invited public feedback by month-end.
Key provisions
- Consolidates RBI rules that ADs must follow and ties them to the Foreign Trade Policy and government guidelines.
- ADs refer matters to RBI through the PRAVAAH platform, used for online applications for authorisations, licences and approvals.
- ADs must prepare an internal policy on handling, reporting and grievances within six months.
- EDPMS and IDPMS compliance continues.
- Time limits for realising export proceeds, filing documents and import remittance mostly unchanged; ADs can grant extensions.
- Merchanting trade: gap between outward and inward remittance raised to six months.
- ADs may charge reasonable fees but must not levy penalties for regulatory delays or violations.
| Party | Trigger | Restriction |
|---|---|---|
| Exporters | Proceeds not realised in 24 months, dues above ₹25 crore | Export only against full advance or an irrevocable letter of credit |
| Importers | Unmaterialised advances above ₹25 crore | No further advance remittance unless backed by an irrevocable standby LC or bank guarantee |
Concerns
- Discretion given to ADs may cause inconsistent treatment of similar transactions.
- SEZ units must file export declaration forms with development commissioners.
- Service providers must submit a copy of every invoice, adding compliance burden.
- A plus for exporters: no need to surrender proportionate export incentives when proceeds fall short.
Exam angle
- Terms: authorised dealer, PRAVAAH, EDPMS, IDPMS, MTT.
- Threshold: ₹25 crore; period: 24 months.