Sunday, May 1, 2016

Import of Goods: Import Data Processing and Monitoring System (IDPMS)

To track the import transactions through the banking system, Customs will modify the Bill of Entry format to display the AD Code of the bank concerned, as reported by the importers. Primary data on import transactions from Customs and SEZ will first flow to the RBI secured server and thereupon depending on the AD code shall be shared with the respective banks for taking the transactions forward. The AD bank shall enter every subsequent activity, viz. document submission, outward remittance data, etc. in IDPMS so as to update the RBI database on a real time basis. It is, therefore, necessary that AD banks upload and download data on daily basis.

Based on the original BoE with stamp/signature of the Customs as submitted by importer, the nodal branch of AD Category – I banks will upload Bills of Entry (BoE) data, for non EDI (manual) Customs ports, till they are upgraded to EDI (computerised) ports. Under no circumstances, AD category – I banks will process the transactions till the concerned BoE is reflected in the IDPMS. Customs will share a copy of manual BoE with respective Regional Office of RBI for information as they presently do for shipping bills in the case of exports.

The date of operationalization of IDPMS will be notified shortly. All import remittances outstanding as on the notified date shall have to be uploaded in IDPMS. To facilitate smooth processing of import transactions and closure of BoE and advance remittances in IDPMS, the following guidelines will be followed by the AD category – I banks:

Write off of import bills

i)                AD Category I banks can consider closure of bills in IDPMS that involve write off to the extent of 5% of invoice value where the amount declared in BoE varies from the actual remittance marginally due to discounts, fluctuation in exchange rates, change in the amount of freight, insurance, etc. Cases, where write off is on account of quality issues; short shipment or destruction of goods by the port / Customs / health authorities, may be closed with remarks subject to submission of satisfactory documentation for the same, irrespective of the amount involved.

ii)              While allowing write off, AD Category - I banks must ensure that:
a)      The case is not the subject matter of any pending civil or criminal suit;
b)     The importer has not come to the adverse notice of the ED or CBI or any such other law enforcement agency; and
c)      There is a system in place under which internal inspectors or auditors of the AD category – I banks should carry out random sample check / percentage check of write-off of import bills; and

iii)            Cases not covered by the above instructions / beyond the above limits, may be referred to the concerned Regional Office of RBI.

Extension of Time

i)            AD Category – I banks can consider granting extension for settlement of import dues up to 6 months at a time (maximum up to 3 years) irrespective of the invoice value for delays on account of disputes about quantity or quality or non-fulfilment of terms of contract; financial difficulties and cases where importer has filed suit against the seller. In cases where sector specific guidelines have been issued by RBI for extension of time (i.e. rough, cut and polished diamonds), the same will be applicable.

ii)       While granting extension of time, AD Category –I banks must ensure that:
a)      The import transactions covered by the invoices are not under investigation by ED / CBI or other investigating agencies;
b)      While considering extension beyond 1 year from the date of remittance, the total outstanding of the importer does not exceed USD one million or 10 per cent of the average import remittances during the preceding two financial years, whichever is lower; and
c)      Where extension has been granted by the AD Category – I banks, the date up to which extension has been granted may be indicated in the ‘Remarks’ column.

iii)    Cases not covered by the above instructions / beyond the above limits, may be referred to the concerned Regional Office of RBI.

Follow-up for Evidence of Import

i)    On operationalization of IDPMS, all outstanding import remittances, irrespective of the amount involved, will be uploaded into the system and submission of a separate BEF statement would be discontinued from a date to be notified separately.

ii)   AD Category – I banks are required to follow up submission of evidence of import and remittance within stipulated time irrespective of the amount involved.

AD Category – I banks shall put in place a system to ensure that all import transactions and related remittances are processed only through IDPMS from the date to be notified shortly.

Based on the RBI notification dated 28/04/2016. Please refer in case of any further clarification………….. Poppy