Extension of Bill of Entry Submission and Write off of amount payable

Extension of Bill of Entry Submission and Write off of amount payable

Master Direction – Import of Goods and Services

Reserve Bank of India issues the Master Direction on various matters each year.  In this update, we are providing key points from captioned Master Direction in connection with Extension and Write off of the amount payable against the import of good and services.

• AD Category I banks shall give extension for submission of BoE (Bill of Entry) beyond the prescribed period in terms of the extant guidelines on the matter, and the same will be reported in IDPMS [Import Data Processing and Monitoring System] as per the message “Bill of Entry Extension” and the date up to which extension is granted will be indicated in “Extension Date” column.
• AD Category I banks can consider closure of BoE/ORM [Outward Remittance Message] in IDPMS that involves write off to the extent of 5% of invoice value in cases where the amount declared in BoE varies from the actual remittance due to operational reasons and AD bank is satisfied with the reasons submitted by the importer.
• AD Category I banks may close the BoE for such import transaction where write off is on account quality issues; short shipment or destruction of goods by the port/customs/health authorities in terms of extant guidelines on the matter subject to submission of satisfactory documentation by the importer irrespective of the amount involved. AD Bank shall settle and close ORM/BoE with appropriate “Adjustment Indicator” in IDPMS.
• The above operational guidelines for extension and write off are meant to facilitate closure of bills in IDPMS and will be subject to extant guidelines on the matter and not absolve the importer from remitting/receiving the amount in case of change in circumstances.
• 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 Enforcement Directorate or the Central Bureau of Investigation 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 (including external auditors appointed by authorised dealers) should carry out random sample check/percentage check of write off of import bills;

• Extension and write off cases not covered by the extant guidelines may be referred to the concerned Regional Office of Reserve Bank of India for necessary approval. 

Source: FEMA Master Direction – Import of Goods and Services

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