Trade Manual

1
Trade Products & Process Manual

For
Trade Desk Officer

&
ETRG Relationship Manager
INDEX
2
SR. NO TOPIC PAGE

1 Introduction to Trade 3
2 Modes of Payments in Trade 7
3 INCOTERMS 8
4 Uniform Customs and Practice for Documentary Credits-UCP 600 11
5 ISBP (International Standard Banking Practice for the Examination of Documents) 16
6 Important Terms 18
7 Operational Guidelines for Imports 22
8 Precautions for Handling Import documents 25
9 Evidence of Import 27
10 Merchanting Trade 29
11 Operational Guidelines for Exports 31
12 Inward Remittances 34
13 Outward Remittances - Advance Import Payments (SMI) 37
14 Direct Import Payment (MDC) 40
15 Bill of Entry Verification & Updation Process 43
16 Outward Remittance For Non-Trade payments 46
17 Bills for Collections-Import Collection Bills (MFC) 47
18 Export Collection Bills (XFC) 50
19 Process for Export Bill Realization (XFM) 53
20 Obligations of Authorized Dealers 56
21 Bank Realization Certificate (eBRC) 64
22 Process for GR waiver Certificate issuance 65
23 Letter of Credit (LC) 71
24 Bank Guarantee (BG) 77
25 Supplier’s/Seller’s Credit 80
26 Buyer’s Credit 81
27 Export Credit Facilities 82
28 Important Link/ URLs & eCirculars 83
29 Trade Checklists 85
30 Trade Documents filing / register 110
Introduction to Trade
3
Trade refers to Buying and Selling of goods and services in domestic or international markets
Type of trade:
● Domestic Trade
● International Trade
● Bilateral & Multilateral Trade
In its simplest form, international trade is the exchange of goods or services for a consideration across
national boundaries. Things remain simple when the buyer and seller meet each other and exchange of
goods happens simultaneously. In the real world however, the following situations may arise:
● Instead of individuals, the buyer and seller may be organizations and may not know each other.
● The buyer and seller may not be geographically close to each other & may be in different
countries.
● The seller may have to transport the goods from his location to the buyer’s location.
● The above shipment may involve more than one mode of transport (by sea, land or by air)
● Exchange of goods / services against cash may not be simultaneous.
Key Factors in Trade
Any trade transaction can be broadly broken down into:
1. Movement of Goods
2. Movement of Documents
3. Movement of Funds as consideration for goods

4.
Important Point to Note:
Bank deals in documents and funds and not actual goods is the first principal of handling trade.
Flow of Goods, Funds & Documents
Documents
Seller
Buyer
Payments
Import Export
Shipper
Objectives of Buyer & Seller
Buyer
Seller
5
 Desired quantity and quality of the goods in

time  Timely payment
 A managed cash flow, with bank finance  Bank finance for buyer’s credit & goods arrangement
 An assuring third party  An assuring third party
 Convenient payment channel  Payment to be received at own location
 Protection against regulatory errors  Protection against regulatory errors
Risks Involved for Buyer & Seller
 Non-delivery / delayed delivery of goods  Non-payment / Delayed Payment

 Short shipment / Inferior goods  Foreign Exchange Fluctuation
 Goods received before the documents  Regulatory Changes
 Foreign Exchange Fluctuation
 Regulatory Changes
Role of a Bank in Trade

 Banks deal in documents related to trade, not goods
 Bank’s role in facilitating trade is categorized as
o Financer
o Agent
6
Bank as a Financer
 Fund Based Financing (Like Packing credit/Bill discounting)
 Non – Fund Based Financing (Buyers credit)
Bank as an Agent
 Handling of the documents on behalf of other bank, importer or exporter
 Routing the fund to other bank e.g. Remittances
 No undertaking of any financing activity
 Import/Collection Documents
Modes of Payments in Trade
1. Advance Payment
Features
 Buyer makes payment before the goods are shipped
 Seller is well known entity in international trade
7
 Seller has more bargaining power vis-a-vis the buyer

 Buyer’s credit worthiness is doubtful
 Monopolistic trend in specific commodity trading
Advantages
 Buyer gets the immediate supply of the goods
 Liquidity for seller
 Less documentation involved
2. Open Account
 Buyer makes payment in arrears
 Buyer agrees with seller to pay after the shipment of goods
 Used in regular business relationship between two parties
 High degree of trust is required between buyer and seller
 Shipment in bulk to economize the cost
3. Bills for Collection

 Greater involvement of Banks
 Documents moved through Banking Channel
 Seller submit documents to his bank as Agent for Collection
 Documents are presented to buyer through Correspondent Bank
 Documents are released after Payment from Buyer (Document against Payment i.e. D/P) or
Acceptance from Buyer (Documents against Acceptance i.e. D/A)
4. Documentary Credit (Letter of Credit)

 Assurance of payment by the bank
 Most convenient method of payment in International Trade
 Provides complete financial security to the seller
 Bank assumes payment obligation on behalf of buyer to seller
 Buyer is assured about payment to seller only after the shipment
Trade Documents- Broad Classification
 Transport Documents – Airway Bill (AWB), Bill of Lading B/L), Lorry Receipt (LR), Railway
Receipt(RR)
 Financial Documents – Bill of Exchange
 Commercial Documents Performa Invoice, Invoice, Packing list
 Regulatory Documents – Bill of Entry (BOE), EDF/Shipping Bill, Softex, A2 Form
INCOTERMS
INCOTERMS is an abbreviation of International Commercial terms. This term governs the Sales and
Purchase practices, and form part of any standard Contract or Supply Orders. The INCOTERMS are
revised periodically and published by the International Chamber of Commerce (ICC). The latest such
revision was in the year 2010. The INCOTERMS are not law, but set of standard commercial practices
adhered to around the world and when form part of the supply order or a contract it becomes a binding for
both the parties and become basis for arbitration in cases of disputes.
8
Each term in INCOTERM specifies:

 The obligations for services such as transport, import and export clearance, duty, documentation
cost etc. of the Supplier and the Buyer.
 The point of transportation from where the risk and cost transfers from the Seller to the Buyer
By understanding the INCOTERMS and properly incorporating it into the Supply Orders or Contracts,
both the Seller and the Buyer will be relieved of unnecessary disputes and litigation in the event of loss,
damage or other mishap to the goods from the time of supply to the receipt of the goods.
INCOTERMS can be divided in to four main groups as under:
“E” – Departure
EXW – Ex Works – Named Place
“F” – Main Carriage Unpaid
FCA – Free Carrier – Named Place FAS – Free alongside Ship – Named Port of Shipment – OCEAN
only FOB – Free on Board – Named Port of Shipment - OCEAN only
“C” – Main Carriage Paid
CFR – Cost Freight – Named Port of destination - OCEAN only CIF – Cost Insurance and Freight –
Named Port of Destination - OCEAN only
CPT – Carriage Paid To – Named Place
CIP – Carriage Insurance Paid To – Named Place of destination
“D” – Arrival
DAT – Delivered at Terminal – Named Terminal at Port or Place of Destination
DAP – Delivered at Place – Named Place of destination
DDP – Delivered duty Paid – Named Place of destination
EXW – Ex Works (Named place of delivery)

The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired
destination. The seller's obligation is to make the goods available at his premises (works, factory,
warehouse). This term represents minimum obligation for the seller. This term can be used across all
modes of transport.
FCA- Free Carrier (Named place of delivery)
The seller's obligation is to hand over the goods, cleared for export, into the charge of the carrier named
by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may
choose within the place or range stipulated where the carrier shall take the goods into his charge. When
the seller's assistance is required in making the contract with the carrier the seller may act at the buyers
risk and expense. This term can be used across all modes of transport
9
FAS – Free Alongside Ship (Named port of shipment)

The seller must place the goods alongside the ship at the named port. The seller must clear the goods for
export. Suitable only for maritime transport but NOT for multimodal sea transport in containers. This
term is typically used for heavy-lift or bulk cargo.
FOB – Free on Board (Named port of shipment)
The seller must load themselves the goods on board the vessel nominated by the buyer. Cost and risk are
divided when the goods are actually on board of the vessel. The seller must clear the goods for export.
The term is applicable for maritime and inland waterway transport only but NOT for multimodal sea
transport in containers. The buyer must instruct the seller the details of the vessel and the port where the
goods are to be loaded, and there is no reference to, or provision for, the use of a carrier or forwarder.
FCA should be used for container shipments.
CFR – Cost and Freight (Named port of destination)
The seller must pay the costs and freight required in bringing the goods to the named port of destination.
The risk of loss or damage is transferred from seller to buyer when the goods pass over the ship's rail in
the port of shipment. The seller is required to clear the goods for export. This term should only be used
for sea or inland waterway transport.
CIF – Cost, Insurance and Freight (Named port of destination)
The seller has the same obligations as under CFR however he is also required to provide insurance against
the buyer's risk of loss or damage to the goods during transit. The seller is required to clear the goods for
export. This term should only be used for sea or inland waterway transport.
CPT – Carriage Paid To (Named place of destination)
The seller pays the freight for the carriage of goods to the named destination. The risk of loss or damage
to the goods occurring after the delivery has been made to the carrier is transferred from the seller to the
buyer. This term requires the seller to clear the goods for export and can be used across all modes of
transport.
CIP – Carriage and Insurance Paid to (Named place of destination)
The seller has the same obligations as under CPT but has the responsibility of obtaining insurance against
the buyer's risk of loss or damage of goods during the carriage. The seller is required to clear the goods
for export however is only required to obtain insurance on minimum coverage. This term requires the
seller to clear the goods for export and can be used across all modes of transport. The containerized
transport/ multimodal equivalent of CIF.
DAT – Delivered at Terminal (Named terminal at port or place of destination)
Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the
disposal of the buyer at a named terminal at the named port or place of destination. Seller is responsible
for the costs and risks to bring the goods to the point specified in the contract and for the export clearance
procedures. Buyer is responsible to clear the goods for import, arrange import customs formalities, and
pay import duty. If the parties intend the seller to bear the risks and costs of taking the goods from the
terminal to another place then the DAP term may apply.
10
DAP – Delivered at Place (Named place of destination)
Seller delivers the goods when they are placed at the disposal of the buyer on the arriving means of
transport ready for unloading at the named place of destination. Seller bears the responsibility and risks to
deliver the goods to the named place and is required to clear the goods for export. Seller is advised to
obtain contracts of carriage that match the contract of sale. If the seller incurs unloading costs at place of
destination, unless previously agreed they are not entitled to recover any such costs. Buyer is responsible
for effecting customs clearance, and paying any customs duties.
DDP – Delivered Duty Paid (Named place of destination)
Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all
costs in bringing the goods to the destination including import duties and taxes. The seller is not
responsible for unloading.
Uniform Customs and Practice for Documentary Credits- UCP 600
Gist of provisions under various articles of UCP 600:
1) ARTICLE 1- APPLICATION OF UCP: UCP contains rules that apply to a documentary credit when
the text of the credit expressly indicates that it is subject to these rules.
2) ARTICLE 2 – DEFINITIONS: Certain terms are defined, so that they provide references when such
terms are used in the articles.
“Banking day” means a day on which a bank is regularly open at the place at which an act subject to these
rules is to be performed.
“Advising bank” means the bank that advises the credit at the request of the issuing bank.
“Beneficiary” means the party in whose favour a credit is issued.
3) ARTICLE 3 – INTERPRETATIONS:
- A credit is irrevocable even if there is no indication to this effect.
- For determining maturity date, the words “from” and “after” exclude the date mentioned.
- For determining a period of shipment, the words “from” and “after” have different meanings
“From” includes the date mentioned.
“After” excludes the date mentioned.
11
4) ARTICLE 4 – CREDIT VS CONTARCTS: Credits are separate transactions from sale or other
contracts on which it may be based. Banks are in no way concerned with or bound by such contract even
if some reference to it is included in the credit. Independence Principle - L/C is a separate transaction
from the underlying contract. Banks should discourage any attempt to include contract as integral part of
L/C.
5) ARTICLE 5 – DOCUMENTS VS GOODS SERVICES, PERFORMANCE: Banks deal with

documents and not with goods, services or performance to which the documents may relate.
6) ARTICLE 6 – AVAILABILITY, EXPIRY DATE, PLACE OF PRESENTATION: The Article deals
with Expiry date, Last day for presentation of documents and Place for presentation.
7) ARTICLE 7 – ISSUING BANK UNDERTAKING: An issuing Bank is irrevocably bound to honour as
of the time it issues the credit documents presented to it and if they constitute a complying presentation.
8) ARTICLE 8 – CONFIRMING BANK UNDERTAKING: The article deals with confirming banks
undertaking in respect of the Letter of Credit and Documents.
9) ARTICLE 9 – ADVISING OF CREDITS, AMENDMENTS: A bank utilizing the services of an
advising bank or second advising bank to advise a credit must use the same bank to advise any
amendments thereto
10) ARTICLE 10 - AMENDMENTS: Except as otherwise provided by Article 38, a credit can neither be
amended nor cancelled without the agreement of the issuing bank, the confirming bank if any and the
beneficiary
11) ARTICLE 11 - TELETRANSMITTED CREDITS: An authenticated tele-transmission of credit or
amendment will be deemed to be the operative credit or amendment and any subsequent mail
confirmation shall be disregarded.
12) ARTICLE 12 – NOMINATION: Nomination does not obligate nominated bank to honour. By
nominating a bank to accept a draft or incur a deferred payment undertaking, an issuing bank authorizes
that nominated bank to prepay or purchase a draft accepted or a deferred payment undertaking incurred
by that nominated bank.
13) ARTICLE 13 – BANK TO BANK RE-IMBURSMENT ARRANGENT: If a credit states that

reimbursement is to be obtained by a nominated bank ("claiming bank") claiming on another party
("reimbursing bank"), the credit must state if the reimbursement is subject to the ICC rules for bank-to-
bank reimbursements in effect on the date of issuance of the credit. If a credit does not state that
reimbursement is subject to the ICC rules for bank-to-bank reimbursements, the rules mentioned under
the Article to be applied.
14) ARTICLE 14 – STANDARD FOR EXAMINATION OF DOCUMENTS: A nominated bank must

examine documents on their face to determine compliance. Other than the commercial invoice,
description of goods, services or performance, may be stated in general terms. Disregard documents not
required by L/C and may be returned. Disregard non-documentary condition. Documents may be dated
prior to issuance date of LC, but not later than date of presentation.
A nominated bank acting on its nomination, a confirming bank, if any and the issuing bank shall have a
maximum of 5 banking days following the day of presentation to determine if a presentation is
complying. The period is not curtailed or otherwise affected by the occurrence on or after the date of
presentation of any expiry date or last date for presentation.
12
Presentation Period: Presentation including an original transport document must be made not later than 21
calendar days after date of shipment. Transport document - Subject to Articles 19-25. Data in a document
must not conflict with data in that document, other stipulated documents or the L/C.
15) ARTICLE 15 – COMPLYING PRESENTATION:

a) When an issuing bank determines that a presentation is complying, it must honour
b) When a confirming bank determines that a presentation is complying it must honour or negotiate
and forward the documents to the issuing bank
c) When a nominating bank determines that a presentation is complying and honours or negotiates it must
forward the documents to the confirming bank or the issuing bank.
16) ARTICLE 16 – DISCREPANT DOCUMENTS, WAIVER AND NOTICE:
If the nominated bank, a confirming bank or the issuing bank decides to refuse to honour or negotiate it
must give a notice in terms of Article 16c to the presenter by telecommunication or other expeditious
means no later than the close of the fifth banking day following the day of presentation.
17) ARTICLE 17 – ORIGINAL DOCS AND COPIES: At least one original of each document stipulated
in the credit must be presented. A bank shall treat as an original any document bearing an apparently
original signature, mark, stamp, or label of the issuer of the document; unless the document itself
indicates that it is not an original.
18) ARTICLE 18 -COMERCIAL INVOICE: Invoice amount in excess of L/C – May be accepted by the
nominated bank, but must not be honoured or negotiated in excess of L/C amount Issued by beneficiary.
Invoices must be made out in the name of applicant, and need not be signed (except as provided in article
38 – Transferable L/C). Description of goods, services or performance must correspond with L/C
description. Must be in the same currency as L/C.
19) ARTICLE 19 - TRANSPORT DOC COVERING ATLEAST TWO DIFF MODES: Must appear to
indicate name of carrier and is signed by carrier, master or named agent. If signed by agent, need to
specify for whom - carrier or master - it is signed.
20) ARTICLE 20 - BILL OF LADING
21) ARTICLE 21 - NON-NEGOTIABLE SEA WAY BILL: Must appear to indicate name of carrier.
Should be signed by carrier, master or named agent. If signed by master, name of master is not necessary.
If signed by agent, need to specify for whom, carrier or master - it is signed.
22) ARTICLE 22 - CHARTER PARTY BILL OF LADING: B/L should contain indication that it is
subject to a charter party. Should be signed by master, owner, charterer or named agent.
- If signed by master, or owner, or charterer, their names are not necessary.
- If signed by agent, need to specify for whom master, owner or charterer - it is signed.
Agent signing for owner or charterer must indicate name of owner or charterer.
Port of discharge may be shown as a range of ports, or geographical area, as stated in L/C (ISBP 106)
23) ARTICLE 23 - AIR TRANSPORT DOCUMENTS: Must appear to indicate name of carrier. Signed
by carrier or named agent. If signed by agent, need to indicate that agent has signed for or on behalf of
13
carrier. Must indicate date of issuance, which will be deemed to be the date of shipment. Specific notation
of actual date of shipment, even not called for in the credit, will be deemed to be the date of shipment.
24) ARTICLE 24 - RAIL ROAD INLAND WATERWAY TRANSPORT: For rail transport document, if
it does not identify the carrier, any signature or stamp of railway company is accepted as being signed by
the carrier (ISBP – 172). Transport document marked “duplicate” is accepted as an original. Transport
document will be accepted as original whether marked as an original or not (also applicable to inland
waterway transport). Road transport document marked for consignor or shipper or bear no marking for
whom the document has been prepared – is the original.
25) ARTICLE 25 - COURIER RECEIPT, POST RECEIPT: A courier receipt, however named,
evidencing receipt of goods for transport, must appear to, indicate the name of the courier service and be
stamped or signed by the named courier service at the place from which the credit states the goods are to
be shipped; and indicate a date of pick-up or of receipt or wording to this effect. This date will be deemed
to be the date of shipment.
26) ARTICLE 26 - “ON DOCK”, “SHIPPERS LOAD AND COUNT: A transport document must not
indicate that the goods are or will be loaded on deck. A clause on a transport document stating that the
goods may be loaded on deck is acceptable. A transport document bearing a clause such as "shipper's load
and count" and "said by shipper to contain" is acceptable. A transport document may bear a reference, by
stamp or otherwise, to charges additional to the freight.
27) ARTICLE 27 - CLEAN TRANSPORT DOCUMENT: A bank will accept only a clean transport
document. A clean transport document is one bearing no clause or notation expressly declaring a
defective condition of the goods or their packaging. The word clean need not appear on a transport
document even if a credit has a requirement for that transport document to be ‘clean on board’.
28) ARTICLE 28 - INSURANCE DOC. AND COVERAGE: Insurance document must be issued and
signed by insurance company or underwriter or agent. Original of insurance document must be presented.
The insurance should be effective from the date of shipment and must be issued in the same currency as
the credit. If there is no indication in the credit of the insurance coverage required, the amount of
insurance coverage must be at least 110%of the CIF or CIP value of the goods.
29) ARTICLE 29 - EXTENSION OF EXPIRY DATE OR LAST DATE OF PRSENTATION: If the

expiry date of the credit or the last day for presentation falls on a day when the bank is closed for reason
other than ‘force majeure’, the expiry date will be extended to the first following day on which such bank
is open but the latest date of shipment will not be extended for the aforesaid reason. If presentation is
made on the first following banking day, a nominated bank must provide the issuing or confirming bank
with a statement on its covering schedule that the presentation was made within the time limits extended
in accordance with Article 29a.
30) ARTICLE 30 – TOLERENCE IN CREDIT AMOUNT, QUANTITY AND UNIT PRICE: The words
"about" or "approximately" used in connection with the amount of the credit or the quantity or the unit
price stated in the credit are to be construed as allowing a tolerance not to exceed 10% more or 10% less
than the amount, the quantity or the unit price to which they refer. A tolerance not to exceed 5% more or
5% less than the quantity of the goods is allowed, provided the credit does not state the quantity in terms
of a stipulated number of packing units or individual items and the total amount of the drawings does not
exceed the amount of the credit.
31) ARTICLE 31 – PARTIAL DRAWING OR SHIPMENT: Partial drawings or shipments are allowed.
Presentation of multiple sets of transport docs evidencing shipment on the same means of conveyance
(e.g. vessel, aircraft) from different ports/places on different dates and for the same journey to the same
14
destination are not partial shipment. Take latest of the shipment dates as date of shipment. Presentation of
multiple sets of transport docs evidencing shipment on more than one means of conveyance within the
same mode of transport (e.g. shipment by truck) will be regarded as partial shipment, even if shipped on
the same day for the same destination (ISBP 89).
32) ARTICLE 32 - INSTALMENT DRAWING OR SHIPMENT: If a drawing or shipment by

instalments within given periods is stipulated in the credit and any instalment is not drawn or shipped
within the period allowed for that instalment, the credit ceases to be available for that and any subsequent
instalment.
33) ARTICLE 33 - HOURS OF PRESENTATION: A bank has no obligation to accept a presentation

outside of its banking hours.
34) ARTICLE 34 - DISCLAIMER ON EFFECTIVENESS OF DOCS: A Bank assumes no liability or

responsibility for the form, sufficiency, accuracy, genuineness, falsification, or legal effect of any
document etc.
35) ARTICLE 35 - DISCLAIMER ON TRANSMISSION AND TRANSLATION: A bank assumes no

liability or responsibility for the consequences arising out of delay, loss in transit, mutilation or other
errors arising in the transmission of any messages or delivery of letters or documents, when such
messages, letters or documents are transmitted or sent according to the requirements stated in the credit,
or when the bank may have taken the initiative in the choice of the delivery service in the absence of such
instructions in the credit.
36) ARTICLE 36 – FORCE MAJEUR: A bank assumes no liability or responsibility for the
consequences arising out of the interruption of its business by Acts of God, riots, civil commotions,
insurrections, wars, acts of terrorism, or by any strikes or lockouts or any other causes beyond its control.
A bank will not, upon resumption of its business, honour or negotiate under a credit that expired during
such interruption of its business.
37) ARTICLE 37 – DISCLAIMER FOR ACTS OF AN INSTRUCTED PARTY: Bank instructing

another bank to perform services is liable for that bank’s charges. Issuing bank is liable for charges that
cannot be collected or deducted from the proceeds.
38) ARTICLE 38 - TRANSFERABLE CREDITS: An L/C may be made available by the transferring
bank to a second beneficiary. Transferred credit must accurately reflect the terms and conditions of the
credit, including confirmation. Second beneficiary’s documents may be sent to issuing bank if first
beneficiary fails, on first demand, to:
– Present its invoice (and draft, if any), or
– Rectify discrepancies in its invoice (where such discrepancies did not exist in second beneficiary’s
invoice).
Banks are not obliged to effect transfer. All charges relating to the transfer are for the account of first
beneficiary. If L/C allows partial drawings or shipments, it can be transferred in part to more than one
second beneficiary. Transferred L/C cannot be transferred to any subsequent beneficiary.
39) ARTICLE 39 - ASSIGNMENT OF PROCEEDS: The fact that a credit is not stated to be transferable
shall not affect the right of the beneficiary to assign any proceeds to which it may be or may become
entitled under the credit, in accordance with the provisions of applicable law. This article relates only to
the assignment of proceeds and not to the assignment of the right to perform under the credit.
15
ISBP (International Standard Banking Practice for the Examination of Documents)
Important Issues:
The terms of a credit are independent of the underlying transaction even if a credit expressly refers to that
transaction.
 The applicant bears the risk of any ambiguity in its instructions to issue or amend a credit.
 A credit should not call for documents that are to be issued and/ or counter-signed by the
applicant. If a credit carries such a condition, the beneficiary must seek amendment or comply
with it.
 The use of generally accepted abbreviations, for example ‘ltd‘ instead of ‘Limited‘ ‘Co’ instead
of ‘Company’ ‘Kgs’ or ‘Kos’ instead of ‘Kilos’, ‘Ind’ instead of ‘Industry’ ‘mfr’ instead of
‘manufacture’ or ‘mt’ instead of ‘metric tons’ or vice versa does not make a document discrepant.
 Corrections and alterations on documents not prepared by the exporters (LC beneficiary) must be
authenticated by the issuer or by his agent on his behalf.
 Corrections and alterations on the documents prepared by the exporter except drafts, which have
not been legalized, or the like need not be authenticated.
 The use of multiple type style or font sizes or handwriting in the same document does not, by
itself, signify a correction or alteration.
 Where a document contains more than one correction or alteration, either each correction must be
authenticated separately or one authentication must be linked to all corrections in an appropriate
way
 Drafts, transport documents and insurance documents must be dated even if a credit does not
expressly require so.
 Any document, including a certificate of analysis, inspection certificate and pre-shipment
inspection certificate, may be dated after the date of shipment. However, if a credit requires a
document evidencing a pre-shipment event (e.g,pre-shipment inspection certificate), the
document must, either by its title or content, indicate that the event( e.g., inspection) took place
prior to or on the date of the inspection. However documents must not indicate that they were
issued after the date they are presented.
 A document indicating a date of preparation and a later date of signing is deemed to be issued on
the date of signing.
 Dates can be expressed in different format. However, to avoid confusion, the ISBP recommends
that the name of the month be used instead of the number.
 Copies of transport documents are not deemed to be ‘transport documents’ for the purpose of
UCP600 article 19-25 and sub article 14(c).
 An LC stating ‘shipping document’ refers not only to transport documents but to all documents
required by the credit, except drafts.
 An LC that says ‘stale documents acceptable’ refers to documents presented later than 21
calendar days after the date of shipment but within the expiry date for presentation as stated in the
credit.
 If an LC stipulates “third-party documents acceptable”, it refers to all documents that a party
other than the beneficiary may issue, including invoices but excluding drafts.
 Detailed mathematical calculations in documents will not be checked by banks. Banks are only
obliged to check total values against the credit & other required documents.
16
 In the case of a multiple-page documents, the signature, if required, can be anywhere on the
document unless the LC of the document itself indicates where a signature or endorsement should
appear.
 Documents issued in more than one original can be marked ‘original’, ‘duplicate’ or ‘triplicate’.
None of these markings will disqualify a document as an original.
 The number of originals to be presented must be at least the number required by the credit, the
UCP 600 or, where the document itself states how many originals have been issued, the number
stated on the document.
 If an LC stipulates “one copy of invoice”, a copy of the invoice can be presented, even though the
practice is to accept an original. On the other hand, “Invoice”, “invoice in one copy” or “one
invoice” indicates a requirement for an original invoice.
 Even if not stated in the LC, drafts, certificates and declarations must be signed. Transport
documents & insurance documents must be signed in accordance with the provision of UCP 600.
 A signature need not be handwritten. However a photocopy of signed document does not qualify
as a signed original document.
 The invoice can show a deduction covering advance payment, discount, etc., even if it is not
stated in the credit.
 When an LC calls for a marine or ocean bill of lading, it is not necessary to write or print the
world “marine” or “ocean” on the bill of lading if it shows port-to-port shipment.
 If a transport document bears pre-printed “shipped on board” bill of lading is presented, its
issuance date will be deemed to be the date of shipment unless it bears a separate dated on board
notation, in which event the date of the on board notation will be deemed to be the date of
shipment whether or not the on board date is before or after the issuance date of the bill of lading.
 If a credit gives a geographical area or range of ports of loading or discharge (e.g. “any European
Port”), the bill of lading must indicate the name of the actual port of loading or discharge, which
must be within the geographical area or range stated in the credit.
 Clauses or notations on bill of lading, which do not expressly declare a defective condition of the
goods and/ or packing for example, “packaging may not be sufficient for the sea journey” do not
constitute a discrepancy.
 If the word “clean” has been deleted on the bill of lading, the document will not be considered
unclean or claused unless it specifically bears a clause or notation declaring that the goods or
packaging are defective.
 Air-transport documents should not be issued “to order” or “to order of” a named party because
they are not documents of title.
 The insurance document must cover the risks defined in the credit. Even though a credit may be
explicit with regard to risks to be covered, there may be reference to exclusion clauses in the
document. If a credit require “all risk” coverage, this is satisfied by the presentation of an
insurance document evidencing any “all risk” clause notation, even if it is stated that certain risks
are excluded.
 The certificate of origin may show the consignor or exporter as a party other than the beneficiary
of the credit or the shipper on the Transport document.
Important Terms
Airway bill
The carrying agreement between shipper and air carrier which is obtained from the airline used to
ship the goods.
17
Bill of Exchange
A written order for a certain sum of money, to be transferred on a certain date from the person
who owes the money or agrees to make the payment (the drawee) to the creditor to whom the
money is owed (the drawer of the draft).
Bill of Lading
A document which provides the terms of the contract between the shipper and the transportation
company to move freight between stated points at a specified charge.
Certificate of Inspection
A document in which certification is made as to the good condition of the merchandise
immediately prior to shipment. The buyer usually designates the inspecting organization, usually
an independent inspection firm or government body.
Certificate of Origin
A document in which certification is made as to the country of origin of the merchandise.
Collection
The procedure involved in a bank's collecting money for a seller against a draft drawn on a buyer
abroad, usually through a correspondent bank.
Commercial Invoice
Legal document between seller and buyer that describes goods sold and the amount due on the
buyer.
Demurrage
Excess time taken for loading or unloading a vessel as a result of acts of a shipper. Charges are
assessed by the shipping company.
Discrepancy-Letter of Credit
When documents presented do not conform to the terms of the letter of credit, it is referred to as a
"discrepancy."
Documents against Acceptance (D/A)
A type of payment for goods in which the documents transferring title to the goods are not given
to the buyer until he has accepted the draft issued against him.
Documents against Payment (D/P)

A type of payment for goods in which the documents transferring title to the goods are not given
to the buyer until he has paid the value of a draft issued against him.
Drawee
One on whom a draft is drawn, and who owes the stated amount.
Drawer
One who "draws" a draft, and receives payment.
18
Duty
The tax imposed by a government on merchandise imported from another country.
Duty Drawback
The term drawback is applied to a certain amount of duties of Customs and Central Excise,
sometimes the whole, sometimes only a part remitted or paid by Government on the exportation
of the commodities on which they were levied. To entitle goods to drawback, they must be
exported to a foreign port, the object of the relief afforded by the drawback being to enable the
goods to be disposed of in the foreign market as if they had never been taxed at all. For Customs
purpose drawback means the refund of duty of customs and duty of central excise that are
chargeable on imported and indigenous materials used in the manufacture of exported goods.
Exchange Regulations/Restrictions
Restrictions imposed by an importing country to protect its foreign exchange reserves.
Export
Selling goods and services produced in the home country to other markets
Import
To bring merchandise into a country from another country or overseas territory.
Insurance Certificate
A document issued by an insurance company, usually to order of shipper, under a marine policy
and in cover of a particular shipment of merchandise.
Letter of Credit (Commercial)

A document issued by a bank at buyer's request in favor of a seller, promising to pay an agreed
amount of money upon receipt by the bank of certain documents within a specified time.
Packing List
A list which shows number and kinds of packages being shipped, totals of gross, legal, and net
weights of the packages, and marks and numbers on the packages. The list may be requested by
an importer or may be required by an importing country to facilitate the clearance of goods
through customs.
Pro Forma Invoice

An invoice forwarded by the seller of goods prior to shipment to advise the buyer of the weight
and value of the goods.
Rate of Exchange
The basis upon which money of one country will be exchanged for that of another.
Tariff
A schedule or system of duties imposed by a government on goods imported or exported; the rate
of duty imposed in a tariff.
NOSTRO Account
19
ICICI Bank's foreign currency account with other bank e.g. USD Nostro account with JP Morgan
Chase, NY.
VOSTRO Account
Other Banks INR account with ICICI Bank. E.g., Bank of China's INR account with ICICI bank,
Mumbai.
TSU (Trade Services unit)

Centralized operations unit handling trade transaction of ICICI and its subsidiaries.
IGRS (ICICI Global remittance system)

Application used by TSU to distribute the information on Inward Remittances for the branches to
settle the transaction to the beneficiary.
Omniflow
This application is used by branches to initiate various trade related transactions. It is also used to
reply to TSU for discrepancies raised on trade transactions.
FX on Call
Channel available for RM/Customer to book rates for conversion of foreign currency to INR and
Vice versa.
FX-Online
Online platform available for customer to book rates for conversion of foreign currency to INR
and vice versa.
AD Code
It is the unique identification number of the bank branch allotted by RBI.
EEFC Account
Exchange Earners Foreign Currency Account (EEFC) is an account maintained in foreign
currency with an Authorized Dealer, i.e. bank dealing in foreign exchange.
SWIFT (Society for worldwide interbank financial Telecommunication)

A secure network for transmitting messages between financial institutions.
ECB (External Commercial Borrowings)

It is an inward remittance for Debt/Loan which needs to be accompanied by approval from RBI.
SSI (Standing Settlement Instructions)

It is one time disposal instruction given to the bank that will be applicable to all future inward
remittances of the client, which has to be submitted at branch in the format specified by the bank.
FDI (Foreign Direct Investment)

An investment made by a company or entity based in one country, into a company or entity based
in another country. Foreign direct investment differs substantially from indirect investments such
20
as portfolio flows, wherein overseas institutions invest in equities listed on a nation's stock

exchange. Entities making direct investments typically have a significant degree of influence and
control over the company into which the investment is made. Open economies with skilled
workforces and good growth prospects tend to attract larger amounts of foreign direct
investment than closed, highly regulated economies.
ARF (Advance Reporting Form)

Used by the companies to report the foreign direct investment (FDI) inflow to RBI
FCGPR form
Which a company submits to RBI for reporting the issue of eligible instruments to the overseas
investor against the FDI inflow.
FCTRS form
Used for reporting transfer of shares between residents and non-residents and vice-versa
ODI (Overseas Direct Investment)

Direct investments (or financial commitment) by residents in Joint Venture (JV) and Wholly
Owned Subsidiary (WOS) abroad
Operational Guidelines for Imports
Advance Remittance
Advance Remittance for Import of Goods
(i) AD Category – I bank may allow advance remittance for import of goods without any ceiling
subject to the following conditions:
(a) If the amount of advance remittance exceeds USD 200,000 or its equivalent, an unconditional,
irrevocable standby Letter of Credit or a guarantee from an international bank of repute situated
outside India or a guarantee of an AD Category – I bank in India, if such a guarantee is issued against
the counter-guarantee of an international bank of repute situated outside India, is obtained.
(b) In cases where the importer (other than a Public Sector Company or a Department/Undertaking of
the Government of India/State Government/s) is unable to obtain bank guarantee from overseas
suppliers and the AD Category – I bank is satisfied about the track record and bonafides of the
importer, the requirement of the bank guarantee / standby Letter of Credit may not be insisted upon
for advance remittances up to USD 5,000,000 (US Dollar five million).
(c) A Public Sector Company or a Department/Undertaking of the Government of India / State
Government/s which is not in a position to obtain a guarantee from an international bank of repute
against an advance payment, is required to obtain a specific waiver for the bank guarantee from the
Ministry of Finance, Government of India before making advance remittance exceeding USD
100,000.
(ii) All payments towards advance remittance for imports shall be subject to the specified conditions.
21
Advance Remittance for Import of Rough Diamonds
a) AD category – I banks are permitted to take decision on overseas mining companies to whom an
importer (other than Public Sector Company or Department / Undertaking of Government of India /
State Government) can make advance payments, without any limit / bank guarantee/ stand-by letter of
Credit. Banks must ensure the following:
i. The overseas mining company should have the recommendation of GJEPC.
ii. The importer should be a recognized processor of rough diamonds and should have a good track
record.
iii. AD Category - I banks should, undertake the transaction based on their commercial judgment and
after being satisfied about the bonafides of the transaction.
iv. Advance payments should be made strictly as per the terms of the sale contract and should be
made directly to the account of the company concerned, that is, to the ultimate beneficiary and not
through numbered accounts or otherwise.
v. Further, due caution may be exercised to ensure that remittance is not permitted for import of
conflict diamonds (Kimberly Certification).
vi. KYC and due diligence exercise should be done by the AD Category - I banks as per the existing
guidelines.
vii. AD Category - I banks should follow-up submission of the Bill of Entry / documents evidencing
import of rough diamonds into the country by the importer, in terms of the Act / Rules / Regulations /
Directions issued in this regard.
b) In case of an importer entity in the Public Sector or a Department / Undertaking of the Government
of India / State Government/s, AD Category - I banks may permit the advance remittance subject to
the above conditions and a specific waiver of bank guarantee from the Ministry of Finance,
Government of India, where the advance payments is equivalent to or exceeds USD 100,000/- (USD
one hundred thousand only).
Advance Remittance for Import of Aircrafts/Helicopters and other Aviation Related Purchases
1. As a sector specific measure, entities which have been permitted under the extant Foreign Trade
Policy to import aircrafts and helicopters (including used / second hand aircraft and helicopters) or
any other person who has been granted permission by the Directorate General of Civil Aviation
(DGCA) can make advance remittance without bank guarantee or an unconditional, irrevocable
Standby Letter of Credit, up to USD 50 million.
Accordingly, banks may allow advance remittance, without obtaining a bank guarantee or an
unconditional, irrevocable Standby Letter of Credit, up to USD 50 million, for direct import of each
aircraft, helicopter and other aviation related purchases.
2. Importers of Aircrafts/ Helicopters and other Aviation related Purchases eligible under clause
above can make advance remittance without bank guarantee, in terms of Para above.
3. The remittances for the transactions at 1 and 2 above shall be subject to the following conditions:
 KYC and due diligence exercise should be done by the AD Category-I banks for the Indian
importer entity and the overseas manufacturer company as well.
 Advance payments should be made strictly as per the terms of the sale contract and directly to the
account of the manufacturer (supplier) concerned.
 In the case of a Public Sector Company or a Department / Undertaking of Central /State
Governments, the AD Category - I bank shall ensure that the requirement of bank guarantee has
been specifically waived by the Ministry of Finance, Government of India for advance
remittances exceeding USD 100,000.
 Physical import of goods into India is made within six months (three years in case of capital
goods) from the date of remittance and the importer gives an undertaking to furnish documentary
evidence of import within fifteen days from the close of the relevant period.
22
 It is clarified that where advance is paid as milestone payments, the date of last remittance made
in terms of the contract will be reckoned for the purpose of submission of documentary evidence
of import.
 In the event of non-import of aircraft and aviation sector related products, AD Category - I bank
should ensure that the amount of advance remittance is immediately repatriated to India.
Prior approval of the concerned Regional Office of the Reserve Bank will be required in case of any
deviation from the above stipulations.
Advance Remittance for the Import of Services
AD Category – I bank may allow advance remittance for import of services without any ceiling
subject to the following conditions:
(a) Where the amount of advance exceeds USD 500,000 or its equivalent, a guarantee from a bank of
international repute situated outside India, or a guarantee from an AD Category – I bank in India, if
such a guarantee is issued against the counter-guarantee of a bank of international repute situated
outside India, should be obtained from the overseas beneficiary.
(b) In the case of a Public Sector Company or a Department/ Undertaking of the Government of
India/ State Governments, approval from the Ministry of Finance, Government of India for advance
remittance for import of services without bank guarantee for an amount exceeding USD 100,000
(USD One hundred thousand) or its equivalent would be required.
(c) AD Category – I banks should also follow-up to ensure that the beneficiary of the advance
remittance fulfils his obligation under the contract or agreement with the remitter in India, failing
which, the amount should be repatriated to India.
23
Precautions for Handling Import documents
AD banks should exercise due care while handling Import documents on collection basis on behalf of
importer customers with reference to their line of business, financial standing, frequency of imports, etc.,
to establish the genuineness of imports.
In the case of bills Involving large values, satisfy themselves that the importer is known to be trading in
items mentioned in the shipping documents or that the items are required for his actual use.
In case of Importers who are not their constituents, at the time of acceptance of the documents/ making
payment, call for detailed certificate-cum-report from their bankers in support of the genuineness of
imports.
Time Limit for Settlement of Import Payments
1. Time limit for Normal Imports
(i) In terms of the extant regulations, remittances against imports should be completed not later than six
months from the date of shipment, except in cases where amounts are withheld towards guarantee of
performance, etc.
(ii) Banks may permit settlement of import dues delayed due to disputes, financial difficulties, etc.
However, interest if any, on such delayed payments, usance bills or overdue interest is payable only for a
period of up to three years from the date of shipment
2. Time Limit for Deferred Payment Arrangements
Deferred payment arrangements (including suppliers’ and buyers’ credit) up to five years, are treated as
trade credits for which the procedural guidelines as laid down in the Master Circular for External
Commercial Borrowings and Trade Credits may be followed.
3. Time Limit for Import of Books
Remittances against import of books may be allowed without restriction as to the time limit, provided,
interest payment, if any, is as per the instructions below.
Third Party Payment for Import Transactions

24
AD category I banks are allowed to make payments to a third party for import of goods, subject to
conditions as under:
a. Firm irrevocable purchase order / tripartite agreement should be in place. However this requirement
may not be insisted upon in case where documentary evidence for circumstances leading to third
party payments / name of the third party being mentioned in the irrevocable order / invoice has been
produced.
b. AD bank should be satisfied with the bonafides of the transactions and should consider the Financial
Action Task Force (FATF) Statement before handling the transactions;
c. The Invoice should contain a narration that the related payment has to be made to the (named) third
party;
d. Bill of Entry should mention the name of the shipper as also the narration that the related payment has
to be made to the (named) third party;
e. Importer should comply with the related extant instructions relating to imports including those on
advance payment being made for import of goods.
25
Evidence of Import
Physical Imports
(i) In case of all imports, where value of foreign exchange remitted / paid for import into India exceeds
USD 100,000 or its equivalent, it is obligatory on the part of the AD Category– I bank through which the
relative remittance was made, to ensure that the importer submits :-
(a) The Exchange Control Copy of the Bill of Entry for Home Consumption, or
(b) The Exchange Control Copy of the Bill of Entry for warehousing, in case of 100% Export Oriented
Units, or
(c) Customs Assessment Certificate or Postal Appraisal Form, as declared by the importer to the Customs
Authorities, where import has been made by post, or Courier Bill of Entry as declared by the courier
companies to the Customs Authorities.
(d) The Exchange Control Copy of the Ex-Bond Bill of Entry or Bill of Entry issued by Customs
Authorities by any other similar nomenclature for goods imported and stored in Free Trade Warehousing
Zone (FTWZ) or SEZ Unit warehouses or Customs bonded warehouses, etc.
(ii) In respect of imports on Delivery against acceptance basis, AD Category – I bank should insist on
production of evidence of import at the time of effecting remittance of import bill. However, if importers
fail to produce documentary evidence due to genuine reasons such as non- arrival of consignment, delay
in delivery/ customs clearance of consignment, etc., AD bank may, if satisfied with the genuineness of
request, allow reasonable time, not exceeding three months from the date of remittance, to the importer to
submit the evidence of import.
Evidence of Import in Lieu of Bill of Entry
(i) AD Category – I bank may accept, in lieu of Exchange Control Copy of Bill of Entry for home
consumption, a certificate from the Chief Executive Officer (CEO) or auditor of the company that the
goods for which remittance was made have actually been imported into India provided :-
(a) The amount of foreign exchange remitted is less than USD 1,000,000 or its equivalent and
(b) The importer is a company listed on a stock exchange in India and whose net worth is not less than
Rs.100 crore as on the date of its last audited balance sheet, or, the importer is a public sector company or
an undertaking of the Government of India or its departments.
(ii) The above facility may also be extended to autonomous bodies, including scientific bodies/academic
institutions, such as Indian Institute of Science / Indian Institute of Technology, etc. whose accounts are
audited by the Comptroller and Auditor General of India (CAG).
26
AD Category – I bank may insist on a declaration from the auditor/CEO of such institutions that their
accounts are audited by CAG.
Non-physical Imports
(i) Where imports are made in non-physical form, i.e., software or data through internet / datacom
channels and drawings and designs through e-mail / fax, a certificate from a Chartered Accountant that
the software / data / drawing/ design has been received by the importer, may be obtained.
(ii) AD Category – I bank should advise importers to keep Customs Authorities informed of the imports
made by them under this clause.
Issue of Acknowledgement
AD Category – I bank should acknowledge receipt of evidence of import e.g. Exchange Control Copy of
the Bill of Entry, Postal Appraisal Form, or Customs Assessment Certificate, etc., from importers by
issuing acknowledgement slips containing all relevant particulars relating to the import transactions.
Verification and Preservation
(i) Internal inspectors or auditors (including external auditors appointed by AD Category – I bank) should
carry out verification of the documents evidencing import, e.g. Exchange Control copies of Bills of Entry
or Postal Appraisal Forms, or Customs Assessment Certificates, etc.
(ii) Documents evidencing import into India should be preserved by AD Category – I bank for a period of
one year from the date of their verification. However, in respect of cases which are under investigation by
investigating agencies, the documents may be destroyed only after obtaining clearance from the
investigating agency concerned.
Follow-up for Import Evidence
(i) In case an importer does not furnish any documentary evidence of import, as required, within 3 months
from the date of remittance involving foreign exchange exceeding USD 100,000, the AD Category – I
bank should rigorously follow-up for the next 3 months, including issuing registered letters to the
importer.
(ii) AD Category - I banks should henceforth submit a statement on half-yearly basis as at the end of June
& December of every year, in form BEF furnishing details of import transactions, exceeding USD
100,000 in respect of which importers have defaulted in submission of appropriate document evidencing
import within 6 months from the date of remittance. The Statement should be submitted within 15 days
from the close of the half-year to which the statement relates.
(iii) AD Category – I bank need not follow up submission of evidence of import involving amount of
USD 100,000 or less provided they are satisfied about the genuineness of the transaction and the
bonafides of the remitter.
Merchanting Trade
27
1. For a trade to be classified as Merchanting Trade following conditions should be satisfied:
a. Goods acquired should not enter the Domestic Tariff Area, and
b. The state of the goods should not undergo any transformation.
2. AD Category – I bank may handle bonafide Merchanting Trade Transactions and ensure that:
(a) Goods involved in the transactions are permitted for export / import under the prevailing Foreign
Trade Policy (FTP).
(b) Both the legs of a Merchanting Trade Transaction are routed through the same AD bank.
(c) The entire Merchanting Trade Transactions should be completed within an overall period of nine
months and there should not be any outlay of foreign exchange beyond four months.
(d) The commencement of Merchanting Trade would be the date of shipment / export leg receipt or
import leg payment, whichever is first. The completion date would be the date of shipment / export leg
receipt or import leg payment, whichever is the last;
(e) Short-term credit either by way of suppliers' credit or buyers' credit will be available for Merchanting
Trade Transactions, to the extent not backed by advance remittance for the export leg, including the
discounting of export leg LC by an AD bank, as in the case of import transactions ;
(f) In case advance against the export leg is received by the Merchanting Trader, AD bank should ensure
that the same is earmarked for making payment for the respective import leg. However, AD bank may
allow short-term deployment of such funds for the intervening period in an interest bearing account;
(g) Merchanting Traders may be allowed to make advance payment for the import leg on demand made
by the overseas seller. In case where inward remittance from the overseas buyer is not received before the
outward remittance to the overseas supplier,
AD bank may handle such transactions by providing facility based on commercial judgement. It may,
however, be ensured that any such advance payment for the import leg beyond USD 200,000/- per
transaction, should be made against Bank Guarantee / LC from an international bank of repute, except in
cases and to the extent where payment for export leg has been received in advance;
(h) Letter of Credit to the supplier is permitted against confirmed export order keeping in view the outlay
and completion of the transaction within nine months;
(i) Payment for import leg may also be allowed to be made out of the balances in Exchange Earners
Foreign Currency Account (EEFC) of the Merchant Trader.
(j) AD bank should ensure one-to-one matching in case of each Merchanting Trade transaction and report
defaults in any leg by the traders to the concerned Regional Office of RBI, on half yearly basis within 15
days from the close of each half year, i.e. June and December.
(k) Defaulting Merchanting Traders, whose outstanding reach 5% of their annual export earnings, would
be caution-listed.
28
Merchanting Traders have to be genuine traders of goods and not mere financial intermediaries.
Operational Guidelines for Exports
Export of goods through Customs ports
(i) Customs shall certify the value declared and give running serial number on the two copies of Export
Declaration Form (EDF), submitted by exporter at Non- Electronic Data Interchange (EDI) port.
29
(ii) Customs shall retain the original EDF for transmission to the Reserve Bank and return the duplicate
copy to the exporter.
(iii) At the time of shipment of goods, exporters shall submit the duplicate copy of the EDF to Customs.
After examining the goods, Customs shall certify the quantity in the form and return it to the exporter for
submission to AD for negotiation or collection of export bills.
(iv) Within 21 days from the date of export, exporter shall lodge the duplicate copy together with relative
shipping documents and an extra copy of the invoice to the AD named in the EDF.
(v) After the documents have been negotiated / sent for collection, the AD shall report the transaction
through Export Data Processing and Monitoring System (EDPMS) to the Reserve Bank and retain the
documents at their end.
(vi) In case of exports made under deferred credit arrangement or to joint ventures abroad against equity
participation or under rupee credit agreement, the number and date of the Reserve Bank approval and/or
number and date of the relative RBI circular shall be recorded at the appropriate place on the EDF.
(vii) Where duplicate copy of EDF is misplaced or lost, AD may accept copy of duplicate EDF duly
certified by Customs.
Export of goods/ software done through EDI ports
(i) The shipping bill shall be submitted in duplicate to the Commissioner of Customs concerned.
(ii) After verifying and authenticating, the Commissioner of Customs shall hand over to the exporter, one
copy of the shipping bill marked ‘Exchange Control (EC) Copy’ for being submitted to the AD within 21
days from the date of export for collection/negotiation of shipping documents.
(iii) The manner of disposal of EC copy of Shipping Bill shall be the same as that for EDF. The duplicate
copy of the form together with a copy of invoice etc. shall be retained by ADs and may not be submitted
to the Reserve Bank
Export of goods through Post
Postal Authorities shall allow export of goods by post only if the original copy of the EDF has been
countersigned by an AD. Therefore, EDF which involve sending goods by post should be first presented
by the exporter to an AD for countersignature. The procedure is as under:
(i) AD shall countersign EDF after ensuring that the parcel has been addressed to their branch or
correspondent bank in the country of import and return the original copy to the exporter, who shall then
submit the EDF to the post office with the parcel.
30
(ii) The duplicate copy of EDF shall be retained by the AD to whom the exporter shall submit relevant
documents together with an extra copy of invoice for negotiation/collection, within the prescribed period
of 21 days.
(iii) The concerned overseas branch or correspondent shall be instructed to deliver the parcel to consignee
against payment or acceptance of relative bill.
(iv) AD may, however, countersign EDF covering parcels addressed direct to the consignees, provided:
a) An irrevocable letter of credit for the full value of export has been opened in favor of the exporter
and has been advised through the AD concerned.
Or
b) b) The full value of the shipment has been received in advance by the exporter through an AD.
Or
c) The AD is satisfied, on the basis of the standing and track record of the exporter and the
arrangements made for realization of the export proceeds.
In such cases, particulars of advance payment/letter of credit / AD’s certification of standing, etc., of the
exporter should be furnished on the form under proper authentication.
(v) Any alteration in the name and address of consignee on the EDF form should also be authenticated by
AD under its stamp and signature.
SOFTEX Forms
(i) All software exporters can now file single as well as bulk SOFTEX form in the form of a statement in
excel format to the competent authority for certification. Since the SOFTEX data from STPI/SEZ are
being transmitted in electronic format to RBI, the exporters now have to submit the SOFTEX form in
duplicate as per the revised procedure. STPI/SEZ will retain one copy and handover duplicate copy to
exporters after due certification. As hitherto, the exporters have to provide information about all the
invoices including the ones lesser than US$25000, in the bulk statement in excel format.
(ii) Reserve Bank of India has extended the facility for online generation of the EDF Form Number and
the SOFTEX Form Number.
31
Trade Products
1. Inward Remittances
Foreign inward remittance into India comes on account of five major items:
1. Export of goods, services and performance across the border

2. Project export
3. Foreign investments into India
4. Profit/income earned on overseas direct investment and,
5. Inward remittances from NRI/PIO/foreign national.
The inward remittances for our customers are received in the bank’s Nostro account or in Vostro
account maintained by foreign banks with us through Society for Worldwide Inter-bank Financial
Telecommunication (SWIFT) messages for the purposes permissible under Foreign Exchange
Management Act (FEMA) 1999.
32
Modes of Inward Remittance in India:
Nostro Account: (ICICI Bank's foreign currency account with other Bank e.g. USD Nostro account with
JP Morgan Chase, NY)
Vostro Account: (Other Banks INR account with ICICI Bank e.g. Bank of China's INR account with
ICICI Bank, Mumbai)
ACU Mechanism: It is used for remittance from ACU member countries to each other, ACU countries
include Bangladesh, India, Nepal, Myanmar, Iran, Pakistan, Sri Lanka
Inward credits received are matched with the messages containing the details of the beneficiary. On
matching the same are assigned to the branches in IGRS to get disposal instructions. Branches to check
all three queues in IGRS Nostro, Vostro and ACU for settlement.
Process
Branch receives inward remittance notification through:
 For all foreign currency remittances (Nostro credits)

 TSU assigns all such credits to branches in I-GRS
 For INR (Vostro remittances)
 TSU assigns all such credits also to Branch in I-GRS under Vostro Credit.
Process at Branch:
1) TSU assigns the remittances to branches in IGRS (I- Global Remittance Settlement). IGRS can be
accessed on the link-
http://igrs.icicibankltd.com/WEBAPPLN/UI/COMMON/Login.aspx
2) Branch to intimate the customer about the receipt of inward remittance and seek necessary disposal
instructions. Refer Annexure 1a for Disposal Instruction format. Disposal Instruction to be received
through registered email id of the customer or in hard copy on the letter head of the firm.
3) Customer submits Disposal Instructions with applicable purpose of remittance. For detail process
instructions in case of purpose Advance against exports, refer Annexure 1b. For detail process
instructions in case of purpose -Foreign Direct Investment, refer Annexure 1c
4) In order to settle the remittance, forex rate can be booked by Relationship Manager from Fx on Call; or
Customer can book rate through Fx Online (if availing this facility); or can be settled by branch at card
33
rate (taken by TSU). Customer also has the option to settle with forward contracts if already booked with
treasury.
5) In case rate is booked through FX on Call for more than or equivalent USD 50000, customer needs to
connect on call along with the respective Relationship Manager.
6) A specific deal id is generated for the remittance amount when rate is booked from Fx On Call. Deal id
can be viewed by branch in Direct Rates Application (DRA)
7) Path for settlement in IGRS is: Menu >Transactions>Settlement
8) In settlement screen, Branch official to settle the cases by selecting the following options:
* 'Standard' as data source
* 'From & To Transaction Date'
* 'Matched & unmatched
* 'Branch-wise (Credits with SOL ID)' as report type
Click 'GO' for report generation.
9) In the settlement screen there are 3 options available:
Return Option: For returning the case to IGRS team along-with reason.
Hold Option: For Holding the transaction at branch end with hold reason.
Conversion Details for Settlement: Settlement Screen along-with conversion details
10) Branch needs to take print out of the Disposal Instructions received through email from the customer
and same needs to be filed in Inward Remittance File. If Disposal Instructions received in hard copy,
original needs to be filed in Inward Remittance File.
Responsibility at Branch:
 Check IGRS for credits assigned on daily basis

 Intimate customer
 Obtain disposal instructions (physical/registered email)
 Settle in IGRS for “Non Scrutiny” purpose codes
 File the disposal instructions
Note
 For Trade related transactions, in case rates are to be taken by TSU and transaction value is above
1 Million for JPY currency and 1 lakh for all other currencies (e.g. 100000 USD/GBP/EUR),
34
branch to provide the BM/DBM/SBH signatures along with stamp affixed on the branch checklist
/Disposal Instructions. Branch to scan the same to TSU and route the transaction through
Omniflow
 If any credit ,up to USD 10,000 equivalent, has to be settled in IGRS after 30 days, approval is
required from official not below the rank of AGM – Assistant General Manager from ETRG
Business Group/ Branches/ Mega Branches/ CMB. Settlement above USD 10,000 equivalent
requires approval from JGM and above from ETRG Business Group/ Branches/ Mega Branches/
CMB.
 In case of any difference in purpose as received in SWIFT and in disposal instruction, the purpose
as per SWIFT will prevail. In case of deviation, approval to be obtained from official not below
the grade of DGM of respective business group.
 Enhanced Due Diligence (EDD) for specified forex transactions above USD 500,000 or
equivalent For EDD format and process, refer Annexure 1 d
2. Outward Remittances
A- Advance Import Payments (SMI)
Features
 Buyer makes payment before the goods are shipped
 Seller is well known entity in international trade
 Seller has more bargaining power vis-a-vis the buyer
 Buyer’s credit worthiness is doubtful
 Monopolistic trend in specific commodity trading
Advantages
 Liquidity for seller
Basic documents required for Advance Import payment

1. Customer request letter
2. Proforma Invoice or Purchase Order
3. FEMA Declaration
4. Non Negative List
5. EDD on Indian Importer – If required
35
6. Due Diligence on foreign party
Due diligence required before processing SMI case

 Enhanced Due Diligence on the importer client shall be done in the format given in circular
12300 for all cases of advance remittance from India for import of goods or services if there is
any overdue bill of entry for advance import remittance as per last BEF reporting.
 If EDD on the client is not done then Branch/RM should confirm that there is no over-due bill of
entry related to advance import payment as per last BEF report
 Along with EDD on Importer a separate due diligence on overseas supplier shall also be done as
per guideline in circular 12300
Framework on ‘due diligence and KYC’ of overseas supplier

1. In case any of the following is satisfied then a separate due diligence on overseas supplier shall
not be required
a. Due diligence on the overseas party is not mandatory for a transaction value up to USD
10,000 (equivalent value).
b. Overseas supplier is a Fortune- 500/ Forbes International- 500/ Asia Week-1000
company
c. Valid and satisfactory Dun & Bradstreet (D&B) report
d. Whenever Google search report is submitted for the due diligence in the track, please
ensure it is submitted along with approval.
e. Standby Letter of Credit (SBLC)/Bank Guarantee (BG) from a bank overseas of
international repute is available as Advance Payment Guarantee (APG) to cover advance
payment being sent from India
f. Overseas supplier is a client of ICICI Bank overseas branch or subsidiary.
2. In case the requirements as stated in point 1 are not satisfied then the following due diligence
based on the over-due bill of entry as per the last BEF report should be satisfied:
AD banks may allow advance remittance from India for import of goods & services without an
unconditional, irrevocable guarantee or SBLC from an international bank of repute in favor of the
importer customers having good track-record and bonafides. Such advance payment should be subject to
ceiling as per RBI regulation, which are currently as following
1. The importer should be a customer of ICICI Bank
2. Advance payment should be made strictly as per the terms of the sale contract and should be
made directly to the account of the manufacturer/supplier concerned. For third party credit Third
party Import guideline to be followed
3. Physical import of goods into India should be made within six months (three years in case of
capital goods) from the date of remittance and the importer should give an undertaking to furnish
documentary evidence of import, within fifteen days from the close of the relevant period.
4. For Import above USD 1, 00,000 if Bill of Entry is not received within 180 days from the date of
advance payment, same will be reported to RBI in BEF statement.
5. Branch to follow the process Instruction 689 released for verification of Bill of Entry issued
through EDI ports in cases where Bills of Entry is received post the transaction.
The BoE with screenshot from the ICEGATE site should be uploaded in TMISC-Bill of Entry folder, in
omniflow along with Bill reference number & earlier track number for which the BoE has
Process at Branch:
36
1) Trade Desk Officer/Manager (TDO/TDM) to receive customer request letter (CRL) and related
documents. TDO/TDM to acknowledge the same with date and time stamp on customer copy as well as
original document. Refer Annexure 2a for CRL format.
2) TDO to check the documents as per Checklist in Annexure 2b
3) In order to make outward remittance, forex rate can be booked by Relationship Manager from Fx on
Call; or Customer can book rate through Fx Online (if availing this facility); or can be settled by branch at
card rate (taken by TSU).
connect on call along with the respective Relationship Manager.
5) For Trade related transactions, in case rates are to be taken by TSU and transaction value is above 1
Million for JPY currency and 1 lakh for all other currencies (e.g. 100000 USD/GBP/EUR), TDO/TDM to
provide the BM/DBM/SBH signatures along with stamp affixed on the branch checklist /Disposal
Instructions. TDO/TDM to scan the same to TSU and route the transaction through Omniflow.
6) A specific deal id is generated for the remittance amount when rate is booked from Fx On Call. This
can be dully checked and verified from DRA application.
7) If the documents are as per the checklist, TDO/TDM to initiate case in Omniflow under folder Import
SMI folder. All documents to be uploaded in respective folder. (E.g Proforma Invoice to be uploaded in
Invoice and CRL to be uploaded in CRL folder etc.)
8) TDO/TDM to seek relevant approvals as given in Checklist and save the approval file with relevant
approval name e.g. Approval to be uploaded in Omniflow along with other relevant documents (Incase
approval has been taken on mail please ensure mail to be saved in MHT file type and then upload).
TDO/TDM to release the case to TSU
9) While raising the track in omniflow, branch to mention deal id if rate is booked by customer, else
mention ' to be booked by TSU'
10) TSU official scrutinizes the Track. In case of any discrepancy, scrutinizer will reject the track to
branch tray. TDO/TDM to rectify the discrepancy and return the case to TSU (While returning the case
TDO/TDM should mentioned resolution provided against mentioned Discrepancy).
11) Post Scrutiny by TSU, when transaction is processed, TDO/TDM to print swift copy and debit advice,
handover to customer post obtaining the acknowledgement. In case customer is registered on Trade e-
alerts, system generated debit advice and swift copy is sent to his registered email id.
37
B- Open Account/Direct Import Payments (after shipment of goods)
Direct Import Payment (MDC)
Features
 The seller directly supplies the goods before payment as per agreed terms
 Buyer is at a stronger position in the deal
 Buyer and supplier enjoys good mutual trust
 Payment is made immediately after clearance of goods or on due date
Advantage
 Low transaction cost
Basic documents required for Direct Import payment

1. Customer request letter
2. Commercial Invoice
3. FEMA Declaration
4. Non Negative List
5. Transport documents Bill of lading/ Airway Bill
6. Bill of Entry OR valid reason for not submitting by client OR Account Manager / CSM
Relationship Manager (giving ref of discussion with client)
7. If import of non-physical imports, then certificate from CA evidencing the receipt of
software/image/drawing attached
8. If there is delay in payment for more than 6 months, then letter from customer mentioning the
reason for delay in remittance
Internal Approvals:
1. CMII approval, prop/part firm for value < USD 3 Lakhs
2. SM approval & customer declaration for late payment (beyond 6 months from date of shipment)
38
Process at Branch:
1) TDO/TDM to receive customer request letter (CRL) and related documents. TDO/TDM to
acknowledge the same with date and time stamp on customer copy as well as original document. Refer
Annexure 2c for CRL format.
2) TDO/TDM to check the documents as per Checklist in Annexure 2d
3) For outward remittance rates can be booked by Relationship Manager through FX on Call or Fx On
line by customer (if he is availing this facility) or rate booked by TSU. Customer can also use his Forward
deal if booked with treasury.
Call; or Customer can book rate through Fx Online (if availing this facility); or can be settled by branch at
card rate (taken by TSU).
connect on call along with the respective Relationship Manager. For Trade related transactions, in case
rates are to be taken by TSU and transaction value is above 1 Million for JPY currency and 1 lakh for all
other currencies (e.g. 100000 USD/GBP/EUR), branch to provide the BM/DBM/SBH signatures along
with stamp affixed on the branch checklist /Disposal Instructions. TDO/TDM to scan the same to TSU
and route the transaction through Omniflow.
6) A specific deal id is generated for the remittance amount when rate is booked from Fx On Call.
7) If the documents are as per the checklist, TDO/TDM to initiate case in Omniflow under folder Import
MDC. All documents to be uploaded in respective folder. (E.g Invoice to be uploaded in Invoice and
BL/AWB/LR to be uploaded in BL folder etc.)
8) TDO/TDM to seek relevant approvals as given in Checklist and save the approval file with relevant
approval name.eg. Approval to be uploaded in Omniflow along with other relevant documents (Incase
approval has been taken on mail please ensure mail to be saved in MHT file type and then upload).
TDO/TDM to release the case to TSU.
9) While raising the track in omniflow, branch to mention deal id if rate is booked by customer, else
branch tray. TDO/TDM to rectify the discrepancy and return the case to TSU (While returning the case
TDO/TDM should mentioned resolution provided against mentioned Discrepancy).
handover to customer along with Bill of Entry acknowledgement. In case customer is registered on Trade
e-alerts, system generated debit advice and swift copy is sent to his registered email id.
Critical Information:
39
 Direct import payment to be made within 6 months from import or shipment (for capital goods- 3
years). For any delay (after 6 months but within 3 years), client declaration along with SM or RM
or accounts manager recommendation for any delay and necessary due diligence to be obtained.
For more than 3 years RBI approval to be obtained through AD.
 Names of parties involved in the transaction, product, amount, currency, locations, terms of
payment should be consistent in all the documents
 For proprietorship or a partnership payment limit of MDC payment is USD 300,000 per invoice
 HS Code to be correctly mentioned by customer and should match with the goods imported. HS
code on Customer request Letter should match with that on DGFT site and Bill of Entry
Approvals to be obtained
 543 RM approval - where Seller is in China however seller's Bank account is outside China
 For any delay (after 6 months but within 3 years), client declaration along with SM or RM or
accounts manager recommendation for any delay and necessary due diligence to be obtained
 One time MDC approval for Partnership and Proprietorship firm (Approval will be Valid for 1
Year and preferably to be taken on I Process)
 14 Point approval from CMII in case Number of Bill of Entry is more than 10
40
Bill of Entry Verification & Updation Process
Bill of entry is the proof of receipt of goods in India. It is issued by the Customs authorities in
Quadruplicate. Original Exchange control copy is the only valid copy which can be considered while
making Outward remittances towards imports.
 For all EDI BOE (BOE’s issued from electronic ports) the BOE has to be verified through
ICEGATE & screenshot of the same scanned to TSU along with the transaction
 For EDI BOE, received subsequent to the transaction, BOE to be verified from ICEGATE &
screenshot uploaded in TMISC – Bill of Entry folder
 On quarterly basis, sample BOE’s should be sent to customs office for verification
 BOE to be submitted within 90 days from payment date in case of Advance Import
Payments/where the same is not submitted along with the Transaction
 BOE’s not submitted for more than 6 months for Import payments > USD 1 lakh reported to RBI
under “BEF” statement
Genuineness of Bill of entry needs to be verified before undertaking any import payment transaction.
The following details should be checked from the ICEGATE site with the physical BoE
(https://www.icegate.gov.in/TrackAtICES/beTrackIces)
 BoE Number and Date of Issue

 IEC Code
 Total Assessable Value
 No. of Packages & Gross Weight
 Total Duty
Following are some of the Red Flags which if observed, the transaction should NOT be processed
1. Prior Bill of entry:
BE flag marked as “N” Indicates normal BOE whereas BE flag marked as “Y” Indicates Prior BOE.
Prior BOE with flag “Y” cannot be considered as an evidence for goods imported into India and
transaction should not be processed.
2. “Out of Charge” (OOC) date:

Verify the ‘Out of Charge’ (OOC) date in the concerned column of ‘OOC’ with the exchange control
copy / triplicate copy of BOE. OOC date is the date when the goods have actually been cleared by
customs.
If OOC date is NA or blank, transaction should not be processed.
3. Verification of Assessment value on Physical BOE:

41
The assessment value mentioned on the physical BOE (in INR) should be approximately equal to the
foreign currency value being remitted. Only minor differences (due to exchange rates) are acceptable.
This is a critical check & transaction should not be processed in case of considerable difference
4. Verification of country of origin and supplier country on Physical BOE:
The country of origin mentioned on the BOE should tally with the country mentioned in the Supplier’s
address – in case of any mismatches observed, the transaction should not be processed without proper
due diligence (i.e. if country of origin on the BOE is UAE/Malaysia etc. & address of the supplier is
Hong Kong etc.)
Updation in INBOEM module in finacle
If all the details of the BoE submitted are matching with the details available in Finacle, branch to update
the BoE detail in I Core under INBOEM option.
a) If BoE received for Partial value, full BoE received flag in INBOEM should be updated as “N”
b) If BoE received for full value, full BoE received flag in INBOEM should be updated as “Y”
c) If BoE received value is more than the Invoice/Bill value, TDO/TDM to check with customer if
additional value is part of some other import bill handled by us.
d) The field for ‘Full BoE received’ can be updated as “Y” for Provisional BOE’s (in case full value of
BoE has been received).
e) Branches to mention “PROVISIONAL” in the BOE Details field while updating Provisional BOE in
INBOEM module
e) Branch to also update, Date of entry, BoE number, BoE date, Invoice No, Date of invoice, Currency
and Amount in INBOEM option.
B. Scanning of BoE copy to TSU in Omniflow
Post updation of BoE detail on INBOEM, branch must scan the BoE with screenshot from the ICEGATE
site in Omniflow under TMISC-Bill of Entry folder, along with Bill reference number for which the BoE
has been received
C. Maintenance of BoE File & Register
 Bill of Entry filing to be done serial no wise.

 Register to be maintained for BOE where details of all BOE received to be entered.
 Each BOE is to be given a serial no as per the register and serial no to be manually written on top
of the BOE received.
 Screenshot of ICEGATE is to be filed along with the BOE.
Bill of entry Register to be maintained:

42
ICEGATE Finacle Bill Omniflow track number

BOE
Customer verification FCY_Am reference (Both Bill and INBOEM
Sr.No Date Number
Name done ount ( Import updation if BOE submitted
& date
YES/NO Bill Ref ) later )
1
2
D. Quarterly activity of sending BoE to customs for verification
a) Branch should regularly (Quarterly) send randomly selected “bills of entries” to the customs
houses for verification of their genuineness
b) Every quarter SR is raised centrally on respective branches with list of Import transactions
reference for which BOE needs to be sent to respective customs office for verification
c) In addition to bill reference shared in SR, TDO/TDM to ensure unusual BOE received at branch
(suspicious) should also be sent to customs for verification
d) Unusual BoE should be selected based on the following points: Unstamped and Unsigned BoE,
BoE paper is different, BoE size is different, BoE colour is different, BoE overall look and feel is
different, BoE texture is different etc.
Record Maintenance:
 A separate file named “BoE Custom Verification “should be maintained by the branch where
photocopies of the selected sample BoE are filed.
 The POD (proof of delivery) of the BoE sent to the customs must also be kept in the file on
record for audit.
 In case of any related correspondence from the customs is received, the same should also be
filed.
Outward Remittance for Non-Trade payments
Royalty, Marketing expenses, Travel bookings & Software Import
Process at Branch:
1) TDO/TDM to receive request for an outward remittance along with other documents from the
customer. Acknowledge the same with the stamp by putting date & time of receipt on customer copy
as well as original.
43
2) TDO/TDM to check the availability of documents as per Branch checklist in Annexure 2e

Call; or Customer can book rate through Fx Online (if availing this facility); or can be settled by
branch at card rate (taken by TSU)
4) For Trade related transactions, in case rates are to be taken by TSU and transaction value is above 1
Million for JPY currency and 1 lakh for all other currencies (e.g. 100000 USD/GBP/EUR),
TDO/TDM to provide the BM/DBM/SBH signatures along with stamp affixed on the branch
checklist /Disposal Instructions. TDO/TDM to scan the same to TSU and route the transaction
through Omniflow.
5) TDO TDM to scan the documents and raise track in Omniflow under SMTSMD folder
branch tray. TDO/TDM to rectify the discrepancy and return the case to TSU (While returning the
case TDO/TDM should mentioned resolution provided against mentioned Discrepancy)
handover to customer post obtaining the acknowledgement. In case customer is registered on Trade e-
alerts, system generated debit advice and swift copy is sent to his registered email id.
3. Bills for Collections
Import Collection Bills (MFC)
 Collection means Bank’s handling of Commercial or Financial Documents as per instructions

received from the seller’s Bank to
 Obtain Acceptance and / or Payment from the Buyer
 Deliver Commercial Documents against Acceptance and / or against Payment
 Deliver Documents on other terms & conditions
 Branch receives import bill from exporter's bank & scans the same to TSU
 Once the bill is lodged, branch to release the documents to customer based on type of bill (sight
or usance)
44
 Documents to be released ONLY after obtaining payment/acceptance, depending whether

bill is sight/usance
Features
 Greater involvement of Banks

 Documents moved through Banking Channel
 Seller submit documents to his bank as Agent for Collection
 Documents are presented to buyer through Correspondent Bank
 Documents are released after
o Payment from Buyer (Document against Payment i.e. D/P) or
o Acceptance from Buyer (Documents against Acceptance i.e. D/A)
Documents Required for Bill lodgment

 Covering Schedule of foreign bank
 Invoice
 B/L or AWB or MTD
 Bill of Exchange
 In case of documents received under LC, copy of each type of document received from the
foreign bank along with the number of copies received for each type of document
Post scrutiny:
 Branch to present PMEMO to customer for payment/ acceptance
 Branch should not release the sight bill before customer making payment
 Usance bill should not be released without bill of exchange accepted by client
Process at Branch:
1) TDO/TDM receives documents from Foreign/Negotiating Bank and acknowledges the same by
affixing stamp along with date and the time of receipt of documents. TDO/TDM to ensure documents
are lodged in Omniflow on same day without any delay.
2) TDO/TDM checks the availability of documents as per the covering schedule of the foreign bank.
3) TDO/TDM to scan the documents in Omniflow as per checklist, initiate case in Omniflow under
MFC folder (Sight Bill where payment has be made immediately) or QMC (Usance Bill where
payment to be made in due course of time) and mention Omniflow Track number on the documents.
Quick Bill (QMC) process details are given on next page.
4) While raising the track in omniflow, TDO/TDM to mention deal id if rate is booked by customer, else
branch tray (GTSU will send swift tracer to foreign bank Regarding Discrepancy, TDO/TDM to
ensure same is done at TSU's end and customer to be informed). TDO/TDM to rectify the
discrepancy and return the case to TSU.
6) Post Scrutiny by TSU, when transaction is processed, branch to print swift copy and debit advice,
handover to customer along with Bill of Entry acknowledgement. In case customer is registered on
Trade e-alerts, system generated debit advice and swift copy is sent to his registered email id.
Post documents scrutiny by TSU
1) TDO/TDM to mention Bill ref no. generated from icore on all documents.
45
2) Print the Presentation Memo (from menu option HPMEMO in icore) and send it to the customer.
Presentation memo to be acknowledged by customer to mark his acceptance.
Process to be followed for Sight (D/P- Documents against Payment) Import bills
1) Customer submits request letter (CRL) to make payment. Refer Annexure 3b for CRL format.
2) On receipt of customer instructions to make the payment of a Sight Import bill, TDO/TDM to check
the documents as per checklist in Annexure 3c and scan the same to TSU.
3) TDO/TDM to ensure that customer's account has sufficient account balance for payment.
4) TDO/TDM to scan the documents in Omniflow to TSU for realization. (TDO/TDM to use I-flow i.e.
Parent track to be utilized for making payment). TDO/TDM should not raise fresh track if parent
track is available. Refer Annexure 3d for I Flow process.
5) Original documents to be released to customer only on realization of the bill at TSU (i.e. after the
amount for import payment is debited from customer's account)
6) TDO/TDM to print swift copy and debit advice, handover to customer. In case customer is registered
on Trade e-alerts, system generated debit advice and swift copy is sent to customer's registered email
id.
Process to be followed for Usance (D/A- Documents against Acceptance) Import bills
1) Customer submits request letter (CRL) to make payment refer Annexure 3e for CRL format.
2) On receipt of customer instructions to make payment on due date of the Import Bill, TDO/TDM to
check the documents as branch checklist as per Annexure 3f and scan the same to TSU.
3) Original documents to be released to customer when acceptance has been marked in icore.
4) On due date customer submits request letter to make the payment against the import bill. Request
letter as per Annexure 3g is required.
5) TDO/TDM to scan the documents in Omniflow to TSU for realization
Critical Information
 TDO/TDM to store original documents in FRFC under joint custody and certify number of copies
received as mentioned on foreign bank covering schedule Branch in no case has to send original
bills to record management agency until these are paid (realized) and closed in icore.
 TDO/TDM to ensure acceptance to be taken on Bill of Exchange in case of Usance Bill
 TDO/TDM to ensure that original documents are handed over to customer after endorsing and
signing the transport documents.
 TDO/TDM to handover original document to the customer or person authorized by the customer
along with ID proof of such person. TDO/TDM to verify customer's signatures on authority letter.
Acknowledgment to be filed in branch records.
 TDO/TDM to release original documents to the customer, in case of (i) Usance Bills – only after
the case for acceptance is approved by TSU in Omniflow i.e. case is successfully processed by
TSU
 In case of sight bills documents to be released to customer only on realization of the bill at TSU
(i.e. after the amount for import payment is debited from the customer account).
 TDO/TDM must monitor the due date of Usance Bills and ensure that payment is made by
customer on or before due date.
Quick Import Bill under Collection (QMC)

46
Quick Import Collection Bills (QMC) for faster TAT and release of Import documents to customer post
acceptance/payment.
 Branch to scan the documents for Import Bill under collection to TSU in the QMC queue
 Post Scrutiny TDO can print P-Memo and Acceptance Memo directly from omniflow
Benefits:
Reduces the time taken for delivering the P-Memo to the customer.
 Facilitates Customer First i.e. Presentation memo dispatch is de-linked with I-Core processing
thereby improving customer service.
 Facilitates parallel processing instead of sequential processing.
 Customer can get the delivery of goods faster, no delay/ demurrage to be paid at customs.
Note: In case there is any discrepancy observed in the Omniflow P-Memo, highlight the same to TSU &
print the P-Memo from I-Core
Export Collection Bills (XFC)
 Under XFC, our customer is the Exporter in India and Importer is in foreign country
 Exporter ships the goods and presents the documents to the branch
 Branch initiates XFC track for lodgement of bills under collection
 TSU lodges the bill and generates bill reference id (XFC no)
 Branch takes print of covering schedule from icore & couriers the documents to
importer/importer's bank (as per customer's instructions)
 Importer's bank hands over the documents to the importer depending on payment terms
(sight/acceptance in case of usance)
 Importer makes payment to our customer (exporter) in India as per the payment terms
o Branch receives the credit in I-GRS and settles it with P0102 purpose code by mentioning
the XFC no in 'bill id' field
 In XFC, we are only acting as a presenting/remitting bank without any payment obligation
 Documents are handled as per provisions of URC 522
Process for Export Bills Collection – Lodgement
1) TDO/TDM receives the Customer request letter as per Annexure 16 along with the bank copy and
beneficiary copy of documents which has to be sent to foreign bank. TDO/TDM should ensure
marking the receipt date, initial and time on both the copies.
2) TDO/TDM to check the availability of documents as per the branch checklist in Annexure 17
3) TDO/TDM to scan the documents in Omniflow as per checklist, initiate case in Omniflow under XFC
folder or QXC folder as per the requirement and mention Omniflow Track number on the documents.
47
All bills up to USD 500000 should be scanned under QXFC except for the ones mentioned in the
detailed process of QXFC given on next page.
4) TDO/TDM should additionally scan the filled in copy of DHL airway bill for TSU to enter the airway
bill details in bill module under which the documents will be dispatched to the foreign bank.
5) In case of a Merchanting Trade transactions, TDO/TDM needs to check merchant trade guideline as
per circular 11307
Note:
6) In case the exports are under project export, the approval letter to be scanned along with the
documents.
7) The project export approval letter also needs to be endorsed for the value of exports being done.
8) Check whether GR is super scribed with the PEM approval number
Post scanning activities by the Branch
TSU official scrutinizes the Track. In case of any discrepancy, scrutinizer will reject the track to branch
tray, TDO/TDM to rectify the discrepancy and return the case to TSU for bill lodgment purpose
Post documents scrutiny by TSU
TDO/TDM to mention Bill ref no. generated from icore on all documents.
After processing of transaction, on receipt of case in branch notification queue in omniflow, TDO/TDM
should print the Foreign Bank covering schedule from icore option HFBCS. If track raised under QXC
covering schedule can be directly printed from omniflow from the track QXC notification track from the
option "Print Bill"
TDO/TDM should then segregate the Documents into two sets. One set of documents (as per customer
instructions) to be couriered to foreign bank and another as office copy for records. Branch should use the
same DHL airway bill (scanned to TSU) while dispatching the document. It is mandatory to attach the
Foreign Bank Covering Schedule generated post processing of the Export Bill
TDO/TDM is required to cross check the number of copies as mentioned on the covering schedule are
correct before the documents are dispatched to foreign bank.
TDO/TDM is also required to mention the Courier Receipt number in the “NOTES” section of omniflow
and then close the case.
Original L/C to be endorsed in case the documents are presented under L/C (also write the balance
available) and returned to the customer. File one copy for the record
QXFC – Quick XFC for faster processing of Export bills:
Dispatch of export documents on the same day is one of the key requirement of the exporters.
Currently all the Export documents under collection received are not dispatched on the same day to the
overseas party/ bank.
48
On raising a XFC track branch has to wait till TSU completes Finacle checking post which cover
schedule can be printed from Finacle and documents can be dispatched.
In order to improve this, Post document scrutiny, covering schedule can be directly printed from
Omniflow containing the I-Core reference number (XXXXQXCXX5XXXXX)
For dispatch of documents & entries in I-Core would be completed subsequently.
This will reduce TAT for Non LC Export Bills to be sent on collection and will help reduce turnaround
time from scanning to TSU to printing of covering schedule to 1 hour (from 4 hours currently)
Track to be raised under Export - QXFC queue for Quick Bill.
Threshold: NON LC & LC Export Bills up to USD 500,000 can be processed under this arrangement.
Benefits
 Customer delight as documents submitted up to cut off time (4.30) can also be dispatched on
same day
 Branches can meet the courier pickup time as TAT is considerably reduced
49
Process for Export Bill Realization (XFM)
At branch level, TDO/TDM will receive the intimation from TSU about the list of credit received &
search the credits in the common pool account
TDO/TDM should then contact the customer to inform about the receipt of remittance credits, take
disposal instructions from registered email id and then settle the remittance through direct rates/use of
forward contract mentioning the purpose of remittance and export bill reference number at the time of
settlement. TDO/TDM needs to settle the same and mention correct deal ID after checking from DRA
application (Applicable only for Direct Rates)
After the inward remittance is settled, TDO/TDM is required to print debit & credit advices and handover
the same to customer. In case customer is registered on Trade e-alerts, system generated debit advice and
swift copy is sent to customer's registered email id.
Critical information
 In case of dispatch done by the customer (C to C), Status Holder Certificate - I memo approved
by CM-1 & above required to be attached by the TDO/TDM while scanning the documents in the
track
 For documents submitted against LC validity along with terms of LC should be checked
Framework for processing export proceeds received from Third Parties
The AML/Fraud risk in such transactions normally arises on the following counts:
 Remittances arising from high risk countries (such as the UAE/Hong Kong/Vietnam) other than
the country to which the exports have actually been made Remittances made from another
country to evade the restrictions/taxes etc. in the country of buyer
 The money trail is difficult to establish and the market players (buyers & remitters) are generally
unknown
 Over-invoicing of value of exports & payments received from third parties for claiming of duty
drawback
50
 As the clarification from RBI did not take away the onus of AML/KYC risk, a framework has
been finalized for processing of such third party transactions
Please note that the framework will not be applicable in the following cases:
 Where exporters are aware at the time of shipment of the goods that the remittance will be
received from the third party, however the name of such third party is not mentioned on the EDF
form
 Exporters who are in the RBI exporter’s caution list or having 5 or more cases of overdue export
advances against which shipment is not made for more than two years (ascertainable through
overdue P0103 in our bank), exporters who are under investigation by any regulatory body
Framework
Sr.No Scenario Framework

1. The remitter is an overseas a) Business group to verify the relationship
parent/sister company or group (Google search or any documentary evidence
company of the buyer of goods. to be attached in the approved memo) between
the buyer and remitter. Business group to
Example: Exporter sells goods to check that line of business of the buyer is
overseas buyer “X”. However money justified with the goods purchased.
will be paid by its group/parent/sister
company.
b) Business group to conduct Due Diligence of

the exporter (Annexure 1). This could be
approved by the Business Official AGM &
above.
c) Customer declaration (Annexure 2)

detailing –
(i) the reason why the name of the third party is

not mentioned on EDF/Shipping Bill as
required in terms of RBI regulations.
(ii) The relationship between the buyer & the

remitter & the basis for such relationship
2. Third party is an alternative buyer.
a) Business group to conduct Due Diligence of
This may be possible due to the the exporter (Annexure 1). Such due diligence
original buyer not accepting the should be approved by the Business Official
delivery of the goods due to quality AGM & above
issues etc. The exporter finds a
different buyer within the same b) Customer declaration (Annexure 2) detailing
country or different country. the reason why the name of the third party is
not mentioned on the EDF/Shipping Bill
Example: Exporter receives original
51
order from “X”. Once the goods are c) Shipping documents (in case new buyer is
exported to X but he rejects the same located in another country), commercial
due to quality issue etc. The exporter invoice between exporter and new buyer and
finds a new buyer”Y” in the overseas any document / correspondence evidencing
market since bringing goods back to there is a change in original buyer and new
India will not be economical. buyer has accepted the goods

Accordingly money will be received d) Compliance with RBI guideline i.e.
from ‘Y’ but EDF will carry the name reduction/variation in invoice value should not
of ‘X’. exceed 25% of the original invoice and export
proceeds to be realized within 12 months from
the date of original export

Note: Such transactions would arise in
exceptional cases, hence approving
authority to exercise necessary due
diligence while approving such cases.
3. The goods are sold to the overseas a) Same as point 1 (b) and (c).
Buyer. The buyer gets the export b) Business group to ensure that such
document discounted with overseas overseas factoring agency is a renowned
factoring / discounting agency (similar finance company for the overseas buyer.
like Purchase discounting) under Satisfactory Google check to substantiate
which such financial agency makes that the remitter is factoring / discounting
payment directly to the exporter to house. A list of such acceptable factoring
ensure the end use of funds. houses is enclosed in Annexure 3.
c) Swift message to be taken stating that the
This may be possible since such said remittance done by factoring agency is
agency or factoring house will act as a on behalf of original buyer including the
finance company for the overseas details of invoice.
buyer.
52
Obligations of Authorized Dealers
Receipt of advance against exports
(1) In terms of Regulation 15 of Notification No. FEMA 23 (R)/2015-RB dated January 12, 2016, where
an exporter receives advance payment (with or without interest), from a buyer outside India, the exporter
shall be under an obligation to ensure that the shipment of goods is made within one year from the date of
receipt of advance payment; the rate of interest, if any, payable on the advance payment does not exceed
London Inter-Bank Offered Rate (LIBOR) + 100 basis points; and the documents covering the shipment
are routed through the AD Category – I bank through whom the advance payment is received.
Provided that in the event of the exporter’s inability to make the shipment, partly or fully, within one year
from the date of receipt of advance payment, no remittance towards refund of unutilized portion of
advance payment or towards payment of interest, shall be made after the expiry of the said period of one
year, without the prior approval of the Reserve Bank.
AD Category – I banks will have to report all the inward remittances including advance as well as old
outstanding inward remittances received for export of goods/ software to EDPMS. Further, AD Category
– I banks need to report the electronic FIRC to EDPMS wherever such FIRCs are issued against inward
remittances.
(2) AD Category- I banks can also allow exporters having a minimum of three years’ satisfactory track
record to receive long term export advance up to a maximum tenor of 10 years to be utilized for execution
of long term supply contracts for export of goods subject to the conditions as under:
 Firm irrevocable supply orders and contracts should be in place.

 Company should have capacity, systems and processes in place to ensure that the orders over the
duration of the said tenure can actually be executed.
 The facility is to be provided only to those entities, which have not come under the adverse notice
of Enforcement Directorate or any such regulatory agency or have not been caution listed.
 Such advances should be adjusted through future exports.
 The rate of interest payable, if any, should not exceed LlBOR plus 200 basis points.
 The documents should be routed through one Authorized Dealer bank only.
 Authorized Dealer bank should ensure compliance with AML / KYC guidelines
 Such export advances shall not be permitted to be used to liquidate Rupee loans classified as
NPA.
 Double financing for working capital for execution of export orders should be avoided.
 Receipt of such advance of USD 100 million or more should be immediately reported to the
Trade Division, Foreign Exchange Department, Reserve Bank of India, Central Office, Mumbai.
 In case Authorized Dealer banks are required to issue bank guarantee (BG) / Stand by Letter of
Credit (SBLC) for export performance, then the issuance should be rigorously evaluated as any
other credit proposal keeping in view, among others, prudential requirements based on board
approved policy.
o BG / SBLC may be issued for a term not exceeding two years at a time and further
rollover of not more than two years at a time may be allowed subject to satisfaction with
relative export performance as per the contract.
o BG / SBLC should cover only the advance on reducing balance basis.
o BG / SBLC issued from India in favor of overseas buyer should not be discounted by the
overseas branch / subsidiary of bank in India.
53
 D Category – I banks may allow the purchase of foreign exchange from the market for refunding
advance payment credited to EEFC account only after utilizing the entire balances held in the
exporter’s EEFC accounts maintained at different branches/banks.
(3) AD Category- I banks may allow exporters to receive advance payment for export of goods which
would take more than one year to manufacture and ship and where the ‘export agreement’ provides for
shipment of goods extending beyond the period of one year from the date of receipt of advance payment
subject to the following conditions:-
(i) The KYC and due diligence exercise has been done by the AD Category – I bank for the overseas
buyer;
(ii) Compliance with the Anti-Money Laundering standards has been ensured;
(iii) The AD Category-I bank should ensure that export advance received by the exporter should be
utilized to execute export and not for any other purpose i.e., the transaction is a bonafide transaction;
(iv )Progress payment, if any, should be received directly from the overseas buyer strictly in terms of the
contract;
(v) The rate of interest, if any, payable on the advance payment shall not exceed London Inter-Bank
Offered Rate (LIBOR) + 100 basis points;
(vi) There should be no instance of refund exceeding 10% of the advance payment received in the last
three years;
(vii) The documents covering the shipment should be routed through the same authorized dealer bank;
and
(viii) In the event of the exporter's inability to make the shipment, partly or fully, no remittance towards
refund of unutilized portion of advance payment or towards payment of interest should be made without
the prior approval of the Reserve Bank.
(4) (i) It is further reiterated that AD category –I banks should exercise proper due diligence and ensure
compliance with KYC and AML guidelines so that only bonafide export advances flow into India.
(ii) Doubtful cases as also instances of chronic defaulters may be referred to Directorate of Enforcement
(DoE) for further investigation. A quarterly statement indicating details of such cases may be forwarded
to the concerned Regional Offices of RBI within 21 days from the end of each quarter.
Delay in submission of shipping documents by exporters
In cases where exporters’ present documents pertaining to exports after the prescribed period of 21 days
from date of export, AD Category – I banks may handle them without prior approval of the Reserve
Bank, provided they are satisfied with the reasons for the delay.
Return of documents to exporters

54
The duplicate copies of EDF and shipping documents, once submitted to the AD Category – I banks for
negotiation, collection, etc., should not ordinarily be returned to exporters, except for rectification of
errors and resubmission.
Follow-up of overdue bills
(i) AD Category – I banks should closely watch realization of bills and in cases where bills remain
outstanding, If the exporter fails to arrange for delivery of the proceeds within the stipulated period or
seek extension of time beyond the stipulated period, the matter should be reported to the Regional Office
concerned of the Reserve Bank stating, where possible, the reason for the delay in realizing the proceeds.
(ii) The duplicate copies of EDF/SOFTEX Forms should, continue to be held by AD Category – I banks
until the full proceeds are realized, except in case of undrawn balances.
(iii) AD Category – I banks should follow up export outstanding with exporters systematically and
vigorously so that action against defaulting exporters does not get delayed.
Reduction in invoice value
(i) If, after a bill has been negotiated or sent for collection, its amount is to be reduced for any reason, AD
Category – I banks may approve such reduction, if satisfied about genuineness of the request, provided:
a) The reduction does not exceed 25 per cent of invoice value:
b) It does not relate to export of commodities subject to floor price stipulations
c) The exporter is not on the exporters’ caution list of the Reserve Bank,
d) The exporter is advised to surrender proportionate export incentives availed of, if any.
(ii) In the case of exporters who have been in the export business for more than three years, reduction in
invoice value may be allowed, without any percentage ceiling, subject to the above conditions as also
subject to their track record being satisfactory, i.e., the export outstanding do not exceed 5 per cent of the
average annual export realization during the preceding three financial years.
(iii) For the purpose of reckoning the percentage of export bills outstanding to the average export
realizations during the preceding three financial years, outstanding of exports made to countries facing
externalization problems may be ignored provided the payments have been made by the buyers in the
local currency.
Change of buyer/consignee
Prior approval of the Reserve Bank is not required if, after goods have been shipped, they are to be
transferred to a buyer other than the original buyer in the event of default by the latter, provided the
reduction in value, if any, involved does not exceed 25 per cent of the invoice value and the realization of
export proceeds is not delayed beyond the period of 9 months from the date of export.
Write-off of unrealized export bills

55
(i) An exporter who has not been able to realize the outstanding export dues despite best efforts, may
either self-write off or approach the AD Category – I banks, who had handled the relevant shipping
documents, with appropriate supporting documentary evidence. The limits prescribed for write-offs of
unrealized export bills are as under:
Self “write-off” by an exporter 5%*

(Other than Status Holder Exporter)
Self “write-off” by Status Holder Exporters 10%*
‘Write-off” by Authorized Dealer Bank- 10%*
*of the total export proceeds realized during the previous calendar
year.
(ii) The above limits will be related to total export proceeds realized during the previous calendar year
and will be cumulatively available in a year.
(iii) The above write-off will be subject to conditions that the relevant amount has remained outstanding
for more than one year, satisfactory documentary evidence is furnished in support of the exporter having
made all efforts to realize the dues,
a) The overseas buyer has been declared insolvent and a certificate from the official liquidator indicating
that there is no possibility of recovery of export proceeds has been produced.
b) The overseas buyer is not traceable over a reasonably long period of time.
c) The goods exported have been auctioned or destroyed by the Port / Customs / Health authorities in the
importing country.
d) The unrealized amount represents the balance due in a case settled through the intervention of the
Indian Embassy, Foreign Chamber of Commerce or similar Organization;
e) The unrealized amount represents the undrawn balance of an export bill (not exceeding 10% of the
invoice value) remaining outstanding and turned out to be unrealizable despite all efforts made by the
exporter;
f) The cost of resorting to legal action would be disproportionate to the unrealized amount of the export
bill or where the exporter even after winning the Court case against the overseas buyer could not execute
the Court decree due to reasons beyond his control;
g) Bills were drawn for the difference between the letter of credit value and actual export value or
between the provisional and the actual freight charges but the amounts have remained unrealized
consequent on dishonor of the bills by the overseas buyer and there are no prospects of realization.
(iv) The exporter has surrendered proportionate export incentives if any, availed of in respect of the
relative shipments. The AD Category – I banks should obtain documents evidencing surrender of export
incentives availed of before permitting the relevant bills to be written off.
(v) In case of self-write-off, the exporter should submit to the concerned AD bank, a Chartered
Accountant’s certificate, indicating the export realization in the preceding calendar year and also the
amount of write-off already availed of during the year, if any, the relevant EDF to be written off, Bill No.,
56
invoice value, commodity exported, country of export. The CA certificate may also indicate that the
export benefits, if any, availed of by the exporter have been surrendered.
(vi) However, the following would not qualify for the write off facility:
a) Exports made to countries with externalization problem
b) EDF which are under investigation by agencies like, Enforcement Directorate, Directorate of Revenue
Intelligence, Central Bureau of Investigation, etc. as also the outstanding bills which are subject matter of
civil / criminal suit.
vi) AD banks are advised to put in place a system under which their internal inspectors or auditors
(including external auditors appointed by authorized dealers) should carry out random sample check /
percentage check of write-off outstanding export bills.
ix) Cases not covered by the above instructions / beyond the above limits, may be referred to the
concerned Regional Office of Reserve Bank of India.
Process:
 Branches to receive customer letter as & other documents
 Verify the signature & scan the documents in folder TMISC –product team approval
 GTSU to process the write off or recommend to RBI through branches
Note: Detailed process & request letter is captured in eCircular.13879
Write-off – relaxation
As announced in the Foreign Trade Policy (FTP), 2015-20, realization of export proceeds shall not be
insisted upon under any of the Export Promotion Schemes under the said FTP, subject to the following
conditions:
a) The write off on the basis of merits is allowed by the Reserve Bank or by AD Category – I bank on
behalf of the Reserve Bank, as per extant guidelines;
b) The exporter produces a certificate from the Foreign Mission of India concerned, about the fact of non-
recovery of export proceeds from the buyer; and
c) This would not be applicable in self write off cases.
Set-off of export receivables against import payables
AD category –I banks may deal with the cases of set-off of export receivables against import payables,
subject to following terms and conditions:
57
(i) The import is as per the Foreign Trade Policy in force.
(ii) Invoices/Bills of Lading/Airway Bills and Exchange Control copies of Bills of Entry for home
consumption have been submitted by the importer to the Authorized Dealer bank.
(iii) Payment for the import is still outstanding in the books of the importer.
(iv) Both the transactions of sale and purchase may be reported separately in R-Returns and FETERS.
(v) The relative EDF will be released by the AD bank only after the entire export proceeds are adjusted /
received.
(vi) The set-off of export receivables against import payments should be in respect of the same overseas
buyer and supplier and that consent for set-off has been obtained from him.
(vii) The export / import transactions with ACU countries should be kept outside the arrangement.
(viii) All the relevant documents are submitted to the concerned AD bank who should comply with all the
regulatory requirements relating to the transactions.
Set-off
 Set-off of export receivables against Import payment against the same party
 Explicit consent from overseas party has been taken
 Does not include payment to/from ACU countries
 All export documents along with import documents have been submitted to the same party
Note : Process as per eCircular.11567
Netting-off of export receivables against import payments – Units in Special Economic Zones (SEZs)
AD Category - I banks may allow requests received from exporters for ‘netting off’ of export receivables
against import payments for units located in Special Economic Zones subject to the following:
(i) The netting off of export receivables against import payments is in respect of the same Indian entity
and the overseas buyer / supplier (bilateral netting) and the netting may be done as on the date of balance
sheet of the unit in SEZ.
(ii) The details of export of goods are documented in EDF (O) forms / DTR as the case may be while
details of import of goods / services are recorded through A1 / A2 form as the case may be.
(iv) The export / import transactions with ACU countries are kept outside the arrangement.
(v) All the relevant documents are submitted to the concerned AD Category – I banks who should comply
with all the regulatory requirements relating to the transactions.
Netting off
58
 Netting off of export receivables against import payment to same party

 Allowed only for units in Special Economic Zones (SEZ)
 EDF/SDF forms to be adjusted and mentioned against A1/A2 form
 Does not include payment to/from ACU countries.
Note : Process as per Annexure 45 of eCircular.11567
Refund of export proceeds
AD Category – I banks, through whom the export proceeds were originally realized may consider
requests for refund of export proceeds of goods exported from India and being re-imported into India on
account of poor quality. While permitting such transactions, AD Category – I banks are required to:
(i) Exercise due diligence regarding the track record of the exporter
(ii) Verify the bona-fides of the transactions
(iii) Obtain from the exporter a certificate issued by DGFT / Custom authorities that no incentives have
been availed by the exporter against the relevant export or the proportionate incentives availed, if any, for
the relevant export have been surrendered
(iv) Obtain an undertaking from the exporter that the goods will be re-imported within three months from
the date of remittance and
(v) Ensure that all procedures as applicable to normal imports are adhered to.
59
Bank Realization Certificate (eBRC)
BRC is a certificate issued by the AD with whom the exporter lodges the Export Bill stating:
1. Remittance to the extent of 100% against the bill value has been received; or
2. Goods of 100% of the remittance value have been exported
Reason for requirement of BRC by the exporter:
1. To avail the benefits arising out of the export transaction (duty draw-back, etc.)
2. Document which enables them to get the taxation and other benefits.
3. Required by auditor for ascertaining the export turnover for accounting purpose.
Post Export bill Realization/ Regularization eBRC is uploaded on DGFT site. Customer can download the
eBRC online through DGFT site.
Process for E-BRC correction

Post Export realization eBRC is uploaded on DGFT site, in some cases customer approach branch for
rectification of data uploaded on eBRC
Actionable for TDO's
1. Branch to receive the Customer request for the correction of the e-BRC details uploaded on
DGFT site.
2. Branch to raise track in Omniflow at TMISC – Correction of eBRC path
3. TSU checks the status of e-BRC on DGFT server whether 'utilized' or 'available'. In case the
status of eBRC is utilized then Bank cannot proceed with eBRC rectification.
4. After verification of export data TSU rectifies the eBRC on DGFT
60
Process for GR waiver Certificate issuance

Customer may approach trade desk requesting for issuance of GR waiver certificate to customs.
List of purpose for providing GR waiver:
Sr. Situations Documents/details to be obtained.

No.
A Trade samples of goods and Detailed application on company letter head signed by
publicity material supplied free of authorized signatories as per Annexure 34A
payment
Export Invoice mentioning that goods are trade samples
or publicity material free of payment;
Contract, agreement, two-way correspondence or
communication with overseas party.
FEMA Declaration
B Personal effects of travellers, Detailed application on company letter head signed by

whether accompanied or authorized signatories as per Annexure 34A listing the
unaccompanied items of personal effects
FEMA Declaration
C Ship's stores, trans-shipment cargo Detailed application on company letter head signed by
and goods supplied under the orders authorized signatories as per Annexure 34A
of Central Government or of such
FEMA Declaration
officers as may be appointed by the
Central Government in this behalf Copy of the central Government order
or of the military, naval or air force
61
authorities in India for military,

naval or air force requirements
D Goods or software accompanied by Detailed application cum declaration on company letter

a declaration by the exporter that head signed by authorized signatories as per Annexure
they are not more than twenty five 34A stating that the value of goods is not more than
thousand USD or equivalent in USD 25000 or its equivalent
value;
FEMA Declaration
Export Invoice
E By way of gift of goods

accompanied by a declaration by
Detailed application-cum-declaration on company letter
the exporter that they are not more
head signed by authorized signatories as per Annexure
than five lakh rupees in value
34A, stating that the value of goods by way of gift is not
more than five lakh rupees
Export Invoice
FEMA Declaration
F Aircraft or aircraft engines and Detailed application-cum-declaration on company

spare parts for overhauling and/or letterhead signed by authorized signatories as per
repairs abroad subject to their re- Annexure 34A
import into India after
FEMA Declaration.
overhauling /repairs, within a
period of six months from the date RM/ BM/ BM-Commercial Approval for marking
of their export deviation
Export Invoice
G Goods imported free of cost on re- Detailed application-cum-declaration on company

export basis letterhead signed by authorized signatories as per
Annexure 34A, stating that the goods imported on re-
export basis are free of cost
FEMA Declaration.
Export Invoice & Invoice of Import. (Invoice to indicate
that the shipment is free of cost).
Copy of contract, agreement, two-way correspondence
62
or communication with overseas party.

Copy of Bill of Entry of goods imported.
H Goods not exceeding U.S.$ 1000 or As per current AMLOCK policy of Bank, any
its equivalent in value per transaction with Myanmar is not permissible
transaction exported to Myanmar
under the Barter Trade Agreement
between the Central Government
and the Government of Myanmar.
I The following goods which are Detailed application-cum-declaration on company

permitted by the Development letterhead signed by authorized signatories as per
Commissioner of the Export Annexure 34A, stating that the imported goods are
Processing Zones, Electronic found defective and are being sent for the purpose of
Hardware Technology Parks, their replacement by the foreign supplier /collaborator or
Electronic Software Technology that the goods imported from foreign
Parks or Free Trade Zones to be re- suppliers/collaborators are on loan basis or that the
exported, namely: goods imported from foreign supplier/collaborator are
free of cost, found surplus after production operations as
Imported goods found defective, for
the case may be. Customer letter to indicate expected
the purpose of their replacement by
time of re-import of the goods.
the foreign suppliers/collaborators;
Export Invoice
Goods imported from foreign
suppliers/collaborators on loan Permission letter issued by the Development
basis; Commissioner of the EPZ, EHTP, STP or FTZ
Goods imported from foreign Copy of contract, agreement, two-way correspondence
suppliers/collaborators free of cost, or communication with overseas party.
found surplus after production
Copy of Bill of Entry of goods imported earlier
operations.
RM/ BM/ BM-Commercial Approval for marking
Note: Goods listed at items (1), (2)
deviation
and (3) to be re-exported by units in
Special Economic Zones, under FEMA Declaration.
acknowledged intimation or
courier/speed post/ POD addressed
to the Development Commissioner
of Special Economic
Zones/concerned Assistant
Commissioner or Deputy
Commissioner of Customs;
J Replacement goods exported free of Detailed application-cum-declaration on company

charge in accordance with the letterhead signed by authorized signatories as per
provisions of Foreign Trade Policy Annexure 34A, stating that the replacement goods are
in force, for the time being. exported free of charge in accordance with the
63
provisions of Foreign Trade Policy in force.

Export Invoice
Copy of Bill of entry of the imported goods received in
India for replacement
RM/ BM/ BM-Commercial approval for marking
deviation
FEMA Declaration
or communication with overseas party.
Note:
There may be transactions where bill of entry is not

available as the goods to be replaced may have been
destroyed by the foreign party at their end. GR waiver
can be issued without insisting on bill of
entry/destruction certificate.(subject to transaction
details)
K Goods sent outside India for testing Detailed application-cum-declaration on company

subject to re-import into India letterhead signed by authorized signatories as per
Annexure 34A, stating that the goods are being exported
for re-import after repairs / maintenance
Export invoice
Copy of contract , agreement, two-way correspondence
or communication with overseas party
deviation
L Defective goods sent outside India Detailed application-cum-declaration on company

for repair and re-import letterhead signed by authorized signatories, stating that
the goods imported are defective and are being sent
outside India for repair and re-import
Re-export Invoice & Import invoice
Copy of Bill of Entry of goods imported along with
copies of the Import Invoice.
64

deviation
FEMA Declaration
Copy of contract , agreement, two-way correspondence
or communication with overseas party
M Exports permitted by the Reserve Customer request letter on company letterhead as per
Bank, on application made to it, Annexure 34A stating export in compliance of terms &
subject to the terms and conditions, conditions of RBI approval
if any, as stipulated in the
Copy of RBI approval
permission.
Export Invoice
N Export of goods free of cost, for Detailed application-cum-declaration on company

export promotion, letterhead signed by authorized signatories as per
Annexure 34A, stating that the export of goods is free of
cost
FEMA Declaration
Export Invoice
or communication with overseas party, if any.
Statutory Auditor’s/Practicing Chartered Accountant’s
certificate from the customer stating that the amount
requested for GR waiver does not exceed 2 percent of
average annual exports of the applicant during the
preceding three years and the same does not exceed Rs 5
Lac per annum. And in the case of Status Holder
Exporters: Rs 10 Lacs or 2 percent of the average annual
export realization during the preceding the three
licensing years.
Status Holder Certificate, if applicable
O Export items for display or display- Detailed application-cum-declaration on company

cum-sale in trade fairs/exhibitions letterhead signed by authorized signatories as per
outside India. Unsold exhibit items Annexure 34A, stating
may be sold outside the
the sale proceeds of the items sold would be repatriated
exhibition/trade fair in the same
to India in accordance with Foreign Exchange
country or in a third country. Such
Management (Realization, Repatriation and Surrender of
sales at discounted value are also
Foreign Exchange) Regulations, 2000.
permissible. It is also permitted to
“gift” unsold goods up to the value the exporter would report within 60 days from the date
of USD5000/- or its equivalent per of GR waiver the method of disposal of all items
65
exporter, per exhibition/trade fair. exported, as well as the repatriation of proceeds to India
to us.
deviation
P In any other case not covered Approval from RBI required for waiver of GR.
above.
1. In any other case not covered above, Approval from RBI required for waiver of GR.
2. Branch to obtain purpose wise supporting documents as per circular 11567 & 13029
3. Raise track to document in Omniflow under TMISC (GR waiver folder) with purpose wise
documents
4. Branch to print and issue GR waiver certificate post TSU confirmation on track.
4. Letter of Credit (LC)
 An arrangement of making payment against stipulated documents

 Used worldwide for settlement of trade between seller and buyer / exporter & importer
 Regulated by latest version of UCPDC of ICC (UCC 600)
“LC is a trade payment arrangement whereby a bank (issuing bank) acting at the request of the customer
undertakes to pay a third party (beneficiary) by a given date as per agreed terms and conditions and
against presentation of credit compliance documents”
Import Letter of Credit

66
It is a written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request, and in
accordance with the buyer’s (applicant) instructions to effect payment up to a stated amount, against
stipulated documents and on a prescribed date.
Important Guideline:
 Import LC should be opened only on behalf of banks own customers.

 LC should be opened only in favour of overseas supplier, manufacturer of shipper of goods
and not in favor of applicant himself or his nominee
 LC should be opened based on underlying sales contract, purchase offer, proforma invoice.
Such documents should have the confirmation and acceptance of both overseas supplier and
importer.
 In respect of transferable LCs, transfer is restricted to specified second beneficiary within the
country of first beneficiary or another country which conforms to prescribed manner of
payments.
 Revolving LCs to be opened with reference to aggregate drawings under such LC and
shipment dates
Advantages of Letter of Credit to Importers:

 While accepting a LC, the supplier guarantees to meet the terms and conditions of letter of credit
with documentary proof.
 Since buyer is the holder of Letter of credit, Bank acts on behalf of buyer. Opening bank remits
amount only after satisfaction of all terms and conditions of letter of credit with documentary
proof.
 A letter of credit transaction reduces the risk of non-performance by the supplier,
 Another advantage of letter of credit to a buyer/importer is that the exporter/seller receives
payment of exported goods only after shipment and meeting of all necessary requirements under
LC terms and conditions with presentation of documentary proof including evidence of shipment.
 Unlike other shipments, a shipment under Letter of credit is treated with most care to meet
delivery schedule and other required parameters by the exporter. The documents receive by buyer
promptly and quickly with complete sets. Unless meeting delivery schedule and prompt
documentation, the supplier does not get his payment from opening bank. This is one of the major
advantages of LC for an importer is concerned.
 An importer/buyer is concerned; he can plan his payment schedule properly by anticipating the
requirements under letter of credit. This arrangement makes importer for easier planning.
 Based on timely delivery schedule, buyer receives goods on time thereby he can execute his
business plan smoothly and efficiently, in turn satisfying his clients promptly and effectively.
Advantages of Letter of Credit (LC) to exporters

 One of the best methods after advance mode of payment for any business transaction is Letter of
Credit (LC) mode, as buyer’s bank guarantees payment to seller through seller’s bank on
presentation of required documents as per LC.
 The major advantage of Letter of credit to a supplier is minimizing of credit risk. In an import and
export trade, the geographical distance between importer and exporter is very far; hence
ascertaining credit worthiness of buyer is a major threat. In a mode of Letter of credit, such risk
can be avoided.
67
 Buyer cannot deny payment by raising dispute on quality of goods, as letter of credit terms and
conditions are based on documentation. Some of the fraudulent buyers deliberately delays or hold
payments by complaining on quality of goods. In a letter of credit terms of business transactions,
rejection of export payment by raising complaint on quality of goods cannot be effected.
 LC provides a security to exporter which is another advantage of a letter of credit. Based on such
security, the exporter can preplan his further business activities to strengthen his business world.
 In a letter of credit, any dispute in transaction can be settled easily, as LC terms and conditions
are under the guidelines of uniform customs and practice of documentary credit.
 In a letter of credit, all required documents have been mentioned well in advance of shipment and
there is no confusion or misunderstanding to the importer (buyer) to inform supplier to act in
between.
 Against a Letter of Credit, an exporter can avail pre shipment finance from banks or other
financial institutions.
 In a letter of credit, an exporter can ensure that he receives full amount as per LC which helps
seller to plan future business ideas.
 Another advantage under a Letter of Credit transaction is that the exporter receives money on
time. So if a business man receives his anticipated amount on time, he can plan his business
activities smoothly without wasting time.
 Normally and widely, a confirmed irrevocable LC is opened by buyer and seller which is suitable
for both. A ‘confirmed irrevocable letter of credit’ is a ‘confirmed order’ for any exporter is
concerned. So the exporter need not worry on cancellation of his export order or changes in said
order.
 Meeting delivery schedule by proper production plan is one of the major advantages under a letter
of credit terms of business. Normally, under a non LC business terms, the buyer may keep on
changing delivery schedule as per their requirements time to time.
Parties involved in a Letter of Credit – LC
Applicant of Letter of Credit.

Applicant is the party who opens Letter of Credit. Normally, buyer of goods is the Applicant who
opens letter of credit. Letter of credit is opened as per his instruction and necessary payment is
arranged to open Letter of credit with his bank. The applicant arranges to open letter of credit
with his bank as per the terms and conditions of Purchase order and business contract between
buyer and seller.
LC Issuing Bank
Issuing Bank is the bank who opens letter of credit. Letter of credit is created by issuing bank
who takes responsibility to pay amount on receipt of documents from supplier of goods
(beneficiary under LC).
Beneficiary party
Beneficiary is the party under letter of credit who receives amount under letter of credit. The LC
is opened on Beneficiary party’s favor. Beneficiary party under letter of credit submits all
required documents with is bank in accordance with the terms and conditions under LC.
68
Advising Bank
Advising bank, as a part of letter of credit takes responsibility to communicate with necessary
parties under letter of credit and other required authorities.
Confirming Bank
Confirming bank is one of the other parties involved in Letter of Credit. Confirming bank as a
party of letter of credit confirms and guarantee to undertake the responsibility of payment or
negotiation acceptance under the credit.
Negotiating Bank
Negotiating Bank, who negotiates documents delivered to bank by beneficiary of LC. Negotiating
bank is the bank who verifies documents and confirms the terms and conditions under LC on
behalf of beneficiary to avoid discrepancies
Reimbursing Bank
Reimbursing bank is the party who authorized to honor the reimbursement claim of negotiation/
payment/ acceptance.
Types of Letters of Credit
1. Irrevocable Letters of Credit - Such LCs can neither be modified nor cancelled without the
agreement of all concerned parties. (In terms of Article 2 of UCP 600, all credits are to be
irrevocable.)
2. Revocable LC: - LC can be amended or cancelled by the issuing bank at any time without prior
notice to beneficiary.
3. Revolving Letters of Credit: The amount available after negotiation of documents under letter
of credit reverts to the original amount as soon as the negotiating bank receives advices from the
opening bank that the documents have been paid by the drawee. The revolving letter of credit
should always bear the following stipulation "This letter of credit being revolving, the amount of
drawings there under would not be reinstated until receipt of our advice of payment of the bills by
the drawee."
4. Transferable Letter of Credit: At the request of first beneficiary may be transferred to a new
beneficiary in whole or in part by a nominated bank in the credit (Article 38 UCP 600).Credit can
be transferred only if it is specifically stated as ―transferable in the credit.
5. Back-to-Back Letters of Credit: Under a Back-to-Back Credit concept, the Seller, as

Beneficiary of the first Credit (Master Credit), offers it as "security" to his bank for the issuance
of the second Credit (Slave Credit). As Applicant for the Slave Credit, the Seller is responsible
for reimbursing the bank for payments made under it, regardless of whether or not he himself is
paid under the Master Credit.
6. Red Clause Letters of Credit : A Red Clause Letter of Credit is an irrevocable Letter of Credit,
incorporating a clause which permits the Advising Bank to assist the Seller to pay for the goods
he is exporting by granting him an advance of the purchase, or some part thereof, before the
69
goods are dispatched by him. If shipment is not effected any advance will be claimed from the
Issuing Bank who guarantees the lending.
7. Green Clause Credit: It is an extended version of Red Clause Credit in the sense that it not only
provides for advance towards purchase, processing and packing, but also for warehousing and
insurance charges at port when the goods are stored pending availability of ship/ shipping space.
8. Confirmed LC.
L/C to which another bank (other than the issuing bank) has added its confirmation. Thus, in case
of confirmed L/C, beneficiary has undertaking from two banks – i) issuing bank and ii)
confirming bank. Confirmation is added at the request of the issuing bank. Only irrevocable L/Cs
are eligible for adding of confirmation
Process Flow -LC
 Buyer and seller agree on contract for sale

 Buyer arranges for his bank to open a LC in favor of seller
 Buyer's (Issuing) bank sends LC to advising bank
 Advising bank forwards the LC to the seller
 Seller prepares the goods and arranges for shipment
 Seller presents the shipping documents to the negotiating bank
 Negotiating bank provides credit to beneficiary and forwards a reimbursement claim to the
reimbursing bank
 The reimbursing bank pays the negotiating bank on due date as per instructions issued to it by the
issuing bank
 On receipt of payment, the negotiating bank adjusts outstanding export bill
 The issuing bank debits the applicant account and adjusts the debit entry in the Nostro account
 Once the issuing bank receives the documents it releases the to The buyer
 Buyer receives the documents and take possession of the shipment
Process at Branch:
 TDO/TDM to receive duly filled LC application form along with other documents from the
Customer refer Annexure 18 for LC application format (MFA not executed) and Annexure 19 for
MFA executed.
 TDO/TDM to verify customer signature in LC application and other documents
 TDO/TDM to scrutinize the documents submission by customer as per branch checklist in
Annexure 20
 If documents are in order, TDO/TDM to scan the documents and initiate a case in Omniflow
under MLC folder
 TSU official scrutinizes the Track. In case of any discrepancy, scrutinizer will reject the track to
branch tray. TDO/TDM to rectify the discrepancy and return the case to TSU (While returning
the case TDO/TDM should mentioned resolution provided against mentioned Discrepancy).
 TDO/TDM to note down the LC number on the LC application form on receipt of the track from
TSU.
 TDO/TDM to keep the FDR on record with all LC documents by applying revenue stamp
 TDO/TDM to endorse the original import license, if not imported under Open General License
(OGL). After endorsement, take a copy and keep along with relevant documents.
70
 TDO/TDM to print debit advice for charges and handover to customer along with SWIFT copy
after taking the signature of the customer’s authorized representative
Common Swift Message Types in LC
 MT700/MT701 – Issuance of LC
 MT707 – Amendment to LC
 MT720/721 - Transfer of a Documentary Credit
 MT730 - Acknowledgement
 MT732 - Advice of Discharge
 MT734 - Advice of Refusal
 MT740 – Authorization to Reimburse

 MT747 – Amendment to MT740
 MT792 – Request for Cancellation
 MT799 – Free Format Message
71
5. Bank Guarantee (BG)
 Issued by Bank for a specific Performance / Obligation on behalf of their Customer (Applicant) to
a third party (Beneficiary)
 Guarantees a specified Amount to the Beneficiary in case of breach of contract or performance by
the Applicant
 Bank issuing a Guarantee will pay beneficiary the amount specified on presentation of a written
demand as outlined in the Guarantee
 BGs are not issued in Standardized Format & the terms and conditions depend on the requirement
of each case
 Valid till the specific period / date with or without claim expiry date
Process at Branch:
1) Customer submits request letter (CRL) as per format and other documents. Refer Annexure 21 for
CRL format. TDO to acknowledge documents and affix date and time stamp on customer copy as
well as original documents In case of a Company, Board Resolution (BR) is also required as per
standard format in Annexure 22.
2) TDO/TDM to check the availability of documents as per Checklist in Annexure 23
3) Bank Guarantee may be issued against 100% Fixed Deposit Margin or against limit available in
customer's current account.
BG against 100% FD margin
1) Customer to provide FD for amount more than equal to BG amount. If fixed deposit (FD) is not
provided along with BG request, a new fixed deposit is to be created by branch as per existing deposit
creation process. Branch to ensure that FD is in Auto renewal mode with No nomination and Fixed
Deposit Receipt is printed on secured stationery. FD to be duly discharged by customer and kept in
safe custody of the branch. FD Repayment a/c should be branch SLCOLLN a/c
2) TDO/TDM to prepare Appraisal Note (As per Annexure 24) and get it approved by designated
officials as per CAAM Encore 10916
3) TDO/TDM to affix Inscription clause on FDR. Refer Annexure 25 for inscription clause
4) TDO/TDM to raise track in Omniflow under BGFD100 folder scanning all documents and approvals.
Documents Required for BG against FD
1) Customer request letter

2) Soft copy (Editable Format) & hard copy of BG text
3) Application for Facility along with terms & conditions
72
4) In case of company borrowing Board resolution

5) Duly discharged FD receipt Printed on secured Stationery
6) Appraisal Note
7) Copy of calculator where pricing is I-base linked
8) I Memo approval from DFP as per CAAM
9) If third party deposit holder is a company, board resolution as per format from the company pledging
FD
10) Copy of bye-Laws where the entity is society
11) In case of limit to be set on accrued interest till date I-core screen print (trial closure method)
5) Branch checklist
BG against Limit
1) If BG is to be issued against limit in customer's current account, TDO to ensure that CAL details are
provided by concerned BLG Relationship Manager. CAL details may be verified by the TDO in
IBCM by entering cust id or limit id. Limit id can be checked from icore (menu option HLTL)
2) TDO/TDM to raise track in Omniflow under DBG folder scanning all documents and approvals.
TDO to ensure that while raising the track Limit ID is mentioned in Notepad and Checklist.
Documents Required for BG Issuance Against Limit
1) Customer request letter

2) Soft copy (Editable Format) & hard copy of BG text
3) CAL to be updated in IBCM
4) Margin Money details as per CAL
5) Omnibus Indemnity as per format (Required where postal Clause, Fax indemnity and onerous clauses
included in Text)
6) Branch Checklist
Common Process for BG against FD/Limit
1) TDO to obtain stamp paper from the customer as per Local stamp act (Refer universe path for
information on local stamp act Universe > Business Groups > Legal > Stamp Duty)
branch tray. TDO to rectify the discrepancy and return the case to TSU.
3) Final BG to be printed on serially numbered security stationery (for cases where the beneficiary of the
Bank Guarantee is IATA, final BG needs to be printed on IATA stationery/plain paper/letterhead of
ICICI BANK)
BG Handover
a) If BG is to be handed over to applicant: BG to be handed over to the applicant along with two
covering letters, one addressed to the beneficiary and the other addressed to the applicant, confirming the
issuance of the BG. Click here for covering letter formats.
73
TDO to use icore menu option HBGPRINT for printing Covering letter (Applicant Copy & Beneficiary
Copy). BG text as attached in pdf file (in Omniflow track approved by TSU) to be printed on secured
stationary.
b) If the guarantee is to be handed over to beneficiary: Before handing over, confirmation (from at least
one authorized signatory) from applicant should be obtained either on mail or on hard copy.
c) Documents filed should contain a photocopy of the stamp paper that forms a part of the beneficiary
copy of the BG issued.
TDO to ensure that authorized signatories, as per PAAM must sign the Final Bank Guarantee printed on
serially numbered security stationery along with their Signature nos. and names i.e. (Two Officials
(minimum DM-I) at least one of whom should be M-I (DM-II for amounts up to `10.0 million)
Critical Information
 Original Documents should be kept in the safe custody of the Branch in FRFC
 For cases where the beneficiary of the Bank Guarantee is IATA, final BG needs to be printed on
IATA stationery/plain paper itself.
 TDO/TDM to handover original BG to the customer or person authorized by the customer along with
ID proof of such person. TDO/TDM to verify customer's signatures on authority letter.
Acknowledgment to be filed in branch records. BG Handover to be record in BG Register
6. Supplier’s/Seller’s Credit
 Credit extended by Seller to the Buyer at Post shipment stage for export transaction
 Documents against Acceptance
74
 Open Account (Direct Imports)

 Payment in arrears
 Buyer agrees with seller to pay after the shipment of goods
 Used in regular business relationship between two parties
 High degree of trust is required between buyer and seller
 Credit extended by Seller’s banker to seller at the request of buyers banker in import transaction
 To be arranged before opening of LC
 Generally L/C to be confirmed and negotiated
7. Buyer’s Credit
 Credit extended by Bank/FI situated outside India to importer or to importer’s bank

 It can also be called a loan arranged by Importer
 Only for payment of imports into India
 Only after shipment has taken place and a transport document is produced as proof
75
 Maturity of Loan up to one year for Raw Material and 5 years for Capital Goods
 Loan to be arranged for maximum of 6 months, which can be rolled over further (in case of
jewellery import, maximum allowed period is 90 days)
 Maximum Amount: USD 20 mio per transaction
 Exporter gets payments immediately
 Pricing: Maximum 6m L+350 bps
8. Export Credit Facilities
Pre Shipment Finance
 To enable exporters to procure raw materials, processing, manufacturing, packing, transportation

and warehousing of goods meant for export.
 The tenor of the facility is up to 6 months
 Disbursement is against a confirmed order/LC
76
 Can be offered in both Rupee (EPC) or Foreign Currency (PCFC)
Post Shipment Finance
 To finance the receivables (credit period offered by the exporters)

 The tenor of post-shipment credit is also up to 6 months
 Disbursement is against submission of export bills constituting Transport documents of goods
shipped
 Can be Offered in both Rupee (PSC) or Foreign currency (PSCFC)
Export Bills Negotiation
 A facility to provide post-shipment finance to exporter who is operating under LC

 EBN is done on bank limits by blocking limits of LC issuing/confirming bank by IFIG
o Acceptance from LC issuing/confirming bank is required before negotiation
o Customer does not need to get any limits/credit facility sanctioned from ICICI Bank
 A facility that helps exporters to obtain funds for use as working capital before the due date of
export bills
 After shipping goods, Seller presents the Documents, if found in order by the Negotiating Bank,
it pays the Party With or Without Recourse
 Types of Bills Negotiated:
 Sight
 Usance bills up to 180 days
Important Link/ URLs & circulars
Important enabler & Links
I Resolve: http://iresolve.icicibankltd.com/iResolve/default.aspx
SES Microsite: http://universe.icicibankltd.com/businessgroups/rclg/SES/asp/index.asp
Omniflow: http://tradefactory.icicibankltd.com:12550/webdesktop/faces/login/logout_1.jsp
77
IGRS: http://igrs.icicibankltd.com/WEBAPPLN/UI/COMMON/Login.aspx
SMSA: http://10.50.85.107/Login.aspx
DRA: http://10.16.15.84/DirectRates/forms/Login.aspx
Important Circulars
Circular
S.No. Product
No
Import
Servicing of Import related trade transactions – Import LC issuance, Amendment,
1 SMI, MDC, MFCL, MUBMFB, Third party Import, Issuance of delivery order, Bill of 12300
entry updation
11624,
2 Framework for advance import remittance
12300
78
3 Trade Credit for Imports into India- Buyers Credit & Supplier Credit 12217
Export
Servicing of Export and export LC related trade transactions ( XFC, XFM, Third party
1 Export, eBRC, GR waiver, Deemed Export, Netting off, Export LC service, Advising, 11567
confirmation, Transfer of LC, Pre shipment Credit, Post shipment Credit.
11450 &
2 Export of Goods-Receipt of advance payment against exports
11567
Inland Trade
Servicing of Inland related Trade Transactions ( Inland LC Opening/ Amendment/
1 Cancellation/ Advising/ Transfer/ Confirmation, Bills under LC, Inward collection bill, 12335
Outward bill )
2 Inland Bill Discounting – LCBD 13819
Remittances
Inward Remittance ( SSI, Purpose code change, Remittance with Incomplete swift
1 12314
info, FIRC, )
Processing of Outward Remittances ( Non-Import Outward Remittance, Foreign DD
2 12444
issuance/ Cancellation, EEFC Balance conversion, )
1 Bank Guarantee 12186
Others
1 Limit set up process for facilities backed by Deposit 12980
Approval of Transactions by Bank as an Authorized Dealer- ( FDI, ODI, ECB, Export
2 13879
bill write off-EBW, Project/Branch/Liaison office )
3 Overseas Tour Operators Account 13575
4 Trade Deviations 12175
Trade Checklists
Inward Remittance Disposal Instruction
Indicative format of Disposal Instructions (DI) for inward remittance
Henceforth, the branches are required to obtain the Disposal instruction (DI) from the beneficiary in the
revised format as below. (Instead of Annexure-D of 12314, Instead of the Annexure-47 of e-circular no.
11567). Format of undertaking to be obtained from the client receiving advance payment against exports
to manufacture & ship (EG-MAPE) & long term advances (EG-LAPE) to be as per Annexure-48 of e-
circular no. 11567.
(To be submitted by the client who has not given Standing Settlement Instruction)
79
Date:
Ref:
The Branch Manager,
ICICI Bank Limited,
____________ Branch.
Dear Sir,
Disposal Instructions for the inward remittance.
With reference to your e-mail and/or telephonic intimation dated-------, we furnish below the desired
information for disposal of the inward remittance.
1. Details of Inward Remittance:
1 Foreign Currency & Amount
2 Name & Address of Remitter
3 Value date
4 Purpose (Tick √ as applicable) Details Code
(a) Offsite Software Exports# {} Advance against offsite software exports
{} Offsite software exports - SOFTEX has not

been certified (Certified SOFTEX will be
submitted to ICICI Bank within 21 days of
certification)
{} Certified SOFTEX available (please

provide export bill reference number or
Acknowledged covering letter of other bank
handling SOFTEX along with a certified copy
of the SOFTEX)
(b) { } Exports other than advance

payment (give bill no)
80
(c) { }Shipment to be made within 12 months of

receipt (EG-SAPE)
{ } Manufacture & Shipment to be made after

{ } Advance payment against 12 months of receipt. (EG-MAPE)
exports (APE) (Tick √ as applicable)
{ } Long term advance up to 10 years (EG-
LAPE)
{ } Merchant Trade-Export Leg (EG-MTTE)
(d) { } Capital account receipts
(e) { } Other receipts (Not covered in

above)
Note: Where the purpose of inward remittance is as per para 4 (b) to (d) above, additional
documents required if any, in consultation with the branch be also submitted.
#'Software' means any computer programme, database, drawing, design, audio/video signals, any
information by whatever name called in or on any medium other than in or on any physical medium. We
hereby declare that we will be filing SOFTEX form for certification for the underlying transaction for
which the inward remittance has been received and the certified SOFTEX form will be submitted to
ICICI Bank within 21 days of certification.
We hereby declare and represent that the underlying transaction for which inward remittance has been
received does not include:
• Any person/ entity sanctioned by OFAC, European Union, UK HM Treasury, United Nations, India and/
other such authorities/ countries
• A sanctioned country viz Myanmar*, Iran, North Korea (Democratic People’s Republic of Korea),
Cuba, Syria or Sudan
* In case of transactions involving Myanmar, the available underlying documents (e.g. Proforma invoice,
bill of lading, etc.) to be submitted for processing the inward remittance
2. Where the shipment of goods is to be made within one year from the date of receipt of advance
payment, we hereby confirm and undertake that;
1. The shipment of goods will be made within one year from the date of receipt of advance payment
and shipping documents will be routed/submitted to the Bank within 21 days of the date of shipment;
OR
The software will be exported within one year from the date of receipt of advance payment and
certified SOFTEX will be submitted to ICICI Bank within 21 days of certification
81
2. the rate of interest, if any, payable on the advance payment does not exceed London Inter-Bank
Offered Rate (LIBOR) + 100 basis points;
3. In the event of our inability to make the shipment, partly or fully, within one year from the date of
receipt of advance payment, no remittance towards refund of unutilized portion of advance
payment or towards payment of interest, shall be made after the expiry of the said period of one
year, without the prior approval of the Reserve Bank.
4. The export advance will not be used for repayment of loans availed of from Indian Banks.
5. Please find enclosed the Underlying bill copy/Confirmed order copy/Agreement copy/Contract
Copy clearly defining the expected date of shipment to the Bank along with this instruction.
3. Please arrange to credit the said inward remittance in the following manner.
S/No Particulars Currency Amount
(a) Adjust EPC No.______________, if any
(b) Credit to EEFC or Foreign Currency Account

No.___________________
(c) Credit the balance and/or full amount into operative account
No._______________ at the exchange rate, if already
contracted, & given in para 4 below.
Note: Any one or two or three of the above options may be applicable. Please complete
accordingly.
4. Details of Exchange Rate Contract, if any.
Sr. Particulars Exchange Currency Amount

No. Rate
(a) Deal ID No.________________ booked on_______
(b) Utilization of Forward / Option Contract

No.___________ booked on _________.
(c) Balance amount/ full amount ( if no deal and/ or -XXX-

forward contract booked) be taken at prevailing
exchange rate
Note: Any one or two or all of the three options as given herein above may be applicable. Please
complete accordingly.
82
We shall supply the additional information/ documents required if any, in the matter upon hearing from
you. Your charges may be debited to our account No.______________ with you.
Thanking you.
Yours faithfully,
for _______________________________
Authorized Signatory / (ies)
Advance Import Payment (SMI)
Annexure 18

CHECKLIST FOR ADVANCE IMPORT REMITTANCE/BILL

NAME OF APPLICANT : _________________________________________________________

Track No.:__________________________________________________________________
Date of Receipt:
Time of Receipt:
Branch: __________________________ Key Client :
Yes/ No
Whether IE Code
FX RATE : (TICK CORRECTLY)
1. TO BE TAKEN BY TSU : _______________
A) FROM EEFC ACCOUNT : _____________
B) NOSTRO FUNDING (BANK DETAILS) : _____________________
C) BUYERS’ CREDIT : __________________________
2. DIRECT RATE TAKEN BY CLIENT : ___________________________
A) CASH/TOM/SPOT RATE (DEAL ID) : _______________________
B) FORWARD RATE (FWC NO. FROM FINACLE) : _____________
EDC IF ANY : __________________________________________

S.No. Points to be checked Remarks
A/C No. (to be debited for charges) - Mention current account no of
1
customer
83
2 Funds Available for charges and remittance amount YES / NO

3 Customer's signature verified along with branch stamp YES / NO
4 Specify Exact Remittance amount in FC
5 Any reference earlier Bill of Entry, please mention
Ensure IE code is valid and updated in finacle.
6 Check H S code. If restricted, relevant license to be attached with
endorsement
Check whether IBAN no provided for beneficiaries of Saudi Arabia,
7 Jordan, Kuwait, UAE, Qatar & check whether CNAPS code available for
payment in CNY to China.
In case of partnership or proprietorship, if the invoice value exceeds
8
USD 300000 equivalent, whether RBI approval taken
Whether MT202 (not required if SXR is given) or MT 910 uploaded in
9 case of rerouting the funds returned or making import payment based on
BC.
S.
Documents to be submitted Nature Yes/No
No.
1 Customer Request Letter M
Copy of Invoice with payment terms as specifying advance payment

2 M
along with stamp and signatures of both beneficiary & applicant
3 Advance Import declaration for SMI (as per process instruction 754 )
4 Copy of Bill of lading /airway bill Courier / MTD M

5 An undertaking to submit bills of entry M
6 FEMA declaration or One time FEMA declaration I
7 NNL declaration pertaining to latest Foreign Trade Policy I
8 Any other document submitted by customer
9 I
Check for availability of DGCA license for aviation related purchase
10 If payment is going to 3rd party, then document evidencing relationship

between beneficiary and 3rd party to be submitted. Firm irrevocable
purchase order /tripartite agreement
In case of Merchanting Trade, ensure the following documents are being

11 filled as the specified format and scanned: MTT declaration, 15 CACB,
Export Invoice, Import Invoice, Form A2 and Inward Detail/Deviation
Details.
If remitting amount more than USD 10000 then KYC and due diligence
certification or Overseas supplier is a Fortune 500 / Forbes International
14
500 list/ Asia week 1000 company/ valid and satisfactory Dun &
Bradstreet (D&B) report
84
If Import of non-physical imports, then certificate from CA evidencing

15
the receipt of software/image/drawing attached
If there is delay in payment for more than 6 months, then letter from
16 customer mentioning the reason for delay in remittance (as per RBI
guideline)
Mode of payment for Gold transactions:
a. Delivery against payment basis OR
17 b. Suppliers Credit basis OR
c. Consignment basis OR
d. Unfixed Price basis
18 For import of gold, provide details as per gold import checklist
Other Observations, if any, please mention hereunder:

Approvals To be Checked For
In case rates are to be taken up by TSU and transaction value is above -1 Million for JPY and
1 1 lakh for all other currencies (e.g. 100000USD/GBP/EUR) provide the BM/BOM/SBH
signature along with an affixed stamp on the checklist scanned to TSU
Relevant approval to be taken for Late utilisation of deal (I-Memo to be in approved status
2
before scanning to TSU)
3 EDD related approval for pending BoE. (Process Instruction 830)
Payment going to Hongkong but the beneficiary is from China, then safe approval to be
4
provided (Process instruction 543)
CMII approval if address as per Google is a mismatch with beneficiary address mentioned on
5
invoice copy.
6 RM approval for no BOE outstanding in last BEF report
CSE CSM TRADE MANAGER
85
Direct Import Bill (MDC)
Annexure 15

CHECKLIST FOR DIRECT IMPORT REMITTANCE/BILL

NAME OF APPLICANT :____________________________________________________________

Track No.:_____________________________________________________________________

Branch: ______________________________

FX RATE : (TICK CORRECTLY)
1. TO BE TAKEN BY TSU : _______________
A) FROM EEFC ACCOUNT : _____________
B) NOSTRO FUNDING (BANK DETAILS) : _____________________
C) BUYERS’ CREDIT : __________________________
2. DIRECT RATE TAKEN BY CLIENT : ___________________________
A) CASH/TOM/SPOT RATE (DEAL ID) : _______________________
B) FORWARD RATE (FWC NO. FROM FINACLE) : _____________
EDC IF ANY : __________________________________________

S.No. Points to be checked Remarks
A/C No. (to be debited for charges) - Mention current account no of
1
customer _________________________
YES /
2 Funds Available for charges and remittance amount
NO
YES /
3 Customer's signature verified along with branch stamp
NO
4 Specify Exact Remittance amount in FC
5 Any reference earlier Bill of Entry, please mention
86
Whether MT202 (not required if SXR is given) or MT 910 uploaded in

YES /
6 case of rerouting the funds returned or making import payment based
NO
on BC.
Check whether IBAN no provided for beneficiaries of Saudi Arabia,
YES /
7 Jordan, Kuwait, UAE, Qatar & check whether CNAPS code available
NO
for payment in CNY to China.
In case of partnership or proprietorship, if the invoice value exceeds YES /
8
USD 300000 equivalent, whether RBI approval taken NO
For Import of Rough Diamonds/Precious and Semi-Precious stones
9 /Cut and polished diamonds, Ensure tenure is not > than 180 days from
the date of shipment
For Import of gold /Silver, ensure tenure is not > than 90 days from the
10
date of shipment
11 Check the terms of payment and it should not mention as Advance
S.No. Documents to be submitted Nature

(Yes/No)
2 Copy of Invoice M
Whether Advance declaration form provided in case Bill of Lading is
3 M
not available (as per process instruction 754 )
Whether Customer declaration is given in CRL if BOE is not available,
4 M
to submit the same subsequently
Copy of Bill of lading /airway bill / Courier / MTD
5 M
Note: not mandatory if Bill of entry provided at time of remittance
‘Duly Endorsed’ bill of entry, if mode of payment is on ‘Consignment’

6 M
basis
Bill of Entry OR valid reason for not submitting beyond 30 days by
7 Account Manager / CSM Relationship Manager (giving ref of M
discussion with client)
8 Whether BL is consigned to our party if not check for availability of

shipper endorsement on BL.
9 ICEGATE screenshot attached for Bill of Entry verification I
10 FEMA declaration or One time FEMA declaration M
11 NNL declaration pertaining to latest Foreign Trade Policy M
12 Any other document submitted by customer I
13 If payment is going to 3rd party, then document evidencing

relationship between beneficiary and 3rd party to be submitted. Firm
irrevocable purchase order /tripartite agreement
87
14
Check for availability of DGCA license for aviation related purchase
In case of Merchanting Trade, ensure the following documents are

15 being filled as the specified format and scanned: MTT declaration,
15CACB, Export Invoice, Import Invoice, Form A2 and Inward
Detail/Deviation Details.
If import of non-physical imports, then certificate from CA evidencing
16 M
the receipt of software/image/drawing attached
If there is delay in payment for more than 6 months up to 3 years for
non-capital goods or 5 years in case of capital goods, then letter from
17 M
customer mentioning the reason for delay in remittance (as per RBI
guideline).
Mode of payment for Gold transactions:
a. Delivery against payment basis OR
18 b. Suppliers Credit basis OR M
c. Consignment basis OR
d. Unfixed Price basis
19 For import of gold, provide details as per gold import checklist I
Other Observations, if any, please mention hereunder:

Approvals To be Checked For
In case rates are to be taken up by TSU and transaction value is above -1 Million for JPY and
1 1 lakh for all other currencies (e.g. 100000USD/GBP/EUR) provide the BM/DBM/SBH
signature along with an affixed stamp on the checklist scanned to TSU
Relevant approval to be taken for Late utilisation of deal (I-Memo to be in approved status
2
before scanning to TSU) and annexure as per PI 616
3 EDD related approval for pending BoE. (Process Instruction 830)
Payment going to Hongkong but the beneficiary is from China, then safe approval to be
4
provided (Process instruction 543)
5 CMII approval for multiple BoEs scanned. 14 point approval
6 RM approval for delayed payment
88
Non Trade Outward Remittance

89
Annexure 12
Document checklist for Outward remittance
CHECKLIST FOR OUTWARD REMITTANCE
NAME OF APPLICANT: ____________________________________________

Case Ref No.: ___________________________________________________
Track No :
Key Client : Yes / No
Branch:
Product: SMT
FX Rate: (Please tick correctly) 1. Direct Rate taken by client (Deal ID ___________ __)
2. From EEFC A/c 3. To be taken by TSU 4.Forward Contract 5. Nostro funding
1 A/C No. (to be debited for charges) :
2 Funds Available for charges and remittance amount: Yes No
3 Customer's signature verified with branch stamp Yes No
4 Exact Amount to be remitted in FC mentioned Yes No
5 If Nostro Funding, whether MT 202 uploaded Yes No

Confirmation in staff ware notes that funds have been blocked
in IGRS by IGRS team along with corresponding mail sent to
IRM team for blocking of funds to be sent.
6 If Forward Contract, ref no and EDC details given along with Yes No
mail from TMOG for EDC rate to be applied.
7 Has customer requested Swift or Demand draft Swift Demand Draft
8 If Demand draft, blank copy of DD enclosed? Yes No
9 Bene a/c no. and SWIFT code mentioned on letter? Yes No
10 A/c no. & SWIFT code on letter & invoice are same Yes No
90
11 IBAN No. provided Yes No
12 AMLOCK checked if amt is up to USD 5000 or equiv Yes No
13 Purpose of remittance not under Schedule 1 of FEMA (List of No

prohibited items)
14 If purpose of remittance is under Schedule 2 of FEMA , attach Yes N.A.

necessary approval from Govt of India
15 If purpose is under Schedule 3 of FEMA, amt is within Yes No

permitted ceiling per transaction/per Annum if remittance is not
from EEFC/RFC
16 In case rates are to be taken up by TSU and transaction value is Yes No

above -1 Million for JPY and 1lakh for all other currencies (e.g.
100000USD/GBP/EUR), provide the BM/BOM/SBH signature
along with affixed stamp on the checklist scanned to TSU.
Sr. Documents to be submitted Nature (M) (tick mark)

No.
1 Customer Request Letter M (Yes / No)
2 Copy of invoice /order/ contract M Yes / No)
3 Form A2 duly filled with purpose of remittance M Yes / No)
4 FEMA declaration /One time FEMA I Yes / No)
5 15CA and 15CB (wherever applicable) I Yes / No)
6 Declaration applicable for technical, profession fee etc. I Yes / No)
7 Any other document submitted by customer Yes / No)
Deviations, Approvals or Other Observations, if any, please mention hereunder:
CSE CSM TRADE MANAGER BOM/BM/SBH

(In case rates are to be taken up by TSU
and transaction value is above -1 Million
91
for JPY and 1lakh for all other currencies

(e.g. 100000USD/GBP/EUR))
Note:
1. Reconciliation team (COG) raises an SR to the sol id from which the deal has been booked.
Branch is to close the SR with the requisite I-memo approval in order to utilize the deal on
T+1/T+2 basis as the case may be. The I-memo approval has to be uploaded in track for the
scrutinizer to check at their end. 2. For FCNRB recovery below documents to be provided by
branch:
a. Debit authority from the customer or confirmation from BOM that client has accepted monthly
debit of interest at the time of disbursement of FCNRB loan
b. AM confirmation for loan account number, customer account number to be debited, due date
of interest recovery, amount of interest and any other detail of transaction.
Export Collection Bills (XFC)
Annexure 22 : Branch Check list for Export Bill under Collection

92
Check list for Export Bill under Collection
Customer name: ___________________________________________________
Case Ref No.: XFC__________________ Track No. ____________ Key Customer: Y/N
Branch:- ___________________ Sol id :____________
A/C No.(If not available in the customer's letter): __________
Sr. Documents to be submitted Nature (tick mark)

No. (M/I)
1 Customer Request Letter as per format with Signature duly M Yes

verified
2 One Time FEMA Declaration Given M
3 Invoice, Packing List, Bills Of Exchange M Yes
4 Signed & Endorsed Full set Original Bill Of Lading (B/L)/ M

Original Airway Bill or HAWB / Original Transport
Document/ Specify if copy in Trade Factory notes
Check the following things on B/L:
Originality of the transport document and
Endorsement by the shipper if the B/L is issued to order
5 Is A.D. Code on Shipping Bill/GR/SDF/Softex Form

nominating ICICI Bank Ltd as AD bank - Yes / No
If no above,
NOC from nominated bank.
Request letter should state that the client wants
to initiate an AD transfer request along with the following:
o Recommendation from BH or
BOM
I-memo approval through CM1 and above from the
93
respective BG and raise on TSU-CQT team

6 SDF should be issued under FEMA 1999 and not under M
FERA 1973
7 Original Export LC Duly Endorsed (should include Export LC I

advising letter and also bear revenue stamp(s) valued at
Rupees Two)
8 If Incoterm is CIF, then Insurance Policy / Certificate is M Yes/No/ N.A.

needed
9 -Check consistency among the documents for names, tenor, M

incoterm, value, currency, places, quantity, goods etc.
Documents are in
- In case of difference in value due to price variation / freight order
/ insurance, customer should give necessary explanation.
- In case of short shipment, short shipment notice to be

attached or GR to be amended to read correct amount.
- In case of delay in obtaining certified short-shipment notice

from the Customs, the exporter should give an undertaking to
the AD banks to the effect that he has filed the short-
shipment notice with the Customs and that he will furnish it
as soon as it is obtained. Deviation to be marked in the name
of the SM for a period of 15 days
- Consignee name in invoice should match with SB/GR, third
party guidelines to be followed.
10 Is it a direct dispatch : Yes /No M (tick)
Is it a direct dispatch done by the customer:(C to C)
-If Yes above, then Status Holder Certificate or SEZ B TO B

certificate/endorsed invalidation letter from either of the
B TO C
parties (for Deemed export)
C TO C
For customers other than status holder/SEZ, I memo
approved by CM-1 & above as given in process for “Direct
Dispatch of Shipping Documents by the exporter &
repatriation of Export Proceeds “
Is it a direct dispatch done by the bank to the correspondent

customer:(B to C):
No approval required for SEZ/Status Holder certificate

customers
For client other than Status Holder/SEZ RM approval is

required
94
11 Is it a late presentation(i.e. :beyond 21 days from shipment M

date) :Yes/No
-If Yes above , then customer explanation and SM approval

as per annexure __ for late presentation, is needed
Shipment Date as per transport document :
Document Presentation Date at I-bank counter :
12 Customer declaration for EPC not availed against this invoice Yes
/ document.
13 In case of bills under LC if customer does not resolve the

discrepancies and requests to send the documents on
approval basis, obtain a letter as per Annexure 12. The same
can also be mentioned on the request letter
14 Part advance payment received M Yes/No
-SXR /FIRC needed in case of part advance received.
Is remitter different from the consignee/buyer in FIRC -
then Third party guidelines needs to be followed
15 If customer has availed packing credit from us and and it is

on running account basis and the same is outstanding, case
to be scanned in XBN folder for liquidation after intimating
the customer. If on order basis and customer has given nil
EPC declaration then scan under XFC
16 Payment Term should not exceed 12 month-tick except for (Yes /No/RBI approval)
units in SEZ
17 Prior approval of the Reserve Bank is required for export of

machinery, equipment, etc., on lease, hire basis under
agreement with the overseas lessee against collection of lease
rentals/hire charges and ultimate re-import. Exporters should
apply for necessary permission, through an AD Category – I
banks, to the Regional Office concerned of the Reserve
Bank, giving full particulars of the goods to be exported.
18 Filled in copy of DHL airway bill by which the documents

have been dispatched to foreign bank.
Documents to be checked for Consultancy service Exports:
95
1) Contract Copy between applicant & beneficiary

2) Copy of Invoices
3) Undertaking from beneficiary that the money is received
for said consultancy service provided by him.
4) Letter from Applicant that he has send the money
towards the service provided by beneficiary.
19 Disposal instruction is mentioned in the request letter Yes
20 Any other Documents– (tick) : C.O.O, C.O.A, Weight List, Beneficiary Certificate,
Shipment Advice, Others (specify) :
Note: In case of C2C transactions by non-status holders, branch should advise the
customers to submit the documents for lodgment after receipt of full remittance.
Export Bill Realization (XFM)
Annexure-30 Branch Checklist for payment of advance against exports
Checklist for payment of advance against exports
Customer name: ___________________________________________________

96
Case Ref No.: XFM__________________ Track No. ____________ Key Customer: Y/N
Branch:- ___________________ Sol id :____________
A/C No.(If not available in the customer's letter): __________
Sr. No. Documents to be submitted Nature (tick mark)

(M/I)
1 Customer Request Letter with Signature duly verified M Yes

(Confirmation on availability of funds in customer
account along with DEBIT AUTHORITY)
2 FEMA Declaration(may be part of CRL) Submitted Or M

One Time FEMA Declaration Given
3 Invoice, M
4 Packing List, Bills of Exchange I
5 Signed & Endorsed Full set Original Bill Of Lading / M

Original Airway Bill or HAWB / Original Motor Transport
Document/ specify if copy
Branch has to check the following things on BOL:

Originality of the BOL and Endorsement by the shipper
if the BOL is issued to order of the shipper.
6 Is A.D. Code on Shipping Bill/GR/SDF/Softex Form M

nominating ICICI Bank Ltd - Yes / No (If No, then NOC
of nominating bank needed)
- SDF should be issued under FEMA 1999 I/O FERA

1974 and name of Bank should be mandatorily filed.
7 If Incoterm is CIF, then Insurance Policy / Certificate is I Yes/No/ N.A.

needed (may not be insisted in case full advance
payment is received- declaration)
8 Is it a direct dispatch done by the customer:(C to C) I (tick)

-If Yes above, then Status Holder Certificate or SEZ
certificate/endorsed invalidation letter from either of the B TO C
parties (for Deemed export)
C TO C
For customers other than status holder/SEZ, I memo
approved by CM-1 & above as given in process for
“Direct Dispatch of Shipping Documents by the
97
exporter & repatriation of Export Proceeds “
Is it a direct dispatch done by the bank to the

correspondent customer:(B to C):
No approval required for SEZ/Status Holder certificate

customers
For client other than Status Holder/SEZ RM approval is

required
9 Advance payment ref no. _________________ FIRC M

issued - Yes/ No
-SXR /FIRC needed in case of part advance received.
- If remitter is different from the consignee /buyer in

export documents then Third party guidelines needs to
be followed
10 Is it a late presentation(i.e.: beyond 21 days from I

shipment date) :Yes/No
-If Yes above , then customer explanation and SM

approval (points to be added) for late presentation, is
needed
Shipment Date as per transport document :
Document Presentation Date at I-bank counter :
11 -Check for internal consistency for name, tenor, M Documents

incoterm, value with respect to covering letter, invoice,
are in order
BOE (not mandatory), SB/GR and such.
- In case of difference in value due to price variation /

freight / insurance, customer should give necessary
explanation.
- In case of short shipment, short shipment notice to be

attached or GR to be amended to read correct amount.
- In case of delay in obtaining certified short-shipment

notice from the Customs, the exporter should give an
undertaking to the AD banks to the effect that he has
filed the short-shipment notice with the Customs and
that he will furnish it as soon as it is obtained. Deviation
to be marked in the name of the SM for a period of 15
98
days
Cross conversion rate of SXR date required if SXR is in

different currency & XFM is in different currency
12 Payment Term should not exceed 12 month-tick (Yes M
/No/RBI approval)
If Yes, than guidelines for long term advances to be

followed.
13 In case of software exports, following documents to be

taken
1. Customer Request Letter

2. SOFTEX Form
3. Advance remittance details
4. STPI certificate of exporter
Note:
Regulatory guidelines should be complied with in all

transactions.
For regularization of direct dispatch transactions above

USD 1 Mn, approval from AGM & above of business
group to be additionally obtained apart from the I memo
approval by CM-1 & above as given in process for “Di-
rect Dispatch of Shipping Documents by the exporter &
repatriation of Export Proceeds “.
. RBI approval is not required for software export
transactions
14 In case of any discount same should be mentioned on

GR
15 Any other Documents– (tick) :
C.O.O, C.O.A, Weight List, Beneficiary Certificate, Shipment Advice,
Others (specify) :

99
Letter of Credit (LC)

100
Annexure 2 - Branch Documentary Checklist for Import LC Issuance
Sr. No. Check Points Yes/No
1 A/C No. (to be debited for charges and margin)
2 Funds available in a/c for LC issuance Charges /Margin
3 Customer’s signature verifies on LC application
4 Limit Node to be Used
5 Whether Limits are available and valid
6 CAL/Charges are updated in IBCM and are valid
7 If CAL and/or Limits expired, approval attached
8 Is last date of negotiation beyond limit expiry date

If yes, approval attached
9 Approval enclosed for overdue liability, if any
10 Stamp paper in case of non MFA executed LC application
11 Provide FD no. for margin (if applicable) after checking available

balance and maturity date
12 If LC value is more than $ 1 Mn, then status report (D&B) on the

beneficiary OR Forbes International 500 list OR approval as per Trade
deviation (TD) circular no. 12175, point 6
Sr. No. Documents to be submitted Nature Yes/No
1 Customer Request Letter I
2 LC Application with NNL and FEMA declaration M
Proforma Invoice / Purchase Order/ Sales Agreement (Amount >=LC M

3
Value)
Insurance policy from applicant, if Incoterms is CPT / CFR / M

FOB/EXW/FCA/FAS
(i) Amount of insurance is ≥ 110% of LC amount, if not, approval as M

4 per TD, point no. 15 (Waiver)
(ii) LC expiry: _____________ Insurance Expiry: ____________

Expiry date of insurance policy is prior than LC expiry date than
approval as per TD, point 12 (Deferral)
(iii) Insurance policy is consigned to ICICI Bank

101
If Incoterms is CIF/CIP/DAT/DAP/DDP, standard insurance clause is

5 incorporated in LC.
M
If no, approval as per TD, point 9 or 15 or 17
6 Declaration for Merchant Trade transactions (if applicable) I
Standard B/L clause is incorporated in LC, If no, approval as per TD, I

7
point no. 23 or 28
8 For import of gold, provide details as per gold Import checklist I
9 Deviations / Approvals or Observations, if any please mention hereunder :
Additional branch checklist for issuance of revolving LC
Whether this is revolving LC? YES OR NO
If yes, then please fill in below details
a) No. of revolvements under the LC (must not be

unlimited)
b) Total drawings allowed under the LC
e) Reinstatement type – AUTOMATIC (without

amendment) OR with amendment
f) Whether the revolvement is cumulative or non-

cumulative
Bank Guarantee (BG)
Domestic BG Issuance
I Name of the Applicant :

102
II BG to be printed at Branch (SOL ID) :

III Internal Rating of the Applicant:
IV A/C No. ( to be debited for charges/margin) :
V Funds available in for BG issuance Charges / Margin. Yes No
VI Limit ID details :
VII Limits sufficient / valid (Interchangeability allowed)
VIII Standard NWC clause in BG text. Yes No
IX Customer's signature verified on the request letter Yes
X Expiry Date & Claim Date match in BG request & Soft Yes
Copy
XI No blank spaces in the Soft Copy of BG text No
XII Overdue liability exists Yes No
XIII Approval for overdue liability as per PAAM taken if Yes N.A.
applicable (Copy scanned)
XIV Charges / Margin.
XV Upload Appraisal Note and IAS screen shot, in case of
100% margin
XVI IBCM (CAL) is updated Yes No
XVII LSM is provided Yes No
XVIII BG purpose is mentioned in text Yes No
XIX FD number is provided Yes No
XX FD maturity is greater than the BG expiry Yes No
XXI Is FEMA declaration required Yes No
XXII GM approval taken for interest clause Yes No
XXIII Auto-renewal clause is present Yes No
(If Yes open the BG under Dowar)

Sr. No. Documents to be submitted Nature (tick
mark)
2 BG Format M
3 Omnibus indemnity for 100% margin cases I
4 Board resolution for 100% margin cases (signed by I
minimum 2 directors)
5 Approval from business group for sanction and charges for I
100% margin cases.
6 Shareholding pattern/constitution of the beneficiary (based M
on data available on Internet) – for mega branches. In case
the above data is not available branch to refer the case to
Corporate Legal Group to confirm on the Legal status of the
entity. In case of Non-mega branches, the above activity
would be undertaken by GTSU
103
Other Documents/Remarks
1 Any onerous clauses in text Y N
2* If yes, client has executed omnibus indemnity / limits are
carved out / COD approval
3 Limit id for DOWAR cases
4 Approval taken for non STP transactions ( based on rating) Y N.A.
5 Deviations, Approvals or Observations, if any, please

mention hereunder:

* Strike out
whichever not applicable
CSE CSM
TRADE MANAGER

Trade documents filing/ Register
Filing & Storage of Trade documents is an important aspect of Branch hygiene. Branches are required to
maintain various Files & Registers for records, audit trail and future reference. An efficient filing &
storage system for documents would mean any document as and when required can be recovered in a
systematical manner with most ease.
104
Branches sometimes are unaware correct process of filing / important registers to be maintained / formats
to be followed for registers etc. Since maintenance of relevant files & registers in proper formats is a key
requirement we are sharing herewith the filing procedure and formats of all important Trade Registers
that branches are required to maintain.
Trade file to be maintained:
Sl
No. Product File Name Filing Order Remarks
Filing of
Disposal
Instructions to be • Disposal instructions can be accepted
Inward Remittance SXR
done date through regd mail id or physical letter
wise/Reference • Date & SXR no should be mentioned
1 No. wise on each DI.
• Request letter for issuance & Office

copy of FIRC is to be maintained at
branch and customer signature is taken
on the office copy of FIRC as well as in
Filing to be done the FIRC register as proof of hand over.
FIRC FIRC/FIRS • In case of FIRC issued for FDI, Cust
date wise
req letter is not to be filed here only
Office copy of FIRC is to be filed with
branch.
•For FIRS a box file is to be maintained
where req letter and photocopy of FIRS
2 is filed date wise.
Filing to be done
Import Bills on date • Documents to be kept under lock &
MFCL
Collection wise/Reference key/FRFC till the time the payment is
3 No. Wise made
After Payment,
Import Bill
MFCR filing to be done • Date & Swift ref no to be mentioned
Realisation
date wise on the face of the docs.
4 • Swift copy also to be attached and filed
• Documents to be kept under lock &

key/FRFC till the time the payment is
Letter of Credit - made
MLC/ILC & Filing to be done
Import/Inland & All amendments/correspondences/
MUBMFB LC No. wise
Bills under LC bills/realisation under the LC are to be
filed in the same flat file/box file
• Date & Swift ref no to be mentioned
on the face of the docs.
5 • Swift copy also to be attached and filed
105
Outward • Date & Swift ref no to be mentioned

Filing to be done on the face of the docs.
Remittance - Non SMTSMD
date wise • Swift copy to be attached along with
Import
6 documents and filed subsequently.
• Date & Swift ref no to be mentioned

Filing to be done
on the face of the docs.
date
Direct Import Bills MDC • Swift copy to be attached along with
wise/Reference
documents and filed
No. Wise
• BOE alongwith ICEGATE screenshot
7 to be filed along with MDC docs
Filing to be done
Advance Import date • Date & Swift ref no to be mentioned
SMISMA
payment wise/Reference on the face of the docs.
No. Wise • Swift copy to be attached along with
8 documents and filed
• Register to be maintained for BOE

where details of all BOE received to be
entered.
Filing to be done • Each BOE is to be given a serial no as
Bill of Entry Bill of Entry
serial no wise per the register and serial no to be
manually written on top of the BOE
received.
• Screenshot of ICEGATE is filed along
9 with the BOE.
XFC - Filing is
Export Bills for
UnRealised Reference No.
Collection •Export documents are filed with date,
Bills wise for XFC
cover schedule generated & POD
10 receipt.
• On a weekly basis in finacle 'IBL' is

Filing is done as option is to be run to check the status of
Export Bills for XFC - Realised
per date of bills realised.
Collection Bills
realisation •All reliazed bills to be endorsed behind
the GR and subsequently filed as
11 'Realized Bills'.
•Register is to be maintained with details

of GR waiver issued. •Branch to
Filing to be done
GR Waiver GR Waiver follow up with customers for all open
date wise
deviations taken against GR waivers
issued based on the MIS published by
12 COG controls Team.
106
Filing to be done •As per data shared by compliance EBW

EBW as per the month reported for half yearly ending is to be
of submission filed in file
13 • RBI acknowledgement is to be filed.
Filing to be done
P0103 as per the month Quarterly Reporting RBI
14 of submission acknowledgement is to be filed
Filing to be done
MTT as per the month
15 Regulatory Filings of submission RBI acknowledgement is to be filed
• Two files for each year maintained for

the month of June & December
Filing to be done respectively.
BEF as per the month •Since reporting to RBI has migrated
of submission online a print out of mail confirmation
received centrally on submission of BEF
isto be filed for June & December
16 respectively.
• Filing is done under LRN generated

External
Filing to be done against ECB transactions.
Commercial ECB
LRN wise • Documents for ECB & Application for
Borrowings
LRN are filed in a file maintained LRN
17 wise & customer name wise.
Office copy of FIRC is to be maintained

at branch and customer signature is
taken on the office copy of FIRC as well
Filing to be done as in the FIRC register as proof of hand
Bank Guarantee BG no
BG no wise over.
• All amendments/correspondences/
invocation etc under the BG are to be
filed in the same flat file.
•On a monthly basis all closed BGs are
derived from the system and respective
21 documents are to be sent for storage.
Miscellaneous Filing to be done All Tmisc transactions other than the

Tmiscellaneous ones mentioned above are to be filed
Cases date wise
22 here date wise.
General Instructions :
1. Proper Record of Documents/Files moved to PN Writer should be maintained with the

DBM/TSM
2. Bill of Entries should be avialable in Original at the Branch for all BOE's updated for a period for
verification by the auditor
107
3. All Outstanding Bills - Import/Export/LC & Outstanding BG's should be available in the Branch
& should not be sent to Storage
4. Files to be sent to PN Wriers for a specific Period only after the IAD audit is completed (other
than those mentioned in 3 above)
Trade Register to be maintained:
Find below the format for product/ process wise trade register to be maintained
FIRC Issue Register

Issuing
official
Sign
with
Dat Emp ID
e of Customer/ FIRC and Customer
Sr. Iss Beneficiary Bill_SXR_Nu Inventory Designat Acknowledge
No ue Name mber Amount Number ion ment
01-
01- …....
201 ABC PVT 0000SXR0000 XXXXXXX 166733
1 5 LTD 0 X tdo
2

FCY Demand Draft Issue Register
Issuing
official
Sign
with
Dat Emp ID
e of and Customer
Sr. Iss Customer FCY_Am Designat Acknowledge
No ue Name Finacle Bill id ount DD Number ion ment
01-
01-
201 ABC PVT 0000SMD0000 USD XXXXXXX
1 5 LTD 00 15000 X
EURO
2 500

Bank Guarantee Issue Register
Sr. Dat Customer BG Inventory Finacle CNY_Amo Issuing Customer
No e of Name Number/ ref unt official Acknowledge
Iss Swift number Sign ment
ue reference with
Emp ID
108
and
Designat
ion
01-
01- …....
201 ABC PVT 0000BG00 166733
1 5 LTD Xxxxxxxx 000 50000 tdo
2

Delivery Order Issue Register
Issuing
Dat Import
Omniflow official Sign
Sr. e of Customer FCY_Am Bill
DO_Number track # DO with Emp ID
No Iss Name ount referenc
issuance and
ue e
Designation
01-
01-
201 ABC PVT ….... 166733
1 5 LTD tdo
2

GR Waiver Issue Register
Issuing
official
Sign
with
Dat GR_Waiver Emp ID
e of Certificate Omniflow Purpose of and Customer
Sr. Iss Customer reference track GR waiver ( Designat Acknowledge
No ue Name Number number In brief ) ion ment
01-
01- TF- …....
201 ABC PVT ICICI-XX- XXXXXX Repair of 166733
1 5 LTD XXX XX Goods etc tdo
2
3

Bill of Entry Register
109
Omniflow
Finacle track number
ICEGAT
Bill (Both Bill and
E
Sr. Dat Customer BOE Number FCY_Amou referenc INBOEM
verificatio
No e Name & date nt e updation if
n done
( Import BOE
YES/NO
Bill Ref ) submitted
later )
1
2

Inward Correspondence Register
Receiving
official sign
Sr. Dat Customer Addressed Courier
Time Category with Emp id
No e Name to POD #
and
Designation
Bill, BG
invocation,lette
1 rs etc
2

Outward Correspondence Register
Bank
official
sign
with
Emp id
Document and
Sr. Dat type with Customer Courier Designat
No e Time reference Name POD # ion
FIRC issued,
LC, BG
courier, XFC
1 etc
2

Regulatory Correspondence Register - RBI/ED/CBI
110
Inward
correspond
ance / Bank official
Outward Courier Ref # Subject of Sign with
Sr. Dat correspond No/POD Issued by correspond Custome Emp ID and
No e ance details RBI ance r Name Designation
Example :
LRN/ UIN
1 etc
2
Import bill collection register

Bi Type of Du
Custom Date of Date of
S.N ll CC Amou bill e Remar Sig
er rcpt/Lodgm presentati
o I Y nt Usance/Si Da ks n
Name ent on
D ght te

Trade Manual

Uploaded by

Copyright:

Available Formats

You might also like

Trade Manual

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Trade Manual

Uploaded by

Copyright:

Available Formats

1

Trade Products & Process Manual

Trade Desk Officer

SR. NO TOPIC PAGE

Key Factors in Trade

Any trade transaction can be broadly broken down into:

3. Movement of Funds as consideration for goods

Important Point to Note:

Flow of Goods, Funds & Documents

Objectives of Buyer & Seller

 Desired quantity and quality of the goods in

Risks Involved for Buyer & Seller

 Non-delivery / delayed delivery of goods  Non-payment / Delayed Payment

Role of a Bank in Trade

Modes of Payments in Trade

 Seller has more bargaining power vis-a-vis the buyer

3. Bills for Collection

4. Documentary Credit (Letter of Credit)

Trade Documents- Broad Classification

Each term in INCOTERM specifies:

EXW – Ex Works (Named place of delivery)

FAS – Free Alongside Ship (Named port of shipment)

CIF – Cost, Insurance and Freight (Named port of destination)

CPT – Carriage Paid To (Named place of destination)

CIP – Carriage and Insurance Paid to (Named place of destination)

DAT – Delivered at Terminal (Named terminal at port or place of destination)

DAP – Delivered at Place (Named place of destination)

DDP – Delivered Duty Paid (Named place of destination)

Uniform Customs and Practice for Documentary Credits- UCP 600

Gist of provisions under various articles of UCP 600:

5) ARTICLE 5 – DOCUMENTS VS GOODS SERVICES, PERFORMANCE: Banks deal with

13) ARTICLE 13 – BANK TO BANK RE-IMBURSMENT ARRANGENT: If a credit states that

14) ARTICLE 14 – STANDARD FOR EXAMINATION OF DOCUMENTS: A nominated bank must

15) ARTICLE 15 – COMPLYING PRESENTATION:

20) ARTICLE 20 - BILL OF LADING

29) ARTICLE 29 - EXTENSION OF EXPIRY DATE OR LAST DATE OF PRSENTATION: If the

32) ARTICLE 32 - INSTALMENT DRAWING OR SHIPMENT: If a drawing or shipment by

33) ARTICLE 33 - HOURS OF PRESENTATION: A bank has no obligation to accept a presentation

34) ARTICLE 34 - DISCLAIMER ON EFFECTIVENESS OF DOCS: A Bank assumes no liability or

35) ARTICLE 35 - DISCLAIMER ON TRANSMISSION AND TRANSLATION: A bank assumes no

37) ARTICLE 37 – DISCLAIMER FOR ACTS OF AN INSTRUCTED PARTY: Bank instructing

ISBP (International Standard Banking Practice for the Examination of Documents)

Documents against Payment (D/P)

Letter of Credit (Commercial)

Pro Forma Invoice

TSU (Trade Services unit)

IGRS (ICICI Global remittance system)

SWIFT (Society for worldwide interbank financial Telecommunication)

ECB (External Commercial Borrowings)

SSI (Standing Settlement Instructions)

FDI (Foreign Direct Investment)

as portfolio flows, wherein overseas institutions invest in equities listed on a nation's stock

ARF (Advance Reporting Form)

ODI (Overseas Direct Investment)

Operational Guidelines for Imports

Advance Remittance for Import of Rough Diamonds

Advance Remittance for the Import of Services

Precautions for Handling Import documents