RBI Guidelines on Bill of Entry Submission and Write-Offs for Importers

Introduction

This blog provides an overview of the Reserve Bank of India's (RBI) Master Direction regarding the extension of Bill of Entry (BoE) submission and the write-off of amounts payable for imported goods and services. We will highlight the key provisions and operational guidelines relevant to Authorized Dealer (AD) Category I banks and importers.

Extension of Bill of Entry Submission

AD Category I banks are permitted to grant extensions for the submission of BoEs beyond the established deadlines according to the current regulations. The extension details must be reported in the Import Data Processing and Monitoring System (IDPMS) using the message “Bill of Entry Extension.”

Write-Off of Amounts Payable

AD Category I banks have the authority to close BoEs or Outward Remittance Messages (ORMs) in IDPMS, including cases involving a write-off of up to 5% of the invoice value. This write-off is applicable when the declared amount in the BoE differs from the actual remittance due to operational reasons, provided the bank is satisfied with the importer's justification.

In addition, banks may close BoEs for transactions requiring write-offs due to:

• Quality issues with the goods
• Short shipment
• Destruction of goods by port, customs, or health authorities

In such instances, the importer must submit satisfactory documentation, regardless of the amount involved. The AD bank will finalize and close the ORM/BoE in IDPMS with the appropriate “Adjustment Indicator.”

Compliance Requirements

While processing write-off cases, AD Category I banks must ensure that:

1. The case is not part of any ongoing civil or criminal litigation.
2. The importer has not been subjected to scrutiny by the Enforcement Directorate, Central Bureau of Investigation, or any other law enforcement agency.
3. There is an established system for internal auditors or external auditors appointed by authorized dealers to perform random sample or percentage checks of write-offs concerning import bills.

Additional Considerations

Cases seeking extensions or write-offs that are not covered by the existing guidelines must be referred to the respective Regional Office of the Reserve Bank of India for required approvals.

Conclusion

The operational guidelines outlined by the Reserve Bank of India are designed to facilitate the efficient closure of bills in IDPMS while adhering to existing regulations. Importers should ensure compliance with all necessary protocols to navigate the process effectively.