What changed
Earlier, only specific cases allowed direct dispatch of shipping documents; all others required RBI case-by-case approval. Now, AD Category-I banks can regularise such direct dispatches up to USD 1 million per export shipment, subject to conditions like full realisation of proceeds, exporter relationship of at least six months, KYC/AML compliance, and bank satisfaction on bonafides.
What it means for you
This liberalisation reduces the compliance burden on exporters and AD banks by eliminating the need for RBI approval for each case within the USD 1 million threshold. Banks must ensure strict adherence to KYC/AML norms and verify bonafides; any suspicion should trigger an STR filing with FIU-IND. Existing directions for Status Holder Exporters and SEZ units remain unchanged.
What you must do
- Update internal procedures to allow regularisation of direct dispatch of shipping documents up to USD 1 million per shipment under the specified conditions.
- Verify exporter relationship of at least six months and full KYC/AML compliance before regularising any such dispatch.
- Ensure export proceeds are fully realised before approving the direct dispatch arrangement.
- Train staff to identify suspicious transactions and file STRs with FIU-IND when in doubt.
- Communicate this circular to all relevant constituents and customers.
Who it affects
AD Category-I banks, Exporters (regular customers of AD banks), Consignees and their agents in the destination country
What is the maximum value per shipment for which direct dispatch can be regularised?
Up to USD 1 million or its equivalent per export shipment.
What conditions must the exporter meet for this facility?
The exporter must be a regular customer of the AD bank for at least six months, the account must be fully KYC/AML compliant, export proceeds must be fully realised, and the bank must be satisfied about the transaction's bonafides.
Does this circular affect existing directions for Status Holder Exporters or SEZ units?
No, the existing directions for Status Holder Exporters and SEZ units remain unchanged.