Master Circular on Import of Goods and Services (2009)

What changed

RBI issued Master Circular No. 08/2009-10 on July 1, 2009, consolidating all existing instructions on import of goods and services under FEMA. It includes a sunset clause, meaning it will be withdrawn and replaced by an updated version on July 1, 2010. The circular covers general guidelines, operational guidelines for imports, and specific provisions for gold, platinum, and silver imports.

What it means for you

For AD Category-I banks, this circular streamlines import payment procedures by bringing all prior circulars into one reference document. Banks must ensure import transactions comply with FEMA, DGFT policies, and UCPDC. The one-year validity means banks should prepare for an updated circular by July 2010.

What banks were required to do at the time

• Ensure all import payments comply with FEMA and DGFT Foreign Trade Policy.
• Follow UCPDC norms for letters of credit and normal banking procedures.
• Verify compliance with Research & Development Cess Act, 1986 for drawings/designs imports.
• Advise importers to comply with Income Tax Act provisions where applicable.
• Prepare to replace this circular with the updated version by July 1, 2010.

Who it affects

All Category-I Authorised Dealer Banks, Importers of goods and services into India, Nominated banks/agencies importing gold, platinum, silver