What changed
RBI issued Master Circular No.13/2012-13 consolidating all existing instructions on import of goods and services under FEMA. The circular includes a sunset clause, meaning it will be withdrawn on July 1, 2013 and replaced by an updated version. It brings together guidelines on Form A-1, advance remittance, import evidence, gold imports, and merchanting trade into one document.
What it means for you
Banks now have a single reference for import-related forex compliance, reducing the need to track multiple circulars. AD Category-I banks must ensure imports align with DGFT policy and FEMA rules, and follow KYC norms. The sunset clause signals RBI's intent to regularly update the circular, so banks should stay alert for the next version.
What you must do
- Ensure all import payments above USD 5000 are made using Form A-1 as per the circular.
- Verify import transactions comply with Foreign Trade Policy and FEMA Current Account Rules.
- Follow KYC guidelines and normal banking procedures, including UCPDC for LCs.
- Maintain records of import evidence and follow up for missing documents as per Section C.10.
Who it affects
All AD Category-I banks handling import payments, Importers and their authorized dealers, Nominated banks/agencies for gold, platinum, and silver imports
What is the sunset clause mentioned in this Master Circular?
The circular includes a sunset clause stating it will stand withdrawn on July 1, 2013 and be replaced by an updated Master Circular on the same subject.
What is the threshold for using Form A-1 for import payments?
Applications for import payments exceeding USD 5000 or its equivalent must be made in Form A-1 as per the circular.
Does this circular cover gold imports?
Yes, the circular includes specific sections on import of gold, platinum, silver, and related items by nominated banks and agencies.