Trade Ready Reckoner

1
Trade Products & Process Manual

For
Trade Desk Officer

&
ETRG Relationship Manager
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INDEX
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 Merchant 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
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Introduction to Trade
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.
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Flow of Goods, Funds & Documents
Documents
Payments
Seller
Buyer
Import Export
Shipper
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Objectives of Buyer & Seller
Buyer
Seller
 Desired quantity and quality of the
goods in time  Timely payment
 A managed cash flow, with bank  Bank finance for buyer’s credit & goods
finance 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  Non-payment / Delayed Payment

goods  Foreign Exchange Fluctuation
 Short shipment / Inferior goods  Regulatory Changes
 Goods received before the documents
 Foreign Exchange Fluctuation
 Regulatory Changes
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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
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
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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
 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
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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.
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

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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
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
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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.
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.
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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.
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
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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.
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
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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 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.
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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 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
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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.
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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.
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 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.
 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.
18
Important Terms
Airway bill
The carrying agreement between shipper and air carrier which is obtained from the
airline used to ship the goods.
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.
19
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.
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.
20
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
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.
21
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 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
22
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.
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.
23
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.
 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
24
– 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.
25
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
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.
26
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.
27
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).
AD Category – I bank may insist on a declaration from the auditor/CEO of such institutions
that their accounts are audited by CAG.
28
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.
29
Merchanting Trade
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.
30
(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.
Merchanting Traders have to be genuine traders of goods and not mere financial
intermediaries.
31
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.
(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
32
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.
(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.
33
(ii) Reserve Bank of India has extended the facility for online generation of the EDF Form
Number and the SOFTEX Form Number.
34
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.
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.
35
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 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.
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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), 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
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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
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.
38
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:
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).
4) 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.
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.
Call. This can be dully checked and verified from DRA application.
39
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.
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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)
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.
41
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).
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. 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.
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 mention ' to be booked by TSU'
Discrepancy).
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.
Critical Information:
 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
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 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
43
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.
44
3. Verification of Assessment value on Physical BOE:
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.
45
 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:
Finacle
ICEGATE Omniflow track number
BOE Bill
Sr.N Dat Customer verification FCY_Am (Both Bill and INBOEM
Number reference
o e Name done ount updation if BOE
& date ( Import
YES/NO submitted later )
Bill Ref )
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.
46
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.
2) TDO/TDM to check the availability of documents as per Branch checklist in Annexure 2e
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)
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
Discrepancy)
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.
47
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)
 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
48
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 mention ' to be booked by TSU'
track to 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.
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
49
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)
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
50
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. 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
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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.
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.
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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
53
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
 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
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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
company of the buyer of goods. evidence to be attached in the approved
memo) between the buyer and remitter.
Example: Exporter sells goods to Business group to check that line of
overseas buyer “X”. However business of the buyer is justified with the
money will be paid by its goods purchased.
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
This may be possible due to the Diligence of the exporter (Annexure 1).
original buyer not accepting the Such due diligence should be approved
delivery of the goods due to by the Business Official AGM & above
quality issues etc. The exporter
finds a different buyer within the b) Customer declaration (Annexure 2)
same country or different country. detailing the reason why the name of the
third party is not mentioned on the
Example: Exporter receives EDF/Shipping Bill
original order from “X”. Once the
goods are exported to X but he c) Shipping documents (in case new buyer
rejects the same due to quality is located in another country), commercial
issue etc. The exporter finds a invoice between exporter and new buyer
new buyer”Y” in the overseas and any document / correspondence
market since bringing goods back evidencing there is a change in original
to India will not be economical.
55
Accordingly money will be buyer and new buyer has accepted the
received from ‘Y’ but EDF will goods
carry the name of ‘X’.
d) Compliance with RBI guideline i.e.
reduction/variation in invoice value
should not 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 a) Same as point 1 (b) and (c).
overseas Buyer. The buyer gets b) Business group to ensure that such
the export document discounted overseas factoring agency is a
with overseas factoring / renowned finance company for the
discounting agency (similar like overseas buyer. Satisfactory Google
Purchase discounting) under check to substantiate that the remitter
which such financial agency is factoring / discounting house. A list
makes payment directly to the of such acceptable factoring houses is
exporter to ensure the end use of enclosed in Annexure 3.
funds. c) Swift message to be taken stating that
the said remittance done by factoring
This may be possible since such agency is on behalf of original buyer
agency or factoring house will act including the details of invoice.
as a finance company for the
overseas buyer.
Obligations of Authorized Dealers

56
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.
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oBG / SBLC should cover only the advance on reducing balance basis.
oBG / SBLC issued from India in favor of overseas buyer should not be
discounted by the overseas branch / subsidiary of bank in India.
 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

58
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
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.
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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
(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;
60
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., 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
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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:
(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
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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
 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
63
(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.
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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
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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

publicity material supplied free signed by authorized signatories as per Annexure
of payment 34A
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

whether accompanied or signed by authorized signatories as per Annexure
unaccompanied 34A listing the items of personal effects
FEMA Declaration
C Ship's stores, trans-shipment Detailed application on company letter head

cargo and goods supplied signed by authorized signatories as per Annexure
under the orders of Central 34A
Government or of such officers
FEMA Declaration
as may be appointed by the
Central Government in this Copy of the central Government order
behalf or of the military, naval
or air force authorities in India
for military, naval or air force
requirements
D Goods or software Detailed application cum declaration on company

accompanied by a declaration letter head signed by authorized signatories as
by the exporter that they are per Annexure 34A stating that the value of goods
not more than twenty five is not more than USD 25000 or its equivalent
thousand USD or equivalent in
FEMA Declaration
value;
Export Invoice
66

E By way of gift of goods

accompanied by a declaration
Detailed application-cum-declaration on
by the exporter that they are
company letter head signed by authorized
not more than five lakh rupees
signatories as per Annexure 34A, stating that the
in value
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

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

G Goods imported free of cost on Detailed application-cum-declaration on

re-export basis company letterhead signed by authorized
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 or communication with
overseas party.
Copy of Bill of Entry of goods imported.
H Goods not exceeding U.S.$ As per current AMLOCK policy of Bank, any
1000 or its equivalent in value transaction with Myanmar is not permissible
per transaction exported to
Myanmar under the Barter
67
Trade Agreement between the

Central Government and the
Government of Myanmar.
I The following goods which are Detailed application-cum-declaration on

permitted by the Development company letterhead signed by authorized
Commissioner of the Export signatories as per Annexure 34A, stating that the
Processing Zones, Electronic imported goods are found defective and are
Hardware Technology Parks, being sent for the purpose of their replacement
Electronic Software by the foreign supplier /collaborator or that the
Technology Parks or Free goods imported from foreign
Trade Zones to be re-exported, suppliers/collaborators are on loan basis or that
namely: the goods imported from foreign
supplier/collaborator are free of cost, found
Imported goods found
surplus after production operations as the case
defective, for the purpose of
may be. Customer letter to indicate expected
their replacement by the
time of re-import of the goods.
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

suppliers/collaborators free of correspondence or communication with
cost, found surplus after overseas party.
production operations.
Copy of Bill of Entry of goods imported earlier
Note: Goods listed at items (1),
RM/ BM/ BM-Commercial Approval for marking
(2) and (3) to be re-exported by
deviation
units in Special Economic
Zones, under acknowledged FEMA Declaration.
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 Detailed application-cum-declaration on

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

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 Detailed application-cum-declaration on

testing subject to re-import into company letterhead signed by authorized
India 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

overseas party

deviation
L Defective goods sent outside Detailed application-cum-declaration on

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

with copies of the Import Invoice.

deviation
FEMA Declaration
Copy of contract , agreement, two-way

overseas party
M Exports permitted by the Customer request letter on company letterhead

Reserve Bank, on application as per Annexure 34A stating export in
made to it, subject to the terms compliance of terms & conditions of RBI approval
and conditions, if any, as
Copy of RBI approval
stipulated in the permission.
Export Invoice
N Export of goods free of cost, Detailed application-cum-declaration on

for export promotion, company letterhead signed by authorized
export of goods is free of cost
FEMA Declaration
Export Invoice

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

70
O Export items for display or Detailed application-cum-declaration on

display-cum-sale in trade company letterhead signed by authorized
fairs/exhibitions outside India. signatories as per Annexure 34A, stating
Unsold exhibit items may be
the sale proceeds of the items sold would be
sold outside the
repatriated to India in accordance with Foreign
exhibition/trade fair in the same
Exchange Management (Realization, Repatriation
country or in a third country.
and Surrender of Foreign Exchange) Regulations,
Such sales at discounted value
2000.
are also permissible. It is also
permitted to “gift” unsold the exporter would report within 60 days from
goods up to the value of the date of GR waiver the method of disposal of
USD5000/- or its equivalent per all items exported, as well as the repatriation of
exporter, per exhibition/trade proceeds to India to us.
fair.
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.
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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
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
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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.
 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.
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 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.
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.
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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 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
75
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.
 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
76
 MT732 - Advice of Discharge

 MT734 - Advice of Refusal
 MT740 – Authorization to Reimburse
 MT747 – Amendment to MT740
 MT792 – Request for Cancellation
 MT799 – Free Format Message
77
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
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
78
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)
track to 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.
79
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
80
6. Supplier’s/Seller’s Credit
 Credit extended by Seller to the Buyer at Post shipment stage for export transaction
 Documents against Acceptance
 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
81
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
 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
82
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
 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
83
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
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
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Important Circulars
Circular
S.No. Product
No
Import
Servicing of Import related trade transactions – Import LC issuance,
1 Amendment, SMI, MDC, MFCL, MUBMFB, Third party Import, Issuance of 12300
delivery order, Bill of entry updation
11624,
2 Framework for advance import remittance
12300
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 Export, eBRC, GR waiver, Deemed Export, Netting off, Export
1 11567
LC service, Advising, 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/
1 Amendment/ Cancellation/ Advising/ Transfer/ Confirmation, Bills under LC, 12335
Inward collection bill, Outward bill )
2 Inland Bill Discounting – LCBD 13819
Remittances
Inward Remittance ( SSI, Purpose code change, Remittance with
1 12314
Incomplete swift info, FIRC, )
Processing of Outward Remittances ( Non-Import Outward Remittance,
2 12444
Foreign DD 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,
2 13879
Export bill write off-EBW, Project/Branch/Liaison office )
3 Overseas Tour Operators Account 13575
4 Trade Deviations 12175
85
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)
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

86
(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)
(c) { }Shipment to be made within 12

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

{ } Advance payment against after 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:
87
• 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
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.___________________
88
(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/ -XXX-

or 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.
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)

89
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
FX RATE : (TICK CORRECTLY) Whether IE Code
Updated in Finacle :
1. TO BE TAKEN BY TSU : _______________
Yes /No
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
1
no of customer
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
7 Arabia, 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
8
exceeds USD 300000 equivalent, whether RBI approval taken
90
Whether MT202 (not required if SXR is given) or MT 910

9 uploaded in 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
2 payment along with stamp and signatures of both beneficiary & M
applicant
Advance Import declaration for SMI (as per process instruction
3
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 Check for availability of DGCA license for aviation related I

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
11 are being 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 /
14
Forbes International 500 list/ Asia week 1000 company/ valid
and satisfactory Dun & Bradstreet (D&B) report
If Import of non-physical imports, then certificate from CA
15
evidencing the receipt of software/image/drawing attached
If there is delay in payment for more than 6 months, then letter
16 from 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
91
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 lakh for all other currencies (e.g. 100000USD/GBP/EUR) provide the
1
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
2
approved status 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
4
to be provided (Process instruction 543)
CMII approval if address as per Google is a mismatch with beneficiary address
5
mentioned on invoice copy.
6 RM approval for no BOE outstanding in last BEF report
CSE CSM TRADE
MANAGER
92
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
1
no of 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
Whether MT202 (not required if SXR is given) or MT 910
YES /
6 uploaded in case of rerouting the funds returned or making
NO
import payment based on BC.
Check whether IBAN no provided for beneficiaries of Saudi
YES /
7 Arabia, Jordan, Kuwait, UAE, Qatar & check whether CNAPS
NO
code available for payment in CNY to China.
In case of partnership or proprietorship, if the invoice value YES /
8
exceeds USD 300000 equivalent, whether RBI approval taken NO
93
For Import of Rough Diamonds/Precious and Semi-Precious

9 stones /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
10
from the date of shipment
Check the terms of payment and it should not mention as
11
Advance
S.No
Documents to be submitted Nature (Yes/No
.
)
2 Copy of Invoice M
Whether Advance declaration form provided in case Bill of
3 M
Lading is not available (as per process instruction 754 )
Whether Customer declaration is given in CRL if BOE is not
4 M
available, to submit the same subsequently
Copy of Bill of lading /airway bill / Courier / MTD
5 Note: not mandatory if Bill of entry provided at time of M
remittance
‘Duly Endorsed’ bill of entry, if mode of payment is on
6 M
‘Consignment’ basis
Bill of Entry OR valid reason for not submitting beyond 30
7 days by Account Manager / CSM Relationship Manager M
(giving ref of 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
If payment is going to 3rd party, then document evidencing

13 relationship between beneficiary and 3rd party to be
submitted. Firm irrevocable purchase order /tripartite
agreement
14 Check for availability of DGCA license for aviation related

purchase
In case of Merchanting Trade, ensure the following

15 documents are being filled as the specified format and
scanned: MTT declaration, 15CACB, Export Invoice, Import
Invoice, Form A2 and Inward Detail/Deviation Details.
94
If import of non-physical imports, then certificate from CA

16 M
evidencing 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
17 M
goods, then letter from 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
For import of gold, provide details as per gold import
19 I
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 lakh for all other currencies (e.g. 100000USD/GBP/EUR) provide the
1
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
2
approved status 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
4
to be provided (Process instruction 543)
5 CMII approval for multiple BoEs scanned. 14 point approval
6 RM approval for delayed payment
CSE CSM TRADE
MANAGER
Non Trade Outward Remittance

95
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 Yes No

with 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

96
10 A/c no. & SWIFT code on letter & invoice are same Yes No
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 No

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

attach 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 Yes No

value is 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:

97
CSE CSM TRADE MANAGER BOM/BM/SBH

(In case rates are to be taken up by TSU
and transaction value is above -1 Million
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)

98
Annexure 22 : Branch Check list for Export Bill under Collection
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 Natur (tick mark)

No. e (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.
99
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
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 / order
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 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 B TO C
the 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
100
“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
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
101
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:
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) :
CSE CSM TRADE MANAGER
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.
102
Export Bill Realization (XFM)
Annexure-30 Branch Checklist for payment of advance against exports
Checklist for payment of advance against exports
Customer name: ___________________________________________________
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. Documents to be submitted Natur (tick mark)

No. e
(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)
103
- 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 I (tick)

C)
-If Yes above, then Status Holder Certificate or B TO C
SEZ certificate/endorsed invalidation letter from C TO C
either of the parties (for Deemed export)
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
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 :

104
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
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 “Direct Dispatch of Shipping
105
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) :
Letter of Credit (LC)

106
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. Documents to be submitted Nature Yes/No

No.
1 Customer Request Letter I
2 LC Application with NNL and FEMA declaration M
Proforma Invoice / Purchase Order/ Sales Agreement M

3
(Amount >=LC 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, M

4
approval as 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)
107
(iii) Insurance policy is consigned to ICICI Bank
If Incoterms is CIF/CIP/DAT/DAP/DDP, standard insurance

5 clause is 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 I

7
per TD, point no. 23 or 28
For import of gold, provide details as per gold Import I

8
checklist
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)

108
Domestic BG Issuance
I Name of the Applicant :
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 I
charges for 100% margin cases.
109
6 Shareholding pattern/constitution of the beneficiary M

(based 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
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 Y N.A.
rating)
5 Deviations, Approvals or Observations, if any,
please mention hereunder:
* Strike out
whichever not applicable
CSE CSM
TRADE MANAGER

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1

Trade Products & Process Manual

Trade Desk Officer

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

Risks Involved for Buyer & Seller

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

Role of a Bank in Trade

 Banks deal in documents related to trade, not goods

 Handling of the documents on behalf of other bank, importer or exporter

Modes of Payments in Trade

3. Bills for Collection

4. Documentary Credit (Letter of Credit)

Trade Documents- Broad Classification

INCOTERMS is an abbreviation of International Commercial terms. This term governs the

Each term in INCOTERM specifies:

EXW – Ex Works – Named Place

“F” – Main Carriage Unpaid

“C” – Main Carriage Paid

CPT – Carriage Paid To – Named Place

CIP – Carriage 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

EXW – Ex Works (Named place of delivery)

FCA- Free Carrier (Named place of delivery)

FAS – Free Alongside Ship (Named port of shipment)

FOB – Free on Board (Named port of shipment)

CFR – Cost and Freight (Named port of destination)

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

6) ARTICLE 6 – AVAILABILITY, EXPIRY DATE, PLACE OF PRESENTATION: The Article deals

7) ARTICLE 7 – ISSUING BANK UNDERTAKING: An issuing Bank is irrevocably bound to

9) ARTICLE 9 – ADVISING OF CREDITS, AMENDMENTS: A bank utilizing the services of an

11) ARTICLE 11 - TELETRANSMITTED CREDITS: An authenticated tele-transmission of credit

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:

c) When a nominating bank determines that a presentation is complying and honours or

16) ARTICLE 16 – DISCREPANT DOCUMENTS, WAIVER AND NOTICE:

20) ARTICLE 20 - BILL OF LADING

- If signed by master, or owner, or charterer, their names are not necessary.

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

31) ARTICLE 31 – PARTIAL DRAWING OR SHIPMENT: Partial drawings or shipments are

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

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)

 Detailed mathematical calculations in documents will not be checked by banks. Banks

Documents against Payment (D/P)

Letter of Credit (Commercial)