The Reserve Bank of India advises the banks to close low-value shipping bills in EDPMS
Dear sellers, As you may know, the Foreign Exchange Management Act, 1999 (FEMA) requires exporters to obtain an electronic realization certificate (eBRC) to confirm realization of export proceeds. The Director General of Foreign Trade (DGFT) vide its trade notice dated November 10, 2023 introduced a new, streamlined, self-declaration based eBRC process removing dependency on banks. Despite that, closure of the shipping bills against receipt of foreign exchange inward remittance in the Export Data Processing and Monitoring System (EDPMS) in a timely manner is still a challenge. The Reserve Bank of India (RBI) vide its notification dated November 28, 2024 has advised the banks to close shipping bills up to $1,000 until March 31, 2025, subject to following conditions: Verification of the transaction’s legitimacy (bona fide). Receipt of export funds. Compliance with Know Your Customer (KYC), Anti-Money Laundering (AML), and Combating the Financing of Terrorism (CFT) regulations. Assurance that the exporter is not under investigation or court cases related to these transactions. We understand that the aforesaid RBI’s notification will significantly benefit e-commerce exporters selling low value items, reducing costs and compliance burdens, and enhancing their competitiveness profitability. Learn more —> Discover details here → What you need to do: Confirm that funds for your export shipments have been received by your bank. Verify compliance with KYC, AML, and CFT requirements. Ensure your bank has all necessary documentation to meet RBI’s conditions. Note: These simplified procedures apply only to shipments valued at $1,000 or less and valid until March 31, 2025. Standard processes remain for higher-value exports. Thanks for being part of the eBay community. Your eBay team *Please note that eBay cannot provide legal advice. The information provided in this email is intended to be general guide only. For detailed advice on how the RBI's update and other regulations apply to you and your specific export processes, please contact your legal counsel or your bank representative.
