FEMA Advisory Service | FEMA Compliance Service

If you are dealing in foreign currency or have an import and export business, you need to adhere to the Foreign Exchange Management Act, 1999 and the regulations made thereunder. It is a comprehensive act that deals with all the aspects where foreign transactions are involved, whether import-export business, buying or selling foreign assets, availing of loans, foreign remittances etc. This emphasizes the importance of FEMA advisory services or FEMA Compliance Service, especially for international businesses.

FEMA Implications in Import-Export Business

Here are the different aspects and implications of provisions and regulations of FEMA for import-export business:

• Advance Payments & Export: In case you receive advance payment for export, you need to adhere to the provisions of FEMA for export business. In such cases, the exporters are under an obligation to ensure the shipment of goods is completed within 1 year from the date of receipt of advance payment.
• Realisation and Repatriation: Exporters are under an obligation to realise the export proceeds within a period of 9 months from the date of export. This period shall be 15 months in case the goods are exported from a warehouse established outside India.
• Settlement of Import Payments: The payment remittances for imports shall be made not later than 6 months from the date of shipment. In certain cases, like the amount withheld towards guarantee of performance, suppliers and buyers’ credit etc., remittances can be made beyond 6 months.
• Reporting & Compliance: You need to comply with the legal requirements under FEMA, including submission of relevant declarations to the RBI and authorised banks. Violations can lead to significant fines and penalties that can obstruct the smooth flow of business operations.
• Lending and Borrowing: In case the exporters or importers are utilising credit facilities like letter of credit, export credit, buyers’ credit, guarantees etc., they need to ensure compliance with the provisions and regulations of FEMA.

Exim Advisory assist you at every stage of your import-export business. When it comes to FEMA advisory, here’s how Exim Advisors help you navigate:

• Providing you with a comprehensive analysis of FEMA regulations for import-export business and how they impact you
• Ensuring timely and accurate compliance with FEMA provisions, including investments, foreign exchange transactions, exports-imports etc.
• Obtaining necessary approvals from the Reserve Bank of India
• Assistance in preparation and filing of necessary documents for remittances, exports-imports, borrowing and credit arrangements etc.
• Guidance on Foreign Direct Investments, Overseas Direct Investments, External Commercial Borrowings and other investment and lending arrangements
• Advisory on setting up of subsidiary companies, wholly owned subsidiaries (WOS) and joint ventures (JV) etc.
• Conducting periodical compliance audits and reviews to ensure compliance with FEMA regulations