8B.6
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Remittance of Freight Prepaid on Inward Consolidation of Cargo by Air/Sea
(i) While normally freight on goods imported as consolidated air/sea cargo is prepaid by overseas suppliers, in some cases overseas consolidators advance the freight abroad to the airline/shipping company on behalf of the Indian importer and the break-bulk agent in India is required to collect freight amount from the Indian importer and remit the same to the overseas consolidator. In such cases, Indian agents of overseas cargo consolidators desirous of making remittance are required to submit their agency agreements to a designated branch of an authorised dealer. The designated branch may allow the remittance on the basis of the agreement and statement in form BBI giving full details of inward shipments on `charges to collect basis and a Chartered Accountants certificate to the effect that the amount of remittance applied for has been verified with reference to copy of prepaid Master Air-Way Bill (MAWB)/Master Bill of Lading (MBL) together with the original relative House Air-Way Bill (HAWB)/House Bill of Lading (HBL) as also cargo manifests and invoices from overseas consolidators and has been found correct. Declaration from importers in form DIC regarding payment of freight on import may also be called for.
(ii) Authorised dealers may call for Chartered Accountants certificate in form CAS to determine outstanding receivables. In cases where the receivables from the same overseas consolidators outstanding for more than 6 months exceed US $ 2500 no remittance should be allowed without prior approval of Reserve Bank.
(iii) Authorised dealers should maintain systematic record of the remittances allowed together with documents called for and should be made available to their internal auditors/Reserve Bank officials as and when called for.