Digitization of regulatory documents (shipping bill and bill of entry) is being implemented by the Regulatory authority to reduce the paper work and to ease the trade operations.
Export Data Processing and Monitoring System (EDPMS) and Import Data Processing and Monitoring System (IDPMS) are gradually setting in. But there are some outstanding transactions creating pressure for the companies. Reserve Bank of India consolidating their guidelines from the year 2000 till date has issued Master Directions on Export and Import of goods and services with regular updates.
Under FEMA 1999 guidelines, Reserve Bank has delegated authority to Authorised Dealers to approve certain deviations subject to certain conditions. Say for example, after shipment exporter wants to allow trade discount to the overseas buyer. But shipping bill has captured the full value. Authorised Dealer has the delegated authority to allow such trade discounts and reduction in Invoice value subject to certain conditions. Likewise, old outstanding if not recoverable, Authorised Dealers have the delegated authority to ‘write off’ the unrealized pending payments.
In case of Make in India concept some of the overseas companies are getting goods manufactured in India and deliver the goods locally. Local buyer has to remit foreign exchange but there will be no proof of import.
Recently there are relaxations in Merchanting Trade transaction also.