Reserve Bank of India relaxes norms for aircraft, helicopter imports

Relaxing norms for aircraft and helicopter imports, RBI today said banks can allow advance remittances for imports once the company has approval from aviation regulator DGCA. 

With the latest notification, the Reserve Bank of India (RBI) has done away with the earlier requirement whereby Civil Aviation Ministry's nod was compulsory for advance remittances. 

Previously, advance remittance was allowed by banks only when the importing entity had requisite approvals from Civil Aviation Ministry, Directorate General of Civil Aviation (DGCA) and other agencies. 

"... Banks may, while allowing advance remittance without bank guarantee or an unconditional, irrevocable standby letter of credit up to USD 50 million, ensure that only the requisite approval of DGCA for import of aircrafts/helicopters," have been obtained by the company, RBI said. 

This would be applicable on companies operating Scheduled or Non-Scheduled Air Transport Services, including Air Taxi Services. 

"In other words, the approval from Ministry of Civil Aviation will not be required," RBI said. 

The relaxation comes at a time when the Ministry is working on a new aviation policy that seeks to provide various incentives for the sector. 

In another notification on evidence of import of goods, the RBI said that with the establishment of Free Trade Warehousing Zones/SEZ Unit warehouses, imported goods can be stored therein, for re-export/re-selling purposes for which Customs Authorities issue Ex-Bond Bill of Entry. 

"...Banks are advised to consider the Bill of Entry issued by Customs Authorities named as Ex-Bond Bill of Entry or by any other similar nomenclature, as evidence for physical import of goods," it said. 

Further, in cases where goods have been imported through couriers, the Courier Bill of Entry, as declared by the courier companies to the Customs Authorities, may also be considered as evidence of import of goods.

Source:  http://www.business-standard.com