What is the time limit of settlement of Import payments?
A. (i) In terms of the extant regulations, remittances against imports should be completed not later than six months from the date of shipment except in cases where amounts are withheld towards guarantee of performance etc. Deferred payment arrangements including suppliers and buyers credit providing for payments beyond a period of six months from date of shipment upto a period of less than three years are treated as trade credits (Suppliers Credit and Buyers Credit). (ii) Branches may permit settlement of import dues delayed due to disputes, financial difficulties etc. Interest in respect of such delayed payments may be permitted for a period of less than three years from the date of shipment at the rates prescribed by RBI from time to time.
