In a positive move, Reserve Bank of India (RBI) has relaxed norms for aircraft and helicopter imports. In its notification RBI has said that the banks could allow advance remittances, without bank guarantee or an unconditional, irrevocable standby letter of credit up to $50 million, in the case of import of aircrafts/ helicopters/ other aviation related purchases once the company has approval from aviation regulator Director General of Civil Aviation (DGCA). 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 the latest notification, RBI has done away with the earlier requirement whereby Civil Aviation Ministry's nod was compulsory for advance remittances. These norms would be applicable on companies operating Scheduled or Non-Scheduled Air Transport Services, including Air Taxi Services. Earlier, advance remittance was allowed by banks only when the importing entity had requisite approvals from Civil Aviation Ministry, DGCA and other agencies.
Meanwhile, on evidence of import of goods, RBI also notified 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. It further said that the 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. 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.
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