In the world of export-import, each shipment counts. And you cannot afford to make any “uninformed investment”. So, if you have any doubt or a question, ask us. Our team of experts at The Dollar Business Intelligence Unit will be happy to answer your queries. Your question(s), if approved, will also be published on www.thedollarbusiness.com, and/or in the forthcoming issue of The Dollar Business

My client has received advance payment (forex) from a foreign buyer but has not remitted equivalent goods/ services within one year from the receipt of funds. I wanted to check if he has made a non-compliance. If yes, is there a way out, either pre- or post-approval or any other provision, under law wherein he can be a compliant entity? (Akash, [email protected])

Dear Aakash: Since your client (exporter) has been unable to make the shipment within one year from the date of receipt of advance payment, any remittance towards refund of the advance payment or payment of interest to the foreign buyer should be made only after the prior approval of RBI. Please refer to Notification No.FEMA 23(R)/2015-RB dated January 12, 2016 [Foreign Exchange Management (Export of Goods & Services) Regulations, 2015]. We hope we’ve been able to respond appropriately to your query. In case you have any further question, please feel free to write to us. We look forward to hearing from you.



Response by: Steven Philip Warner President (VMPL) & Editor-in-Chief, 
The Dollar Business

I am interested in importing essential oils and agricultural products from United States to India. Do I require to obtain any license or permits from the Government of India? (Kirat Patel, President, Goji Snacks Inc., +91-8306252XXX, [email protected])

Dear Kirat: We are glad to know that you want to import essential oils and agricultural products. The import of essential oils is free under the Foreign Trade Policy. However, the provisions relating to Drugs & Cosmetics Act and Food Safety Standard Authority of India (FSSAI) Regulations needs to be complied while importing, depending on the usage of the essential oil.

When it comes to agriculture products, you need to specify what products you plan to import as technically all products falling under Chapter 1 to 24 of ITC (HS) Code are broadly described as agricultural products. Most agricultural products are freely importable but some of them are restricted and would require an authorisation before the imports. Such imports are also subject to Plant Quarantine regulations.



Response by: Ajay Sahai,Director General & CEO, 
Federation of Indian Exports Organisation (FIEO)

What are the rates of reward under Merchandise Exports from India Scheme (MEIS) for products falling under HS Codes 56079010 and 56072900? (Siddharth Jhawar, +91-9234668XXX, [email protected])

Dear Siddharth: While a 5% reward (for all export destinations) is available for coir, cordage and ropes, other than of cotton falling under HS Code: 56079010 under MEIS, exports of other twine, rope, etc., of sisal or other textile fibres of genus agave falling under tariff line 56072900 is entitled for 2% reward under the said scheme for all export destinations. In case you have further queries, do write back to us.



Response by: Manish K. Pandey,Editor,
The Dollar Business

Is it safe to get an order for coconut with 100% irrevocable Letter of Credit (LC) at sight from Mauritius? What are the things that I should take into consideration for secure/ safe payment and transaction? (Jay, Marketing Manager, Shree Exports, +91-9500077XXX, [email protected]) 

Dear Jay: It’s usually safe as an irrevocable Letter of Credit, which once accepted by the seller, cannot be altered or cancelled without the consent of the seller. However, it should be noted that an irrevocable Letter of Credit is in effect only for a stipulated time period and expires at a pre-determined date. Further, you need to ensure that the documentation of each consignment needs to be as per the conditions of LC at sight, otherwise the buyer’s bank has the right to reject payment on any violation of such documentation.



Response by: Dr. A. K. Sengupta Chief Consulting Editor, The Dollar Business

I am a new generation entrepreneur and want to learn about the spices business, particularly exports. How can you help me? (Shubham Sureka, [email protected])

Dear Shubham: First, our congratulations for having decided on a certain product category to export. Most entrepreneurs fail to take their business global because they are forever stuck with the question of “which product?”. We are confident that since you’ve made up your mind on the product already, you are well on your way to achieving greatness in exports. By the way, the product category that you have chosen is extremely lucrative. Did you know that in FY2017, a total of 9,47,790 metic tonne of spices and spice products valued Rs.17,664.61 crore were exported from India? This year, we are looking at exports value that’s much above the Rs.20,000-crore mark! You could well have a decent size of that exports... So cheers to your choice.


Second, yes, we will be of complete assistance to you. We have a fantastic solution that helps Indian exporters of spices find overseas buyers. It’s a platform called EXIMAPS, which is the most powerful buyer and competitor analysis tool for Indian exporters. We can discover buyers and give you their detailed profiles and purchase habits from across some 190 countries for your specific product (You can read more on EXIMAPS on https://in.thedollarbusiness.com/exim-maps).



Response by: Indranil Das Executive Editor, The Dollar Business