In a significant move aimed at simplifying foreign trade procedures, the Reserve Bank of India (RBI) has allowed Authorised Dealer (AD) Category-I banks to directly close Bills of Entry (BoE) in respect of goods imported on a Free of Cost (FOC), No Commercial Value, or Sample basis.
Currently, such cases require prior approval from the regional offices of the RBI before AD banks can close the Bills of Entry in the Import Data Processing and Monitoring System (IDPMS). This process often resulted in additional paperwork and delays for businesses importing goods without commercial value, such as trade samples, testing items, or consignments received free of charge.
According to the new guidelines issued on September 29, 2025, AD Category-I banks will now be empowered to independently assess the bona fides of such transactions and close the Bills of Entry in IDPMS without requiring prior RBI approval.
The RBI circular, signed by Prashant Kumar Dayal, General Manager, stated:
“On a review, it has been decided that AD banks may close Bills of Entry in IDPMS for goods received on FOC, No Commercial Value, or Sample basis, based on their assessment of the bona fides of the transactions.”
Implications of the Move
- Reduced Compliance Burden: Importers will no longer need to approach RBI regional offices for approvals in such cases, thereby cutting down administrative processes.
- Faster Closures in IDPMS: AD banks can exercise their discretion and close entries directly, leading to quicker reconciliations of import data.
- Boost to Trade Efficiency: This will particularly benefit businesses that frequently deal with imports of samples, prototypes, or goods sent free of cost for testing, exhibitions, or quality checks.
- Strengthened Banking Oversight: By empowering AD banks, RBI has delegated responsibility for due diligence to the banking system, ensuring checks remain intact while easing procedural bottlenecks.
Background
Bills of Entry are mandatory documents filed with Customs for every import, and their closure in IDPMS is critical for reconciling foreign exchange transactions. In cases where imports are made without any payment obligation—such as free samples or promotional materials—the earlier requirement of seeking RBI approval often delayed closure of records. The latest relaxation comes as part of RBI’s ongoing efforts to streamline trade documentation and promote “ease of doing business” in India.
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