Remittance of Charter Hire in respect of Foreign Ships/Aircrafts on Voyage Charter basis

(i) Authorised dealers may allow remittance of freight in respect of foreign ships engaged by Indian exporters/importers on `voyage charter basis on the strength of charter party agreement, approval from Director General of Shipping [from TRANSCHART (Chartering Wing of Ministry of Surface Transport) in respect of public sector undertakings], invoices from shipowners/agents and undertaking/certificate regarding payment of Income-tax (cf. paragraph 3B.10). In case of import, Bill of Entry/Custom Certified invoices and in case of exports, on Board Bill of Lading may be called for.

NOTE : Authorised dealers should ensure that the vessel was engaged within the `laycan time indicated, if any, in the DGS/TRANSCHART approvals.

(ii) Applications if any received for advance payment i.e. before sailing of vessel in respect of export cargo and before arrival of vessel at Indian Port in respect of import cargo should be referred to Reserve Bank for prior approval in cases where the amount of remittance exceeds U.S.$ 15000/-.

(iii) Applications for remittance of demurrage charges on account of delay in loading/discharge of the cargo or non-availability of berth may be allowed by authorised dealers with reference to sale/purchase contract, charter party agreement showing rates of demurrage agreed to, duly approved by DGS/TRANSCHART. Authorised dealers may also call for survey report, worksheet for demurrage calculation, invoice from ship owners and also a certificate from port authority if the delay was on account of non-availability of berth.

(iv) Remittances in respect of charter hire of aircrafts (ad hoc flights) may be permitted by the authorised dealer at the centre at which the registered/Head Office of the charterer is situated on submission of an application for remittance in form A2 accompanied by invoice, copy of agreement/contract and after verifying the approval (i.e. YA signals) obtained from the Director General of Civil Aviation (DGCA) in original for such ad hoc flights and documentary evidence from Airport Authority to show the actual flight operation. The undertaking/certificate regarding payment of income-tax (cf. paragraph 3 B.10) should also be obtained before allowing the remittance. It should be ensured that the remittances are made by the charterers to the owners and not through any other airline, etc. in India.

(v) Authorised dealers should maintain systematic record of the remittances allowed together with documents verified for verification by their internal auditors/Reserve Bank officials whichever is earlier.

NOTE : In case of import cargo on FOB/FAS terms and remittance being made to the shipowner belonging to the country having Double Taxation Avoidance Agreement with Government of India, annual No Objection Certificate valid as on the date of remittance may be accepted.