(i) Freight forwarders undertaking consolidation of out-bound cargo need services of break-bulk agents abroad. Sea cargo forwarders and IATA recognised Air cargo agents may approach a designated branch of an authorised dealer for remitting remuneration to break-bulk agents giving full particulars of the arrangements in form BBX 1 togetherwith a copy of the relative agency agreement. Authorised dealers may allow the remittance of remunerations to break-bulk agents on outward cargo on the basis of a Chartered Accountants certificate to the effect that the amount of remittance applied for has been verified with reference to break-bulk agents debit notes/invoices, copy of Master Air-Way Bill (MAWB)/Master Bill of Lading (MBL) and original relative House Air-Way Bill (HAWB)/House Bill of Lading (HBL), as the case may be. Before allowing the remittance authorised dealers may also obtain undertaking/certificate regarding payment of Income-tax (cf. paragraph 3B.10) and a statement in form BBX2.

NOTE : Application from Air Cargo Consolidators not recognised by IATA should be referred to Reserve Bank.

(ii) Air/Sea cargo agents are also permitted to pay freight to airlines/shipping companies in rupees in respect of exports made on FOB basis and recover the freight amount from the overseas consignee through their break-bulk agent abroad provided they undertake to repatriate the same to India through normal banking channels within a period of 30 days in case of Air Cargo and 90 days in case of Sea Cargo from the date of shipment.

(iii) Authorised dealer may call for Chartered Accountants Certificate in form CAS to determine outstanding receivables. In cases where the receivables from an overseas agent outstanding for more than 6 months exceed U.S. $ 2500 no remittance should be allowed without prior approval of Reserve Bank.

(iv) Authorised dealers should maintain systematic record of the remittances allowed togetherwith documents called for which should be made available to their internal auditors/Reserve Bank officials as and when called for.