As per the mandate of the Reserve Bank of India, all the banks having customers dealing in foreign trade, have to submit their import export data electronically to RBI.  Based on the data submitted by the banks, RBI tracks the imports to and exports from the country. Let’s know more about Edpms/Idpms Service

The data input from the bank’s end is automated and there are rarely any chances of discrepancies and inaccuracies.  But the same data has to be maintained by the importer or the exporter of the goods also.

When you are a corporate with a number of foreign trade transactions, it becomes difficult to maintain these records, over and above taking care of all the procedures and paperwork involved.  To record an import trade, Bill of Entry received from customs is to be matched against the Letter of Credit opened for that particular transaction and the payments made against it.  But since the opening of Letter of Credit, payment to exporter by the bank, payment to the bank by the importer and receipt of the Letter of Credit, all happens at different points in time, the matching of all against a single transaction is missed out, leading to many complications in reporting of imports and release of funds.

Complexities

The similar complexities are involved in the export trade and similar complications are faced by the exporters.  These are operational issues, which can be streamlined by setting up a proper system.

It is vital to reconcile all the data and verify that only correct and accurate information is recorded and transmitted to the concerned authorities.  But the recording and reconciliation of transactions need expert knowledge and a knack of procedures involved in foreign trade.

Our team can assist the businesses in setting up the system of document flow, the recording of transaction and reconciliation with the EDMPS/IDMPS, and also in carrying out due diligence of the entire process. Fallow us on Social media to receive more updates on more services @abvdebtadvisory