Forex facilities for Exporters & Importers

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FOREX FACILITIES

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EXPORTERS &IMPORTERS

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Established in 1906

109 years of successful banking with uninterrupted profits

A premier public sector bank – A Govt. of India enterprise -nationalized in 1980

Pre-eminent track record of good housekeeping

Adherence to prudential accounting norms

Introduction of Innovative techno savvy products (Corp Saral Plus, Corp Signature, Corp Global current Account, Corp Travel card)

New products Launched – Corp FCNR premium, Tablet Banking

Leader in Cash management products in the industry

Corporation Bank

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Pan India presence and cross border operations

Good mix of Foreign Exchange Inflows and Outflows

Experienced and trained foreign exchange officials

Sophisticated Dealing Room with well trained and experienced dealers

Extending fine/competitive exchange rates & Advising forex rates by SMS

Providing Card rate, forex commentary and advisory to the clients through e-mails

Forex transaction Advises to the customers through e-mails

Help Desk at T & ID, HO providing advisory services pertaining to international trade and finance

Centralized forex operations – upcoming FOREX HUBs

Our Strengths

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Comparatively younger work force as compared to other PSBs

Many first to its credit including its Pioneer in Financial inclusion, Cash Management services, launching of ASBA services, Gold Banking, m commerce, online approvals for educational loans, e payment of taxes, e- passbook, e- mandate, MUDRA Card etc.

Quick to adapt to technology – A range of IT enabled products/services

Increasing penetration in rural/ semi-urban centres with opening of Branches & ATMs

One of the best in the industry in terms of employee Productivity & Efficiency.

Revamped ATM Network

Dedicated NRI helpdesk to cater to the needs of NRI customers

Our Strengths

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Ownership as On 31.03.2015

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All units under CBS – 100% of branches/offices under core banking

Internet Banking facility for customers with many add on features and services are available through Android phones, Tablets and ipads.

Mobile Banking application in Smart Phones & SMS alert facility

“Corp e-Passbook”- a digital passbook for customer convenience.

Corp Express Banking “24X7 e-Lobby”- a automated self service center including Cash/ Cheque Deposit, ATM and passbook printer at various centers.

First bank to launch Corp e-Mandate for multiple ECS/ACH payments with one easy Platform

Missed call facility to check account balance

The Bank has planned to migrate to a new and contemporary Core Banking solution and the process is underway

Technology Up-gradation

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Corporate Agency for

Life insurance policies from Life Insurance Corporation of India

Non-life insurance policies from New India Assurance Co. Ltd

Export policies from ECGC

Strategic Alliance

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Treasury branch at Mumbai operates Integrated Dealing Room

66 designated branches with specilaised officials to cater to the forex needs of all the branches across the country

2 Representative Offices at Dubai and Hong Kong facilitate cross border trade by arranging Buyers Credit & Bank Guarantees and providing global information

Process underway for Setting up of IFSC Banking Unit (IBU) at GIFT city, Gandhinagar, Gujarat and a rep office in Kenya.

International Banking

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INTERNATIONAL BANKING …

Relationship with major Middle East Asian Exchange Houses for Inward Remittances in INR

Maintaining Foreign Currency Accounts (Nostro a/cs) in 11 Major Currencies like USD, GBP, EUR, CAD,AED

Dealing in other Currencies through tie up with Citi Bank and Deutsche Bank

Correspondent Banking relationship with 328 banks at 950 branches/offices

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Advising of L/Cs

Adding Confirmation to the L/Cs

Negotiation of Documents received under L/C

Providing Confidential opinion

Issue of Local Guarantees

Correspondent Banking Service

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CORP GLOBAL CARD – TRAVEL CARD

Prepaid Multi-currency Forex Travel Card "Corp Global Card" issued by Bank. It is a non-personalised European Master Visa card

Single card can hold up to 8 different currency wallets at any given time. (USD, GBP, CAD, EUR, CHF, SGD, JPY, AUD)

Customer are enabled to convert from other currency pockets, if the local currency is fully utilised

Can be used in any of the ATMs across the globe

Card comes with 24 x 7 dedicated travel assistance globally

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CORP GLOBAL CURRENT ACCOUNT

A specially designed current account for exporter/ importer customers who do not have any credit facilities

Highly competitive service charges for export/import/remittance transactions

Free charges for FIRC, BRC and NEFT

Comes in two variant with QAB Rs.1.00 Lakh & 2.50 Lakh

For QAB 250,000 free charges on export/import bills up to USD 50,000

For QAB 100,000 flat charges of Rs.1000 for Import/Export transactions upto USD 50,000

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EXPORTS

Export Advance remittance

Collection of Export documents

Pre-shipment credit

Post-shipment credit

Forward Purchase Contracts

Collecting Confidential opinion from Banks & Agencies

Export LC Advising

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EXPORT CREDIT – PRE-SHIPMENT

Packing Credit

Fund Based Credit facility

Packing Credit – Hypothecation/ Pledge

Finance available in Rupee and Foreign Currency

Facility available in Running Account and Order Based

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EXPORT CREDIT-POST-SHIPMENT Purchase of DP Export Bills

Discount of DA Export Bills

Negotiation of Export Bills drawn under Export L/C both on DP & Usance

Rupee Advance against Export Bills sent on Collection

Loan against Claims pending under Duty Drawback

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Avail foreign currency pre-shipment and or post-shipment credit facility for export business

Look for favorable LIBOR and forward premium while choosing F.C. loans

An additional window for availing pre/post -shipment credit by Indian exporters at internationally competitive rates of interest

Export Finance in Foreign currency

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Export Finance

Bank covers pre and post shipment facilities under Whole Turnover Guarantees of ECGC

Under Whole Turnover Policy, bank pays ECGC premium on post shipment credit while exporter pays premium on pre shipment credit

Premium rates on pre shipment is 6 paise per hundred *

Premium rates on post shipment is 4.5 paise per hundred *

* Subject to change

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IMPORTANT EXPORT GUIDELINES

Exemption from Declaration – EDF Exemption

Free of cost for export promotion upto 2% of average annual exports during the preceding three financial years subject to ceiling of Rs.5 lakhs

For status holder exporter the ceiling is Rs.10 lakhs or 2% of average annual export realisation during the preceding three financial year whichever is higher

SDF form for EDI ports

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IMPORTANT EXPORT GUIDELINES.. Direct Dispatch of Documents

Dispatch of Shipping documents directly to the consignees only against advance remittances/LCs

Banks may dispatch directly to the consignees only on behalf of exporters with satisfactory track record

Status Holder Exporter & Units in SEZs may dispatch documents directly to consignees

GR/SOFTEX forms and copies of documents should be submitted to bank within 21 days

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IMPORTANT EXPORT GUIDELINES.. Third party Exports

Firm irrevocable order backed by a tripartite agreement or documentary evidence for circumstances leading to third party payments.

Declaration of third party remittance in the EDF

In case of shipments to Group II Restricted Cover Countries (e.g. Sudan, Somalia etc.), payments for the same may be received from an Open Cover Country

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IMPORTANT EXPORT GUIDELINES.. Manner of Receipt and Payment

Export realization may be in the form of TT/DDs/POs/Cheques

FC Notes/TCs tendered by overseas buyer during visit to India

Payment out of FCNR/NRE deposit

International Credit Cards of the buyer.

Cash exports – payment to receive within 9 months from the date of shipment

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IMPORTANT EXPORT GUIDELINES.. Time limit for Export Realization

Normal Exports – 9 Months

Status Holder Exporters/100% EOUs, Units setup in EHTPs, STPs, and BTP – 9 Months

Goods exported to Warehouses established outside India – 15 Months

The realization period starts from the date of shipment.

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IMPORTANT EXPORT GUIDELINES.. Extension of Time

Banks are permitted to extend the period of realization of export proceeds beyond stipulated period of realisation from the date of export, upto a period of 6 months, at a time with certain conditions.

Exporters can permit extensions beyond one year from the date of export subject to total outstanding of the exporter does not exceed USD 1 million or 10% of Export Realization of Export Proceeds during the preceding three financial years, whichever is higher subject to certain conditions.

In case of filing of suit by Indian exporter abroad - without any value limit, banks can extend time limit

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IMPORTANT EXPORT GUIDELINES..

Write Off Self Write off (Other than Status Holder) 5%

Self Write off by Status Holder Exporter 10%

Write off by AD Bank 10% Amount has remained outstanding for more than 1 year

Amount permitted on the total export proceeds realized during the previous calendar year

Not subject to investigation by CBI or Enforcement Directorate

Export made to countries with externalization problem not qualified for write off

Exporter has to surrender proportionate export incentive. The Chartered Accountant should certify to that effect.

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IMPORTANT EXPORT GUIDELINES.. Reduction in Invoice Value

Banks may approve reduction of invoice value if satisfied about the genuineness of the reasons. The reduction should not exceed 25% of invoice value subject to conditions as stipulated by RBI.

Exporters with more than 3 years business, reduction may be allowed without any ceiling subject to the outstanding export do not exceed 5% of average last 3 financial years export realization

Exporter may allow cash discount for early retirement to the extent of proportionate unexpired period of Usance @ contracted rate/ prime rate/LIBOR

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IMPORTANT EXPORT GUIDELINES.. Set off of export receivables against import receivables

The import/export should be as per FTP/RBI guidelines

Payment for the import still o/s in importer’s books

Same overseas buyer and supplier should be there and consent for ‘set-off’ should be obtained from them

The export/import transactions with ACU countries outside the arrangement

The relative EDF/SDF forms will be released after entire export proceeds are adjusted/received

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IMPORTANT EXPORT GUIDELINES.. Trade Fair/Exhibitions Abroad

International exhibition/trade fair – temporary FC account may be opened abroad and to be closed within 1 month from the date of closure of exhibition/ trade fair

Unsold exhibit items are permitted to be sold with discount and also may be gifted up to a value of US$ 5,000 per fair/exporter

Bill of Entry to be submitted within 1 month of re-import

Exporter should submit method of disposal of items & repatriation of proceeds

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IMPORTANT EXPORT GUIDELINES.. Exporters can receive long term export advance up to maximum tenor of

10 years to be utilized for execution of long term supply contracts subject to certain conditions.

Setting up of Offices Abroad

For Initial Expenses – 15% of the average annual sales/income or turnover during the last two financial years or up to twenty-five per cent of the net worth, whichever is higher.

For Recurring Expenses – 10 % of the average annual sales/income or turnover during the last two financial years subject to conditions stipulated by RBI.

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Export Data Processing and Monitoring Systems is implemented by RBI w.e.f. 01st Mar 2014.

With a view to simplify the procedure for filling various returns and for better monitoring, a comprehensive IT- based system EDPMS in which the data validated at Custom/SEZ/STP level is mirrored in dedicated RBI server and is shared among the ADs to monitor both receipt of export documents and repatriation of export proceeds.

In case of Export document submitted to the Authorised Dealers banks other than declared in the export document, NOC will be obtained in EDPMS instead of paper based NOC.

Approval/disapproval of the AD transfer request takes place within 7 days from date of request; otherwise automatic acceptance will take place on the 7th day.

edpms

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EEFC Account Non-Interest bearing Current Account

All categories of foreign exchange earners are allowed to credit 100% of their foreign exchange earnings to their EEFC Accounts

The sum total of the accruals in the account during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month

Remittance out of the account for all current account transactions and permitted capital transactions

Import and advance remittance

Forward contract facility for conversion to Rupee is available

EEFC

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IMPORTS

Import Advance remittance

Import Direct remittance

Handling of Import Collection Bills

Issuing of Import L/C

Arranging Buyer’s credit at competitive pricing with LIBOR

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IMPORTANT IMPORT GUIDELINES…

Advance Remittance: Advance remittance for import without the requirement of overseas

bank BG/ SBLC For goods USD 2,00,000

For Services USD 5,00,000

For PSUs USD 1,00,000

Banks can have a policy for Advance Remittance without BG/SBLC upto USD 5 mio for goods subject to certain conditions.

Physical import within 6 months from the date of remittance for non-capital goods and 3 years for capital goods

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IMPORTANT IMPORT GUIDELINES… Direct documents

Receipt of import documents by the importer directly from overseas suppliers

Proprietorship units and Partnership firms can receive import documents directly up to a value of US$ 300,000

Status Holder Exporters, 100% EOUs, PSUs, Limited Companies both Private and Public can receive import document directly without any limit

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IMPORTANT IMPORT GUIDELINES…

Interest on Import Bills

Interest payment on import is restricted to as applicable to Trade Credits (LIBOR plus 350 basis points)

Delayed payment beyond 6 months from the date of shipment is permitted upto 3 years if AD is satisfied about genuineness of the reason for delay, no payment of interest is involved for additional period

In case of early remittance, proportionate interest for unexpired portion of Usance to be deducted at LIBOR of the currency or at contracted rate

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IMPORTANT IMPORT GUIDELINES… Evidence of Import

Submit evidence of import - exchange control copy of bill of entry for home consumption, warehouse bill of entry (EOUs & units in SEZs) within 3 months from the date of remittance

Import on D/A basis, E.C copy of bill of entry should be submitted before remittance

Banks shall be furnishing details of importers who have defaulted in submitting bills of entry with 6 months from the date of remittance for value in excess of US $ 100,000/- to RBI on half yearly basis as at the end of June & December of every year.

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IMPORTANT IMPORT GUIDELINES… Evidence of Import in lieu of Bill of Entry

A certificate from the CEO or auditor is acceptable provided the value of transaction is below USD 1,000,000. The facility is available to the listed companies. whose net worth is Rs.100 crore or more as well as PSU/ Govt. Undertaking/ CAG audited autonomous bodies

Non Physical Imports

Certificate from a Chartered Accountant that the software / data / drawing/ design has been received by the importer,

Importers should inform the Customs Authorities about the import

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IMPORTANT IMPORT GUIDELINES… Third party Imports Evidence of third party imports through Invoice/

irrevocable order/ tripartite agreement

Bill of Entry should mention the name of the shipper and the third party making the payment

Bona fides of the transactions and the FATF statements considered

All other guidelines for imports should be complied with

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IMPORTANT IMPORT GUIDELINES… Merchanting Trade

Goods acquired (imported/exported) should not enter the Domestic Tariff Area and the state of the goods should not undergo any transformation.

Related Documents and remittance for Import & Realization of Exports pass through India

Goods involved are permitted to be imported into India

Entire transactions should be completed within nine months and there should not be any outlay of foreign exchange beyond four months

Short-term credit by way of suppliers' credit or buyers' credit available for Merchanting trade transactions

Letter of credit to the supplier is permitted against confirmed export order

Discounting of export leg LC by as in the case of export transactions

Short term deployment of export proceeds in an interest bearing account is permissible

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FOREIGN CURRENCY LOANS Importers can avail foreign currency loans for retirement

of import bills under L/C or non-L/C transactions at competitive interest rate based on LIBOR

General clients can also avail F.C. Loans by earmarking Rupee denominated working capital/term loans @ LIBOR + spread

Alternatively Buyers Credit for retirement of import bills can be availed as per operating cycle at a competitive rate

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Overseas investments in Joint Ventures (JV) and Wholly Owned Subsidiaries(WOS) have been recognised as important avenues for promoting global business by Indian entrepreneurs.

Automatic Route - within 400% of the net worth as per the last audited balance sheet subject to max USD 1 billion per financial year

Approval Route – RBI permission

Compliance – Reporting in Form ODI at the time of remittance.

Investment Proof and Annual Performance Report

ODI – Propertorship/Partnership concern under Approval route

Submission of Annual Liabilities and Assets in foreign currency (FLA Statement)

Bank handles Overseas Direct Investments (ODI)

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FOREIGN DIRECT INVESTMENT (FDI)

A foreign company planning to set up business operations in India. An Indian company may receive Foreign Direct Investment under the two routes.

Automatic Route: FDI is allowed under the automatic route without prior approval either of the Government or the Reserve Bank of India in all activities/sectors as specified in the consolidated FDI Policy, issued by the Government of India from time to time.

Government Route: Under the Government Route, the foreign investor or the Indian company should obtain prior approval of the Government of India(Foreign Investment Promotion Board (FIPB), Department of Economic Affairs (DEA), Ministry of Finance or Department of Industrial Policy & Promotion, as the case may be) for the investment.

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FOREIGN DIRECT INVESTMENT (FDI)

FDI is prohibited under the Government Route as well as the Automatic Route in the following sectors: i) Atomic Energy ii) Lottery Business iii) Gambling and Betting iv) Business of Chit Fund v) Nidhi Company

Within 30 days from receipt of funds – Report to RBI

Company should issue shares within 180 days from the date of receipt of amount and within 30 days from the date of issue of share – Report in FC-GPR

Transfer of Shares from Resident to NRIs and vice versa – FC-TRS


Reporting through eBIZ Platform

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E-BIZ PLATFORM

1-Stop Shop

• Consolidated Information

• Content updated periodically

• Apply & Pay for licenses online

Reduced Total Time

•End-to-end online transactions (Forms, Attachments, Payments)

•Reduction in inter-department wait time

Reduced Total Cost

• Elimination of in-person visits

• Reduced dependency on middlemen and touts

Anytime, Anywhere, Anyhow

• 24 X 7 access to information and services

• Online, IVR and Mobile

Visibility and Transparency

• Intermediate status updates • SMS and email alerts &

notifications

Secure Transactions

• Digital Signature Certificates

• Strategic Control & Security (ISO17799-1:2005 compliant)

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EXTERNAL COMMERCIAL BORROWINGS

Indian companies are allowed to access funds from abroad.

Automatic Route - The maximum amount of ECB which can be raised by a hotel, hospital and software sectors, and corporate in miscellaneous services sector is USD 200 million or its equivalent during a financial year and for other corporates USD 750 million

All-in-cost ceilings: 3-5 years -6m LIBOR+350 basis points and more than 5 years – 6m LIBOR+500 basis points

End-use : ECB can be raised for investment such as import of capital goods (as classified by DGFT in the Foreign Trade Policy), new projects, modernization/expansion of existing production units in real sector, ODI in JV/WOS. Term deposits maximum

Approval Route - RBI permission required for cases not under automatic route.

Reporting compliance – ECB-2 monthly report

ECB recent guidelines – Powers delegated to AD (Reschedule, reduction & All in cost)


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FLA RETURN

Annual Return on Foreign Liabilities and Assets (FLA)

The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets.

FDI/ODI/ECB customers

Directly submitted to Department of Statistics & Information Management, RBI, Mumbai in soft copy

Last date of submission – July 15 every year

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FORWARD CONTRACTS To hedge exchange rate risk

Forward contract can be booked for Import/Export/Remittances including FCNR deposits.

Contracted Exposure : Persons resident in India

Based on the underlying documents.

Annual certificate from CFO and CS/CEO/COO about the outstanding contracts

Past performance : Exporters/Importers

Average of the previous 3 financial year export/import turnover or previous year actual export/import turnover whichever is higher.

CFO and CS/CEO/COO certificate under Past performance

Special Dispensation: SME/Resident Individuals/Firms/Companies

Up to a limit of USD 250,000 based on self declaration

Without production of underlying documents

Available on deliverable basis only