Section 15(1) in Foreign Exchange Management (Export of Goods and Services) Regulations, 2015
(1)Where an exporter receives advance payment (with or without interest), from a buyer/third party named in the export declaration made by the exporter, outside India, the exporter shall be under an obligation to ensure that -(i)the shipment of goods is made within one year from the date of receipt of advance payment;(ii)the rate of interest, if any, payable on the advance payment does not exceed the rate of interest London Inter-Bank Offered Rate (LIBOR) + 100 basis points and(iii)the documents covering the shipment are routed through the authorised dealer through whom the advance payment is received;Provided that in the event of the exporter's inability to make the shipment, partly or fully, within one year from the date of receipt of advance payment, no remittance towards refund of unutilized portion of advance payment or towards payment of interest, shall be made after the expiry of the period of one year, without the prior approval of the Reserve Bank.
