New Compliance Guidelines for Foreign Exchange Transactions in the Aviation and Shipping Sectors Effective January 2024

The circular addresses foreign exchange transactions and gives new instructions for foreign airlines and shipping companies. Foreign and non-IATA airlines now need to submit specific forms (Annexure-FA(I)) instead of certain appendices listed in the Guidelines for Foreign Exchange Transactions (“GFET”)-2018. Foreign shipping companies are required to submit different annexures (Annexure-FS(I), FS(II), FS(III), FS(IV)) instead of the previous GFET-2018 appendices. These companies can keep certain documents, such as airway bills and bills of lading, for later review rather than including them with their monthly or quarterly statements. Authorized dealer banks must collect declarations from the airlines and shipping companies or their agents and submit them along with the statements. The circular has retrospective effect from submission of the January 2024 monthly/quarterly statements.