The Reserve Bank of India (RBI) has given exporters and importers additional time to complete merchanting trade transactions (MTT), easing compliance requirements amid global trade uncertainty. The decision, according to Zee Business sources, is expected to provide relief particularly for small-value transactions.
Six months instead of four
According to the sources, the RBI has extended the permissible period for completion of MTTs from four months to six months. Merchanting trade refers to cross-border deals where an intermediary in India facilitates trade between two parties outside the country without the goods entering Indian territory.
The change gives traders more flexibility to conclude shipments and related payments, an area that has often been strained by delays in logistics, paperwork and currency settlements.
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Easier closure of trade documents
Alongside the extension, the RBI has eased rules for closing shipping bills and bills of entry. These records, which confirm export and import deals, often pile up for smaller traders who lack dedicated compliance teams. The relaxation is aimed at cutting the paperwork cycle and making it simpler for firms to wrap up transactions without unnecessary delays.
Relief for smaller exporters and importers
The measures are expected to be particularly helpful for businesses handling low-value consignments. Such firms usually face the same compliance load as larger players but with fewer resources. With more time to complete transactions and fewer document bottlenecks, they are likely to gain both liquidity and operational breathing space.
Shield against global trade shocks
The move also comes against the backdrop of rising uncertainties in global trade from shipping disruptions to currency swings. By allowing extra time, the RBI has effectively provided Indian intermediaries a buffer to cope with delays that lie beyond their control.
