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Import Stage 4: Remit the money

Import guide · Stage 4 of 10 · The Payment Trail

Import Stage 4: remit the money, safely and by the book

Five stations between a proforma you have accepted and money that has left your account safely. Choose the route, check the details, pay through your bank, understand the advance risk and keep the payment matchable. Clear each hurdle, earn each badge, and finish as a Treasury Titan. Prefer reading? Use the plain guide button.

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Payment Cadet

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Station 1 of 5

Choose the payment route

Station 1 of 5 · Badge: Route Picker

Choose the payment route

Advance, letter of credit or open account: each has its own risk and papers.

What you do

  1. Advance: supplier holds your money
  2. Letter of credit: bank pays on documents
  3. Documents against payment
  4. Open account: you pay later

Keep these ready

  • Order or contract with payment terms
  • Proforma invoice
  • Letter of credit application, if used

Watch out

  • Full advance to a new supplier.
  • A letter of credit with terms the supplier cannot meet, so they refuse to ship.
  • Open account terms agreed without a written date.

Pro tip

For a first order, split the payment: part against the proforma, the balance against documents.

Full details for this station

How you pay decides both the risk you take and the paperwork you need.

How to do it

  1. Advance payment: you send money before shipment. It carries the most risk for you, so use it only with a supplier you have checked.
  2. Letter of credit: your bank promises to pay the supplier against documents that meet the credit's terms. It is safer, and costs more.
  3. Documents against payment or acceptance: the supplier's bank releases documents to you when you pay or accept.
  4. Open account: you pay after receiving the goods or on a due date. It suits long relationships.
  5. Match the route to what you know about the supplier and the value of the order.

Documents to keep ready

  • Order or contract with payment terms
  • Proforma invoice
  • Letter of credit application, if used

What the documents must show

Payment terms
State the route, the timing, the currency and the supplier's bank details on the proforma and the contract.

Time and cost

  • Choosing: a conversation.
  • Letter of credit: days to open.
  • Advance: depends on your bank.

Where people get stuck

  • Full advance to a new supplier.
  • A letter of credit with terms the supplier cannot meet, so they refuse to ship.
  • Open account terms agreed without a written date.
Station 2 of 5

Check the beneficiary and the details

Station 2 of 5 · Badge: Account Auditor

Check the beneficiary and the details

Pay only to the supplier's own account.

What you do

  1. Beneficiary name matches the supplier
  2. Account in the supplier's country
  3. Bank details confirmed by phone
  4. Proforma number quoted

Keep these ready

  • Proforma invoice
  • Supplier bank letter on letterhead
  • Record of your confirmation call

Watch out

  • A last-minute change of bank details by email.
  • Typing errors in the account number.
  • Payment to a different company than the contract.

Pro tip

Keep a note of who you spoke to and when. If something goes wrong, it helps your bank.

Full details for this station

Most import payment frauds change one detail: the bank account. A five-minute check costs nothing.

How to do it

  1. Compare the beneficiary name and account on the proforma with the supplier's earlier documents.
  2. Confirm the details by phone on a number you already had, not one in the email.
  3. Check the bank's name, address and SWIFT code.
  4. Do not pay into a third party's account unless there is a documented reason.
  5. Quote the proforma number and date on the remittance.

Documents to keep ready

  • Proforma invoice
  • Supplier bank letter on letterhead
  • Record of your confirmation call

What the documents must show

Remittance details
Beneficiary name (legal name), account number, bank name and address, SWIFT code, amount and currency, and the proforma number.

Time and cost

  • Checking: a few minutes to a day.

Where people get stuck

  • A last-minute change of bank details by email.
  • Typing errors in the account number.
  • Payment to a different company than the contract.
Station 3 of 5

Remit through an authorised dealer bank

Station 3 of 5 · Badge: Bank Pass

Remit through an authorised dealer bank

Foreign payments go through an authorised dealer bank, with the right papers.

What you do

  1. Use an authorised dealer bank
  2. Give the bank the proforma and order
  3. State the purpose of the payment
  4. Keep the remittance advice

Keep these ready

  • Proforma invoice
  • Order or contract
  • IEC certificate
  • Bank's remittance form
  • Remittance advice or SWIFT copy

Watch out

  • Payment through a route that is not allowed.
  • Forgetting to give the bank the import documents later.
  • Payment by a party other than the importer.

Pro tip

Ask your bank which documents it needs for an import payment before you go. It saves a second visit.

Full details for this station

Foreign exchange payments are regulated. Your bank asks for papers so the payment can be matched to the goods later.

How to do it

  1. Go to your authorised dealer bank with the proforma, the order and your IEC.
  2. Fill the bank's remittance form, stating the purpose as payment for imports.
  3. Pay the amount and the bank charges.
  4. Collect the remittance advice or SWIFT copy.
  5. Tell your broker the date and amount of the payment.

Documents to keep ready

  • Proforma invoice
  • Order or contract
  • IEC certificate
  • Bank's remittance form
  • Remittance advice or SWIFT copy

What the documents must show

Remittance advice
Issued by the bank. Shows the date, amount, currency, beneficiary and the reference. Keep it with the import file.

Time and cost

  • Remittance: usually one to a few working days.
  • Letter of credit: days to open and amend.

Where people get stuck

  • Payment through a route that is not allowed.
  • Forgetting to give the bank the import documents later.
  • Payment by a party other than the importer.
Station 4 of 5

Understand the risk of paying in advance

Station 4 of 5 · Badge: Risk Reader

Understand the risk of paying in advance

An advance is a loan to the supplier. Plan what you do if goods do not arrive.

What you do

  1. Ask for a bank guarantee, if the sum is large
  2. Pay in parts
  3. Keep the proforma and the order
  4. Know the supplier's details

Keep these ready

  • Order with shipment date
  • Remittance advice
  • Bank guarantee, if taken

Watch out

  • No refund clause, so recovering an advance is hard.
  • Paying the full amount upfront.
  • Losing track of the shipment date.

Pro tip

Put the shipment date and the refund clause in the contract, and diarise the date.

Full details for this station

Once the money leaves, you depend on the supplier to ship. Know your options before you pay.

How to do it

  1. Where the sum is large, ask your bank about safeguards such as a guarantee. The foreign exchange rules set conditions for large advance remittances, so ask your bank.
  2. Consider paying in parts: some against the proforma, the rest against documents.
  3. Keep the proforma, order and remittance advice together.
  4. Know the supplier's legal name, address and registration details.
  5. Agree what happens if the supplier does not ship by the date.

Documents to keep ready

  • Order with shipment date
  • Remittance advice
  • Bank guarantee, if taken

What the documents must show

Refund clause
A line in the contract: if the goods are not shipped by a date, the supplier refunds the advance within a set time.

Time and cost

  • Guarantee: days to arrange.

Where people get stuck

  • No refund clause, so recovering an advance is hard.
  • Paying the full amount upfront.
  • Losing track of the shipment date.
Station 5 of 5

Keep the payment ready to match the Bill of Entry

Station 5 of 5 · Badge: Paper Perfect

Keep the payment ready to match the Bill of Entry

Your bank links each import payment to a Bill of Entry.

What you do

  1. Keep the remittance advice
  2. Quote the Bill of Entry later
  3. Your bank tracks it on IDPMS
  4. Close the file when the goods arrive

Keep these ready

  • Remittance advice
  • Commercial invoice
  • Bill of Entry copy

Watch out

  • Payment not matched because the Bill of Entry number was never given to the bank.
  • Partial shipments where the money and the goods do not line up.
  • Records not kept.

Pro tip

Give the bank the Bill of Entry number the day it is filed. It keeps your file closed.

Full details for this station

Import payments are tracked until the goods are cleared. A payment that cannot be matched becomes a question from your bank.

How to do it

  1. Keep the remittance advice, the proforma and the later commercial invoice together.
  2. When the Bill of Entry is filed, note its number and date and give them to your bank.
  3. Your bank matches the payment against the Bill of Entry on the Import Data Processing and Monitoring System (IDPMS).
  4. If the goods do not arrive, or come only in part, tell your bank and sort out the position.
  5. Keep the records for the period the rules require.

Documents to keep ready

  • Remittance advice
  • Commercial invoice
  • Bill of Entry copy

What the documents must show

Payment record
One sheet for each import: proforma number, remittance date and amount, Bill of Entry number and date, and the amount cleared.

Time and cost

  • Matching: your bank does it, after you give the Bill of Entry number.

Where people get stuck

  • Payment not matched because the Bill of Entry number was never given to the bank.
  • Partial shipments where the money and the goods do not line up.
  • Records not kept.

Run complete

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Words used on this page

Bill of Entry: The import declaration filed with Customs under Section 46 of the Customs Act.
IEC: Importer Exporter Code. A 10-character code issued by DGFT. You need it to import or export goods as a business.

Questions people ask

Do I need to pay through a bank?

Yes. Foreign exchange payments for imports go through an authorised dealer bank.

Which payment route is safest for me?

A letter of credit or payment against documents. For a new supplier, avoid a full advance.

What if the supplier asks me to pay to a different account?

Do not pay until you have confirmed by phone, on a number you already had.

Is this legal advice?

No. It is practical guidance. Foreign exchange rules change, so ask your bank for the current conditions.

Want us to check your payment plan before you pay?

Send us the proforma and the payment terms. We will tell you what to check. It is just a call and a message away.

Message us on WhatsAppCall +91 98230 14118

Office (backup): +91 93733 11838

← Stage 3: Proforma invoiceStage 5: Supplier makes the goods →

Last checked: 12 November 2026. Based on the foreign exchange rules and Master Directions of the Reserve Bank of India, and the Customs Act, 1962 (CBIC). Rules and conditions change, so ask your bank for the current position.

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