Free of Cost RBI Eases Closure of Bill of Entry (BoE) for Free of Cost / No Commercial Value / Sample ImportsFree of Cost

The Reserve Bank of India (RBI) has introduced a welcome simplification in foreign trade reporting norms.
On 29 September 2025, RBI issued fresh guidelines allowing Authorised Dealer (AD) Category-I banks to directly close Bills of Entry (BoE) in the Import Data Processing and Monitoring System (IDPMS) for goods received on:

• Free of Cost (FOC) basis

• No Commercial Value (NCV) basis

• Sample basis

Earlier, AD banks were required to forward such cases to the regional offices of RBI for approval before closure. This process caused delays and unnecessary paperwork for both banks and businesses.

🔑 Key Highlights of the New Guidelines

• Decentralisation of Approval:
  Banks can now close such BoEs on their own in IDPMS, without RBI’s prior clearance.

• Focus on Bona Fides:
  Banks must ensure the authenticity of the transaction before closure. Essentially, the responsibility shifts to AD banks to verify whether the goods genuinely fall under FOC/NCV/Sample imports.

• Ease of Doing Business:
  By eliminating the RBI approval step, the process is quicker and more business-friendly. Importers benefit from faster closure of their BoEs and reduced compliance burden.

📌 Why This Matters

• For Importers:
  Companies importing goods for testing, demonstration, or free-of-cost samples will experience smoother compliance.

• For Banks:
  AD banks gain more autonomy, but also bear the responsibility of ensuring transactions are genuine and compliant.

• For Trade Ecosystem:
  The move is in line with RBI’s broader objective of simplifying IDPMS/EDPMS reporting frameworks and reducing friction in India’s foreign trade system.

🏦 Practical Implications

1. Importers must provide sufficient documentation (like supplier declarations, invoices marked as “No Commercial Value” or “Free Sample”) to support the nature of imports.

2. Banks will assess and close the BoE in IDPMS if satisfied with the documents.

3. Any suspicious or doubtful cases should still be escalated to RBI.

📖 Final Word

This circular reflects RBI’s trust in banks’ judgment and its commitment to reduce red tape in India’s trade ecosystem. For businesses regularly importing samples or goods without commercial value, this change will save time and simplify compliance.