Issue of Paypal, Purpose code, FIRC and Parcel Post form.

[vismat_mega_store]

Dear All,

As we all know that RBI is getting strict day by day.
The first issue is about FIRC, What happens here is paypal is converting dollors into Indian currency at their end and then sending it to our bank account. When I approached the bank they clearly told me that " we are receiving money in Indian currency hence we cannot issue FIRC for you".

Now if we look it this way if somebody scrutinizes my account they will see that money comes in Indian currency not in allien currency. This means according to them I did not do any export and I should be chill about it and should not think further.
Now the questions is:-
why the purpose code is asked and how it is effecting my transactions and account as money is getting credited in INR.

Second,
I have an IEC registered and I sell only stamps. Whenever I send the stamps they are thin and small and they go by letter and i usually write gift. If PAYPAL PURPOSE CODES are in picture to inform RBI that the money is for a cross border transaction, then according to the law I am into export, and I am receiving money; from across the border.
But to send any item to foreign country through post we need to attach a Parcel post form normally called as PP form. This particular form has to be attested by the bank and is a part of the procedure of export documentation. According to what all I read and understood till now is that bank only attest when some foreign currency comes in my account. Now when our dear paypal does not send the money in foreign currency then this time also bank refuses to issue or attest a PP form.

Now my question to all my dear senior ebay members and staff, who receive payment by paypal and ship by india post.
Any of you attach this PP form?
Can we send stamps or philately items as letter, If yes, what documentation we need ?
Any of you were able to get FIRC from your bank while using PAYPAL?
Any of you ever got into trouble or questioned by any authorities while using paypal?

It will be great if I see contribution from Senior members, Ebayers and ebay staff members to clarify these doubts.

Thanks

Jayy

[thecottonlawnshop]

Hello Jayy

We are having exactly the same confusion. Let us know if you find any answers to your query.

Thanks

[hlasker]

THE WHOLE MATTER IS REALLY TRICKY & CONFUSING.
I ALSO GET MONEY FROM ABROAD THROUGH PAYPAL & PAISAPAY BUT STILL IN DOUBT WHETHER IT IS LEGAL OR NOT.
I POST THROUGH INDIA POST REGISTERED AIRMAIL BUT ALL I NEED TO IS JUST ATTATCH FORM CN23 WHICH OFCOURSE IS MEANT FOR TRADE SAMPLES & GIFTS.
I FEAR WE DONT FACE ANY HARRASMENT FROM CUSTOMS OR RBI IN FUTURE.

[kala-gruh]

Hello,

Dear jay and other members.
We face same problems too. I think nobody has proper answer for this. 😞

let we wait, if we have any solution for this.

regards

[unclesamhouse]

kindly go through the following link
http://howtoexportimport.com/No-Bank-realization-Certificate-BRC-required-for-I-192.aspx
http://howtoexportimport.com/Difference-between-BRC-and-FIRC-200.aspx

[theonlineshoppingstores]

Indian Exporters received payment through paypal is eligible to get FIRC. Follow the procedures

Contact your banker and ask him to send a request letter to city bank for FIRC with the following details

1. UTR No

2. Customer Name

3. Account Number

4. Amount

5. Date and Purpose of payment

6. DD Rs 337.08 favor of ‘Citibank N.A.’

to the below nearest citibank address

Mumbai

Citibank N.A. First International Financial Centre, Plot Nos C-54 and C-55, G-Block, Bandra Kurla Complex, Bandra East, Mumbai - 400051.

Delhi

Citibank, N.A., 5th Floor, DLF Centre, Parliament Street, New Delhi - 110 001.

Bangalore

Citibank, N.A., Canberra Block, 3rd Floor, UB City, 24, Vittal Mallya Road, Bangalore - 560 001.

Chennai

Citibank, N.A., Ground Floor, #2, Club House Road, Chennai - 600 002.

Kolkata

Citibank, N.A., Kanak Bldg., 41, Chowringhee Road, Kolkata - 700 071.

Pune

Citibank, N.A., 2413, Parmar House, East Street Camp, Pune - 411 001.

Hyderabad

Citibank, N.A., Ist Floor, Queens Plaza, S. P. Road, Begumpet, Secunderabad - 500 003.

Ahmedabad

Citibank, N.A., Rembrandt, C.G. Road, Near Panchvati Circle, Ahmedabad - 380 006.

Vadodara

Citibank, N.A., Pelican, Opp. Race Course Towers, Gotri Road, Vadodara - 390 007.

You will get FIRC within 7 days.

Friends do more exports and enjoy the benefits.

Raj

CEO

The Online Shopping Stores

[rajesbothr]

Dear Sir,

Thanks for your info and procedure. However, our bank, which is a government bank, is not taking interest to forward our FIRC request to CITI bank. Could you please help us with how to process further with this and also can we approach CITI bank with all details for FIRC directly?

I hv one more question: i am selling products with small values i.e. $30, $25 and $100. Now we have number of invoices every month.  As per PRI policy we have to apply for FIRC for each payment credit in our a/c, so could you please help what is the best way to reduce this procedure and also save cost for multiple FIRCs?

Rajesh

[jaman_in2015]

Dear Rajesh,

You have a valid point. We also have the same query. Our products selling price range between $20 - $60. And as i have understood that FIRC is issued on daily basis means you can appily for one FIRC for credit receive on a purcitular day. Mean you sold four items of each $50 on a day, so you can apply for a single FIRC of $200 on that day.

Howvever, my question to Ebay staff or expert. We are new to this segment and if we sell only one or two products a day then our profile will go in appling FIRC only. So could you please suggest us how to proceed further.

Regards,

Janvi

[real.phoenix]

FIRCs are Per Transaction.

Not on The Amount. But on each Amount received.

4 Transactions of USD 50.00/- received in a business days would require 4 Separate FIRCs, not a single FIRC of USD 200.00/-

Please check the FEMA regulations.

[jaman_in2015]

Thx,

Now how we can minimise our cost and single FIRC would cost around Rs. 350 and when we talk to small transactions such as $23, $30. Then Rs. 350 would creat a big impact.

Anyway to reduce this cost.