Expert opinion · Imports

What is IDPMS, and how does a Bill of Entry close?

Every rupee sent abroad for imported goods has to be matched with proof that the goods arrived. IDPMS is where your AD bank does that matching, and where open items surface when the papers do not line up.

FxLayer compliance deskFEMA, RBI reporting and cross-border tax 6 min read Updated
Payment side
  1. YouRequest to the bankLetter and Form A1
  2. AD bankOutward remittancePurpose S0101 or S0102
  3. IDPMSRemittance reportedPayment entry opened
Goods side
  1. CustomsBill of Entry filedData from ICEGATE
  2. AD bankPayment matchedBill of Entry linked to the remittance
  3. ClosedEntry settledPayment equals goods imported
Payment side and Goods side

Key points

  • IDPMS records every outward remittance for imports and every Bill of Entry, and links them.
  • Advance payments open an entry that waits for the Bill of Entry.
  • Import payments should normally be made within six months of shipment, unless deferred payment is permitted.
  • Your AD bank closes the entry; your job is to give it the Bill of Entry details and explain any difference.

What IDPMS is

The Import Data Processing and Monitoring System (IDPMS) is RBI's platform for following import payments. Customs sends Bill of Entry data to it, AD banks report the outward remittances they make for imports, and each bank then settles its customers' remittances against the Bills of Entry. The result is a running list of payments without proof of import and Bills of Entry without payment.

Two kinds of open entries

Outward remittances awaiting a Bill of Entry. When you pay in advance (purpose code S0101), the remittance stays open until the goods arrive and the Bill of Entry is linked to it. The goods should normally be imported within the period set by the rules for advance payments, and the evidence of import submitted to the bank.

Bills of Entry awaiting payment. When the goods arrive first, the Bill of Entry stays open until the payment is made and matched. Payment for imports should normally be made within six months of the date of shipment, unless the arrangement is for deferred payment permitted under FEMA.

How matching works

Matching is done by the bank, but it relies on the details you give it. Each payment request should quote the Bill of Entry number, date and port code, or the proforma invoice for an advance. One Bill of Entry can be paid through several remittances, and one remittance can cover several Bills of Entry from the same supplier.

When the amounts differ, for example because of bank charges, a short shipment or a price adjustment, the bank will ask for an explanation before it settles the entry. Small differences are closed on a declaration within the bank's tolerance; larger ones need supporting documents.

Closing an entry with the bank

Once the payment and the goods agree, most banks expect a short request asking them to settle the Bill of Entry in IDPMS, listing the Bill of Entry and the remittances. If the Bill of Entry was filed under another bank's code, the entry has to be transferred first.

Common reasons entries stay open

  • The Bill of Entry carries a different IEC or AD code from the one used for the payment.
  • An advance was paid against a proforma, but the Bill of Entry was never given to the bank.
  • The invoice was paid in parts and one part was reported under another purpose code.
  • Goods were short-shipped or rejected and the refund or credit note was not documented.

FxLayer links each proforma, invoice, Bill of Entry and remittance on one chain, flags the advance that is still waiting for goods and prepares the settlement request once everything matches.

Questions

No. It covers all import payments. Advance payments are simply the most visible open items because the Bill of Entry arrives later.
No. IDPMS is for imports of goods. Payments for services are governed by Form A2, the purpose code and the tax rules, including Form 145 and Form 146 where they apply.
The supplier should refund the advance, and the refund is reported against the original remittance. Where that is not possible, the bank will ask for documents explaining why, and the case may need its approval to close.

This article is general information on Indian foreign exchange and tax rules as they stood on the date shown. It is not legal or tax advice. Rules and limits change; confirm the current position with your AD bank, the relevant RBI Master Direction or your adviser before acting.

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