Purpose Code for Export of Goods in India

[SuperSync]

Dear All

I am receieving payments through Paypal as advance for my export of Goods. This payment gets credited to my account through CITI Bank. So for clearing shipping bills my home bank i.e. State Bank of India asks for FIRC/Advice from CITI bank. CITI bank FIRC/Advice comes with purpose code P0104.

But since its an advance payment agianst export of goods so my bank is not accepting FIRC and is saying that we can accept this if purpose code would have been P0102 or P0103.

I tried to change the purpose code in my paypal account profile but there is no option except selecting cross border sales of Goods.

Please help.

Regards

Harsh Rathore

[Harryclone1]

Harsh , what has the outcome when their is the issue with the purpose code ? We are using the purpose code as cross border sale of goods then what is the issue to the bank. This isn't right ??? Cross border sales.

[Grad]

We  also placed a request for FIRC with Paypal FIRC  4 months, since then we made serveralrounds to bank. They are not at all telling clearly  and keep getting docs changed. Now after 4 months, they have rejected docs saying purpose code not matching with Paypal. we used P0103 for advance payment for exports.

and they are not tettling whish purpose code mentioned  at paypal system.  we called and email paypal many times but no help from their side too.

PayPalpaymentsolutions (ID: C356-L003-TBUSSOL001-S111-W00L000) (KMM279945022V14247L0KM) :ppNA

please help asap

[Harryclone1]

It is nonsense when bank says the purpose code is different. Both purpose codes are for cross border sales of goods so how does it make any difference whether it is advance or anything other. One more thing if p104 is not covered by GR/SB then why they are allowing it in India. ???? That's a question. I guess that 25000 INR is permissible for selling product overseas but then why PayPal has been given the permission to accept payment more that INR 25000 in purpose code 104 ?? This is jttner nonsense. Either they must clear the shipping bill or no else option. We should first hand now boycott using PayPal.

[Grad]

Boycott Paypal - They are not issuing Correct purpose code . 

Customers are running after , as SB are not  getting cleared and further government actions specially in GST

[SuperSync]

Hi Grad

I got the same corrected, meet CITI bank's manager with your home bank's letter for correction and ask him to escalate this issue to higher officials, higher officials are permitting them to correct it.

[SuperSync]

Hi Harry

Issue with purpose code is when you will submit FIRC to your home bank whose AD code is registered at your customs, they will not accept the FIRC with incorrect purpose code.

Purpose code cross border sales of goods is correct, but under this section there are 4 purpose codes i.e. P0101, P0102, P0103 and P0104. Out of these four the FIRC which you will get from Paypal through CITI bank will have P0104 which home banks don't accept. They ask for either of two P0102 or P0103.

[Harryclone1]

Friend you said truly but the ppl who are working with PayPal and selling goods cross border doesn't have knowledge. You and me have it because we have been through it so what will happen of older issues , shipping bills due in edpms system of RBi. I advised PayPal to make a system of online application for FIRC so automatically someone can raise a request for FIRC directly and can pay there online andso PayPal should clarify to every customer who choses these codes and impart awareness. Isn't it. ?

[Grad]

And Paypal Guys  does not know about purpose code .  How can we have firc with porpose code P0104  which is  Receipts against export of goods not covered by the GR/PP/SOFTEX/EC copy of shipping bill etc.

So that means we will not able to clear SB .

[Grad]

paypal  default purpose code needs to be changed from P0104 to P0103 . Else Banks wont clear the SB docs .

P0104  which is  Receipts against export of goods not covered by the GR/PP/SOFTEX/EC copy of shipping bill etc.

P0103  is Advance receipts against export contracts (export of goods only)

And Paypal Guys  does not know about purpose code . 

How can we get  it changed. 

[Grad]

And Paypal Guys  does not know about purpose code . 

How can we get  it changed.