What obligations may be imposed upon an exporter, who receives advance payment from a buyer outside India, under Foreign Exchange Management Act (FEMA), 1999 ?

Where an exporter receives advance payment (with or without interest), from a buyer outside India, the exporter has been put under an obligation to ensure that - The shipment of goods is made within one year from the date of receipt of advance payment; The rate of interest, if any, payable on the advance payment does not exceed London Inter-Bank Offered Rate (LIBOR) + 100 basis points, and The documents covering the shipment are routed through the Authorised Dealer through whom the advance payment is received. However, in the event of the exporter's inability to make the shipment, partly or fully, within one year from the date of receipt of advance payment, no remittance towards refund of unutilised portion of advance payment or towards payment of interest, shall be made after the expiry of the said period of one year, without the prior approval of the Reserve Bank of India. In case the export agreement provides for shipment of goods extending beyond the period of one year from the date of receipt of advance payment, the exporter shall require the prior approval of the Reserve Bank of India.