What Is the P0104 Purpose Code?

The P0104 purpose code covers receipts against goods exports that the usual documents do not cover, where the goods are third country exports passing through India. RBI's FETERS guidelines also report intermediary exports as a combined group, with the file coverage table listing P0104 and P0108 together as intermediary exports. The words transit trade in the description point to goods that do not originate in India. If the goods are Indian goods shipped under a shipping bill, a different goods export code usually fits. Check the facts of your trade with your AD bank before you pick P0104.

P0104 vs P0108: P0108 is "Goods sold under merchanting / Receipt against export leg of merchanting trade". Both codes sit in the intermediary exports group of the FETERS file coverage table. P0108 is for the export leg of a merchanting trade, where an Indian trader buys goods from one foreign seller and sells them to another foreign buyer. P0104 refers to third country exports passing through India. If your trade is a back to back deal where the goods never enter India, read the merchanting trade guide and ask your AD bank which code it uses.

Use the P0104 purpose code when your AD bank confirms that the money received is for goods that are third country exports passing through India and are not covered by the standard export declaration documents. The decision rests on the nature of the trade. Because the description is narrow, most exporters of Indian made goods will not need P0104. In practice, the AD bank reports the code, so give it the contracts and shipping papers.

• Use P0101 instead: Use P0101 (Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) – Other than Nepal and Bhutan) when your bank negotiates, purchases or discounts a goods export bill covered by export declaration documents.
• Use P0102 instead: Use P0102 (Realisation of export bills (in respect of goods) sent on collection (full invoice value) – Other than Nepal and Bhutan) when the bank sent the goods export bill on collection and the full invoice value has been realised.
• Use P0108 instead: Use P0108 (Goods sold under merchanting / Receipt against export leg of merchanting trade) when the money is the export leg of a merchanting trade.

The P0104 purpose code is mainly relevant to traders and intermediaries who handle goods that originate abroad and pass through India on the way to another country. The AD bank reports the receipt under FETERS in line with A.P. (DIR Series) Circular No. 84 of February 29, 2012, and Regulation 18(2) of the 2026 Regulations keeps that reporting duty in place.

• For example, an Indian trading firm receives payment for goods shipped by a supplier in one country to a buyer in another, with the goods passing through an Indian port, and the bank reports the receipt under P0104 after reviewing the papers.
• For example, a freight and trade intermediary in Mumbai receives payment from an overseas buyer for third country goods held in transit in India, and the AD bank asks for contracts to settle whether P0104 applies.
• For example, a trader receives payment from a buyer in Africa for goods bought from a supplier in Asia that transit through India, and the bank picks P0104 for the receipt.
• For example, an exporter in Chennai asks whether payment for goods sent from a Singapore warehouse through India should be coded P0104, and the AD bank confirms the code after seeing the transport documents.

• Your goods are made or bought in India and are shipped with a shipping bill that your bank negotiates or purchases. Use P0101 (Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) – Other than Nepal and Bhutan).
• The goods never enter India and you buy from one foreign seller and sell to another foreign buyer. Use P0108 (Goods sold under merchanting / Receipt against export leg of merchanting trade).
• The buyer pays before shipment against an export contract. Use P0103 (Advance receipts against export contracts, which will be covered later by GR/PP/SOFTEX/SDF – other than Nepal and Bhutan).
• You provide software, design or consulting services and ship no goods. Use A code from the services groups that matches the work. See the [purpose code list for exporters](/blog/rbi-purpose-codes-list-for-exporters)..

For the P0104 purpose code, the core documents are the sale and purchase contracts, the invoices, the transport documents showing the route through India, and any customs paper your AD bank asks for. Each AD bank must publish its own list of documents, timelines and charges under Regulation 19(1)(a), so ask for the current list.

• Contracts: Keep the contract with the overseas supplier and the contract with the overseas buyer, since both show who sells to whom.
• Invoices: Keep the commercial invoices for both sides with matching goods description, value and currency.
• Transport papers: Keep the bill of lading or airway bill and customs papers that show the goods passing through India. See the guide on the shipping bill.
• Bank request: Write to your AD bank explaining why the usual export declaration does not cover the receipt, and ask which code it will report.
• Inward advice: Check that the bank's inward remittance advice shows the code the bank reports.

1. Confirm with your contracts that the goods are third country goods passing through India and not Indian origin exports.
2. Share the contracts, invoices and transport papers with your AD bank before the money arrives.
3. Ask the bank in writing whether it will report the receipt under P0104 or a different goods export code.
4. Provide the invoice and transport references when the bank asks for the purpose of the remittance.
5. Check the credit advice shows the agreed code and ask the bank to correct it if it does not.

• FIRA/FIRC: The inward remittance advice from your AD bank normally records the purpose of the payment. Keep it with the contracts and transport papers. Check with your AD bank on the format it issues. See the FIRA guide.
• GST status: Under section 2(5) of the IGST Act, export of goods means taking goods out of India to a place outside India. Whether goods that merely transit India give rise to a GST supply depends on the facts, so take advice from a GST professional.
• LUT: A registered person who exports goods or services without paying integrated tax does so under bond or Letter of Undertaking, filed as FORM GST RFD-11 on the GST portal. Check whether it applies to your trade.
• Income tax: The purpose code does not change how income is taxed. The Income-tax Act, 2025 replaced the 1961 Act from 01.04.2026. Take advice from a tax professional on how trading income is treated.
• Realisation: Regulation 5 of the 2026 Regulations sets the time to realise export value. Read the export realisation period guide and ask your AD bank how it applies to your trade.

• Wrong group: Using P0104 for ordinary Indian made goods that have a shipping bill, where P0101 or P0102 fits better.
• Merchanting mix-up: Choosing P0104 for a merchanting trade, where the code is P0108.
• No contracts: Not sharing both contracts with the bank, so it cannot confirm the nature of the trade.
• Services: Selecting a goods export code for service income.
• Assuming a code: Picking P0104 only because the description mentions transit trade, without checking with the AD bank.
• Old process: Following superseded Master Direction steps after October 01, 2026, instead of the 2026 Regulations and the bank's current policy.

The code, its official description and every rule on this page are linked to RBI and other official sources, checked on the dates below.

1. RBI: Guidelines for Submission of Data, Foreign Exchange Transactions Electronic Reporting System (FETERS), purpose code list, Purpose codes for receipts, file coverage table and group listing (checked 9 Oct 2026)
2. RBI A.P. (DIR Series) Circular No. 84 dated February 29, 2012: Compilation of R-Returns, Reporting under FETERS, Paragraph 3: AD banks to report all foreign exchange transactions as per the revised purpose code list from April 2012 (checked 9 Oct 2026)
3. RBI Notification No. FEMA 23(R)/2026-RB: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (amended up to September 22, 2026), Regulations 1(2), 3, 5, 16, 18(2) and 19(1)(a) (checked 9 Oct 2026)
4. RBI A.P. (DIR Series) Circular No. 20 dated January 16, 2026: Export and Import of Goods and Services, Paragraphs 4 and 7: Master Directions superseded from October 01, 2026 (checked 9 Oct 2026)
5. IGST Act, 2017, Section 2: Definitions (CBIC tax information portal), Section 2(5) export of goods; section 2(6) export of services (checked 9 Oct 2026)
6. GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11), LUT for export of goods or services (checked 9 Oct 2026)
7. Income Tax Department e-filing portal: Objective and scope of the New Act, FAQ 2: the 1961 Act stands repealed on 01.04.2026 (checked 9 Oct 2026)