S0210 Purpose Code: Freight on exports, Airlines companies

Purpose code S0210 is used when an Indian business pays a foreign airline for freight charges related to export shipments.

What is the S0210 purpose code?

Purpose code S0210 is used when an Indian business sends money abroad to pay a foreign airline for freight on export consignments. It covers export cargo carriage charges billed by overseas airlines for moving goods from India to buyers or destinations outside India. It does not apply when you are paying non-airline service providers like freight forwarders or customs brokers for their services, which may fall under other service import codes. Under RBI FEMA guidelines, this outward payment is classified under transport and reported accordingly.

When to use S0210 purpose code?

Use S0210 when you are paying an overseas airline company for freight on your export shipments, such as air cargo charges on goods you are selling to foreign customers. It is the correct RBI purpose code when the invoice is issued by a foreign airline for carrying your export cargo, whether you export directly or through an intermediary. S0210 covers the freight service provided by the airline, not other logistics services around the shipment.

When to use a different code:

• Use the relevant import-of-goods code when the payment is for the value of imported goods rather than export freight
• Use the relevant service-import code when the payment is for forwarding, brokerage or handling charges billed by a non-airline provider
• Use the matching P code when you are receiving money rather than paying

Who typically uses S0210 purpose code?

Indian exporters, manufacturers and trading companies that ship goods by air and pay freight charges directly to foreign airlines use S0210. It is also used by logistics companies or freight forwarders in India when they remit export freight collected in rupees to overseas airline principals.

Examples of transactions covered

• Payment to a foreign airline for air freight on export consignments shipped from Mumbai to Dubai
• Settlement of monthly freight bills raised by an overseas airline for export cargo uplifted from India
• Remittance to an international airline for excess freight charges on urgent export shipments
• Payment of consolidated export freight charges to a foreign airline for cargo flown under a space allocation agreement

When NOT to use S0210 purpose code

• The payment is for the value of goods you are importing into India rather than export freight (use the appropriate import-of-goods purpose code)
• The payment is for freight forwarding, customs brokerage or handling services provided by a non-airline logistics company (use the relevant service-import purpose code)
• The payment is for passenger air tickets or business travel rather than cargo freight (use the appropriate travel purpose code)
• You are receiving money rather than paying (use the matching P code)

Documents required

To send a payment under S0210, keep the following documents ready so your authorised dealer bank can verify the transaction and report it correctly under FEMA.

How is a S0210 Purpose Code declared?

Declaring the code is pretty straightforward. Here's how the payment gets tagged and reported.

1. Receive the freight invoice: Your overseas airline issues an invoice for export cargo carriage, clearly describing the shipments and freight charges.
2. Determine taxability: Establish whether the payment is chargeable to tax in India, since that decides which part of Form 145 you file.
3. File Form 145: Submit the declaration before remitting, with Form 146 from your CA where the taxable amount exceeds ₹5 lakh in the Tax Year.
4. Complete Form A2: State the purpose of the outward remittance as S0210 and submit the supporting documents to your bank.
5. Get your MT103: Once the payment is sent, request the SWIFT MT103 as proof and retain your Form A2 record.
6. With a traditional bank you handle each step of the payment journey. But with a platform built for cross-border payments, you can preselect a default purpose code so the payments go out smooth.

Common mistakes to avoid

A few common slips can hold up your payment or cause compliance issues. Here's what to watch for.

1. Confusing airline freight with other logistics services: Tagging payments to freight forwarders or customs agents under S0210 instead of the correct service-import code.
2. Code and invoice mismatch: The code not matching what your vendor invoice describes, which flags the payment.
3. Assuming a Rule 220(3) exemption: Skipping Form 145 on a payment that is not on the specified list, which carries a ₹1,00,000 penalty per instance.
4. Incomplete documents: Missing invoice, contract or Form A2, so the bank holds the remittance until provided.
5. Missing PAN or KYC: Incomplete verification stops the bank from releasing the payment.
6. Using an outward code for an inward receipt: Applying a payment code to money coming in instead of the matching P code.

How Skydo helps with payments under S0210 Purpose Code

With a bank, you fill a fresh Form A2 and chase documents for every single vendor payment. With Skydo, your outward payments run on the same account you already collect into.

1. One account, both directions: Receive from international clients and pay overseas vendors from a single onboarded account, with one KYC.
2. Purpose code applied consistently: Set S0210 as your default for these payments so every remittance is tagged the same way.
3. Documentation in one place: Your invoices, Form A2 records and payment proofs stay together, ready for your CA and your AD bank.
4. A rate you can see: You get the live mid-market rate with a transparent fee, instead of a markup hidden inside the bank's rate.
5. Payments that go out on schedule: Your vendor gets paid without a branch visit or a week of back and forth.