9911796707
TMI Blog“Write-off” of unrealized export bills – Export of Goods and Services – Simplification of procedureX X X X Extracts X X X X X X X X Extracts X X X X ..... rite-off and also AD Category I banks have been permitted to accede to the requests for "write-off" made by the exporters, subject to the conditions, inter alia, that the exporter had to surrender proportionate export incentives, if availed of, in respect of the relative shipments. 2. With a view to further simplifying and liberalizing the procedure and for providing greater flexibility to all exporters as well as the Authorized Dealer banks, the earlier instructions have been reviewed. It has now been decided to effect, subject to the stipulations regarding surrender of incentives prior to write-off adduced in the A.P. (DIR Series) Circular No. 03 dated 22 July 2010 , the following liberalization in the limits of write-offs of un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sents the undrawn balance of an export bill (not exceeding 10% of the invoice value) remaining outstanding and turned out to be unrealizable despite all efforts made by the exporter; (vi) The cost of resorting to legal action would be disproportionate to the unrealized amount of the export bill or where the exporter even after winning the Court case against the overseas buyer could not execute the Court decree due to reasons beyond his control; (vii) Bills were drawn for the difference between the letter of credit value and actual export value or between the provisional and the actual freight charges but the amount has remained unrealized consequent on dishonour of the bills by the overseas buyer and there are no prospects of realizatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment in form EBW, in the senclosed format, to the Regional Office of Reserve Bank under whose jurisdiction they are functioning, indicating details of write-offs allowed under this circular. 7. AD banks are advised to put in place a system under which their internal inspectors or auditors (including external auditors appointed by authorised dealers) should carry out random sample check / percentage check of write-off outstanding export bills. 8. Cases not covered by the above instructions / beyond the above limits, may be referred to the concerned Regional Office of Reserve Bank of India. 9. Authorized Dealers may bring the contents of the Circular to the notice of their constituents concerned. 10. The directions contained in this ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
