Reserve Bank of India
Exchange Control
Department
Central Office
Mumbai A.P.(DIR Series) Circular
No.40 December 5, 2003 To
All Authorised Dealers
in Foreign Exchange Madam / Sirs, Export of Goods
and Services – Liberalisation Attention of Authorised
Dealers is invited to A.P (DIR Series)
Circular No.12 dated September 9, 2000, as amended from time to time, relating
to Export of Goods and Services and Part C of the said circular wherein directions
have been issued for allowing write-off, reduction in invoice value and extension
of time limit for realisation of export proceeds to exporters in respect of outstanding
/ overdue export bills 2. With a
view to simplifying and liberalising the procedure, providing full flexibility
to all exporters and reducing the paper work associated with seeking extension
of time or reduction in invoice value or write-off, it has been decided to allow
all exporters (including Status Holder) to : - - write-off
(including reduction in invoice value) outstanding export dues, and
- extend
the prescribed period of realisation beyond 180 days or further period
as applicable,
provided,
the aggregate value of such export bills written-off (including reduction in invoice
value) and bills extended for realisation does not exceed 10 per cent of the export
proceeds due during the calendar year and such export bills are not a subject
of investigation by Enforcement Directorate / Central Bureau of Investigation
or any other Investigating Agencies. This facility will be available in respect
of export proceeds falling due from January 1, 2004. In other words, the new facility
will be available for exports made after July 1, 2003 and proceeds due for realisation
on January 1, 2004 (ie., within the prescribed period of 180 days). In the case
of exports where Reserve Bank has prescribed longer period of realisation, the
said facility would be available for exports made prior to July 2003, but proceeds
of which are due for realisation within the prescribed period of one year. 3.
Exporters dealing with more than one Authorised Dealer can avail of this facility
through each AD, i..e., the limit of 10 per cent for self write-off (including
reduction in invoice value) and extension of time for realisation of export proceeds
would be applicable for export bills lodged for realisation with that Authorised
Dealer. However, exporters operating under a consortium of banks or with multiple
banks will also have the option of computing the 10 per cent limit on an aggregate
basis with all the banks, provided the lead bank of the consortium or in case
of multiple banking, a nodal bankundertakes to verify the exporters’ annual
performance on behalf of all the banks. 4.
Within a month from the close of the calendar year, exporters should submit a
statement, as per enclosed format, giving details of export proceeds due, realised
and not realised to the concerned Authorised Dealer. Export bills due in the year
2004, for which exporter has extended the period of realisation on his own (within
the 10 per cent limit) or sought extension of time from the Authorised Dealer
but unrealised as at the end of calendar year 2004, will be computed for export
proceeds due in the following year. The Authorised Dealer will be required to
verify the statement with his records and review the export performance of the
exporter during the calendar year to ascertain that in cases where the 10 per
cent limit of self extension, write-off (including reduction in invoice value)
and non-realisation has been breached, exporter has sought necessary approval
for write-off, reduction in invoice value or extension of time, as the case may
be, for the excess over the 10 per cent limit before the end of the calendar year.
In cases where exporters have failed to comply with this requirement, Authorised
Dealers may promptly advise the said exporter to seek extension of time/reduction
in invoice value/write-off in respect of non-realisation in excess of the 10 per
cent limit, failing which, the Authorised Dealers may inform the exporter about
the withdrawal of this facility of self write-off / extension of time, within
a month, under advice to the concerned Regional Office of the Reserve Bank. 5.
Requests received from exporters in terms of Paragraph 4 above may be dealt with
by the Authorised Dealers as per the existing instructions relating to extension
of time for realisation of export proceeds, reduction in invoice value and write-off
issued by the Reserve Bank. 6. Regarding
disposal of GR/SOFTEX/SDF/PP forms under the above facility, Authorised Dealers
may release the respective forms relating to the write-off (including reduction
in invoice value) by the exporter himself, provided the exporter submits evidence
to the Authorised Dealer for surrender of export incentives
availed of, if any, along with the annual
statement. In the case of export bills extended for realisation by the exporter
within the 10 per cent limit, Authorised Dealers may report such bills as outstanding
in the XOS statement with the remark 'extended by the exporter'. 7.
Authorised Dealers may bring the contents of this circular to the notice of their
constituents concerned. 8. The directions
in this circular have been issued under Sections 10 (4) and 11(1) of the FEMA,
1999 (42 of 1999). Yours faithfully, Grace
Koshie
Chief General Manager |