EXPORT ACTIVITY is regulated by

FORM ( GR, SDF, PP, SOFTEX ) PERIOD OF REALISATION PRESCRIBED PERIOD OF PRESENTATION VALUE MANNER OF PAYMENT

Valuation of goods b. allotment of importer -exporter code no • Customs – a. Formulation of trade policy b.Monitoring receipts of payments and follow up .Agencies Connected With Exports • Director General of Foreign Trade – a.Physical aspects of exports • Reserve Bank of India and Authorised Dealers .

Categories Of Exports • • • • • Cash Exports Deferred Payment Exports Project Exports Software Exports Services Exports .

Pakistan. PERMITTED CURRENCYa. PAYMENT SHALL BE RECEIVED IN A CURRENCY APPROPRIATE TO THE FINAL DESINATION IN THE DECLERATION FORM IRRESPECTIVE OF THE COUNTRY OF THE RESIDENCE OF THE BUYER IN THE CASE OF NEPAL AND BHUTAN IN CAN BE IN INR . Nepal. Others b. 2. Others Bangladesh. ACU Group ( India . PERMITTED METHOD OF RECEIPTS GROUPS a. ACU – Current A/c transactions. Maldives ) b. IN INT’L TRANSACTIONS 3. CHOICE OF CONTRACTING CURR.Permitted currencies and methods of payment 1. Srilanka .

Return information RBI ENTRIES Goods sent GR form received by bank Money has come (else ‘caution listed’) .EXPORT FLOW Exporter Customs GR/ SF GR form within 21 ways of shipment Bank GR form and fortnightly R.

Monitoring Of Exports Declaration Forms Mandatory to declare (except Nepal and Bhutan) to the specified authority in the prescribed Declaration Forms • GR Form • SDF Form • SOFTEX Form • PP Form Export of services – no form prescribed – however liable to repatriate the exchange so earned .

000 declaration from exporter • Replacement of goods free of charge • Imported goods found defective . publicity material supplied free. • Goods/software of value less than USD 25. personal effects of travellers (accompanied/unaccompanied) • Ship’s stores. military/naval/air force requirements.Monitoring Of Exports Exemptions from Declaration • Trade samples. transshipment cargo.

GR Form • Form GR to be submitted in duplicate to Customs along with shipping bill • C will give 10 digit code no on the form( port of shipment.EXPORT PROCEDURE Export Procedure. calendar year and running serial no) • C will certify the value declared and return duplicate copy to E and send original to RBI • Duplicate GR form resubmitted to customs along with goods to be shipped • Customs certify quantity and return form to exporter .

• AD negotiates/sends for collection – report to RBI in form ENC with RReturn • On realisation AD reports to RBI with RReturn .EXPORT PROCEDURE Export Procedure..contd • Exporter submits duplicate GR to AD within 21 days of shipment with shipping documents etc.GR Form….

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EXPORT PROCEDURE Export Procedure. .Customs along with shipping bill • One copy of the SDF form alongwith EC copy of SB will be given to the E .SDF Form • Form SDF to be submitted in duplicate to the Commissioner .

EXPORT PROCEDURE SOFTEX Form Procedure • Form to be submitted in triplicate • Designated officials at STPIs / FTZ/EPZs/SEZs to certify forms • Original sent directly to RBI by certifying agency • Duplicate returned to exporter • Triplicate retained by STPI/FTZ/EPZ • Duplicate submitted to AD within 21 days .

EXPORT PROCEDURE SOFTEX Form Procedure • Billing to be done for long term contracts on reaching "milestones" or once a month – for others within 15 days of completion and for certification by the authorities in the STP .

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EXPORT PROCEDURE PP Form Procedure • Original Form to be counter signed by AD • Goods to be consigned to the bank in the country of import • Can be consigned directly in the name of buyer if advance payment or LC is received .

When part of the shipment declared on GR form not shipped • Shut shipment – no shipment made at all • In case of short shipment. certificate given by customs on the actual quantity/value of goods exported to the AD bank • In case of no shipment(shut shipment) duplicate GR form cancelled and advised to RBI by customs .EXPORT PROCEDURE Short/Shut shipment • Short shipment.

• 6 months ( currently allowed upto 12 mths).Permitted period for realization. • To warehouse ( established with RBI permission)-15 months • Units in SEZ – no time limit • 100% EOU/Units in EHTP/STP/BTP – 12 mths .

• Exports under trade agreement. . • Exports on elongated credit terms. • Counter trade.Exports requiring prior approval (from exchange control) • Exports of goods on lease and hire.

prior approval of RBI . • Goods to be exported within one year of receipt of advance payment (with or without interest) • Rate of interest not to exceed LIBOR + 100 basis points • Refunds in case of no exports taking place (partly/fully) after one year .Other Exports Regulations ADVANCE PAYMENTS.

RECOVERY OF BAD DEBTS 1. Extension of Time Limit(FORM-ETX Banks can extend for 6 months at a time subject to • Case is not under investigation by ED/CBI • for extension beyond 6 months it can be done provided total outstanding does not exceed 1M USD or 10% of the average export realisation during the preceding 3 FY whichever is higher • Extension freely done for suit filed cases .

RECOVERY OF BAD DEBTS 2. • Maximum-25% of the invoice value. No such ceiling if exporter is in business for 3 years and export outstanding does not exceed 5% of AAER during the preceding 3 FY • Commodity is not subject to floor price restrictions • Not on the exporters caution list • To surrender proportionate export incentives availed if any . Reduction In Invoice Value.

CHANGE OF BUYER. • Provided total proceeds already realised • Exporter not on caution list • Proportionate incentives to be surrendered 4. EXPORT CLAIMS.Recovery of Bad Debts 3. • Same Terms and conditions • Reduction in invoice value < 25% • Realisation is not delayed beyond 12 m from date of export .

6.Recovery of Bad Debts 5.LEGAL ACTION 7. . EMBASSY HELP.REIMPORT OF GOODS.

Write Off allowed by banks • Bill outstanding for > 12 months • Aggregate write off during the FY does not exceed 10% of export realisations of previous FY • Unrealised amount represents the undrawn balance of an export bill (not exceeding 10% of the invoice value) • Overseas buyer declared insolvent (certificate from official liquidator) /buyer not traceable .Recovery of Bad Debts 8.

Write Off allowed by ………contd • Goods destroyed by the port/customs/health authorities/sold in auction • Case is not subject matter of any pending criminal/civil suit • Satisfactory documentary evidence having made all efforts to realize the dues • Exporter not under investigation by CBI/ED • Exporter surrenders proportionate export incentives .Recovery of Bad Debts 8.

Self write off….Recovery of Bad Debts 9.All exporters allowed to • Write off / reduction in invoice value/Extend the period of realisation beyond 12 months or further period as applicable • Aggregate value of export bills written off (including reduction in invoice value) and bills extended for realisation does not exceed 10% of exports proceeds due during the FY • not a subject of investigation by ED/CBI/etc • Exporter to submit a statement within a month from the close of the FY to AD .

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