“Write-off” of unrealized export bills – Export of Goods and Services – Simplification of procedure – FEMA – 88 – Dated:- 12-3-2013 – RBI/2012-13/435 A.P. (DIR Series) Circular No. 88 12th March 2013 To All Category – I Authorized Dealer Banks Madam / Sir, Write-off of unrealized export bills – Export of Goods and Services – Simplification of procedure Attention of Authorized Dealer Category – I (AD Category –I) banks is invited to A.P. (DIR. Series) Circular No. 12, 30, 61, 40, 33 and 03 dated September 09, 2000, April 04, 2001, December 14, 2002, December 05, 2003, February 28, 2007 and July 22, 2010 respectively in terms of which the exporters were given limited powers of write-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.
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n one year; (b) Satisfactory documentary evidence is furnished in support of the exporter having made all efforts to realize the dues; (c) The case falls under any of the undernoted categories : (i)The overseas buyer has been declared insolvent and a certificate from the official liquidator indicating that there is no possibility of recovery of export proceeds has been produced. (ii) The overseas buyer is not traceable over a reasonably long period of time. (iii)The goods exported have been auctioned or destroyed by the Port / Customs / Health authorities in the importing country. (iv)The unrealized amount represents the balance due in a case settled through the intervention of the Indian Embassy, Foreign Chamber of Commerce or similar Organization; (v)The unrealized amount represents 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
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a Chartered Accountant s certificate, indicating the export realization in the preceding calendar year and also the amount of write-off already availed of during the year, if any, the relevant GR / SDF Nos. to be written off, Bill No., invoice value, commodity exported, country of export. The CA certificate may also indicate that the export benefits, if any, availed of by the exporter have been surrendered. 5. However, the following would not qualify for the write off facility : a. Exports made to countries with externalization problem i.e. where the overseas buyer has deposited the value of export in local currency but the amount has not been allowed to be repatriated by the central banking authorities of the country. b. GR / SDF forms which are under investigation by agencies like, Enforcement Directorate, Directorate of Revenue Intelligence, Central Bureau of Investigation, etc. as also the outstanding bills which are subject matter of civil / criminal suit. 6. The respective AD ban
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