EXPORT ACTIVITY is regulated by

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

Agencies Connected With Exports

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

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

Permitted currencies and methods of payment

1. PERMITTED CURRENCYa. ACU Group ( India , Pakistan, Nepal, Maldives ) b. Others Bangladesh, Srilanka ,

2. CHOICE OF CONTRACTING CURR. IN INTL TRANSACTIONS

3. PERMITTED METHOD OF RECEIPTS GROUPS a. Others b. ACU Current A/c transactions, 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

EXPORT FLOW

Exporter

Customs GR/ SF

GR form within 21 ways of shipment

Bank

GR form and fortnightly R- Return information

RBI

ENTRIES Goods sent GR form received by bank Money has come (else caution listed)

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

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

EXPORT PROCEDURE
Export Procedure- 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, 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

EXPORT PROCEDURE
Export Procedure- GR Form..contd Exporter submits duplicate GR to AD within 21 days of shipment with shipping documents etc. 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- SDF Form Form SDF to be submitted in duplicate to the Commissioner ,Customs along with shipping bill One copy of the SDF form alongwith EC copy of SB will be given to the E .

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

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

EXPORT PROCEDURE
Short/Shut shipment Short shipment- 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

Permitted period for realization.

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

Exports requiring prior approval (from exchange control)

Exports of goods on lease and hire.

Counter trade.
Exports under trade agreement. Exports on elongated credit terms.

Other Exports Regulations

ADVANCE PAYMENTS. 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 - prior approval of RBI

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. Reduction In Invoice Value. 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

Recovery of Bad Debts

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

Recovery of Bad Debts

5.REIMPORT OF GOODS.

6.LEGAL ACTION
7. EMBASSY HELP.

Recovery of Bad Debts

8. 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

9. Self write off.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