Caution Listing of Exporters by RBI for non-closure of Export Realization.

 

No. CEPC/SEC/P&P(Bank)/2017/                                                          Dated: 18-05-2017

 

All Members of CEPC

 

           Subject:- Caution Listing of Exporters by RBI for non-closure of Export Realization.

 

Dear Sirs,

 

          We would like to inform you that a meeting was held on 13th April 2017 under the Chairmanship of  Smt. Rita Teaotia, Secretary Commerce with RBI, IBA, FIEO, FICCI and EEPC to discuss the various  issues for redrssal  of the grievances of the exporters . The following important decisions were taken in the above meeting :

 

1)  Caution Listing of Exporters by RBI for non-closure of Export Realization.

 

a)      Advising Member-Exporters about the facility of viewing the status of remittance against a shipping bill at the ICEGATE so that exporters can monitor the position of their export remittances. It was also suggested that DG & CEO, FIEO should look into the data of export remittance at the ICEGATE and check if the data is being displayed in an exporter friendly way. In case of any problem, the matter should be taken up with CBEC.

 

b)      RBI informed that in large number of cases there is little mismatch in the realization reported under e-BRC and the foreign exchange indicated in the shipping bill. In such cases exporters may avail the self-write off facility provided in the RBI manual by surrendering the proportionate exports benefits. Alternatively, exporters may apply for extension in realization period to ADs. Members may please avail the above facility  so that  the mismatch in the e-BRC foreign exchange value and shipping bill foreign exchange value can be accounted for closure of such shipping bills.

 

c)      RBI informed that they are updating the EPDMS on daily basis and therefore, if a shipping bill is subsequently cancelled, the same is reflected in EPDMS. Further the Shipping Bill is subsequently cancelled, the same is reflected in EPDMS. With regard to Shipping Bill which may have  been sent by Customs/NSDL in the recent past, the same would be updated in the EPDMS.

 

d)     As regards free of cost shipping bills with EDF waiver, it was informed by RBI and Customs that since such transactions for reporting purpose are given some notional value for transmission of data, exporters should approach the ADs for closure of such shipping bills. The same procedure may be followed for re-import of export goods or in cases where the payment is realized through insurance cover from ECGC/Insurance Agencies.

 

e)      CGM, RBI stated that in 92% of the cases of export proceeds have been realized and non-realization is only in respect of 8% of the cases. He said that banks have furnished reports that they have updated the information in the EPDMS. The Commerce Secretary asked RBI to do auditing of the foreign exchange branches of the banks so as to ascertain the actual position as trade & industry has pointed out many instances of non-updation of data at the end of the bank.

 

2)  Dispensing with requirement of Shipping Bill for negotiation of Export

     Documents :

 

a)      RBI informed that they are in the process of issuing suitable instructions dispensing with the need of shipping bill for negotiation of export documents. Customs also informed that exporters have an option to obtain physical copy of Shipping Bills on demand.

 

 

Members are advised to take note of the above decisions taken in the aforesaid meeting.

 

                                                                                         Yours faithfully,

 

 

                                                                                ( Subodh Kumar Gupta )

                                                               Acting Executive Director-cum-Secretary.