Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Banks move to alert ED on exporters whose payments have been delayed.

Date: 05-10-2018
Subject: Banks move to alert ED on exporters whose payments have been delayed
MUMBAI: In the past few days, banks have shared with the Enforcement Directorate the names of thousands of exporters who have not received payments against shipment of goods. However, bankers fear the harsh move, though aimed at bringing back dollars parked abroad and curbing money laundering via under-invoicing of exports, may hit business sentiment. 

RBI had set September 30 as the deadline for banks to reconcile data on exports above $25,000 with corresponding payment records by obtaining documents from companies. Clients who were unable to provide documents or failed to explain why payments for goods sold abroad were pending for two years or more could be “caution listed” if RBI does not soften its stand, senior bank officials told ET. 

“We understand that the timing may not be appropriate given the fall in rupee and market volatility. But we have to report these names in the absence of a fresh directive from the regulator. We have had several meetings with RBI officials and they were very serious,” said a banker. 

“We wrote many letters to these exporters, warning them about the consequences. Some are non-co-operative, some cannot be contacted, and some have genuine problems. What are we supposed to do? If we don’t act, we could be penalised by RBI,” said another banker. 

The banker quoted earlier said RBI has shared with large banks data on over 91,000 exporters who have not brought back export receipts. It is unclear how banks would deal with large companies with whom they share business relationships.

The banker quoted earlier said RBI has shared with large banks data on over 91,000 exporters who have not brought back export receipts. It is unclear how banks would deal with large companies with whom they share business relationships. 

A company which figures in the caution list would be unable to trade in the absence of a letter of credit (LC) arrangement, which would push up costs and could even sour its relationship with overseas buyers. 

“A large number of exporters trade on open account and do not insist on LC (or guarantees) from overseas clients whom they have known for years. These exporters now fear that demanding LCs could put off their clients and even cause loss of business. It’s possible that RBI may give exporters more time given the pressure on rupee and large current account deficit, but no such directive came till Thursday evening,” said another banker. 

RBI did not disclose the total unreconciled export amount, and has not commented on its decision to caution-list exporters. ET’s email to the RBI spokesperson went unanswered till the time of going to press. Thanks to digitisation of trade data (such as shipping bill number, cargo description, value, port of loading, destination port, and bank handling the transaction) which customs authorities share with RBI, any bank is able to access information on the trades in which it is involved. 

A bank receiving payment reconciles the trade with the foreign currency inflow by matching the shipping bill number. In some cases reconciliation is difficult due to lost records and a lack of discipline among exporters in filing documents. “Often an exporter named bank A in the shipping document but eventually received money from bank B which might have offered a better exchange rate. 

“There are instances where the exporter may have received an advance from the overseas buyer and this was never recorded with the bank which handled the final trade payment. RBI is fine as long as exporters bring in funds within nine months. But these are cases where payment is pending for years and we don’t know whether some of these can ever be reconciled,” said a trade consultant. 

Source: economictimes.indiatimes.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Exim Help

What is New?

Date: 02-12-2020
Notification No. 43/2020-CUSTOMS (ADD)
Seeks to impose provisional anti-dumping duty on imports of Toluene Di-isocyanate (TDI) having isomer content in the ratio of 80:20, originating in or exported from European Union, Saudi Arabia, Chinese Taipei and UAE, for a period of six months.

Date: 01-12-2020
Notification No. 42/2020 -Customs (ADD)
Seeks to amend notification No. 21/2016-Customs (ADD) dated 31st May, 2016 to extend the levy of Anti-Dumping duty on Methylene chloride originating in or exported from China PR, up to and inclusive of 31st Jan, 2021.

Date: 01-12-2020
Notification No. 90/2020 – Central Tax
Seeks to make amendment to Notification no. 12/2017- Central Tax dated 28.06.2017.

Date: 01-12-2020
PUBLIC NOTICE NO. 31/2015-2020
Enlistment as designated port in Para 2.54(d)(iv) of Handbook of Procedure, 2015-2020

Date: 29-11-2020
Notification No. 89/2020 – Central Tax
Seeks to waive penalty payable for noncompliance of the provisions of notification No.14/2020 – Central Tax, dated the 21st March, 2020.

Date: 27-11-2020
Notification No. 109/2020-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver- Reg

Date: 27-11-2020
Circular No. 52/2020-Customs
Exports of Gems and Jewellery through Courier mode - reg.

Date: 27-11-2020
Notification No. 40/2020-Customs (ADD)
Seeks to impose Anti-Dumping duty on Fluoroelastomers (FKM) originating in or exported from China PR for a period of 5 years, in pursuance of sunset review final findings issued by DGTR

Date: 27-11-2020
Notification No. 41/2020 -Customs (ADD)
Seeks to further amend notification No. 49/2015-Customs (ADD), dated 21st October, 2015 to extend the levy of ADD on imports of “Front Axle Beam and Steering Knuckles meant for heavy and medium commercial vehicles” originating in or exported from China PR, for a period upto and inclusive of the January 31, 2021

Date: 26-11-2020
Notification No. 43/2020-Customs
Seeks to further amend notification No. 50/2017-Customs dated 30th June, 2017 so as to prescribe BCD rate of 27.5% on Crude Palm Oil

Exim Guru Copyright © 1999-2020 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.


C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001