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Export of goods & services � Extension of period of realisation
Circular No. 20 dated 28th
January 2002
Attention of all Authorised
Dealers is invited to paragraph C.15 of A.P.(DIR Series) Circular No. 12 dated
September 9, 2000, in terms of which cases where an exporter has not been able
to realise proceeds of shipment within the prescribed period (i.e. within six
months from the date of exports), for reasons beyond his control, the exporter
is required to apply to Reserve Bank in Form ETX for extension of period
of realisation. It has now been decided that, without any reference to Reserve
Bank, authorised dealer that has handled export documents may extend, after
obtaining an application from the exporter, the period of realisation beyond six
months from the date of export, where invoice value does not exceed US$ 1,00,000
subject to the following conditions:
i.
the authorised dealer is satisfied that the exporter has not been able to
realise export proceeds for reasons beyond his control;
ii.
the exporter submits a declaration that he will realise the export
proceeds during the extended period;
iii. the extension may be
granted upto a period of 3 months at a time and while considering the extension
beyond one year from the date of export the total export outstandings of the
exporter should not be more than 10% of the average of export realisation during
the preceding three financial years.
2. The ceiling of US$
1,00,000 would not apply where the exporter has filed suits against the importer
abroad. In such cases extension may be granted upto six months at a time,
irrespective of the amount involved.
3. Cases, which are not
covered by the above instructions including the undernoted cases, would require
prior approval from the Regional Office of the Reserve Bank:
i. where the export
invoices are under investigation by Enforcement Directorate/ Central Bureau of
Investigation or other investigating agencies.
ii. where invoice value
exceeds US$ 1,00,000 (except in cases covered under paragraph 2 above).
4. All the export bills
outstanding beyond six months from the date of export may be reported in XOS
statement as usual. However, where extension of time has been granted by
authorised dealer, the date upto which extension has been granted may be
indicated in the `Remarks� column.
5.
Authorised Dealers may bring the contents of this circular to the notice
of their constituents concerned.
6. The directions contained
in the circular have been issued under Section 10(4) and Section 11(1) of the
Foreign Exchange Management Act, 1999 (42 of 1999).
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