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"Write-off" of Unrealised Export Bills - Surrender of Export
Incentives
A.P.
(DIR Series) Circular No. 61 dated 14th December 2002
Attention
of authorised dealers is invited to paragraph C.18 of A.P (DIR Series) Circular
No. 12 dated September 9, 2000 in terms of which they have been permitted to
allow "write-off" of unrealised export dues and A.P. (DIR Series)
Circular No.30 dated April 4, 2001 in terms of which authorised dealers have
been granted powers to permit "write-off" annually upto 5% of average
annual realisation to status holder exporters subject to certain conditions.
2.
While permitting "write-off" one of the conditions specified is
that the export benefits, if any, availed of by the exporter are surrendered. It
has, however, been brought to our notice that there were instances where
exporters had not surrendered export incentives in respect of export bills for
which "write-offs" were permitted by their bankers.
3.
With a view to ensuring that exporters invariably surrender the export
incentives in respect of export bills for which they seek "write-off",
authorised dealers should obtain document/s evidencing surrender of export
incentives availed of before permitting "write-off" for the relevant
outstanding bills.
4.
The authorised dealers are advised to put in a place a system under which
their internal inspectors or auditors (including external auditors appointed by
authorised dealers) should carry out random sample check/percentage check of
"write-off" outstanding export bills.
5.
The authorised dealers may please note that the terms and conditions
stipulated in the circulars referred to above remain unchanged.
6.
Authorised dealers may bring the contents of the circular to the notice
of their constituents concerned.
7.
The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999).
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