| Date: |
09-02-2015
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| Notification No: |
RBI/2014-15/461 A. P. (DIR Series) Circular No.74
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2014-15/461 |
| Subject: |
Delay in Utilization of Advance Received for Exports
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|
RBI/2014-15/461
A. P. (DIR Series) Circular No. 74
February 09, 2015
To
All Category-I Authorised Dealer Banks
Madam / Sir,
Delay in Utilization of Advance Received for Exports
Attention of Authorised Dealer Category – I (AD Category – I) banks is
invited to the sub-regulation (1) of Regulation 16 of the Foreign Exchange
Management (Export of Goods and Services) Regulations, 2000, notified vide
Notification No. FEMA 23 / RB-2000, dated May 3, 2000, as amended from time to
time read with
A.P. (DIR Series) Circular No. 105 dated May 20, 2013,
A.P. (DIR
Series) Circular No. 108 dated June 11, 2013 and
A.P. (DIR Series) Circular No.
37 dated November 20, 2014 in terms of which an exporter receiving an advance
payment for exports (with or without interest) from a buyer outside India shall
be under an obligation to ensure that the shipment of goods is made within the
stipulated period from the date of receipt of advance payment.
- As it has been observed that there is substantial increase in the
number and amount of advances received for exports remaining outstanding
beyond the stipulated period on account of non-performance of such exports
(shipments in case of export of goods), AD Category –I banks are advised to
efficiently follow up with the concerned exporters in order to ensure that
export performance (shipments in case of export of goods) are completed
within the stipulated time period.
- It is further reiterated that AD category –I banks should exercise proper
due diligence and ensure compliance with KYC and AML guidelines so that only bonafide export advances flow into India. Doubtful cases as also instances
of chronic defaulters may be referred to Directorate of Enforcement (DoE)
for further investigation. A quarterly statement indicating details of such
cases (as per Annex) may be forwarded to the concerned Regional Offices of
RBI within 21 days from the end of each quarter.
- AD Category – I banks may bring the contents of this circular to the
notice of their constituents and customers concerned.
- The directions contained in this circular have been issued under Section
10 (4) and Section 11 (1) of the Foreign Exchange Management Act (FEMA),
1999 (42 of 1999) and are without prejudice to permissions / approvals, if
any, required under any other law.
Yours faithfully,
(C. D. Srinivasan)
Chief General Manager
Annex
Quarterly Statement showing details of overdue Export Advances
(Statement for the quarter ended ……… , 20… )
Name and Address of the Bank:
| S. No |
AD Code |
(Part-I code) |
AD reference No. |
Name & Address of the Exporter |
Name & Address of
the Foreign buyer |
Details of Advance Received |
Amount outstanding (in case of
part exports) |
Reasons for non-export |
If reference made to DoE |
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Date |
Currency |
Amount |
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Date |
Reasons |
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