RBI/2011-12/264
A.P. (DIR Series) Circular No. 47
November 17, 2011
To
All Category – I Authorized Dealer Banks
Madam/Sir,
“Set-off” of export receivables against import payables-
Liberalization of Procedure
Attention of Authorized Dealer Category – I (AD Category – I) banks is invited
to the fact that the requests received from the exporters through their AD
branches for set-off of export receivables against import payables are
considered by the Reserve Bank of India. As a measure of further liberalization,
it has been decided to delegate power to AD Category – I banks to deal with the
cases of “set-off” of export receivables against import payables, subject to
following terms and conditions:
- The import is as per the Foreign Trade Policy in force.
- Invoices/Bills of Lading/Airway Bills and Exchange Control copies of Bills of
Entry for home consumption have been submitted by the importer to the Authorized
Dealer bank.
- Payment for the import is still outstanding in the books of the importer.
- Both the transactions of sale and purchase may be reported separately in ‘R’
Returns.
- The relative GR forms will be released by the AD bank only after the entire
export proceeds are adjusted / received.
- The ” set-off” of export receivables against import payments should be in
respect of the same overseas buyer and supplier and that consent for ”set-off”
has been obtained from him.
- The export / import transactions with ACU countries should be kept outside the
arrangement.
- All the relevant documents are submitted to the concerned AD bank who should
comply with all the regulatory requirements relating to the transactions.
- 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 Sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and
are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(Dr. Sujatha Elizabeth Prasad)
Chief General Manager