mib export regulatios

8/2/2019 MIB Export Regulatios

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EXPORT ACTIVITY is regulated by

PRESCRIBED

FORM ( GR, SDF, PP, SOFTEX )

PERIOD OF REALISATION

PERIOD OF PRESENTATION

VALUE

MANNER OF PAYMENT


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Agencies Connected With Exports

Director General of Foreign Tradea. Formulation of trade policy

b. allotment of importer -exporter code no

Customs

a.Valuation of goods

b.Physical aspects of exports

Reserve Bank of India and Authorised Dealers

- Monitoring receipts of payments and follow

up


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Categories Of Exports

Cash Exports

Deferred Payment Exports

Project Exports Software Exports

Services Exports


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Permitted currencies and methods of payment

1. PERMITTED CURRENCY-a. ACU Group ( India , Pakistan, Nepal, Bangladesh, Srilanka ,

Maldives )b. Others

2. CHOICE OF CONTRACTING CURR. IN INTL TRANSACTIONS

3. PERMITTED METHOD OF RECEIPTSGROUPS

a. Othersb. ACU Current A/c transactions,

PAYMENT SHALL BE RECEIVED IN A CURRENCYAPPROPRIATE TO THE FINAL DESINATION IN THEDECLERATION FORM IRRESPECTIVE OF THE COUNTRY OF THERESIDENCE OF THE BUYERIN THE CASE OF NEPAL AND BHUTAN IN CAN BE IN INR


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EXPORT FLOW

Exporter

Bank

Customs

RBI

GR formwithin 21ways of

shipment

GR/ SF

GR form and fortnightlyR- Return information

ENTRIES

Goods sent

GR form received by bank

Money has come (elsecaution listed)


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Monitoring Of Exports

Declaration Forms

Mandatory to declare (except Nepal and Bhutan)

to the specified authority in the prescribed

Declaration Forms

GR Form

SDF Form

SOFTEX Form

PP Form

Export of services no form prescribedhowever

liable to repatriate the exchange so earned


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Monitoring Of Exports

Exemptions from Declaration

Trade samples, publicity material supplied free,

personal effects of travellers

(accompanied/unaccompanied)

Ships stores, transshipment cargo,

military/naval/air force requirements,

Goods/software of value less than USD 25,000 -

declaration from exporter

Replacement of goods free of charge

Imported goods found defective


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EXPORT PROCEDURE

Export Procedure- GR Form

Form GR to be submitted in duplicate to Customs

along with shipping bill

C will give 10 digit code no on the form( port of

shipment, calendar year and running serial no)

C will certify the value declared and return

duplicate copy to E and send original to RBI

Duplicate GR form resubmitted to customs along

with goods to be shipped

Customs certify quantity and return form to

exporter


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EXPORT PROCEDURE

Export Procedure- GR Form..contd

Exporter submits duplicate GR to AD

within 21 days of shipment with

shipping documents etc.

AD negotiates/sends for collection

report to RBI in form ENC with R-

Return

On realisation AD reports to RBI with R-

Return


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EXPORT PROCEDURE

Export Procedure- SDF Form

Form SDF to be submitted in duplicate to the

Commissioner ,Customs along with shipping bill

One copy of the SDF form alongwith EC copy of

SB will be given to the E .


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EXPORT PROCEDURESOFTEX Form Procedure

Form to be submitted in triplicate Designated officials at STPIs / FTZ/EPZs/SEZs to

certify forms

Original sent directly to RBI by certifying agency Duplicate returned to exporter

Triplicate retained by STPI/FTZ/EPZ

Duplicate submitted to AD within 21 days


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EXPORT PROCEDURESOFTEX Form Procedure

Billing to be done for long term contracts

on reaching "milestones" or once a

month for others within 15 days ofcompletion and for certification by the

authorities in the STP


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EXPORT PROCEDURE

PP Form Procedure

Original Form to be counter signed by

AD

Goods to be consigned to the bank in

the country of import

Can be consigned directly in the name

of buyer if advance payment or LC is

received


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EXPORT PROCEDUREShort/Shut shipment

Short shipment- When part of the shipmentdeclared on GR form not shipped

Shut shipment no shipment made at all

In case of short shipment, certificate givenby customs on the actual quantity/value of

goods exported to the AD bank

In case of no shipment(shut shipment)duplicate GR form cancelled and advised to

RBI by customs


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Permitted period for realization.

6 months ( currently allowed upto 12

mths).

To warehouse ( established with RBI

permission)-15 months

Units in SEZ no time limit

100% EOU/Units in EHTP/STP/BTP 12

mths


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Exports requiring prior approval

(from exchange control)

Exports of goods on lease and hire.

Counter trade.

Exports under trade agreement.

Exports on elongated credit terms.


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Other Exports Regulations

ADVANCE PAYMENTS. Goods to be exported within one year of

receipt of advance payment (with or without

interest) Rate of interest not to exceed LIBOR + 100

basis points

Refunds in case of no exports taking place(partly/fully) after one year - prior approval of

RBI


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RECOVERY OF BAD DEBTS

1. Extension of Time Limit(FORM-ETXBanks can extend for 6 months at a time

subject to

Case is not under investigation by ED/CBI for extension beyond 6 months it can be

done provided total outstanding does not

exceed 1M USD or 10% of the average exportrealisation during the preceding 3 FY

whichever is higher

Extension freely done for suit filed cases


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RECOVERY OF BAD DEBTS

2. Reduction In Invoice Value.

Maximum-25% of the invoice value.

No such ceiling if exporter is in business for 3

years and export outstanding does not

exceed 5% of AAER during the preceding 3 FY

Commodity is not subject to floor price

restrictions

Not on the exporters caution list

To surrender proportionate export incentives

availed if any

eco er o a e s


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ecovery o a e s

3. EXPORT CLAIMS.

Provided total proceeds already realised Exporter not on caution list

Proportionate incentives to be surrendered

4. CHANGE OF BUYER.

Same Terms and conditions

Reduction in invoice value < 25%

Realisation is not delayed beyond 12 m from

date of export

R f B d D bt


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Recovery of Bad Debts

5.REIMPORT OF GOODS.

6.LEGAL ACTION

7. EMBASSY HELP.

R f B d D bt


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8. Write Off allowed by banks

Bill outstanding for > 12 months Aggregate write off during the FY does not

exceed 10% of export realisations of

previous FY Unrealised amount represents the

undrawn balance of an export bill (not

exceeding 10% of the invoice value) Overseas buyer declared insolvent

(certificate from official liquidator) /buyer

not traceable

R f B d D bt


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8. Write Off allowed by contd

Goods destroyed by the port/customs/healthauthorities/sold in auction

Case is not subject matter of any pending

criminal/civil suit Satisfactory documentary evidence having

made all efforts to realize the dues

Exporter not under investigation by CBI/ED Exporter surrenders proportionate export

incentives

R f B d D bt


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9. Self write off.All exporters allowed to

Write off / reduction in invoice value/Extendthe period of realisation beyond 12 months or

further period as applicable

Aggregate value of export bills written off(including reduction in invoice value) and bills

extended for realisation does not exceed 10%

of exports proceeds due during the FY not a subject of investigation by ED/CBI/etc

Exporter to submit a statement within a

month from the close of the FY to AD

mib export regulatios

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