write-off of unrealized export bills – export of goods and services-simplification of procedure

8/13/2019 Write-off of unrealized export bills Export of Goods and Services-Simplification of procedure

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WRITE-OFF OF UNREALIZED EXPORTBILLS EXPORT OF

GBCA

Ghalla & Bhansali Chartered Page

It is obligatory on the part of the exporter to realize the full valueof goods to India within a stipulated period fro the date ofexport as under!"

Units in SEZ No s!"i#i" ti$! !%iotatus $older %xporters asdefined in theoreign 'rade (ithin a period of 1) onthsfro thedate of transport1** + %xport ,riented -nits .%,-s/andunits set up under %lectronic$ardware'echnology Par0s.%$'Ps/ #oftware'echnology

(ithin a period of twelve onthsfro thedate of export on or after#epteber 1)**2

Goods exported to a warehouseestablished outside India

As soon as it is realised and in anycase

within fifteen onths fro theIn all other cases 1) onths fro the date of export3

'he existing provisions of the 4BI rules provide for writing off in whichthe exporters were given liited powers and also A5 Category " Iban0s were peritted to accede to the re6uests for write off ade bythe exporters sub7ect to certain conditions3

As !% "i%"'()% No* ++ &)t!& M)%", ./ .01 it is nowdecided that for write off of unrealized export bills export bills thefollowing liits shall be effective3

%xporter Aended liits

#elf write off by an exporter 23 of tot)( export proceedsrealized

(rite off by authorized 5ealer Ban0 03 of total export proceedsrealized

#elf write"off by status holderexporters

03 of total export proceedsrealizedduring the previous

'he above liit shall be cuulatively available in a year3

(rite off will be sub7ect to certain conditions!a/ 'he relevant aount has reained o'tst)n&in5 #o% $o%! t,)n on!

4!)%3b/ S)tis#)"to%4 &o"'$!nt)%4 !6i&!n"! is furnished in support of

the exporter that he has ade all efforts to realize the dues8c/ 'he case falls under any of the under noted categories!


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GBCA


.i/ 'he overseas buyer has been declared inso(6!nt and a certificate frothe official li6uidator stating that there is no possibility of recovery3

.ii/'he overseas buyer is not t%)"!)7(!


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GBCA

.iii/'he goods exported have been )'"tion!& o% &!st%o4!& by thePort:Custos:$ealth authorities in the iporting country3

.iv/'he unrealized aount represents the balance due in a ")s! s!tt(!&through the intervention of the Indian %bassy foreign chaber of

coerce or other such organizations3.v/'he unrealized aount represents the not &%)8n 7)()n"! of an

export bill .not exceeding 1*+ of the invoice value/ reainingoutstanding and turned out to be unrealizable despite all efforts ade bythe exporter8

.vi/'he cost of resorting to (!5)( )"tion would be disproportionate to theunrealized aount of the export bill or where the exporter could notexecute the court decree due to the reasons beyond his control evenafter winning the court case3

.vii/ Bills were drawn for the &i##!%!n"! between the letter ofcredit value and actual export value or between the provisional and the

actual freight charges and the aount reains unrealized and there areno prospects of any realization3

d/ 'he exporter has s'%%!n&!%!& %oo%tion)t! !9o%tin"!nti6!s if any availed of in the respect of shipents3 'he A5category ; I ban0s should obtain docuents evidencing surrenderof export incentives availed3

e/ In case of self write"off the exporter should subit to theconcerned A5 ban0 aC,)%t!%!& A""o'nt)nt:s "!%ti#i")t!*

'he following would not ;')(i#4 for write off facility!a/ %xports ade to countries with !9t!%n)(i

write-off of unrealized export bills – export of goods and services-simplification of procedure

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