EXPORTS
1)EXPORTS
 Important Provisions under FEMA relating to Exports:
 (Ref: RBI Master Cir. on Exports dtd. 01-07-13)
 1) Exports/trade is regulated by DGFT, GOI, Ministry of Commerce.
 2) IEC Code required for export being undertaken.
 3)GR/SDF/PP/SOFTEX Formalities to be observed
 4) Certain categories of export are exempted from GR formalities details
as per Annexure 2 to the Master Circular. Details are as under:

 5) GR Waiver: ADs may grant waiver for export of goods free of cost for
export promotion up to 2% of average annual export of applicant during
preceeing three financial years subject to ceiling of Rs. 5 lacs. - Status
Holders – Rs. 10 lacs.
 6) GR Approval for Trade Fair/ exhibition abroad.
 - Invitation for participating.
 - Unsold exhibits can be sold outside the trade fare even in third
country.
 - Discounted value also permitted.
 -Gifts of unsold goods can be given up to USD 5000 per exporter.
 - B/E to be submitted to AD within one month from re-import of
unsold items.
 - Subject to 100% audit by the internal/concurrent auditors.
 7) GR approval for export of goods for re-import

- goods are being exported for re-import after repairs /
maintenance / testing / calibration, etc.
 - B/E to be submitted to the AD.
 - In lieu of B/E , certificate issued by testing for showing goods being
destroyed.
 8) Manner of Receipt of payment
 i) DD, P.O., Cheques
 ii) FC notes/ TC from the buyer during his visit to India.
 iii) Debit to FCNR/NRE accounts
 iv) International Credit Card.
 v) ACU Mechanism – Iran excluded from arrangement since
Dece 2010. (Countries: India, Pakistan, Sri Lanka,
Bangladesh, Bhutan, Nepal, Maldives, Myanmar)
 vi) For Bhutan and Nepal in INR
 vii) Through Online Payment Gateway Service Providers
(OPGSP) for value not exceeding USD 10000 ( w.e.f. 11-062013).
 9) Export to be realised within 9 months from the date of export.
(Exception SEZ – within 12 months) Goods exported to warehouses–
15mth .
 10) FC accounts relating to Export – EEFC, DDA.
 11) Shipping documents to be submitted to AD Banks within 21 days from
the date of Export.
 12) Direct Dispatch of the documents by exporter:
 - Advance payment or an irrevocable letter of credit has been
received for the full value of the export shipment and the underlying
sale contract/letter of credit provides for dispatch of documents
direct to the consignee
 - Regular customer of the AD Bank and AD is satisfied of standing
and track record
 of the exporter .
 - Amount of export is not more than Rs. 25,000/- and declaration is
accompanied.
 - Status Holders and units in SEZ.
 13) ADs to number the documents submitted to them serial number wise
for N,P,D,C,A and M.
 14) Overdue export bills to be followed up by ADs and reporting made to
RBI every half year of bills remaining over due beyond 6 months in
statement XOS.
 15) Reduction in invoice value:
 - reduction does not exceed 25% of invoice value.
 - does not relate to export of commodities where floor price is
stipulated
 - exporter not on RBI exporter’s caution list.
 - exporter to be advised to surrender the proportionate amount of
export incentive, if any , availed by the exporter.
 - For exporters in business for over 3 years – up to 5% of the
average annual turnover for last three years.
 16) Extension of Time and self write off by exporters:
 - does not exceed 10 per cent of the export proceeds due during
the financial year; and such export bills are not a subject to
investigation by Directorate of Enforcement / Central Bureau of
Investigation or any other Investigating Agencies.
 - To avail this facility, Exporter to give a statement giving details of
export proceeds due, realised and not realised to the AD Category
– I banks concerned within one month from the close of financial
year.
 17) Extension in time limit/ write off by ADs.
 - Extension up to 6 months at a time.
 - write off
 a. Self “write-off” by an exporter (Other than Status Holder Exporter)
5%*
 b. Self “write-off” by Status Holder Exporters 10%*
 c. ‘Write-off” by Authorized Dealer Bank- 10%* *of the total export
proceeds realized during the previous calendar year.
 - reporting to RBI in form ETX ,EBW and XOS.
 18) Advance payment against Export:
 – documents to be submitted within 12 months.
 - Amount can be returned back within 12 months from the date of
receipt of the Advance if no export takes place.
 - the documents covering the shipment are routed through the AD
Category – I bank through whom the advance payment is received.
 19) Set-off of export receivables against import payables :
AD Banks may 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 is 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.
 20) Agency Commission on Exports
 (i) AD Banks may allow payment of commission, either by remittance
or by deduction from invoice value, on application submitted by the
exporter. The remittance on agency commission may be allowed
subject to the following conditions:
 Amount of commission has been declared on GR/SDF/PP/SOFTEX
form and accepted by the Customs authorities or Ministry of
Information Technology, Government of India / EPZ authorities as the
case may be.
 In cases where the commission has not been declared on
GR/SDF/PP/SOFTEX form, remittance may be allowed after satisfying
the reasons adduced by the exporter for not declaring commission on
Export Declaration Form, provided a valid agreement/written
understanding between the exporters and/or beneficiary for payment
of commission exists.
 The relative shipment has already been made.