Realization of export proceeds – Caution Listing of Exporters
May 3, 2017
Members of the Council
You are aware that the Reserve Bank of India, Mumbai had issued a Circular No.74, dated: 26, May 2016 notifying the following criteria for Caution/ De-caution listing of exporters,
(i) The exporters would be caution listed if any shipping bill against them remains open i.e unrealised for more than two years in Export Data Processing Management System (EDPMS) of RBI provided no extension is granted by AD Category – I bank / RBI. Date of shipment will be considered for reckoning the realization period.
(ii) Once related bills are realized and closed or extension for realization is granted, the exporter will automatically be de-caution listed.
(iii) The exporters can also be caution listed even before the expiry of two years period based on the recommendation of AD banks. The recommendation may be based on cases where exporter has come to adverse notice of the Enforcement Directorate(ED) / Central Bureau of Investigation (CBI) / Directorate of Revenue Intelligence (DRI) / any such other law enforcement agency or the case where exporter is not traceable or not making any serious efforts for realization of export proceeds. In such cases, AD may forward its findings to the concerned regional office of RBI recommending inclusion of the name of the exporter in the caution list.
(iv) Reserve Bank will caution / de-caution the exporters in such cases based on the recommendation of AD Category – I banks.
2 Meeting with Commerce Secretary
As many exporters faced problems on account of caution listing by RBI even in cases where banks have not updated realisation details or where there is mismatch between amount in shipping bill and amount realised, a meeting was held under Chairmanship of Commerce Secretary arranged by FIEO. The minutes of the meeting are enclosed. As per decision taken in the meeting , the following are the actions to be taken by exporters.
Action to be taken by exporters
(1) Members may now view the status of remittance against a particular shipping bill at the Ice-gate of Customs to see whether payment has been realized or not (Please see the decision in respect of point 1. A.(i) on page 2).
(2) Members can avail self write off, in case realization in free foreign exchange in e BRC is less than value in free foreign exchange declared in the shipping bill, after surrendering the proportionate exports benefits( Please see the decision in respect of point 1.A.(ii) on page 2 of enclosed minutes). In cases where there is mismatch between amount in shipping bill and amount realised, members may approch their bank in case extension in realization period of export proceeds is required and for closure of such shipping bills from caution list.
(3) For free of cost shipping bill, shipping bill in which goods exported have been reimported later or such shipping bill in respect of which payment has been received from ECGC/other credit insurance agencies , you may approach the banks for closure of such shipping bills, (Please see the decision in respect of point 1.B.(ii) on page 3 of enclosed Minutes).
(4) Please provide the details of the banks with branches, if they have not updated the information in the EPDMS, where full remittance has been received against the shipping bill. You may send the mail at firstname.lastname@example.org
Alternatively, you may provide the requisite information on the FIEO website – www.fieo.org, by clicking on the banner reading “Submit Details of Banks for Closure of Shipping Bills on EPDMS“ (Please see the decision in respect of point 1.C. (ii) on page 4).
(5) Please forward details of bank with branch who have refused to negotiate the document or issue e BRC for goods transshipped through Iran to a third country accompanied by the composite transport document. (Please see the decision in respect of point no. 4 of the minutes)
RBI defers Caution Listing of Exporters till 20th May,2017 subject to certain conditions:
Subsequent to the above meeting, RBI has sent a circular to banks stating the following
As a measure of interim relief it has been decided to grant further temporary exemption to exporters whose IE codes are appearing in caution-list in EDPMS upto May 20, 2017 to clear the entries in the system. The extension will be operationalized as under:
For any exporter, if the outstanding export bills’ amount is upto 20 per cent of total export bills or the number of open export bills is upto 10 as indicated in the caution list appearing in EDPMS site then AD should not treat such exporters as caution listed till May 20, 2017 subject to satisfaction of the AD based on following documentary evidence:
(i) The exporter has declared that the export proceeds have been realized in full for the export bills lying open in EDPMS and eBRC has been issued by bank/s and necessary reconciliation will be completed within 15 days.
(ii) In cases where the bills are not realized / partially realized, then the exporter should have submitted request to AD/s for (a) extension of time for realization of export bills and / or (b) request to AD/s for write off of export bills (fully or partially, as the case may be).
(iii) Request for cancellation of shipping bill has been submitted by the exporter to the Customs.
- Exporters not falling within above category i.e. the outstanding export bills’ amount is more than 20 per cent of total export bills and the number of open export bills is more 10 shall have to obtain requisite approval from RBI.
- It is clarified that:
i Export bills for ‘free of cost’ exports having requisite indicator of Customs do not lead to caution listing
ii Export bills in respect of goods re-imported on account of quality issues or other reasons are required to be lodged and closed in EDPMS by providing necessary details.
Members may kindly note the above please.
Thanks & Regards
R.Ramesh Kumar I.A.S
Council for Leather Exports