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The government’s announcement of the RBI providing facilitation of external trade for the export of goods and services helps in providing big support to the exports in the industry.
The RBI announcement, which has reduced the monetary ceiling for overseas buyers regarding the direct dispatch of shipping documents and regularizing cases where export proceeds have been realized, ultimately provides a great relief to the exporters whose bills are pending with the EDPMS (Export Data Processing and Monitoring System), irrespective of the value of the export shipment. The primary aim of the announcement has affected those exporters who were pressured by the buyers to send the documents as the courier services failed in India during the lockdown in Covid. The RBI’s liberalization of rules in the Covid times, by writing off unrealized export bills has brought great relief to the export house.
Reserve Bank of India, plan through this notification of December 8, 2020, is to bring relief to the investors/exporters that have made a huge investment in the consignments and by simplifying the procedure of writing off unrealized export bills, in the current scenario is a great step.
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The notification deals with ease of doing business and has improved the procedural steps; it has delegated more powers to the Authorized Dealers Category-I banks, AD.
It can be explained that the dispatch of documents by the Exporter to the consignee of the resident or agent located in that other country can be done directly by them.
The RBI notification has a positive point that is, clearing the export bills, or the outstanding amount be called off with the AD Bank.
The above writing off the unrealized export bills is subject to following conditions:
The above-cited conditions fall under the non-working categories:
In the above-mentioned points, the Exporter can ask to write off unrealized bill amount entirely/totally for points, 1, 2, and 3. This is possible only when the AD Bank is satisfied with the documentary evidence submitted by the Exporter concerning surrendering the export incentives proportionately if taken/availed for the respective bill which is unrealized.
In case of self write off, the Exporter has to submit to AD Bank a certificate from the CA, indicating the amounts which have been write off by him in the particular calendar year.
Where write off is not available?
The AD bank may subject to the following conditions, allow set-off of outstanding export receivables against outstanding import payables:
It can be concluded that ease of doing business has been increased in the difficult times of COVID, where the exemptions to the Exporter has been given. The exemptions in the form of set-off against payments unrealized export bill, dispatching of documents directly, set off outstanding export receivables and various rebates. It is an excellent step for the exporters that is facilitation of external trade.
Read our article:Government Approval under Foreign Direct Investment (FDI) In India
She is B.Com (H), LL.B LLM, Cs (Module 2) And Certification In Cyber Law From ILI Qualified. She has Been A Legal Teacher In The Previous Organization. My Strength Is My Expertise Knowledge In Civil Laws, Corporate Law And Tax Laws. I Have Been Legal Teacher And Legal Trainer In The Past Organization. Her Knowledge About The Subjects Have Expanded Due To Teaching Number Students From Various Universities All Over India.
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