“Write-off” of unrealized export bills – Export of Goods and Services – Simplification of procedure

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..... een permitted to accede to the requests for "write-off" made by the exporters, subject to the conditions, inter alia, that the exporter had to surrender proportionate export incentives, if availed of, in respect of the relative shipments. 2. With a view to further simplifying and liberalizing the procedure and for providing greater flexibility to all exporters as well as the Authorized Dealer banks, the earlier instructions have been reviewed. It has now been decided to effect, subject to the stipulations regarding surrender of incentives prior to"write-off" adduced in the A.P. (DIR Series) Circular No. 03 dated 22 July 2010, the following liberalization in the limits of "write-offs" of unrealized export bills: a. Self "write-off" by an e .....

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..... invoice value) remaining outstanding and turned out to be unrealizable despite all efforts made by the exporter; (vi) The cost of resorting to legal action would be disproportionate to the unrealized amount of the export bill or where the exporter even after winning the Court case against the overseas buyer could not execute the Court decree due to reasons beyond his control; (vii) Bills were drawn for the difference between the letter of credit value and actual export value or between the provisional and the actual freight charges but the amount has remained unrealized consequent on dishonour of the bills by the overseas buyer and there are no prospects of realization. (d) The exporter has surrendered proportionate export incentives (fo .....

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..... der whose jurisdiction they are functioning, indicating details of write-offs allowed under this circular. 7. AD banks are advised to put in place a system under which their internal inspectors or auditors (including external auditors appointed by authorised dealers) should carry out random sample check / percentage check of "write-off" outstanding export bills. 8. Cases not covered by the above instructions / beyond the above limits, may be referred to the concerned Regional Office of Reserve Bank of India. 9. Authorized Dealers may bring the contents of the Circular to the notice of their constituents concerned. 10. The directions contained in this Circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Manage .....

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