Why gr waiver from bank

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What is charter party bill of lading? What is Clean on board Bill of Lading. The balances held in the NOSTRO collection account shall be repatriated and credited to the respective exporter's account with a bank in India immediately on receipt of the confirmation from the importer and, in no case, later than seven days from the date of credit to the NOSTRO collection account.

AD Category -I banks shall satisfy themselves as to the bona-fides of the transactions and ensure that the purpose codes reported to the Reserve Bank in the online payment gateways are appropriate. AD Category -I banks shall submit all the relevant information relating to any transaction under this arrangement to the Reserve Bank, as and when advised to do so. Resolution of all payment related complaints of exporters in India shall remain the responsibility of the OPGSP concerned. All eligible payments are required to be settled by the concerned banks through these accounts.

Third party payment should be routed through the banking channel only; The exporter should declare the third party remittance in the Export Declaration Form and it would be responsibility of the Exporter to realize and repatriate the export proceeds from such third party named in the EDF; It would be responsibility of the Exporter to realize and repatriate the export proceeds from such third party named in the EDF; Reporting of outstanding, if any, in the XOS would continue to be shown against the name of the exporter.

However, instead of the name of the overseas buyer from where the proceeds have to be realized, the name of the declared third party should appear in the XOS; In case of shipments being made to a country in Group II of Restricted Cover Countries, e. Sudan, Somalia, etc. Reserve Bank may consider applications in Form EFC from exporters having good track record for opening a foreign currency account with AD banks in India and outside India subject to certain terms and conditions.

If the account is to be maintained abroad the application should be made by the exporter giving details of the bank with which the account will be maintained. They may be allowed to open not more than five Diamond Dollar Accounts with their banks. Eligible firms and companies may apply for permission to their AD Category — I banks in the format prescribed. Resident individuals are permitted to include resident close relative s as defined in the Companies Act as a joint holder s in their EEFC bank accounts on former or survivor basis.

This account shall be maintained only in the form of non-interest bearing current account. No credit facilities, either fund-based or non-fund based, shall be permitted against the security of balances held in EEFC accounts by the AD Category — I banks.

This facility is not intended to enable exchange earners to maintain assets in foreign currency, as India is still not fully convertible on Capital Account. The eligible credits represent inward remittance received through normal banking channel, other than the remittance received pursuant to any undertaking given to the Reserve Bank or which represents foreign currency loan raised or investment received from outside India or those received for meeting specific obligations by the account holder.

No interest will be payable on balances standing to the credit of the Escrow Account but the funds temporarily rendered surplus may be held in a short-term deposit up to a total period of three months in a year i.

For this purpose, exporter may arrange either to give the form to the person in charge of the vessel or vehicle or forward it to his agent at the border for submission to Customs. As regards exports by rail, Customs staff has been posted at certain designated railway stations for attending to Customs formalities. They will collect the EDF for goods loaded at these stations so that the goods may move straight on to the foreign country without further formalities at the border.

The list of designated railway stations can be obtained from the Railways. For goods loaded at stations other than the designated stations, exporters must arrange to present EDF to the Customs Officer at the Border Land Customs Station where Customs formalities are completed. Accordingly, all trade transactions with Myanmar, including those at the Indo-Myanmar border with effect from December 1, shall be settled in any permitted currency in addition to the Asian Clearing Union mechanism.

Such remittances may be made in advance in one lump sum or at monthly intervals as approved by the authority concerned. They should ensure that their client is not over financed. Accordingly, they may determine the working capital requirement of their clients taking into account the value of the invoices purchased for factoring. The invoices purchased should represent genuine trade invoices. Notation should be made on the invoice that importer has to make payment to the Import Factor.

In case of single factor, not involving Import Factor overseas, the Export Factor may obtain credit evaluation details from the correspondent bank abroad. KYC and due diligence on the exporter shall be ensured by the Export Factor.

They should, however, repatriate the profits of on-site contracts after completion of the contracts. Prior approval of the Reserve Bank is required for export of machinery, equipment, etc. Exporters should apply for necessary permission, through an AD Category — I banks, to the Regional Office concerned of the Reserve Bank, giving full particulars of the goods to be exported.

Customs shall retain the original EDF for transmission to the Reserve Bank and return the duplicate copy to the exporter. At the time of shipment of goods, exporters shall submit the duplicate copy of the EDF to Customs.

After examining the goods, Customs shall certify the quantity in the form and return it to the exporter for submission to AD for negotiation or collection of export bills.

Within 21 days from the date of export, exporter shall lodge the duplicate copy together with relative shipping documents and an extra copy of the invoice to the AD named in the EDF. The duplicate copy of the form together with a copy of invoice etc.

Therefore, EDF which involve sending goods by post should be first presented by the exporter to an AD for countersignature. The procedure is as under: AD shall countersign EDF after ensuring that the parcel has been addressed to their branch or correspondent bank in the country of import and return the original copy to the exporter, who shall then submit the EDF to the post office with the parcel. The concerned overseas branch or correspondent shall be instructed to deliver the parcel to consignee against payment or acceptance of relative bill.

AD may, however, countersign EDF covering parcels addressed direct to the consignees, provided: An irrevocable letter of credit for the full value of export has been opened in favor of the exporter and has been advised through the AD concerned.

Or The full value of the shipment has been received in advance by the exporter through an AD. Or The AD is satisfied, on the basis of the standing and track record of the exporter and the arrangements made for realization of the export proceeds. Any alteration in the name and address of consignee on the EDF form should also be authenticated by AD under its stamp and signature.

For mid-sea trans-shipment of catches by Indian owned vessels, as per the norms prescribed by the Ministry of agriculture, Government of India, the EDF declaration procedure in this regard has been rationalized in consultation with the Government of India as outlined below should be followed by the exporter in conformity with Regulation 3 of Notification No. The exporters may submit the EDF, duly signed by the Master of the vessel in lieu of Custom certification, indicating the composition of the catch, quantity, export value, date of shipment date of transfer of catch , etc duly supported by a certificate from an international cargo surveyor.

The prescribed period of realization and repatriation should be reckoned with reference to the date of transfer of catch as certified by the Master of the vessel or the date of the invoice, whichever is earlier. The EDF, both original and duplicate, should indicate the number and date of Letter of Permit issued by Ministry of Agriculture for operation of the vessel. The exporter will complete the EDF in duplicate and both the copies may be submitted to the Customs at the registered port of the vessel or any other port as approved by Ministry of Agriculture.

Customs will give their running serial number on both the copies of EDF and will return the duplicate copy to the exporter as the value certification of the export has already been done as mentioned above.

Rules, Regulations and Directions issued in respect of the procedure for submission of the EDF by exporter to the AD Category-I banks, and the disposal of these forms by these banks will be same as applicable to the other exporters. Invoicing of software exports For long duration contracts involving series of transmissions, the exporters should bill their overseas clients periodically, i. It would be in order for the exporters to submit a combined SOFTEX form for all the invoices raised on a particular overseas client, including advance remittances received in a month.

The invoices raised on overseas clients as at a to c above will be subject to valuation of export declared on SOFTEX form by the designated official concerned of the Government of India and consequent amendment made in the invoice value, if necessary. In case of delay in obtaining certified short-shipment notice from the Customs, the exporter should give an undertaking to the AD banks to the effect that he has filed the short shipment notice with the Customs and that he will furnish it as soon as it is obtained.

Where a shipment has been entirely shut out and there is delay in making arrangements to re-ship, the exporter will give notice in duplicate to the Customs in the form and manner prescribed, attaching thereto the unused duplicate copy of EDF and the shipping bill.

The Customs will verify that the shipment was actually shut out, certify the copy of the notice as correct and forward it to the Reserve Bank together with unused duplicate copy of the EDF. In this case, the original EDF received earlier from Customs will be cancelled. If the shipment is made subsequently, a fresh set of EDF should be completed. AD Category — I banks may negotiate HAWBs only if the relative letter of credit specifically provides for negotiation of these documents in lieu of Airway Bills issued by the airline company.

It would be advisable for the exporters to ensure due diligence on the overseas buyer, in such cases. The exporters shall, however, be liable to realize and repatriate export proceeds as per FEMA Regulations.

Such free of cost supplies shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme. Exports of goods not involving any foreign exchange transaction directly or indirectly requires the waiver of EDF procedure from the Reserve Bank. The quarterly return being submitted for delay in utilization of advances received for export stands discontinued.

Product pricing should be in consonance with prevailing international prices. Company should have capacity, systems and processes in place to ensure that the orders over the duration of the said tenure can actually be executed. The facility is to be provided only to those entities, which have not come under the adverse notice of Enforcement Directorate or any such regulatory agency or have not been caution listed.

Such advances should be adjusted through future exports. The rate of interest payable, if any, should not exceed LlBOR plus basis points. The documents should be routed through one Authorized Dealer bank only.

Double financing for working capital for execution of export orders should be avoided. Doubtful cases as also instances of chronic defaulters may be referred to Directorate of Enforcement DoE for further investigation. A quarterly statement indicating details of such cases may be forwarded to the concerned Regional Offices of RBI within 21 days from the end of each quarter. Such sales at discounted value are also permissible.

The exporter shall report to the AD Category — I banks the method of disposal of all items exported, as well as the repatriation of proceeds to India. Where the goods being exported for testing are destroyed during testing, AD Category — I banks may obtain a certificate issued by the testing agency that the goods have been destroyed during testing, in lieu of Bill of Entry for import.

Entry of consignment containing different lots of rough diamonds into the SNZ should be accompanied by a declaration of notional value by way of an invoice and a packing list indicating the free cost nature of the consignment. Under no circumstance, entry of such rough diamonds is permitted into DTA. AD bank may permit such import payments after being satisfied with the bona-fides of the transaction.

Further, AD bank shall also maintain a record of such transactions. Any funds rendered surplus should be repatriated to India. The details of bank accounts opened in the overseas country should be promptly reported to the AD Bank.

AD Category — I banks may also allow remittances by a company incorporated in India having overseas offices, within the above limits for initial and recurring expenses, to acquire immovable property outside India for its business and for residential purpose of its staff.

The AD Category — I banks may also accede to the request of the exporter provided the exporter is a regular customer and the AD Category — I bank is satisfied, on the basis of standing and track record of the exporter and arrangements have been made for realization of export proceeds.

The duplicate copy of the EDF is submitted to the AD banks for monitoring purposes, by the exporters within 21 days from the date of shipment of export. AD Category — I banks may regularize cases of dispatch of shipping documents by the exporter direct to the consignee or his agent resident in the country of the final destination of goods, irrespective of the value of export shipment, subject to the following conditions: The export proceeds have been realized in full except for the amount written off, if any, in accordance with the extant provisions for write off.

The AD Category — I bank is satisfied about the bonafides of the transaction. FEMA 23 dated May 3, , where an exporter receives advance payment with or without interest , from a buyer outside India, the exporter shall be under an obligation to ensure that -. Provided that in the event of the exporter's inability to make the shipment, partly or fully, within one year from the date of receipt of advance payment, no remittance towards refund of unutilised portion of advance payment or towards payment of interest, shall be made after the expiry of the said period of one year, without the prior approval of the Reserve Bank.

Such sales at discounted value are also permissible. In such cases, AD Category — I banks may negotiate the bills, provided: a The amount of undrawn balance is considered normal in the particular line of export trade, subject to a maximum of 10 per cent of the full export value. This procedure should be followed even if, according to the practice in certain trades, a bill for part of the estimated value is drawn in advance against the exports.

Accordingly, the exporters may show the value of the unsold books as deduction from the export proceeds in the Account Sales. However, they may dispatch shipping documents direct to the consignees or their agents resident in the country of final destination of goods in cases where:.

It would be in order for the exporters to submit a combined SOFTEX form for all the invoices raised on a particular overseas client, including advance remittances received in a month. In case of delay in obtaining certified short-shipment notice from the Customs, the exporter should give an undertaking to the AD banks to the effect that he has filed the short-shipment notice with the Customs and that he will furnish it as soon as it is obtained. The Customs will verify that the shipment was actually shut out, certify the copy of the notice as correct and forward it to the Reserve Bank together with unused duplicate copy of the GR form.

In this case, the original GR form received earlier from Customs will be cancelled. If the shipment is made subsequently, a fresh set of GR form should be completed. Counter trade proposals involving adjustment of value of goods imported into India against value of goods exported from India in terms of an arrangement voluntarily entered into between the Indian party and the overseas party through an Escrow Account opened in India in US Dollar will be considered by the Reserve Bank.

Exporters should apply for necessary permission, through an AD Category — I banks, to the Regional Office concerned of the Reserve Bank, giving full particulars of the goods to be exported.

In order to provide greater flexibility to project exporters and exporters of services in conducting their overseas transactions, the guidelines stipulated vide paragraphs B. They should, however, repatriate the profits of on-site contracts after completion of the contracts. Such remittances may be made in advance in one lump sum or at monthly intervals as approved by the authority concerned. People living along both sides of the India-Myanmar border are permitted to exchange certain specified locally produced commodities Annex 5 under the barter trade arrangement.

They can also trade in freely convertible currency. AD banks should follow the guidelines stipulated in AP.

In the case of declarations made on SDF form, the port code number and shipping bill number should be cited. The Customs serial number will have ten numerals denoting the code number of the port of shipment, the calendar year and a six- digit running serial number. Note: At present, GR Forms [to be completed in duplicate for export otherwise than by Post including export of software in physical form i. As part of simplifying the procedures, GR Forms are now made available on-line on the Reserve Bank's website www.

The following system may be followed in case of SDF: i The SDF should be submitted in duplicate to be annexed to the relative shipping bill to the Commissioner of Customs concerned. The duplicate copy of the form together with a copy of invoice etc. In such cases, ECGC and private insurance companies regulated by IRDA will issue a certificate to the bank, which had handled the relevant shipping documents after full proceeds have been received.

The certificate will indicate the number of declaration form, name of the exporter, name of the AD Category — I banks, date of negotiation, bill number, invoice value and the amount actually received by ECGC and private insurance companies regulated by IRDA.

The manner of disposal of PP forms is the same as that for GR forms.