In certain lines of export trade, it is the practice to leave a small part of the invoice value undrawn for payment after adjustment due to differences weight, quality, etc. to be ascertained after arrival and inspection, weighment or analysis of the goods. In such cases, authorized dealers may negotiate 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 or the full export value
(b) An undertaking is obtained from exporter on the duplicate of GR / SDF / PP that he will surrender / account for the balance proceeds or the shipment within the period prescribed for realization.
In cases where exporter has not been able to arrange for repatriation of the undrawn balance in spite of best efforts authorized dealers, on being satisfied with the bonafides of the case may submit duplicate copies of GR / PP / SDF forms to Reserve Bank duly certified for the amount actually realized. Authorized dealers should however ensure that the exporter has realized at least the value for which the bill was initially drawn (excluding undrawn balances) or 90% of the value of GR / PP / SDF form whichever is more and a period of one year has elapsed from the date of shipment.