If after a bill has been negotiated or sent for collection the amount thereof is desired to be reduced for any reason, authorised dealer may approve such reduction if satisfied about genuineness or the request provided….
(a) The reduction does not exceed 10% of invoice value.
(b) It does not relate to an export of gold or silver jewellery or articles made out or cut polished diamonds.
(c) It does not relate to an export of commodities subject to floor price stipulations.
(d) The exporter is not on the exporters' caution list of RBI.
(e) The exporter should be advised to surrender proportionate export incentives availed of, if any.
In the case of exporters who have been in the export business for more than three years, reduction in invoice value may be allowed without any percentage ceiling subject to the above conditions as also subject to their track record being satisfactory i.e. the export outstanding does not exceed 5% of the average annual export realisations during the preceding three calendar years.
For the purpose of reckoning the percentage or outstanding export bills to average export realisutions during the preceding three calendar years, outstanding export bills in respect of exports made to countries racing externalisation problems may be ignored provided the payments have been made by the buyers in the local currency.