Write Off of Unrealized Export Bills :
An exporter who has not been able to realize the outstanding export dues despite best efforts, may approach the authorized dealer, who has handled the relevant shipping documents, with appropriate supporting documentary evidences with a request for write off of the unrealized portion. Authorized dealers may accede to such requests subject to the under noted conditions.
(a) The relevant amount has remained outstanding for one year or more….
(b) The aggregate amount or write oft' allowed by the authorized dealer during a calendar year does not exceed 10% of the total export proceeds realized by the concerned exporter through the concerned authorized dealer during the previous calendar year…
(c) Satisfactory documentary evidence is furnished in support of the exporter having made all efforts to realize the dues..
d) The overseas buyer has been declared insolvent and a certificate from the official liquidator indicating that there is no possibility or recovery of export proceeds produced.
e) The overseas buyer is not traceable over a reasonably long period of time.
f) The goods exported have been auctioned or destroyed by the Port / Customs / Health authorities in the importing country.
g) The unrealized amount represents the balance due in a case settled through the intervention of the Indian Embassy / Foreign Chamber of Commerce or similar organization….
The unrealized amount represents the undrawn balance of an export bill (not exceeding 10% of the invoice value) remained outstanding and turned out to be unrealizable despite all efforts made by the exporter.
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.
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 dishonor of the bills by the overseas buyer and there are no prospects or realization.
The case is not the subject matter of any pending civil or criminal suit.
The exporter has not come to the adverse notice of the Enforcement Directorate of the Central Bureau of Investigation or any such other law enforcement agency.
The exporter has surrendered proportionate export incentives if any availed of in respect of the relative shipments.
Where there is no further amount to be realized against the GR / SDF / PP form covered by the write off authorized dealer should submit the duplicate thereof to Reserve Bank along with R return duly certified as under.
Write off of _:
Stamp & Signature of Authorized Dealer :
Related Links :
Application for Dealership
Basic Agreement Forms
Basics of Business Letters
Business Idioms & Phrases
Business Promotion Letter
Business Proposal Letters
Forms and Pro-Formas
Going Out of Business Letters
Tenancy Related Letters
Types of Business Letters
Writing Business Letters
How to Export? Index
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