An exporter who has not been able to realize the outstanding export dues despite best efforts, may either self-write-off or approach the AD, who had handled the relevant shipping documents, with appropriate supporting documentary evidence.

The limits prescribed for write-offs of unrealized export bills are as under:

Self-write-off by an exporter (Other than Status Holder Exporter) 5%* *of the total export proceeds realized during the previous calendar year.
Self-write-off by Status Holder Exporters 10%*
Write-off by AD (Authorized Dealer) 10%*


2. The relevant amount has remained outstanding for more than one year.

3. Exporter made all efforts to realize the dues and satisfactory documentary evidence is to be furnished in support and the case falls under any of the undernoted categories:

  • The overseas buyer has been declared insolvent and a certificate from the official liquidator indicating that there is no possibility of recovery of export proceeds has been produced.
  • The overseas buyer is not traceable over a reasonably long period of time;
  • The goods exported have been auctioned or destroyed by the Port / Customs / Health authorities in the importing country;
  • 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) remaining 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 and
  • 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 of realization.
  • The exporter has surrendered proportionate export incentives, if any, availed of in respect of the relative shipments. The ADs should obtain documents evidencing surrender of export incentives availed of before permitting the relevant bills to be written off.
  • In case of self-write-off, the exporter should submit to the concerned AD, a Chartered Accountant’s certificate, indicating the export realization in the preceding calendar year and also the amount of write-off already availed of during the year, if any, the relevant EDF (export declaration form) to be written off, Bill No., invoice value, commodity exported, country of export. The CA certificate may also indicate that the export benefits, if any, availed of by the exporter have been surrendered.

Following shall not qualify for the write-off facility:

  • Exports made to countries with externalization problem i.e. where the overseas buyer has deposited the value of export in local currency but the amount has not been allowed to be repatriated by the central banking authorities of the country.
  • EDF (export declaration form) which is under investigation by agencies like, Enforcement Directorate, Directorate of Revenue Intelligence, Central Bureau of Investigation, etc. as also the outstanding bills which are subject matter of civil / criminal suit.

Write-off in cases of payment of claims by ECGC and private insurance companies regulated by Insurance Regulatory and Development Authority (IRDA)

  • AD shall, on an application received from the exporter supported by documentary evidence from the ECGC/private insurance companies regulated by IRDA confirming that the claim in respect of the outstanding bills has been settled by them, write-off the relative export bills.
  • Such write-off will not be restricted to the limit of 10 per cent indicated above.

Other Provision

FTP Para 2.54 Non-Realization of Export Proceeds

(a) If an exporter fails to realize export proceeds within time specified by RBI, he shall, without prejudice to any liability or penalty under any law in force, be liable to return all benefits / incentives availed against such exports and action in accordance with provisions of FT (D&R) Act, Rules and Orders made there under and FTP.

(b) In case an Exporter is unable to realize the export proceeds for reasons beyond his control (force-majeure), he may approach RBI for writing off the unrealized amount as laid down in Para 2.87 of Handbook of Procedures.

(c) The payment realized through insurance cover, would be eligible for benefits under FTP as per Procedures laid down in Para 2.85 of Handbook of Procedures

HBP (FTP Hand Book of Procedure) Para2.87 RBI write-off on export proceeds realization

Realization of export proceeds shall not be insisted under Foreign Trade Policy, if the Reserve Bank of India (RBI) or any “Authorised Bank” (authorised by RBI for this purpose) writes off the requirement of realization of export proceeds on merits and the exporter produces a certificate from the concerned Foreign Mission of India about the fact of non-recovery of export proceeds from the buyer. However, this would not be applicable in self – write off cases.

Effort have been made to make article error free, but it is possible that some error might have crept into this article. For any professional assistance feel free to contact CA Rajnish Kumar- Mobile :+91-8588867453/8130883807-Email: [email protected]

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  1. Dipika says:

    Dear sir,
    What to do if exports & amounts realized during previous calendar year is NIL? (In case of self write off due goods rejected)

  2. Bkvenkatnathan says:

    can we write off more than 10 % invoice value under self Write off . This will be within 10 percent of export realisation of previous year for status holders.

  3. Bkvenkatnathan says:

    In case of self write off is there restriction on 10 % value of invoice value or more than 10 % any amount of invoice value can be written off . This will be within 10 percent of export realisation of previous year for status holders.

  4. Ayu says:

    Please let me know , whether proceeds of preceeding year only includes those peoceedings against which BRCs are received or total export proceeds realised during previous calendar year

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April 2021