Considering the ease of doing business and quicken the approval process pertaining to external trade, RBI has issued a circular, A.P. (DIR Series) Circular No. 08 dated 4th December 2020, empowering AD Banks on the following:
Direct Dispatch of Shipping Document: Till now, AD Banks were empowered to regularize cases of dispatch of shipping documents by exporter direct to the consignee or his agent resident in the country of the final destination of goods, equivalent to USD 1 million per export shipment. Now, AD banks are empowered to regularize the cases of direct dispatch of shipping documents without any limit subject to below conditions:
Write-off of Unrealized Export Bills: Till now, AD Banks were empowered to allow the write off upto 10% of the total export proceeds realized during the previous calendar year. This was cumulative limit available in a year. This circular empowers AD Banks to allow write off without any limit in the following cases, provided AD Bank is satisfied with the documentary evidences submitted to it:
Set-off of Export Receivables against Import payables: Till now, AD banks were allowing exporters/importers to set-off their outstanding export receivables against outstanding import payables from/to the same overseas buyer/supplier. Now AD banks are empowered for allowing such set-off with their overseas group/associate companies either on net basis or gross basis, through an in-house or outsourced centralized settlement arrangement subject to certain conditions as specified in the Circular.
Refund of Export Proceeds: Till now, AD banks were allowed to consider requests for refund of export proceeds of goods exported due to poor quality from India provided goods are re-imported into India. Many instances where re-importing of goods was not possible as the exported goods were auctioned/destroyed in the importing country, were being referred to RBI for approval. Now AD banks, while permitting refund of export proceeds of goods exported from India, shall: