Cir. No.20/2002-RB, dt. 28/01/2002
- Document type
- Circular
- Reference no.
- B
- Dated
- Category
- A.P. (DIR Series) Circulars
Export of goods & services - Extension of period of realisation
Export of goods & services
Extension of period of realisation
Attention of all Authorised Dealers is invited to paragraph C.15 of A.P.(DIR Series) Circular No. 12 dated September 9, 2000, in terms of which cases where an exporter has not been able to realise proceeds of shipment within the prescribed period (i.e. within six months from the date of exports), for reasons beyond his control, the exporter is required to apply to Reserve Bank in form ETX for extension of period of realisation. It has now been decided that, without any reference to Reserve Bank, authorised dealer that has handled export documents may extend, after obtaining an application from the exporter, the period of realisation beyond six months from the date of export, where invoice value does not exceed US$ 1,00,000 subject to the following conditions:
- i. the authorised dealer is satisfied that the exporter has not been able to realise export proceeds for reasons beyond his control;
ii. the exporter submits a declaration that he will realise the export proceeds during the extended period;
iii. the extension may be granted upto a period of 3 months at a time and while considering the extension beyond one year from the date of export the total export outstandings of the exporter should not be more than 10% of the average of export realisations during the preceding three financial years.
3. Cases which are not covered by the above instructions including the undernoted cases would require prior approval from the Regional Office of the Reserve Bank.
- i. where the export invoices are under investigation by Enforcement Directorate/ Central Bureau of Investigation or other investigating agencies.
ii. where invoice value exceeds US $ 1,00,000 (except in cases covered under paragraph 2 above).
5. Authorised Dealers may bring the contents of this circular to the notice of their constituents concerned.
6. The directions contained in the circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).
Grace Koshie
Chief General Manager