CIR. NO.61/2002-03-RB, DT. 14/12/2002
- Document type
- Circular
- Reference no.
- C
- Dated
- Category
- A.P. (DIR Series) Circulars
Write-off - of unrealised export bills - Surrender of export incentives
"Write-off" of unrealised export bills - Surrender of export incentives
2. While permitting "write-off" one of the conditions specified is that the export benefits, if any, availed of by the exporter are surrendered. It has, however, been brought to our notice that there were instances where exporters had not surrendered export incentives in respect of export bills for which "write-offs" were permitted by their bankers.
3. With a view to ensuring that exporters invariably surrender the export incentives in respect of export bills for which they seek "write-off", authorised dealers should obtain document/s evidencing surrender of export incentives availed of before permitting "write-off" for the relevant outstanding bills.
4. The authorised dealers are advised to put in a place a system under which their internal inspectors or auditors (including external auditors appointed by authorised dealers) should carry out random sample check/percentage check of "write-off" outstanding export bills.
5. The authorised dealers may please note that the terms and conditions stipulated in the circulars referred to above remain unchanged.
6. Authorised dealers may bring the contents of the circular to the notice of their constituents concerned.
7. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999).
Yours faithfully,
Grace Koshie
Chief General Manager