6C.7
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Part Drawings
In certain lines of export trade, it is the practice of exporters not to draw bills for the full invoice value of the goods but to leave a small part undrawn for payment after adjustment due to differences in weight, quality, etc. ascertained after arrival and inspection, weighment or analysis of the goods. In such cases, authorised dealers may negotiate bills, provided -
(a) undrawn balance is in conformity with the normal level of balance left undrawn in the particular line of export trade, subject to a maximum of 10 per cent of the full export value;
and
(b) an undertaking is obtained from exporter that he will surrender/account for the balance proceeds of the shipment within the period prescribed for realisation.
Authorised dealers should obtain the above undertaking from exporter on the duplicate copy of GR/PP form and should vigorously follow up such undertakings.
NOTE: In cases where exporter has not been able to arrange for repatriation of the undrawn balance in spite of best efforts, authorised dealers, on being satisfied with the bona fides of the case, may submit duplicate copies of GR/PP forms to Reserve Bank duly certified for the amount actually realised, provided the exporter has realised at least the value for which the bill was initially drawn (excluding undrawn balances) or 90% of the value declared on GR/PP form, whichever is more and a period of one year has elapsed from the date of shipment.