All Authorised Dealers
in Foreign Exchange

Dear Sirs,

Delayed Realisation of Export Procedures

In term of Notification No.FE-1/98-SB dated June8, 1998 circulated vide F.E. Circular No. 20 of 1998 , exporters are required to repatriate export proceeds on the DUE DATE of payment, or within four months from the date of shipment whichever is earlier. In case of Bills sent on collection basis, which includes discrepant documents drawn under letters of credit and not accepted by the L/C opening bank, the DUE DATE would be the date of payment determined as per terms indicated in the underlying contract or four months from the date of shipment whichever is earlier. However , in case any extension is allowed by the State Bank in the period prescribed for repatriation of export proceeds, the DUE DATE shall be deemed to be the date of expiry of the period of such extension.

2. Subject to the above, it has now been decide that except in the case mentioned below at Para 3, where an exporter does not repatriate export proceeds within three days of DUE DATE or within 4 months of the shipment date, whichever is earlier, he shall be entitled to export proceeds at the rate of exchange prevailing on the DUE DATE or at the rate prevailing on the date of realisation of export proceeds whichever is lower.

3. In respect of exports bills already overdue, the exporters shall be entitled to have rupee proceeds at the exchange rate prevailing on the date of realisation provided the proceeds are realised within 7 days from the date of issue of this Circular.