in Foreign Exchange
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.