image

RBI to withdraw exemption allowed to Exporters on clearance of outstanding shipping bills w.e.f.1 July 17

The Reserve Bank of India introduced comprehensive integrated computerised system for effective monitoring and follow-up of export transactions. This will help in reporting of advance remittance for exports and migration of old XOS data.

A comprehensive IT- based system called Export Data Processing and Monitoring System (EDPMS) has been developed for better monitoring of export of goods and software and facilitating AD (authorised dealers) banks to report various returns through a single platform, issued by RBI vide Notification no.  BI/2015-16/41, D.P. (DIR Series) Circular No.74  dated May 26, 2016.

Further, RBI had decided to grant temporary exemption up to 30 June 2017 to exporters whose IE codes were appearing in the Caution List in Export Data Processing and Monitoring System (EDPMS) on account of outstanding shipping bills for more than 2 years  in EDPMS.

This exemption was applicable to customers where the outstanding amount of export bills was up to 20 per cent of total export bills or the number of open export bills was up to 10 per cent as indicated in the Caution List appearing in the EDPMS system, subject to satisfaction of the Authorised Dealer based on following documentary evidence(s):

  • The exporter has declared that the export proceeds have been realised in full for the export bills lying open in EDPMS and eBRC has been issued by bank(s)
  • In cases where the bills are not realised/partially realised, then the exporter should have submitted request to AD bank(s) for
  1. Extension of time for realisation of export bills and/or
  2. Request to AD bank(s) for write off of export bills (fully or partially, as the case may be)
  • Request for cancellation of shipping bill has been submitted by the exporter to the Customs

This temporary exemption is scheduled to be withdrawn effective from 1 July 2017 which means that commencing 1 July 2017, exporters would be caution listed if any shipping bill against them remains open for more than two years in EDPMS provided no extension has been granted by the AD Category – I Bank or RBI. Also, post this date, there would be restrictions on handling the shipping documents/issuance of bank guarantees/effecting overseas direct investment of Caution Listed Exporters, should the temporary exemption be withdrawn by RBI.

profile image

About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

Corporate Law Referencer

Recent Articles

Recent Legal updates

Recent Gst Updates