02 July 2016
Kindly provide the detailed procedure for compliance with FEMA & RBI notice in case of "non realisation of export proceeds due to the overseas buyer has not been traceable over a reasonably long period of time". We have Failed to recover 100% of total outstanding export proceed since more than 3 years after elapse of extension from RBI. Further there is no possibility to recover anything as buyer is non traceable.
As per Master Circular , i need a clarification regarding following :- Issue (1) The limits prescribed for “write-offs” of unrealized export bills are as under: Self “write-off” by an exporter (Other than Status Holder Exporter) 5%* Self “write-off” by Status Holder Exporters 10%* ‘Write-off” by Authorized Dealer Bank- 10%* *of the total export proceeds realized during the previous calendar year
Issues in Point (1):- (a) Then in case of eg. Total O/s export proceeds being US$ 14367, then it shall be write off by 5% by exporter in each calendar year that being US$ 718.35 and it shall take 20 years to write off full..
Kindly give your kind clarification on this.
(b) Whether to self write off or Through AD Cat. Bank. And what shall be procedure for both.
Issue (2) In case of self-write-off, the exporter should submit to the concerned AD bank, a Chartered Accountant’s certificate, indicating the export realization in the preceding calendar year and also the amount of write-off already availed of during the year, if any, the relevant EDF to be written off, Bill No., invoice value, commodity exported, country of export. "Do we have to obtain CA Certificate as abovementioned in circular."
02 July 2016
1 It is not write it off for 20 years. If your unrealized amount is 5% of your total export realization during the year you can self write off the full amount. You contact the AD bank they will guide you. 2 In case of self write off CA certificate is required.
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