EXPORT BILLS PAYMENTS

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This query is : Resolved

Quick Summary

Export bills payments must be realised according to FEMA and RBI regulations, with exporters primarily responsible. However, third parties like banks or agents can assist in this process, provided proper documentation and authorisation are in place. It's crucial to ensure timely realisation of funds and to regularise any delays with the authorised dealer bank and the RBI.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
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20 February 2024 Whether export bill can be realized through some other party ?

RAJA P M

RAJA P M (Expert)
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20 February 2024 No... It's will be from that Customer

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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16 August 2025 Under the Foreign Exchange Management Act (FEMA) and the Reserve Bank of India (RBI) regulations, the realization of export proceeds must be in accordance with the prescribed timelines and procedures. While the exporter is primarily responsible for ensuring the receipt of export payments, there are provisions that allow for the involvement of third parties in the realization process.
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Key Points:
Third-Party Involvement:
Exporters can authorize a third party, such as a bank or an agent, to assist in the realization of export proceeds. This authorization should be formalized through appropriate documentation and must comply with FEMA guidelines.
Documentation Requirements:
The exporter must maintain proper records of all transactions, including the authorization of third parties, to ensure transparency and compliance with regulatory requirements.
Timely Realization:
It is crucial that the export proceeds are realized within the prescribed timelines. Failure to do so may attract penalties or adverse actions from regulatory authorities.
Regularization of Delayed Realization:
If export proceeds are not realized within the stipulated time, exporters are required to regularize the delayed realization with the Authorized Dealer (AD) bank and the RBI. This process involves providing justifications for the delay and seeking necessary approvals.

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