How to Cancel or return IRM to the customer?

To return the Inward Remittance to the party, you'll need to follow the procedures outlined by the Reserve Bank of India (RBI) and the Foreign Exchange Management Act (FEMA).

Here's a general outline:

 1. Obtain a written request from the party: Get a formal request from the party stating their agreement to refund the amount.

2. Document the reason: Keep a record of the reason for returning the funds (price fluctuations and shipment charges). 

3. Contact the bank: Reach out to the bank's foreign exchange department (not the branch where you maintain your account). They will guide you through the process. 

4. Fill out the necessary forms: The bank will provide forms such as the "Application for Remittance" or "Refund of Inward Remittance".

 5. Provide required documents: Submit documents like the original remittance receipt, invoices, and any other supporting documents.

 6. Compliance with FEMA: Ensure compliance with FEMA regulations, such as obtaining permission from the RBI (if required).

 7. Refund the amount: The bank will process the refund and transfer the funds back to the party's account.

 Please note that the procedure and required documents may vary depending on the specific circumstances and bank requirements.