The Authorized Dealer’s obligations in respect of Exchange Control regulation pertaining to exports in the following cases are discussed : (i) Advance remittances received; (ii) Change of buyer/consignee; (iii) Shipment lost in transit; and (iv) Dispatch of shipping documents.
For each of the case mentioned, the provisions of Exchange Control Manual are as follows:
(1) Advance remittances received
Where part/full invoice value of goods exported has been received in advance, authorized dealer may certify the GR/PP forms provided he is satisfied about the receipt and no interest is involved. In cases where invoices indicate that the advance remittance received by exporter involves payment of interest to overseas remitter, authorized dealers should obtain prior approval of Reserve Bank before undertaking negotiation/collection of documents.
Where, however, exporters have obtained Reserve Bank’s permission for receiving interest-bearing advances and shown such interest as deduction in the invoice, authorized dealers may certify the deduction on the reverse of the relative duplicate copy of the GR etc. form citing the number and date of Reserve Bank’s approval. The appropriations made against every shipment must be endorsed on the original certificate of inward remittance of advance payment.
(ii) Change of buyer/consignee
Prior approval of Reserve Bank is not necessary if, after goods have been shipped, they are to be transferred to a party other than the original buyer in the event of default by the latter, provided (a) the goods are sold to the other party on the same terms and conditions on which they were initially sold, (b) reduction in price, if any, involved does not exceed 10% and (c) the realization of export proceeds is not delayed beyond the period of six months from the date of shipment.
(iii) Shipments lost in transit
When shipments from India for which payment has not already been received either by negotiation of bills under letters of credit or otherwise are lost in transit, authorized dealer must see that insurance claim is made as soon as loss is known. The duplicate copy of GR/PP form should be forwarded to Reserve Bank with following particulars regarding insurance: (a) Amount for which shipment was insured (b) Name and address of insurance company (c) Place where claim is payable.
In case where claim is payable abroad, authorized dealer must arrange to collect the full amount of claim due on the lost shipment through the medium of his overseas branch/correspondent and forward the duplicate copy of GR/PP form to Reserve Bank only after the amount has been collected. A certificate for the amount of claim received should be furnished on the reverse of the duplicate copy.
(iv) Dispatch of shipping documents.
(a) Authorized dealers should dispatch shipping documents to their overseas branches/correspondents as expeditiously as possible. Authorized dealers should ensure, particularly in case of exports to neighboring countries, that shipping documents are dispatched to their overseas branches/correspondents expeditiously so that documents reach the buyer before the carrying steamer discharges the cargo at the port of destination.
(b) Authorized dealers may dispatch shipping documents direct to the consignees or their agents resident in the country of final destination of goods in cases where the advance payment or an irrevocable letter of credit has been received for the full value of the export shipment and the underlying sale contract/letter of credit provides for dispatch of documents direct to the consignee or his agent resident in the country of final destination of goods.
(c) In cases not covered by (b) above also, authorized dealers may accede to the request of the exporter, for dispatch of documents by the authorized dealer, for whatever reason, direct to the consignee/agent provided the exporter is a regular customer of the authorized dealer and the authorized dealer is satisfied, on the basis of standing and track record of the exporter and the arrangements made for realization of export proceeds, that the request can be acceded to.