The Formalities to be complied with by an Exporter under the Exchange Control Regulations and the control mechanism of Reserve Bank of India

The Reserve Bank ensures that the foreign exchange proceeds of goods are repatriated to India through the follow-up of export declaration forms. All exports from India should be declared on any of the following export declaration forms as is applicable:

(a) GR Form: For exports to all countries otherwise than by Post

(b) PP Form: For exports to all countries by parcel post, except when made on ‘value payable’ or ‘cash on delivery’ basis.

(c) VP/COD Form :  For exports to all countries by parcel post under arrangements to realise proceeds through the postal channel on ‘value payable’ or ‘cash on delivery’ basis.

Every exporter in India should obtain a code number from Reserve Bank. The application prescribed for obtaining the code number can be sent to the Reserve Bank directly by the exporter or it may be routed through his banker. The code number allotted to an exporter should be used by all their offices/branches in India. The code number should invariably be quoted in the export declaration forms for all exports made by the exporters or their offices/branches.

Procedure for GR Form

The GR form should be completed in duplicate by the exporter and the complete set should be submitted to the customs authorities on shipping the goods. The customs authorities would scrutinise the form with special care to ensure that the export is valid, the value declared is correct—there is neither over-invoicing, nor under-invoicing etc. When satisfied about these and other aspects, the customs would allow the export.

Customs would give their running serial number on both the copies of the GR form. They would also certify the value declared by the exporter on both the copies of the GR form and record the assessed value. The first copy thus completed by the customs would be forwarded directly by them to the Reserve Bank. When the Reserve Bank receives the form, a record is made by it of the export taking place under the relative GR form number.

The duplicate of the GR form, certified by the customs, would be returned to the exporter. Within twenty-one days of shipment, the exporter should lodge the duplicate of GR form with relative shipping documents and an extra copy of in-voice with an authorized dealer. The shipping documents are either purchased or taken for collection by the bank. The details of export bills purchased or taken for collection should be sent by banks every fortnight in Statement ENC, along with R. returns. When the Reserve Bank receives the statement from the bank, it is in-formed that steps are taken for receipt of export proceeds.

The duplicate copy of the GR form is retained by the bank. It is sent to the Reserve Bank after the bank receives full payment of the export bill. When the Reserve Bank receives the duplicate copy of the GR form duly signed by the bank, it is assured that full export proceeds for the particular transaction have been repatriated into India.

In the GR form, the exporter declares the name of the bank through which he would be routing the export documents. In case of delay in submission of bills to the bank of duplicate copy of GR form, the Reserve Bank takes up the matter with the bank mentioned in the form.

Procedure for PP Form

PP form is to be prepared by the exporter in duplicate. The postal authorities will allow export of goods by post only if the original copy of the form has been countersigned by an authorized dealer or Reserve Bank, except where the Reserve Bank has specifically waived the requirements of counter-signature in the case of the concerned exporter. PP forms should, therefore, be first presented by the exporter to an authorized dealer for counter-signature.

The authorized dealer will verify that adequate steps are taken to ensure that export proceeds will be received in India. For instance, the parcel should be addressed to the correspondent bank and not to the consignee. Or, export proceeds have been received in advance. Then, the authorised dealer will countersign the PP form and return the original to the exporter, who should submit it to the post office with the postal packet. The duplicate copy of the PP form will be retained by the authorised dealer to whom the exporter should submit relevant documents together with an extra copy of invoice for negotiation, within the prescribed period of 21 days.

Procedure for VP/COD Form

In the case of VP/COD form, only one copy is required to be completed and submitted to post office along with the relative parcel at the time of dispatch.

Show More

Related Articles

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker