Reserve Bank of India vide its circular
RBI/2011-12/264 A.P. (DIR Series) Circular No. 47 dt. 17.11.2011
has delegated powers to AD-1 Category banks to accept applications from exporters to "Set Off" Export Receivables against Import Payables. Earlier this power was vested with RBI. This is a step towards liberalisation of Export - Import procedures.
The RBI cicurlar can be accessed at
Apart from various conditions the main conditions which need to be followed by importer / exporters are :
- All documents relating to the transactions (import / export) should be provided to the banker
- Returns in Form "R" seperately for Import and Export transactions should be provided to AD
- The "Set Off" will be against Imports & Exports which has been dealt with from the same overseas buyer and seller
- This facility will not be available from ACU countries namely - Bangladesh, Bhutan, Iran, Maldives, Myanmar, Nepal, Pakistan & Srilanka
This is quite a welcome step by RBI considering the volume of import / export transactions with a single entity. This will be a beneficial move especially for companies which have subsidiary abroad or is a subsidiary of a company situated abroad. This will not only help save transaction time but also transaction costs.
i need Clarification regarding RBI/2011-12/264 A.P. (DIR Series) Circular No. 47 dt. 17.11.2011 "Set Off" Export Receivables against Import Payables-liberalisation of procedures. we are a public limited company deals in import of medical equipments from overseas supplier and also disrtibuter in INDIA on behalf of foreign principles we procure the orders from pvt. and govt. hospitals through Letter of Credit and direct purchase. we are entitled for commission from the overseas supplier against the order procure on behalf of the supplier. now can we set off the commission receivable from the overseas supplier against the import payable under above circular.
ReplyDeletePls let us know the EXIM benefits if we opt under this route and procedural aspect to be taken care of
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