'Set-off' of export receivables against import payables-Liberalization of Procedure
AS a measure of further liberalization, RBI has decided to delegate power to AD Category – I banks to deal with the cases of “set-off” of export receivables against import payables, subject to following terms and conditions:
++ The import is as per the Foreign Trade Policy in force.
++ Invoices/Bills of Lading/Airway Bills and Exchange Control copies of Bills of Entry for home consumption have been submitted by the importer to the Authorized Dealer bank.
++ Payment for the import is still outstanding in the books of the importer.
++ Both the transactions of sale and purchase may be reported separately in ‘R' Returns.
++ The relative GR forms will be released by the AD bank only after the entire export proceeds are adjusted / received.
++ The 'set-off' of export receivables against import payments should be in respect of the same overseas buyer and supplier and that consent for ”set-off” has been obtained from him.
++ The export / import transactions with ACU countries should be kept outside the arrangement.
++ All the relevant documents are submitted to the concerned AD bank who should comply with all the regulatory requirements relating to the transactions.
RBI A.P. (DIR Series) Circular No. 47 , dated: 17 November 2011