23 August 2013
For doing export to Iran, by mistake i have filed the export shipping bill in USD instead of INR. Whereas my payment has been received in INR in my UCO Bank. Now the UCO bank is demanding for the Shipping Bill in INR only. What is the solution to this problem ? How do i resolve this issue ?
24 August 2013
As per para 2.40 of the Foreign Trade Policy
All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realised in freely convertible currency.
However export proceeds against specific exports may also be realized in rupees provided it is through a freely convertible Vostro account of a non resident bank situated in any country other than a member country of ACU or Nepal or Bhutan.
Additionally, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his non-resident bank (after deducting the bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP.
Contracts for which payments are received through Asian Clearing Union (ACU)] shall be denominated in ACU Dollar. Central Government may relax provisions of this paragraph in appropriate cases. Export contracts and Invoices can be denominated in Indian rupees against EXIM Bank / Government of India line of credit.
in view of above,FIRST THERE IS NOT PROBLEM IN THIS CASE SUBMIT ONE COPY OF THIS PARA IN UCO BANK.
if problem does not short out then ORDERED you CHA (AND DOES NOT PAY THEIR PAYMENT TILL SHORTOUT) to amend the shipping bill from CUSTOM giving the said query raised by UCO BANK.
CAclubindia
