We are receiving the materials from abroad for repairing purpose. After repairing the materials, we re-export the same to the customer and they will remit the money into our bank account.
Now our banker informed that all these transaction shows in EDPMS as pending cases (Caution List) and asking us the cancel the shipping document.
What is the procedure to clear all these documents from EDPMS list as these transaction are not pure export?
10 July 2024
To address the situation where your transactions related to repairing imported materials and re-exporting them are showing in the EDPMS (Export Data Processing and Monitoring System) as pending cases or caution list, follow these steps to clear the documents:
### Steps to Clear Documents from EDPMS Caution List:
1. **Understand EDPMS Requirements:** - EDPMS is an electronic system maintained by the Reserve Bank of India (RBI) to monitor and regulate export and import transactions. It is used to track all export proceeds and ensure compliance with foreign exchange regulations. - Transactions appearing in the caution list typically require scrutiny or correction to meet regulatory requirements.
2. **Review the Transactions:** - Verify why the transactions related to your repairing and re-exporting activities are flagged in the caution list. It could be due to discrepancies in shipping documents, declaration of export proceeds, or compliance with export regulations.
3. **Communicate with Bank:** - Contact your banker or the concerned department handling EDPMS issues. Understand specifically why your transactions are flagged and what corrective actions are required. - Obtain details on the exact documents or discrepancies that need to be addressed for clearance.
4. **Rectify Documentation:** - Ensure all shipping documents, including invoices, packing lists, repair documentation, and export declarations (if applicable), are in order and accurately reflect the nature of your transactions. - If there are errors or omissions in documentation, rectify them promptly. This may involve canceling incorrect shipping documents and issuing corrected ones, as per your banker's advice.
5. **Submit Corrected Documents:** - Provide the corrected shipping documents to your banker. They will initiate the process to update EDPMS with the corrected information. - Include any additional information or declarations required by RBI or customs authorities to verify the legitimacy of the export transactions.
**Follow-Up and Compliance:** - Follow up with your banker to ensure that the corrected documents are processed in EDPMS promptly. - Comply with any further requirements or queries from RBI or customs authorities related to the flagged transactions.
**Maintain Records:** - Keep records of all communications, corrections made, and submissions related to the EDPMS caution list issue for future reference and audit purposes.
### Additional Considerations:
- If the transactions involve repair and re-export under specific RBI or customs regulations (such as Advance Authorization scheme, Duty-Free Import Authorization, etc.), ensure compliance with all regulatory requirements. - Seek guidance from a customs consultant or legal advisor if you encounter complex regulatory issues related to repair, import, and re-export transactions.
By following these steps and ensuring compliance with regulatory requirements, you should be able to clear your transactions from the EDPMS caution list effectively. Always maintain proactive communication with your banker and regulatory authorities to facilitate smooth processing of your export transactions.
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