CS Diwaker Agrawal (COMPANY SECRETARY) (167 Points)
18 December 2008Hi friends
I have a query regarding bill negotiation under export of good -
After custom clearance , the Exporter will have to negotiate the relevant export bill through authorized dealers of Reserve Bank, viz., Banks.
So I want to know whether there is any mandatory requirement that the shipping bill can be sent to importer only through AD. Please refer the relevant rules/notification.
Regards
Diwaker Agrawal
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 30 December 2008
Shipping bill is not a negotiable instrument, and neither it is required to be sent to the importer.
Bill of lading is a negotiable instrument. In case of export, covered under letter of credit- invoice, bill of lading and packing list, along with a copy of shipping bill should be given to the bank within 21 days of export to negotiate (i.e. recieve payments).
CS Diwaker Agrawal
(COMPANY SECRETARY)
(167 Points)
Replied 30 December 2008
Hi rajesh
Thanks for reply. But my question is not solved since I want to know whether the documents like B/L, certificate of origin is required to be sent through Bank (AD) or these can be sent direct to importer even when exporter has not taken LC.
Regards
Diwaker
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 30 December 2008
When there is a letter of credit, these documents are required to be submitted to the bank for receiving payment against bill of lading.
If the export not covered by L/C, the documents can be sent directly to the importer. The exporter can recieve payment through banking channel.
You can sent export documents (Except Shipping Bill) direct to the customer in case you received advance payment.
Bank is involve for other payment terms like LC, DA, DP as the payment of bills have been done by bank on account of buyer. Shipping bill and copy of other documents should be submitted to bank ( for every export proceeds) for clearance of GR & for BRC in relevant time.
CAclubindia
