Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Export payments from paypal - dgft closure process

Samraat (Business Head) (41 Points)

13 June 2017

Hi, I started exporting small shipments via PayPal through commercial mode from Pune. Banker is ICICI. To close the Shipping bill, ICICI bank asked CItibank for the FIRC's - which were provided on payment. However, CITIBANK FIRC only mentions amount and date when it was not received - not the senders details. Has any exporter faced this issue? What is the solution?

Reply
Follow
Share

4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177972 Points)
Replied 14 June 2017

Such problem generally arises when payer bank credits the payment in rupee currency. Ask Paypal to directly credit the foreign currency to your ICICI bank account. Then to issue FIRC with complete details will be over your Banker. May write to Citi Bank to give the certificate as per RBI directives.

Upgrade to CAclubindia Pro. Subscribe Now!

Samraat (Business Head) (41 Points)
Replied 15 June 2017

Hello Mr. Rambhia,

Unfortunatley, that is the main issue - PayPal only credits in rupees through Citibank. No option to get a direct $ credit.

Using PayPal is super easy for both seller and buyer - but these bank guys have made life hell. I took the buyer details directly from PayPal and gave them - now they are saying why does the name not match the GR copy (even when value, date etc match).

Any other exporter has faced this issue? And how did they resolve it.

shivam deval (student) (212 Points)
Replied 01 August 2017

Hello ,

I am facing same problem, Have you got soloution on this , Pls help.

Samraat (Business Head) (41 Points)
Replied 01 August 2017

After escalating to ICICI senior management, they agreed to take the PayPal remittance confirmations as proof (which I provided) and closed the GR's

Now the new issue is that in some cases the details of the payee do not match the place/person we shipped to. So now 10 such S.B's are held up and the morons want me to get a declaration signed from the buyer. So just keep banging your head on the wall while China races ahead. We are a clerk mentality people - everyone from Govt to Private sector - its a hopeless situation.