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Repatriation of export proceeds

19 January 2012

Sir/Madam,

If repatriation of export proceeds on business auxiliary services is not made within the time limit then what are the consequences??

If interest and penalty is charged then on what amount it is to be calculated & how?

Thank You in Advance

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2 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 19 January 2012

https://www.rbi.org.in/scriptts/ECMUserView.aspx?Id=30&CatID=10#Time6a_7

read

Time limit for Realisation of Export Proceeds

6A.7

In terms of Rule 8 of the Foreign Exchange Regulation Rules, 1974, as amended, the

amount representing the full export value of goods exported must be realised by an exporter on the due date for payment or within six months from the date of shipment, whichever is earlier. In respect of exports made to Indian-owned Warehouses abroad established with the permission of the Reserve Bank, a maximum period of 15 months is allowed for realisation of export proceeds. As regards consignment exports to CIS countries and East European countries, see Note C under paragraph 6C.8(ii).