Exporters can be cautioned if no effort for realization of export proceeds is made or if CBI, ED recommends: RBI

Mumbai, May 27 (KNN) The exporters would be caution listed if any shipping bill against them remains open for more than two years in Export Data Processing and Monitoring System (EDPMS)  provided no extension is granted by AD Category –I bank / RBI. The exporters can also be caution listed in case the trader is not making any efforts for realization of export proceeds or on recommendation of investigative agencies like CBI and ED.

To simplify the procedure for filing returns on a single platform and for better monitoring, it has been decided to integrate the returns related to (a) handling of shipping bills for caution listed exporters; (b) delayed utilisation of advances received for exports; and (c) exports outstanding with Export Data Processing and Monitoring System (EDPMS) which has been in operation since March 1, 2014, RBI has said in a notification.

To streamline the procedure, cautioning / de-cautioning of exporters has been automated. The AD category – I banks can access the updated list of caution listed exporters through EDPMS on daily basis. The list of all caution listed exporters would also be made available to AD category – I banks through their registered e-mail. Criteria laid down for cautioning / de-cautioning of exporters in EDPMS are as under:

The exporters would be caution listed if any shipping bill against them remains open for more than two years in EDPMS provided no extension is granted by AD Category –I bank / RBI. Date of shipment will be considered for reckoning the realisation period, RBI said.

Once related bills are realised and closed or extension for realisation is granted, the exporter will automatically be de-cautioned listed.

The exporters can also be caution listed even before the expiry of two years period based on the recommendation of AD banks. The recommendation may be based on cases where exporter has come to adverse notice of the Enforcement Directorate(ED) / Central Bureau of Investigation (CBI) / Directorate of Revenue Intelligence (DRI) /any such other law enforcement agency or the case where exporter is not traceable or not making any serious efforts for realisation of export proceeds.

In such cases, AD may forward its findings to the concerned regional office of RBI recommending inclusion of the name of the exporter in the caution list, the apex bank notification mentioned.

Reserve Bank will caution / de-caution the exporters in such cases based on the recommendation of AD Category – I banks.

AD Category – I banks will intimate the exporters about their caution listing, giving the details of outstanding shipping bills.

The exporters concerned should produce evidence of having received advance payment or an irrevocable letter of credit in their favour covering the full value of the proposed exports, RBI said.

Presently the export data in EDPMS is being captured only from the shipping bills generated.

It has now been decided to capture the details of advance remittances received for exports in EDPMS.

Henceforth, AD Category – I banks will have to report all the inward remittances including advance as well as old outstanding inward remittances received for export of goods / software to EDPMS. Further, AD Category – I banks need to report the electronic FIRC to EDPMS wherever such FIRCs are issued against inward remittances. (KNN Bureau)