Conditions for Realization of export payment

Conditions for Realization of export payment

An export contract should clearly specify when, where and how the payment for exports would be made. The method of payment to be adopted in the international market depends upon the following factors:

(a) Agreement between the exporter and importer.

(b) Rules and regulations laid down by the RBI.

(c) Monetary and fiscal policy of the government.

(d) Laws affecting payment mechanism in the foreign country.

(e) Political situation in the world.

The method of export payment in India is subject to the following conditions:

a) Indian exporters must receive payments in terms of 'permitted currencies', such as, US dollars, Pound Sterling, and for which a fairly active market exists for dealing.

(b) Where payments are permitted in currencies other than 'permitted currencies', the authorised dealers should ensure that the foreign exchange so acquired does not become immobilized.

(c) The shipping documents must be submitted to an authorised dealer within 21 days of the date of shipment.

(d) The exporter must realize full export value of goods on the due date of payment or within six months from the date of export, whichever is earlier. Where it is not possible to realise export proceeds in the prescribed time period, the exporter is required to make an application to the RBI in prescribed form ETX (in duplicate) for extension.

(e) It is obligatory for every exporter in India to receive his payment through the intermediary of authorised dealers, i.e., commercial banks authorized to deal in foreign exchange.

(f) Indian exporters are also authorised to receive payments in the form of a bank draft, cheque, pay order, currency notes, traveler’s cheque, etc.) Provided the foreign currency so received is surrendered within the specified period to the authorized dealer of which the exporter is customer.

 

 

What happens if overseas buyer not paid export bills discounted.

What happens if proper tracking of goods not effected in export import business?

What happens if your buyer rejects cargo? What are the major problems if consignee not taken delivery of cargo?

What happens, if Bank not received money from buyer after discounting of export bills?

Transferability of Bill of Lading

Transhipment - A redefinition

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

Triangular export

Triangular shipment

Types of Insurance Documents.

How to make DA mode of payment safe

How to make delay in delivery of Shipment?

How to minimize import cargo clearance time? An open logic proposal to WTO

What happens, if cargo not cleared by importer

What happens, if HAWB number marks wrongly  

What happens, once Bill of Entry for Imports files?

What is ‘Combined Bill of Lading’

How to obtain a duplicate BL, if original bill of lading lost.

How to obtain GSP - Certificate of Origin?

How to obtain Phyto sanitary certificate. What is phytosanitary certification

How to obtain waiver on detention/ demurrage on imported goods/container from Shipping company/CFS

What is ‘Late BL release charges’

What is ATA carnet and how ATA carnet works?

What is Bank Guarantee to customs in Import

What is Bond execution with customs in imports and exports


Comments


gourav exports: I have exported goods to UK company, but he is not doing payment as I am an beginner so I didn't got insurance due to lack of knowledge. Payment terms with buyer:- payment will be done after 100% Quality Check. Now he has done so but not releasing my payment. Please suggest me, How can I get my payment from him and I also do not want to do business with him anymore.Can I Contact UK Police ?

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers