Procedure for Realisation of Export Proceeds
The following is the Procedure for the realisation of export proceeds:
(a) Presentation of Documents to the Bank for Negotiation: After shipment of goods, the exporter is required to submit the shipping documents to an authorised dealer Within 21 days of the date of Shipment for negotiation, Submission of relevant documents to the bank and process of getting the payment from the bank is called "Negotiation of the Documents” and the documents are called 'Negotiable Set of Documents'. The set normally 
contains:
Bill of Exchange, Sight Draft or Usance Draft.
Full set of Bill of Lading or Airway Bill.
Original Letter of Credit.
Customs Invoice.
Commercial Invoice including one Copy duly Certified by the Customs.
Packing List.
Foreign exchange declaration forms, GR/SOFTEX/PP forms in duplicate.
Exchange control copy of the Shipping Bill.
Certificate of Origin, GSP or APR Certificate, etc.
Marine Insurance Policy, in duplicate.
(b) Despatch of Documents:
The bank negotiates these documents to the importer's bank in the manner as specified in the L/C. Before negotiating documents, the exporter's bank scrutinises them in order to ensure that alt formalities have been complied with and all documents are in order. The bank then sends the Bank Certificate and attested copies of commercial invoice to the exporter.
(c) Acceptance of the bill of exchange: Bill of exchange accompanied by the above documents is known as the Documentary Bill of Exchange. It is of two types:
Documents against Payment (Sight Drafts):
In case of sight draft, the drawer instructs the bank to hand over the relevant documents to the Importer only against payment.
Documents against Acceptance (Usance Draft):
In case of usance draft, the drawer instructs the bank to hand over the relevant documents to the importer against his 'acceptance' of the bill of exchange.
(a) Letter of Indemnity: The exporter can get immediate payment from his bathe on the submission of documents by signing a letter of indemnity. By signing letter of indemnity the exporter undertakes to indemnify the bank in the event of non-receipt of payment from the importer along with accrued interests.
(e) Realisation of Export Proceeds: On receiving the documentary bill of exchange, the importer releases payment in case of sight draft or accepts the usance draft undertaking to pay on maturity of the bill of exchange. The exporter’s bank receives the payment through importer's bank and is credited to exporter's account.
(f) Processing of GR Form: On receiving the export proceeds, the exporter’s bank intimates the same to the RBI by recording the fact on the duplicate copy of GR. The RBI verifies the details in duplicate copy of GB with the original copy of GR received from the Customs. If the details are found to be in order then the export transaction is treated to be completed.
Importance of Bill of Lading
Introduction to this web site.
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Is Customs House Agents (CHA ) required to be appointed mandatory?
Transferability of Bill of Lading
Transhipment - A redefinition
Travelers to India under import duty exemption, Frequently Asked Questions Part 2
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Is Letter of Credit LC safe for an Importer?
Is ON BOARD CERTIFICATE required for LC negotiation
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Transferability of Bill of Lading
Transhipment - A redefinition
Union territory tax (Rate) Notification No. 46 of 2017 DT 14th November, 2017, GST
Integrated Tax (Rate) Notification No. 49 of 2017 DT 14th November, 2017, GST
Central Tax Notification No 40 of 2017 dt 13th October, 2017 under GST
CUSTOMS Notification No. 77 of 2017 dt 13th October, 2017
Integrated Tax Notification No. 10 of 2017 DT 13th October, 2017, GST
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Power to grant exemption from tax, UTGST Act 2017
Section 6 of UTGST Act, 2017
Authorization of Officers, UTGST Act 2017
Period of retention of accounts, Sec 36 of CGST Act, 2017
Travelers to India under import duty exemption, Frequently Asked Questions Part 2
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Difference between IGST on International goods and IGST on domestic goods.
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