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


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What happens, if buyer does not pay export bill?

If overseas buyer not paid your sale value of goods you exported, how can you claim such amount? Ok, you would have received amount from your bank this amount as pre-shipment or post shipment finance against such export consignment. However, if bank does not receives such amount, obviously bank debits back to your account.

Here, you have received your loan amount against your export bills from bank. What happens, if Bank not received money from buyer after discounting of export bills copy However, bank gets amount only as per your contract with buyer – say 60 days from shipment date.

What happens, if your buyer did not pay amount on time. Remember, you are discounting bills against the amount you need to receive from buyer after 60 days. So bank charges you a nominal interest rate for 60 days or till receiving money from your overseas buyer. If amount not paid by your buyer, your bank debits back the amount which you had received from bank. Bank also takes insurance with Export Credit Guarantee Corporation against you for an amount of the said export discounting bills. So if bank does not receive amount from overseas buyer, bank claims insurance from ECGC.

Bank covers Insurance from ECGC against whom - against default of payment by overseas Buyer or against default of payment by you?

Since bank pays amount to you as an exporter, bank covers insurance on default of payment against you and not against overseas buyer.

If you have not been approved by ECGC and if no ECGC insurance cover is available, the discounted amount with the applicable rate of interest will be debited to exporter’s account on default of payment by overseas buyer.

I hope, I could explain about default of payment by overseas buyer in exports and imports trade with its connection to finance already availed by bank against such consignment.


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Share below your experience and thoughts about the non payment of export bills by overseas buyer and its consequences to exporter who availed loan against the said export bills.

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Kanu Patel: Dear Sir, we had exported our products to Algeria Buyer- and Payment Terms- 60/90 days from B/l date, we have rutted original documents through our bank to buyer bank, buyer had released cargo but after the payments due date till date -Payment not received by our bank. Now what wqe can do in this case- Kindly give us properly guideline so we can take action.

Dinesh Mishra: Sir, if in case of export buyer default in payment and will make settlement with bank on personal assets and meanwhile bank also claim with ECGC so name stand in SAAL so in that case what will we do to remove our name from SAAL list. also noted that after long period all money also came but not in other bank.

TAPAN BANERJEE: would like to inform you that overseas Buyer made payment of sale value which we exported in 'INR' instead of dollar and Bank issued 'FIRC' in INR In that case how to release 'GR' Please assist

Md. Azad Kabir Khan: Dear All, I run my consultancy business about rereleasing payments. If you need such consultancy kindly contact me.

Sam: We made shipment on DA90days with ecgc cover.The buyer fail to make payment on due date.ecgc not paid insurance cover to us due various reasons given by ecgc.where as the bank received claim from ecgc and kept in suspense account and not adjusted towards our bill discounted liability Please advice on two things. 1.ecgc claim rejected from brach level and also from General Manager. What is the next steps to claim from ecgc. 2.what is the rules says if bank not adjusting the claim received from ecgc.

NEW STAR EXPORTS & IMPORTS: Sir, I exported vegetables worth $7425/- on 30.12.2014 but till now i do not get entire amount. Then how to get get BRC from bank ? Sir please guide me?

Bhupinder: Sir. In local LC bank discount LC after four days.The buyer paid amount after 65 days of receipt of good.who will pay the interest of 61 days .buyer or seller .LC condition was 90 days.

MOORTHY: Dear Sir, We are Star trading Exports house for 20 years, last 2016 there was an export bill which was defaulted by the overseas client and there is an ECGC claim for Rs. 2cr. In the meantime Bank had received Rs. 1.92 cr from ECGC towards the EPC account for which we had secured under SCR policy for Rs. 6.00 cr. Now there is a claim pending with ECGC for 2cr from Exporters side and Bank has already received 1.92cr from ECGC, Account is NPA and at the time of OTS settlement, we asked the bank to adjust the amount received from ECGC 1.92cr, but bank says it has to be repaid under RECOURSE to ECGC. there is a judgement, WHEN A CLAIM IS PENDING WITH ECGC BANK CAN ADJUST THE AMOUNT SO RECEIVED FROM ECGC as this does not fall under RECOURSE, can you share this sir, as my OTS with bankers is pending because of this.

Mohamed: I am straggling to get payment for the rice i have exported to a foreign country. How i have to move legally to get it

Ranjeet singh: Wt we can do if our exporter is not providing the proper quantity of goods two times in a row

Yogesh Rana: Sir, Can we adjust the payment received from another importer with different importer....

Krishnan : Export of cumin seeds was done in july 2017 from india to dubai and the buyer did not pay for the export till date. A small token amount was only paid. No action is taken regarding the same. People cheated us , lost almost 60 lakhs in the business. Now suffering for a livelihood as jard earned money lost on investment in business,

Asfar Shahzad: Sir i have sent rugs to a U.S buyer on 60 days D.A by bank but he has not paid me till now.

Vishal Puri: What happened if overseas buyers not pay any export of goods under LUT. In GST Audit

shashi: Hi, Buyer is not showing interest to take their shipment after order and neither they are paying which have decided 80% before shipment and rest 20% after checking the goods so what should we do now becasue complete goods are ready with us .

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